APA GROUP — Annual Report 2011

Aug 23, 2011

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ASX RELEASE

24 August 2011

The Manager

Company Announcements Office Australian Securities Exchange 4[th] Floor, 20 Bridge Street Sydney NSW 2000

Electronic Lodgement

Dear Sir or Madam

Company Announcement

I attach the following announcement for release to the market:

• 2011 Full Year Results presentation

Yours sincerely

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Mark Knapman Company Secretary

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Financial Results Year ended 30 June 2011

24 August 2011

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Result overview and strategic highlights

Mick McCormack Managing Director and CEO

2011 Result Presentation  2

Another solid result

	2011 $ million	2010 $ million	Change	Change
Operating cash flow	290	268	up	8 %
Revenue excluding pass‐through(1)	720	660	up	9 %
EBITDA (2)	492	460	up	7 %
Profit(3)	109	100	up	8 %
Operating cash flow per security (cents)	52.6	51.9	up	1 %
Distribution per security (cents)	34.4	32.75	up	5 %
Distribution payout ratio	65.7%	64.4%

• (1) Pass‐through revenue is revenue on which no margin is earned

• (2) EBITDA includes significant items pre tax of $2.5 million, made up of APA’s share of EII2 investment allowance concession benefit ($9.8 million), profit on the sale of APA’s investment in CAMS ($1.7 million), offset by transaction costs of the Emu Downs wind farm acquisition ($9.0 million)

• (3) Operating profit after tax and minorities, including loss from significant items after related income tax of $0.4 million

2011 Results Presentation  3

Delivering growth, security and value

• Enhancing our position in a growing market

• Expanding our energy infrastructure portfolio across Australia in line with increasing demand for gas and energy

 Secure operations and earnings

• Revenue underpinned by long term contracts or regulatory arrangements

• Internal capability managing and operating assets and investments and delivering on projects

• Balance sheet strength to fund growth sustainably

• Creating value for the long term

• Preserving or increasing the value of APA’s energy infrastructure portfolio through strategic development and acquisition of related projects

• Developing responsive energy infrastructure and service solutions to meet the requirements of our customers in a dynamic energy market

2011 Results Presentation  4

Strategic and operational highlights

Expanding APA’s energy infrastructure and investments

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Amadeus Gas Pipeline Acquired (buy‐out of the residual balance of the lease)

Facilitating the development of gas‐fired power generation in Mt Isa

Roma Brisbane Pipeline Completed lateral to industrial customer Commenced major expansion project

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Mondarra Gas Storage Facility Completed initial design and assessment work Commenced next stage of expansion

APA Gas Network Continued expansion into new housing areas

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Moomba Sydney Pipeline Continued mainline capacity expansion program Completed compressor reconfiguration

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Emu Downs Acquired wind farm and development site in support of gas infrastructure

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SEA Gas Pipeline ‐ Increased to 50% interest

Completed Young Wagga looping project

Envestra ‐ Increased to 33.0% interest

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APA energy infrastructure APA investments

Victorian Transmission System Completed northern section augmentation Commenced ring main expansion

HDF ‐ Increased to 19.4% interest

EII2 ‐ Completion of North Brown Hill wind farm (20.2% equity contribution)

Other natural gas pipelines

$500 million of growth capital expenditure and investments in FY2011

2011 Results Presentation  5

Strategic and operational highlights

Secure revenue and operations, strong balance sheet

• Long term revenue agreements with highly credit‐worthy parties for expansion and acquisitions

• Four new contracts with average term of around 20 years

• Successful debt refinancing and equity raising to fund growth

– All debt maturing in 2011 repaid or refinanced

• $352 million equity raised

• Internal operations providing skills and resources

• Repair and remediate flood damaged assets

• Involved in all expansion projects

2011 Results Presentation  6

Strategic and operational highlights

Creating value by maintaining or increasing earnings

• Developing total energy solutions for customers

• Using scale and industry expertise to provide customised services across assets

• Proposed gas fired power station for Mt Isa would provide cost effective energy solution (utilitising the Carpentaria Gas Pipeline)

• Emu Downs wind farm and development site provides the potential for supporting gas‐fired generation (utilising the Parmelia Gas Pipeline and Mondarra Gas Storage Facility)

• Continued program of operational excellence

• Improving operations and maintenance services, reducing capital costs and long term operational costs

• Investing in people and systems to retain and further develop internal expertise and industry know‐how

2011 Results Presentation  7

Sustainability reporting

 Health and safety

• Long‐term safety goal of Zero Harm ‐ program of continuous improvement

• Increase of LTIFR[(1)] to 6.2

  • 13 lost time injuries, 11 of which were back and knee related

  • Program in place to minimise the risk of these types of injuries occurring

• National APA health and safety system developed

• Natural gas and carbon reduction

• Carbon reduction policy – cost impact expected to be immaterial due to cost recovery mechanisms

• Promoting the use of natural gas in reducing carbon emissions – prudent and cost‐efficient transition fuel

 Community investment program

• “Building brighter futures” – implemented program promoting community partnerships and donations, and employee fundraising opportunities

(1) Lost time injury frequency rate (LTIFR) is measured as the number of lost time injuries per million hours worked

2011 Results Presentation  8

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Financial performance

Peter Fredricson Chief Financial Officer

2011 Result Presentation  9

Solid, consistent result

	2011 $ million	2010 $ million	Change
Total revenue excluding pass‐through(1)	720.3	659.5	9.2 %
Total revenue	1,102.0	989.5	11.4 %
EBITDA(2)	492.1	460.0	7.0 %
EBIT	391.8	368.5	6.3 %
Net interest expense	(247.1)	(229.4)	(7.7%)
Tax	(35.9)	(38.7)	7.3 %
Net profit(3)	108.5	100.4	8.1 %
Operating cash flow	290.0	267.8	8.3 %
Operating cash flow per security (cents)	52.6	51.9	1.4 %
Distribution per security (cents)	34.4	32.75	5.0 %
Distributionpayout ratio	65.7%	64.4%

(1) Pass‐through revenue is revenue on which no margin is earned

(2) EBITDA includes significant items pre tax of $2.5 million, made up of APA’s share of EII2 investment allowance concession benefit ($9.8 million), profit on the sale of APA’s investment in CAMS ($1.7 million), offset by transaction costs of the Emu Downs wind farm acquisition ($9.0 million)

• (3) Operating profit after tax and minorities, including loss from significant items after related income tax of $0.4 million

2011 Results Presentation  10

EBITDA by business segment

	2011	2010
	$ million	$ million	Change
Energy Infrastructure
Queensland	106.8	103.3	3.4 %
New South Wales	101.3	96.8	4.6 %
Victoria & South Australia	115.9	105.7	9.6 %
Western Australia & Northern Territory	99.8	102.7	(2.9 %)
Energy Infrastructure total	423.8	408.6	3.7 %
Asset Management	38.7	32.3	19.9 %
Energy Investments	27.1	19.1	42.1%
Total segment EBITDA	489.6	460.0	6.4 %
Significant items	2.5	‐
Total EBITDA	492.1	460.0	7.0%

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EBITDA split by segment
Energy
Investments
Asset 5.5%
Management
7.9%
Qld
21.8%
WA & NT
20.4%
NSW
20.7%
Vic & SA
23.7%
Energy
Infrastructure
86.6%
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APA’s portfolio diversity provides stability

2011 Results Presentation  11

Energy Infrastructure

Queensland

 Roma Brisbane Pipeline

• Completion of lateral to large industrial customer

• Commenced major expansion project, underpinned by revenue agreements

• Flood damage and repairs

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Repairing the Roma Brisbane Pipeline post floods

 Berwyndale Wallumbilla Pipeline

• 12 month revenue contribution (2010: 3 month)

 APA Gas Network

• 35 km new gas mains, 3,200 additional connections

• Access arrangement final decision

 Carpentaria Gas Pipeline

• Increased gas volumes and peak gas flow

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120
106.8
100
80 Berwyndale
Pipeline
60 APA Gas
Network
40
Carpentaria
Gas Pipeline
20
Roma Brisbane
‐ Pipeline
2008 2009 2010 2011
EBITDA $ million
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2011 Results Presentation  12
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Energy Infrastructure

New South Wales

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• Moomba Sydney Pipeline expansion

• 3[rd] year in 5‐year expansion program (FY11 capex $8 million, with total spend to date of $59 million)

• Compressor reconfiguration ($6 million)

• Fully contracted – gas transportation and storage services

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Young Wagga looping project ‐ construction

• Young to Wagga lateral

• Commissioned November 2010 ($38 million)

• Short Term Trading Market (Sydney hub) – Commenced 1 September 2010

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120
101.3
100
80
60 Central Ranges
Pipeline
40 Central West
Pipeline
20
Moomba
Sydney Pipeline
‐
2008 2009 2010 2011
EBITDA $ million
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2011 Results Presentation  13
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Energy Infrastructure

Victoria & South Australia

• Increased gas flow due to a cooler winter

• 8% increase in gas flows to 246 PJ

• Northern augmentation program completed

• Wollert compressor station upgrade, Springhurst and flow reversal

• Increased capacity for gas movement between Victoria and New South Wales

• Western outer ring main expansion, Sunbury

• Commenced first stage of expansion

• LNG storage facility capacity contract renegotiation (annual)

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Wollert compressor station, northern Victoria

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115.9
120
100
80
60 South
Australian
40 assets
Victorian
20
assets
‐
2008 2009 2010 2011
EBITDA $ million
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2011 Results Presentation  14

Energy Infrastructure

Western Australia & Northern Territory

 Goldfields Gas Pipeline

• 10% reduction in access arrangement reference tariffs (from August 2010), affecting ~40% of APA’s GGP revenue

• Merits review process underway

• Mondarra Gas Storage Facility

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Darwin city gate, Northern Territory
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• Commenced next stage of expansion

• 20 year agreement with Verve Energy

• Emu Downs wind farm acquisition ($172 million)

• Revenue contract for all output for remaining asset life (~20 years)

• Located near Parmelia Gas Pipeline and Mondarra Gas Storage Facility

• Amadeus Gas Pipeline acquisition ($63 million)

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120
99.8
100
Amadeus Gas
80
Pipeline
NGV WA
60
40 Parmelia Gas
Pipeline
20
Goldfields Gas
‐ Pipeline
2008 2009 2010 2011
EBITDA $ million
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2011 Results Presentation  15
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Asset Management and Energy Investments

Asset Management

• Increased revenue from Envestra asset management and additional third party work

• Added asset management of Wagga Wagga gas network acquired by Envestra

Energy Investments

• Increased investment in

• Envestra from 31.7% to 33.0%

• Hastings Diversified Utilities Fund from 16.8% to 19.4%

• SEA Gas Pipeline from 33.3% to 50%

• Completion of the North Brown Hill wind farm

• Asset owned by EII2

• APA 20.2% equity contribution of $20 million

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38.7
40
20
‐
2008 2009 2010 2011
EBITDA $ million
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Calibrating Envestra gas meters
40
27.1
20
‐
2008 2009 2010 2011
EBITDA $ million
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2011 Results Presentation  16
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Major capital expenditure[(1)]

Description of 2011 major projects 2011 $ million	2010 $ million
Growth capital expenditure
Regulated
Northern augmentation project 33.4 Victoria Transmission System	32.3
Includes southern network expansion 16.1 APA Gas Networks(Qld)	21.2
Major Projects
Roma Brisbane Pipeline expansion and lateral 19.6 Queensland expansion	11.6
MSP mainline expansion, Young to Wagga looping project 34.3 New South Wales expansion	31.1
Mondarra Gas Storage Facility 39.8 Western Australia expansion	14.4
National finance and customer systems 12.2 Other	10.0
Acquisitions
Amadeus Gas Pipeline, Emu Downs wind farm 228.8 Energy Infrastructure	83.3
SEA Gas pipeline, ENV, HDF, EII2 113.9 Energyinvestments	137.2
498.0 Total growth capex	341.1
18.0 Stay in business capex	14.7
516.0 Total	355.8

(1) Capital expenditure represents cash payments as disclosed in the cash flow statement for FY2010 and FY2011.

2011 Results Presentation  17

Funding FY11 growth capital expenditure

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2011
$ million
Growth capital expenditure 498
Funds
Operating cash flow 290
Less distributions, SIB capex, debt and
security issue costs, and cash retained (227)
Cash 63 63 12%
Distribution Reinvestment Plan 52
Institutional placement [(1)] 300
New equity 352 352 71%
New debt 83 17%
498
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(1) Institutional placement further supports 2012 ongoing growth capex

Cash flow remaining in the business is used to fund organic growth

2011 Results Presentation  18

Fully covered distributions

2011 distribution in line with guidance

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60
52.6
51.9
48.2
50
42.7
39.7
40
30 34.4
32.75
31.0
29.5
28.0
20
10
0
2007 2008 2009 2010 2011
Operating cash flow per security
Distribution per security
cents per security
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2011 distributions payout ratio[(1)] of 65.7% (2010: 64.4%)

(1) Distribution payout ratio:

total distribution payments as a percentage of operating cash flow

2011 Results Presentation  19

Prudent capital management

• Cash and committed undrawn facilities of $320 million at 30 June 2011

• Reduced debt headroom by cancelling $412 million undrawn syndicated bank facilities

.	.	2011 metrics	2011	2010
		Gearing(1) at 30 June	66.2 %	69.8 %
		Interest cover ratio at 30 June	2.03 times	2.11 times
		Average interest rate applying to drawn debt	7.47 %	7.52 %
		Interest rate exposure fixed or hedged	73.5 %	78.7 %

• $352 million equity raised through the Distribution Reinvestment Plan and institutional placement

• $525 million of new facilities (including 10 year AMTN) put in place as part of 2011 refinancing and funding process

• APA funding efficiently and cost effectively, even in current volatile markets

(1) Ratio of net debt to net debt plus book equity

2011 Results Presentation  20

Capital management strategy

• Managing balance sheet to maintain minimum investment grade credit rating metrics

• Standard & Poor’s BBB; Moody’s Baa2

• Refinancing program focused on extending debt maturity, diversifying funding sources and reducing borrowing costs

• Next refinancing obligation in June 2012

• AMTN and EMTN programs in place, and preparations advanced for a possible debt offering in another major market

• Optionality available in volatile markets

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2011 Results Presentation  21

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Outlook and guidance

Mick McCormack Managing Director and CEO

2011 Result Presentation  22

Maintain strategy for profitable growth

Continue to maximise value for securityholders

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 Enhancing APA’s portfolio of gas infrastructure assets in Australia’s growing energy market

• Capturing revenue and operational synergies

• Facilitating the development of gas related projects that enhance APA’s infrastructure portfolio

• Pursuing opportunities that leverage APA’s knowledge and skills base

• Strengthening financial capability

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2011 Results Presentation  23

Opportunities in the energy landscape

Growth catalysts

• Carbon  Carbon reducing measures increase price competitiveness of natural reduction gas

reduction

policy

  - Natural gas produces 30 to 50 per cent of the carbon emissions produced by current coal technologies in generating electricity

• New electricity demand to be met by gas‐fired generation and renewables

• Renewable energy targets

  • Gas fired generation supporting intermittent renewable generation, such as wind and solar

• Gas  Further discoveries of gas, and improved technologies to extract coal developments seam gas, tight gas and shale gas

  • Additional infrastructure required to move gas to markets

 Increasing diversity of customer base

Retailer  Increasing diversity of customer base activity  Services to optimise customers’ supply and demand portfolios

Investment in gas infrastructure imperative to deliver policy and market outcomes

2011 Results Presentation  24

Developing profitable growth opportunities

Growth capital expenditure

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Developing opportunities that
enhance the value of APA’s
energy infrastructure portfolio
Emu Downs
Further expansion of APA’s
wind farm
pipelines to meet growing demand
acquisition
for gas transportation and storage
services
Amadeus
Gas Pipeline
acquisition
Young Wagga lateral looping
Mondarra Gas Storage
Roma Brisbane Pipeline lateral Facility expansion
Central Ranges
Berwyndale Wallumbilla
Pipeline
Pipeline acquisition
acquisition
Mondarra Gas Storage Facility – initial works
Roma Brisbane
Carpentaria Gas Pipeline expansion Pipeline expansion
Goldfields Gas Pipeline expansion
Moomba Sydney Pipeline expansion – 5‐year program
APA Gas Network Queensland – expansion into new suburbs and housing development areas
Victorian Transmission System expansion – Brooklyn Lara looping – northern augmentation – Sunbury looping
FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 onwards
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$900 million of growth capital expenditure over the last four years

2011 Results Presentation  25

A cost effective energy solution for Mt Isa

APA and AGL are jointly proposing a cost effective and sustainable electricity solution for energy users in Mt Isa and surrounding regions

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• Energy efficient

• 240 MW combined cycle plant, with high energy efficiency of 55% (compared with Queensland coal fired generation efficiency of 35%)

• Local generation, with no transmission losses

 Cost efficient

• Use existing gas and electricity transmission infrastructure

• Ideally suited to expand in line with regional growth

• Significantly lower cost compared with Copper String transmission line alternative

• Significantly lower carbon impact than state grid electricity

• User pays

• No government subsidies

• No cost smearing across the state

2011 Results Presentation  26

Maximising value for securityholders

Operating cash flow

 Four years of organic growth

• Operating cash flow CAGR of 17.8%[(1)]

• EBITDA CAGR of 13.5%[(1)]

• Total securityholder return of 46%

Total securityholder return

(4 financial years from 30 June 2007)

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150 APA total securityholder returns
S&P/ASX 200 accumulation index
Utilities accumulation index
100
50
0
Jun‐07 Jun‐08 Jun‐09 Jun‐10 Jun‐11
Indexed to 100 from 30 June 2007 to 30 June 2011
Source: APA based on IRESS data
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290
300
268
250 234
192
200
150
100
50
0
2008 2009 2010 2011
$ million
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EBITDA

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492
500
460
444
414
400
300
200
100
0
2008 2009 2010 2011
$ million
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(1) Compound annual growth rate (CAGR) calculated from 2007 base year to 2011

2011 Results Presentation  27

Capital management and distribution policy

Capital management policy

• Continue to target strong BBB/Baa2 investment grade ratings through maintaining sufficient flexibility to fund organic growth and investment from internally generated and retained cash flows and, where appropriate, additional debt and equity funding

Distribution policy

• Maximising total securityholder returns by balancing the need to support funding of APA’s growth opportunities with the need to sustain and grow distributions over the long term

• distributions to continue to be sustainable over time and to be funded from operating cash flows

• distribution growth in step with the business and its funding requirements

 Distributions determined annually with regard to

• organic growth and investment opportunities available to APA

• ongoing capital markets environment

• focus on maintaining its strong investment grade ratings (BBB/Baa2)

• continue enhancing long term securityholder value

2011 Results Presentation  28

Guidance

 EBITDA – expected within a range of $530 million to $540 million

• Net interest cost – expected within a range of $260 million to $265 million

• Distribution – at least equal to FY2011 total distributions per security

APA ‐ developing attractive growth projects and enhancing its position in the fast‐growing energy infrastructure industry

2011 Results Presentation  29

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Supplementary information

2011 Result Presentation  30

APA profile

 APA is Australia’s largest natural gas infrastructure business

• Energy Infrastructure : gas pipelines, interconnected gas storage facilities across Australia, gas distribution networks in Queensland and New South Wales, and Emu Downs wind farm in Western Australia

• Asset Management : provides asset management, operating and maintenance services to the majority of its investments and other third parties

• Energy Investments : minority interests in energy infrastructure investments, including Envestra, SEA Gas Pipeline, Energy Infrastructure Investments, Hastings Diversified Utilities Fund, EII2 and Ethane Pipeline Income Fund

• APA generates secure cash flows from contractual and regulatory arrangements on its assets

• with more than 90% of revenue from regulated (natural monopoly) assets and long term contracts

• APA has direct management and operational control over its assets and investments

• no fee leakage or conflicts that arise with external management model

• employing over 1,100 skilled and experienced people who perform all commercial, engineering and operations functions for APA’s assets and investments

APA delivers more than half of Australia’s domestic gas usage

2011 Results Presentation  31

Financials

Key financial ratios

	2011	2010
Operating cash flow per security (cents)	52.6	51.9
Weighted average securities on issue (million)	551.2	516.2
Payout ratio	65.7 %	64.4 %
Earning per security (cents)	19.7	19.4
Interest cover ratio (times)	2.03	2.11
Gearing ratio	66.2 %	69.8%
Total assets ($ million)	5,428	4,982
Net assets ($ million )	1,668	1,395
Net tangible asset backing per security	$1.51	1.28

2011 Results Presentation  32

Financials

Cash flow

	2011	2010
	$ million	$ million	Change
Operating cash flow	290.0	267.8	14.6 %
Distributions (net of DRP)	130.9	103.1
Available operating cash flow	159.2	164.7	18.9 %
Operating cash flow per security (cents)	52.6	51.9	7.7 %
Distributions per security (cents)	34.4	32.75	5.6 %
Distribution payout ratio	65.7 %	64.4 %
Capital expenditure	173.3	135.4
Investments	113.9	137.2
Acquisitions	222.8	83.3

2011 Results Presentation  33

Financials

Revenue analysis by business segment

	2011	2010
	$ million	$ million	Change
Energy Infrastructure
Queensland	164.3	151.2	8.7 %
New South Wales	126.7	120.8	4.9 %
Victoria & South Australia	153.3	138.9	10.4 %
Western Australia & Northern Territory	157.5	155.4	1.4 %
Energy Infrastructure total	601.7	566.2	6.3 %
Asset Management	68.6	60.1	14.3 %
EnergyInvestments	27.1	19.4	39.7 %
Total segment revenue	697.5	645.7	8.0 %
Pass‐through revenue	381.7	329.9	15.7 %
Unallocated revenue	12.9	13.9	(6.7%)
Significant item(1)	9.8	‐
Total revenue	1,102.0	989.5	11.4 %

(1) Significant item of $9.8 million relates to APA’s equity share of the EII2 Investment Allowance Concession benefit

2011 Results Presentation  34

Financials

Total committed debt facilities at 30 June 2011

	Facility
Facility	amount(1)	Tenor
2009 Bilateral borrowing(2)	$150 million	August 2014
2011 Bilateral borrowings(3)	$225 million	July 2014
2007 Syndicated facility(2)	$900 million	June 2012
2009 Syndicated facility(4)	$618 million	2 and 4 year tranches maturing July 2011 and July 2013
2003 US private placement(5)	$394 million	10, 12 and 15 year tranches maturing Sept 2013, 2015 and 2018
2007 US private placement	$811 million	10, 12 and 15 year tranches maturing May 2017, 2019 and 2022
2009 US private placement	$185 million	7 and 10 year tranches maturing July 2016 and 2019
2010 Medium Term Notes	$300 million	10 year tranche maturing July 2020

• (1) Australian dollars. Any USPP notes issued in US dollars have been hedged into fixed‐rate Australian dollar obligations.

• (2) These facilities fully drawn at 30 June 2011.

• (3) Comprises three facilities of $75 million each. Undrawn at 30 June 2011 but since fully drawn.

• (4) Comprised a $103 million commitment maturing in July 2011 and a $515 million commitment maturing in July 2013. Nil drawn under the July 2011 tranche. Amount drawn under the July 2013 tranche was $506 million at 30 June 2011, but reduced to $230 million in August 2011.

• (5) $102 million of 7 year notes were repaid upon maturity on 9 September 2010.

2011 Results Presentation  35

Regulatory update

APA’s major price regulated assets Regulatory resets over the next five years

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• Regulatory resets are spread out over five years, with on average one reset per year

• Goldfields Gas Pipeline new access arrangement commenced on 20 August 2010

• APA Gas Network (Queensland) new access arrangement commenced on 1 July 2011

• Roma Brisbane Pipeline proposed access arrangement to be submitted October 2011

 Merits Review

• Goldfields Gas Pipeline written and oral submission to Western Australian Electricity Review board completed – decision expected by end 2011

• APA Gas Network (APT Allgas) has commenced merit review proceedings on AER’s determination of the debt risk premium parameter within the WACC – hearings expected within 2011 calendar year

2011 Results Presentation  36

APA asset and investment portfolio

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2011 Results Presentation  37

Disclaimer

This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) the responsible entity of the Australian Pipeline Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441) ( APA Group ).

Summary information

This presentation contains summary information about APA Group and its activities current as at the date of this presentation. The information in this presentation is of a general background nature and does not purport to be complete. It should be read in conjunction with the APA Group’s other periodic and continuous disclosure announcements which are available at www.apa.com.au.

Not financial product advice

Please note that Australian Pipeline Limited is not licensed to provide financial product advice in relation to securities in the APA Group. This presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire APA Group securities and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and consult an investment adviser if necessary.

Past performance

Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Future performance

This presentation contains certain “forward‐looking statements” such as indications of, and guidance on, future earnings and financial position and performance. Forward‐looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions.

This presentation contains such statements that are subject to risk factors associated with the industries in which APA Group operates which may materially impact on future performance. Investors should form their own views as to these matters and any assumptions on which any forward‐looking statements are based. APA Group assumes no obligation to update or revise such information to reflect any change in expectations or assumptions.

Investment risk

An investment in securities in APA Group is subject to investment and other known and unknown risks, some of which are beyond the control of APA Group. APA Group does not guarantee any particular rate of return or the performance of APA Group.

Not an offer

This presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any security.

2011 Results Presentation  38

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For further information contact

Delivering Australia’s energy

Chris Kotsaris Investor Relations, APA Group Tel: +61 2 9693 0049 E‐mail: chris.kotsaris@apa.com.au

or visit APA’s website www.apa.com.au