APA GROUP — Annual Report 2015

Aug 25, 2015

==> picture [842 x 186] intentionally omitted <==

Financial Results Year ended 30 June 2015

26 August 2015

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 nor does it contain all the information which a prospective investor may require in evaluating a possible investment in APA Group. 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. Forwardlooking statements can generally be identified by the use of forward-looking words such as, 'expect', 'anticipate', 'likely', 'intend', 'could', 'may', 'predict', 'plan', 'propose', 'will', 'believe', 'forecast', 'estimate', 'target', 'outlook', 'guidance' and other similar expressions within the meaning of securities laws of applicable jurisdictions and include, but are not limited to, forecast EBITDA, operating cashflow, distribution guidance and estimated asset life. 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 and are subject to risk factors associated with the industries in which APA Group operates. Such forward-looking statements, opinions and estimates are not guarantees or predictions of future performance and involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of APA Group, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. There can be no assurance that actual outcomes will not materially differ from these forward-looking statements, opinions and estimates. A number of important factors could cause actual results or performance to differ materially from such forward-looking statements, opinions and estimates.

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.

Non-IFRS financial measures: APA Group results are reported under International Financial Reporting Standards (IFRS). However, investors should be aware that this presentation includes certain financial measures that are non-IFRS financial measures for the purposes of providing a more comprehensive understanding of the performance of the APA Group. These non-IFRS financial measures include EBIT, EBITDA and other “normalised” measures. Such non-IFRS information is unaudited, however the numbers have been extracted from the audited financial statements.

Not an offer: This presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any security. In particular, this presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. Securities may not be offered or sold, directly or indirectly, in the United States or to persons that are acting for the account or benefit of persons in the United States, unless they have been registered under the U.S. Securities Act of 1933, as amended (the U.S. Securities Act), or are offered and sold in a transaction exempt from, or not subject to, the registration requirements of the U.S. Securities Act and any other applicable state securities laws.

Financial data: Investors should be aware that certain financial data included in this presentation are "non-GAAP financial measures" under Regulation G of the U.S. Securities Exchange Act of 1934, as amended. These measures are EBITDA, normalised EBITDA and statutory EBITDA. The disclosure of such non-GAAP financial measures in the manner included in the presentation may not be permissible in a registration statement under the U.S. Securities Act. These non-GAAP financial measures do not have a standardised meaning prescribed by Australian Accounting Standards and therefore may not be comparable to similarly titled measures presented by other entities, and should not be construed as an alternative to other financial measures determined in accordance with Australian Accounting Standards. Although APA Group believes these non-GAAP financial measures provide useful information to users in measuring the financial performance and condition of its business, investors are cautioned not to place undue reliance on any non-GAAP financial measures included in this presentation.

 2

APA FY15 Results Presentation

==> picture [843 x 141] intentionally omitted <==

Results overview and strategic highlights

Mick McCormack Managing Director and CEO

 3

APA FY15 Results Presentation

Sound financial performance

$ million	2015	2014	Change	Change
Statutory results
EBITDA	1,269.5	747.3	up	69.9%
Net profit after tax	559.9	343.7	up	62.9%
Operating cash flow(1)	562.2	431.5	up	30.3%
Operating cash flow per security (cents)	56.5	49.8	up	13.5%
Normalised results(2)
EBITDA from continuing businesses(3)	821.3	697.2	up	17.8%
Net profit after tax	203.9	199.6	up	2.1%
Operating cash flow(1)	545.0	439.7	up	23.9%
Operating cash flow per security (cents)	54.8	50.8	up	7.9%
Distributions
Distribution per security (cents)	38.0	36.25	up	4.8%
Distribution payout ratio(4)	68.8%	68.9%

(1) Operating cash flow = net cash from operations after interest and tax payments.

(2) Normalised results exclude one-off significant items, reflecting APA’s core earnings from operations.

(3) EBITDA from continuing businesses excludes EBITDA from divested business.

(4) Distribution payout ratio = total distribution payments as a percentage of normalised operating cash flow.

 4

APA FY15 Results Presentation

Growth across majority of APA’s assets

FY15 highlights

 Strengthening our capabilities in a dynamic market

• Expanding, extending and enhancing our infrastructure portfolio

• Inter-connecting gas resources to gas markets

 Organic growth

• SWQP & GGP expansions completed

• Maintaining a strong balance sheet

 Leveraging APA’s capabilities and assets

• Delivering solutions that enable customers to manage their energy portfolios flexibly and dynamically

• Assisting customers to manage their energy portfolios

• Increasing asset utilisation

 Industry leading expertise

• Comprehensive in-house infrastructure expertise and skills – infrastructure development, engineering, operations, commercial – across all of the assets we own and/or operate

• Victoria-NSW Interconnect expansion continues

• Short term flexible services

• WGP acquisition completed

• Integrated Operations Centre opened

 $343 million organic growth projects

 5

APA FY15 Results Presentation

Developing growth projects across the country

==> picture [558 x 447] intentionally omitted <==

----- Start of picture text -----

NT Link feasibility study
continues
GGP expansions
completed DPS completed
Wallumbilla and
Moomba compressions
Bi-directional capability
on SWP and BWP
WGP acquisition
IOC opened
Bi-directional
capability on RBP
EGP construction
and MSP due
commenced
1Q FY16
Completed projects Winchelsea
compression
Ongoing projects
VNI expansion to VNI expansion work
Possible routes for NT Link Windfarm 118TJ/d completed for further 30TJ/d
APA Group assets (VTS & MSP southern capacity increase
APA Group investments Gas storage facility lateral) commenced
Assets managed
Gas processing plant
(not owned by APA)
Gas power station
----- End of picture text -----

 Continue to connect resources to markets by working with our customers

 Committed projects underwritten by long term revenue contracts and/or regulatory arrangements

• Provision of new services responding to customers’ needs and developing new opportunities

• Achieved through funding from a solid balance sheet

==> picture [764 x 28] intentionally omitted <==

----- Start of picture text -----

Unrivalled, interconnected footprint with sustainable growth opportunities
----- End of picture text -----

 6

APA FY15 Results Presentation

Wallumbilla Gladstone Pipeline – US$4.6bn acquisition

• Welcome addition to APA’s East Coast Grid

WGP connection to Queensland Curtis Island LNG facility

• Financial close on 3 June 2015 – 4 weeks of contribution to APA earnings

• Addition of Gladstone delivery point to the East Coast Grid

• 20-year take-or-pay contracts with two highly credit-worthy counterparties

• APA processes, systems and governance in place

 Successful acquisition financing

• $1.8bn equity raising successfully completed in January 2015

• US$3.7bn global debt raising in three currencies across five tranches, with tenors ranging from 7 to 20 years

• FY16 net cashflows after servicing US$ denominated interest costs hedged into A$ ($250-255 million)

==> picture [400 x 28] intentionally omitted <==

----- Start of picture text -----

Australia’s largest pipeline acquisition completed
----- End of picture text -----

 7

APA FY15 Results Presentation

Victoria – New South Wales Interconnect

==> picture [798 x 510] intentionally omitted <==

----- Start of picture text -----

expansion continues
 Continuous expansion providing an
alternate route to Sydney and north
for multiple gas basins in offshore
Victoria
(Otway, Bass, Gippsland)
 VNI Expansions and
bi-directional capabilities allow gas
to flow freely from Victoria
to NSW/Qld and vice versa
 More supply options for gas users
 Capex 90 160 Capacity
More market options for gas Total capex - $245m
A$m TJ/d
producers 80 140
70
120
60 Capacity
100
50 (RHS)
80
40
60
Since Sep 2013, expansion projects 30
40
have seen more than doubling of 20
VNI capacity, with further projects 10 Incremental capex (LHS) 20
0 0
ongoing to treble to 148 TJ/d
Aug-13 Sep-13 Oct-13 Nov-13 Jul-15
APA FY15 Results Presentation Existing  8
Origin EnergyAustralia Lumo
Customer
----- End of picture text -----

• Continuous expansion providing an alternate route to Sydney and north for multiple gas basins in offshore Victoria

• VNI Expansions and bi-directional capabilities allow gas to flow freely from Victoria to NSW/Qld and vice versa

• More supply options for gas users

• More market options for gas producers

East Coast Grid – Australia’s gas superhighway

==> picture [300 x 353] intentionally omitted <==

----- Start of picture text -----

One
GTA
----- End of picture text -----

• A gas superhighway offering unprecedented levels of service innovation and flexibility:

• ~30 gas receipt and ~100 gas delivery points

• Storage (in-pipe, LNG)

• Multi-asset services

• Interruptible haulage and storage services

• Capacity trading and in-pipe trades

• Enabled by APA’s investments in:

• Pipeline connectivity

• Bi-directional capabilities

• Customer Management Systems

• Integrated Operations Centre (opened Apr 2015)

APA’s Integrated Operations Centre, Brisbane

• Basin-on-basin competition is now a reality

==> picture [55 x 14] intentionally omitted <==

Illustrative service flow, gas receipt and gas delivery points

• Shippers can easily and readily transport gas from any number of fields

==> picture [764 x 28] intentionally omitted <==

----- Start of picture text -----

APA’s East Coast Grid allows for basin-on-basin competition, benefiting the whole gas industry
----- End of picture text -----



APA FY15 Results Presentation

NT Link to East Coast Grid - update

==> picture [384 x 474] intentionally omitted <==

All routes have connection to:

 Existing APA infrastructure

 APA’s 7,500 km East Coast Grid

 APA commissioned feasibility study in Feb 2014

• Potential reserves of approximately 240 TCF

across 6 basins (Source: NT Government media release 19 February 2014)  Enables seamless transport between Timor Sea, Bass Strait, Sydney, Brisbane, Melbourne and Gladstone

 Multiple route options investigated

• dependent on contracted gas volumes

 NT Government’s NEGI process launched late 2014

• APA is one of four shortlisted bidders, with final proposals due September 2015

 10

APA FY15 Results Presentation

Developing a holistic energy solution in Western Australia

==> picture [808 x 481] intentionally omitted <==

----- Start of picture text -----


Solid organic growth in the emerging Perth
region energy precinct
–
Contributions up from Mondarra gas storage
facility and Emu Downs wind farm
PILBARA PIPELINE
SYSTEM

Serving mining operations in the Pilbara and
Pilbara mining Goldfields regions
region
–
Goldfields Gas Pipeline expansion projects
delivering for Rio Tinto and Mt Newman JV
GOLDFIELDS Eastern Goldfields Pipeline pipe laying
GAS PIPELINE
–
Goldfields Pilbara Pipeline System achieved strong growth
mining region
–
Construction of a new 293km pipeline supplying
EASTERNPIPELINE GOLDFIELDS energy to mining operations in the eastern
MONDARRA GAS
STORAGE FACILITY
Goldfields region commenced
 Capital costs underpinned by new long term gas
transportation agreements with AngloGold Ashanti
Perth
APA natural gas pipelines
Other natural gas pipelines
Gas storage
Gas production Operations in WA have continued their solid contribution
----- End of picture text -----

• Capital costs underpinned by new long term gas transportation agreements with AngloGold Ashanti

 11

APA FY15 Results Presentation

Focus on Safety and Operational Excellence

 Health and safety

• Long-term safety goal of Zero Harm – a program of continuous improvement

• Decrease in LTIFR[(1)] to 0.64, down from 0.80

• Second year of a 3-year HSE Strategic Improvement Plan

 Enhancing infrastructure operations and maintenance

• Consolidating pipeline control and monitoring operations to ensure high reliability

• Improving asset maintenance management systems and processes across the portfolio

• Adoption of global industry best practice

• (1) Lost time injury frequency rate (LTIFR) is measured as the number of lost time injuries per million hours worked. Data from FY14 includes both Employees and Contractors. Prior to that, employee only data.

==> picture [330 x 240] intentionally omitted <==

----- Start of picture text -----

Damian Both, Network Operations, Queensland
----- End of picture text -----

==> picture [292 x 146] intentionally omitted <==

----- Start of picture text -----

LTIFR [(1) ]
6.1
2.2 2.1
0.8 0.64
FY11 FY12 FY13 FY14 FY15
----- End of picture text -----

==> picture [763 x 52] intentionally omitted <==

----- Start of picture text -----

Looking after our people and assets improves service reliability, safety, operational efficiency and
extends the economic life of our assets
----- End of picture text -----

 12

APA FY15 Results Presentation

==> picture [842 x 186] intentionally omitted <==

Financial performance

Peter Fredricson Chief Financial Officer

 13

APA FY15 Results Presentation

Reconciliation – statutory and normalised results

$ million 2015 2014 Change	$ million 2015 2014 Change
Statutory Significant items Normalised Statutory Significant items Normalised Normalised Revenue excluding pass-through(1) 1,119.2 - 1,119.2 992.5 992.5 12.8%
EBITDA – continuing businesses(2) 838.5 17.2 821.3 697.2 - 697.2 17.8%
EBITDA – divested business(3) 431.0 430.0 1.0	50.1 - 50.1 nm
EBITDA 1,269.5 447.2 822.3 747.3 - 747.3 10.0% Depreciation and amortisation (208.2) (208.2) (156.2) - (156.2) (33.3%)
EBIT 1,061.3 447.2 614.1 591.1 - 591.1 3.9% Net interest expense (324.2) (324.2) (325.1) - (325.1) 0.3%
Pre-tax profit 737.1 447.2 289.9 266.0 - 266.0 9.0% Tax (177.2) (91.2) (86.0) 77.7 144.1 (66.4) (29.5%) Non-controlling interests nm - nm nm - nm nm
Net profit after tax 559.9 356.0 203.9 343.7 144.1 199.6 2.1%
Operating cash flow 562.2 17.2 545.0 431.5 (8.2) 439.7 23.9%

Note: Number in the table may not add due to rounding.

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

(2) Based on continuing business.

(3) EBITDA – divested business includes the net profit on the sale of AGN (formerly Envestra) of $430 million.

 14

APA FY15 Results Presentation

FY15 result: EBITDA by business segment

$ million	2015	2014	Change	% of EBITDA(3)	Historical EBITDA by business segment(1)
Energy Infrastructure
Queensland	340.1	234.5	45.1%	38.0%
New South Wales	120.8	115.6	4.5%	13.5%
Victoria & South Australia	132.1	130.0	1.6%	14.8%
Western Australia &
Northern Territory	230.6	204.2	12.9%	25.8%
Energy Infrastructure total	823.6	684.2	20.4%	92.0%
Asset Management	49.4	67.6	(26.8%)	5.5%
Energy Investments	21.8	18.0	20.9%	2.4%
Corporate Costs (‘CC’)	(73.6 )	(72.5 )	(1.4%)	(8.2%)
Continuing business
EBITDA(1)	821.3	697.2	17.8%
CC/EBITDA(2)	8.2%	9.4%	-1.2%
Divested business(3)	1.0	50.1	(98%)
Significant items	447.2	0.0	n/a
Total EBITDA	1,269.5	747.3	69.9%
Notes: Numbers in the table may not add	due to rounding.
(1) Continuing business EBITDA.

(2) As a % of Continuing business EBITDA before Corporate costs.

(3) Investment in AGN (formerly Envestra) sold in August 2014.

==> picture [763 x 28] intentionally omitted <==

----- Start of picture text -----

Expansion projects delivering ongoing earnings increases
----- End of picture text -----

 15

APA FY15 Results Presentation

FY15 EBITDA Bridge

$1,269.5m

==> picture [714 x 302] intentionally omitted <==

----- Start of picture text -----

Corporate
Costs
Energy
11.6%
Investments
Net operating EBITDA
Asset
growth from $447.2m
Management
$35.8m
Energy $109.1m $894.8m
$821.3m $1.0m
$747.3m $769.8m
($19.8m)
$697.2m ($73.6m)
($50.1m) $72.5m
----- End of picture text -----

==> picture [710 x 114] intentionally omitted <==

==> picture [763 x 27] intentionally omitted <==

----- Start of picture text -----

11.6% organic growth achieved in FY2015
----- End of picture text -----

 16

APA FY15 Results Presentation

FY15 Operational summary – Energy Infrastructure

• Expansion of the East Coast Grid capacity and service offerings continues:

Revenue Split by Contract Type

• EBITDA from APA’s East Coast Grid increased by 16.1% prior to inclusion of WGP

• WGP financial close reached on 3 June 2015, contributing $35m EBITDA in FY15, with US$355m EBITDA expected in FY16

• Moomba and Wallumbilla compression projects completed

• Victoria – NSW Interconnect 145% capacity expansion completed

• $21.4 million of flexible short term services revenue during FY15

• Western Australia benefit from expansions and ongoing energy needs from variety of customers:

• GGP expansion project completed in early FY15, contributed to the delivery of 12.5% increase in West Coast Grid EBITDA

==> picture [366 x 253] intentionally omitted <==

• EGP construction on track to deliver first gas in 2H FY16

==> picture [763 x 28] intentionally omitted <==

----- Start of picture text -----

Capacity increases at GGP, SWQP and organic growth delivered results for FY15
----- End of picture text -----

 17

APA FY15 Results Presentation

EBITDA by pipeline

==> picture [723 x 450] intentionally omitted <==

----- Start of picture text -----

FY15
FY14
FY13
FY12
FY11
-50 50 150 250 350 450 550 650 750 A$ m 850
Wallumbilla Gladstone Pipeline South West Queensland Pipeline Roma Brisbane Pipeline
Carpentaria Gas Pipeline Other Qld assets Moomba Sydney Pipeline
Victorian Transmission System SESA Amadeus
Goldfields Gas Pipeline Emu Downs Pilbara Pipeline System
Mondarra Other WA
----- End of picture text -----

 18

APA FY15 Results Presentation

FY15 Operational summary – Energy Investments & Asset Management

A$ m 80

Asset Management

One-off Customer Contributions

• Underlying earnings continue to grow

 60 Contributions  Reduction in one-off customer contributions for relocating APA infrastructure, however still generate 40 around $10m p.a. on average in the long term Underlying Asset

A$m 40 Customer Contributions 20 Management EBITDA 20

Average ~$9.9m 0 FY11 FY12 FY13 FY14 FY15 0 A$ m 80 FY11 FY12 FY13 FY14 FY15 60 Divested & Energy Investments transferred  Increased contribution from GDI, EII2 and SEA Gas 40 investments Pipeline Continuing 20  Sale of shares in Australian Gas Networks investments 0 FY11 FY12 FY13 FY14 FY15

Underlying Asset Management EBITDA

==> picture [763 x 28] intentionally omitted <==

----- Start of picture text -----

Core Asset Management and Energy Investments earnings remain stable
----- End of picture text -----

 19

APA FY15 Results Presentation

Corporate overheads stay flat vs growth

==> picture [449 x 416] intentionally omitted <==

• Corporate costs have remained flat over the last 5 years vis-à-vis growth of the business

• Corporate costs as a portion of EBITDA from continuing operating businesses is at 8.2%

• This is expected to further improve in FY16 with additional revenue and EBITDA from WGP

FY15 FY11 CAGR	FY15 FY11 CAGR	FY15 FY11 CAGR	FY15 FY11 CAGR
Revenue(1)	1,094	628	14.9%
EBITDA(2)	821	425	17.9%
Total Assets	14,653	5,428	28.2%
Market cap	9,182	2,470	38.9%
Enterprise value(3)	17,413	5,615	32.7%
Corporate costs (‘CC’)	74	59	5.8%
CC/EBITDA(4)	8.2%	12.1%

(1) Continuing business revenue, excluding pass-through revenue.

(2) Continuing business EBITDA.

(3) Market capitalisation plus Net debt at financial year end.

(4) CC as % of EBITDA from continuing business before corporate costs.

==> picture [763 x 27] intentionally omitted <==

----- Start of picture text -----

Business has grown significantly, but costs remain relatively flat
----- End of picture text -----

 20

APA FY15 Results Presentation

Capital expenditure

$ million	FY15(1) FY14(1)
Growth capex	136.1 65.5 104.4 206.6 12.1 13.2 64.2 73.2 26.3 23.8
Regulated- Victoria
Major Projects Queensland
New South Wales
Western Australia
Other
Total growth capex
Stay in business capex
Customer contributions
Total capex
Investments and acquisitions
Total capital & investment expenditure

Committed growth capex

==> picture [326 x 373] intentionally omitted <==

(1) Capital expenditure represents cash payments as disclosed in the cash flow statement.

==> picture [803 x 28] intentionally omitted <==

----- Start of picture text -----

Growth capital expenditure is expected to be in the range of $300 to 400 million p.a. for the next 2-3 years
----- End of picture text -----

 21

APA FY15 Results Presentation

Capital management

• Cash and committed undrawn facilities of around $1.6 billion as at 30 June 2015[(1) ]

.	.	Metrics(2)	2015	2014
		Gearing(3,4)	63.4%	64.2%
		Interest cover ratio	2.59 times	2.31 times
		Average interest rate applying to drawn debt(4)	6.76%	7.12%
		Interest rate exposure fixed or hedged	94.0%	72.8%
		Average maturity of senior facilities	8.5 years	5.4 years

• Credit ratings – S&P: BBB (outlook Stable), Moody’s: Baa2 (outlook Stable)

• Subsequent to the end of FY2015, APA established a new $830 million syndicated bank facility, replacing the existing $1.1 billion syndicated facility. This has reduced the cash and committed undrawn facilities available to around $1.3 billion

• (1) Subsequent to the end of FY2015, APA established a new $830 million syndicated bank facility, replacing the existing $1.1 billion syndicated facility. This has reduced the cash and committed undrawn facilities available to $1,316 million.

• (2) US$ denominated debt has been nominally exchanged at AUD/USD exchange rate at the respective inception date of 0.7772 for Euro and GBP MTN issuances and 0.7879 for US144a notes. (3) Ratio of net debt to net debt plus book equity.

• (4) Includes $515 million of Subordinated Notes.

==> picture [763 x 27] intentionally omitted <==

----- Start of picture text -----

Preserving a strong balance sheet and financial flexibility remains a core focus for APA
----- End of picture text -----

 22

APA FY15 Results Presentation

Capital management

 APA has received solid support from international debt capital markets

==> picture [811 x 390] intentionally omitted <==

(1) Does not include the US$4 billion syndicated bridge facility executed in November 2014 which is, as yet, undrawn Maintaining diversity of funding sources and spread of maturities

 23

APA FY15 Results Presentation

Fully covered distributions

cents

==> picture [473 x 363] intentionally omitted <==

----- Start of picture text -----

60
56.0
54.8
51.9 52.6 52.5
50.8
48.2
50
40
38.0
36.3
35.5
30 34.4 35.0
32.8
31.0
20
10
0
FY09 FY10 FY11 FY12 FY13 FY14 1H15
Operating cash flow per security Distribution per security
----- End of picture text -----

 FY15 distribution payout ratio[(1,2) ] of 68.8%

 Distribution components: 38.0 cents profit distribution nil capital distribution 38.0 cents  4.8% growth in distributions

(1) Distribution payout ratio: distribution payments as a percentage of operating cash flow.

(2) Based on normalised operating cash flow.

==> picture [763 x 27] intentionally omitted <==

----- Start of picture text -----

Growth in distributions underpinned by growth in operating cashflow
----- End of picture text -----

 24

APA FY15 Results Presentation

Outlook and FY2016 Guidance

• Statutory EBITDA for FY2016 expected within a range of $1,275 million to $1,310 million

• Includes US$ denominated contribution from Wallumbilla Gladstone Pipeline of approximately US$355 million

• Net interest costs for FY2016 expected within a range of $500 million to $510 million

• Growth capital expenditure expected within a range of $300 million to $400 million

• Distribution per security expected to be at least equal to 38.0 cents per security

==> picture [106 x 12] intentionally omitted <==

----- Start of picture text -----

$1,275m to $1,310m
----- End of picture text -----

==> picture [672 x 218] intentionally omitted <==

----- Start of picture text -----

3% to 7%
Organic growth
$821.3m
FY15 EBITDA from Continuing Organic growth Full year WGP contribution FY16 EBITDA guidance
businesses
----- End of picture text -----

• (1) WGP revenues are denominated in US$. Net cashflow after servicing US$ denominated interest costs has been hedged to A$.

Expected US$ denominated EBITDA and Net interest costs have been converted at the same exchange rate for the purpose of the guidance estimation.

Note: All conversions are based on AUD/USD exchange rate of 0.7804 as at 12.00pm 24 February 2015. FY2016 guidance includes 3% to 7% of organic growth plus full year contribution from WGP

 25

APA FY15 Results Presentation

==> picture [842 x 186] intentionally omitted <==

Outlook

Mick McCormack Managing Director and CEO

 26

APA FY15 Results Presentation

Connecting gas resources to gas markets

==> picture [475 x 377] intentionally omitted <==

----- Start of picture text -----

Darwin
Gladstone
Brisbane
Moomba
Perth
APA natural gas pipelines
Sydney
under development
Adelaide
Other natural gas pipelines
Gas storage
Gas production Melbourne
Gas resource
NT link potential pipeline routes
----- End of picture text -----

 Organic growth

• Capacity expansions, enhancements and new services

• New services and more flexible

• contracts supplement traditional take-or-pay

 Dynamic energy market conditions

• Assist customers to manage energy needs and portfolios

• Integrated operations centre provide holistic grid management

• Promoting transparent gas industry

 Greenfield developments

• Eastern Goldfields Pipeline

• NT Link – bids due September 2015

 M&A

• Consolidation of WGP, including possible operatorship

• Complementary broader mid stream assets

 27

APA FY15 Results Presentation

==> picture [842 x 186] intentionally omitted <==

Questions

 28

APA FY15 Results Presentation

==> picture [842 x 186] intentionally omitted <==

Supplementary information

 29

APA FY15 Results Presentation

APA Group structure

• APA is a stapled vehicle comprising two registered managed investment schemes:

APA Group Securityholders

• Australian Pipeline Trust (ARSN 091 678 778)

• APT Investment Trust (ARSN 115 585 441) is a tax pass-through trust

• Australian Pipeline Limited (ACN 091 344 704) is the responsible entity of the Trust and APT

• APA is listed as a stapled structure on the Australian Securities Exchange

• The units of the Trust and APT are stapled and must trade and otherwise be dealt with together

• APT Pipelines Limited (ABN 89 009 666 700) is APA’s borrowing entity, a company wholly owned by APT

==> picture [437 x 229] intentionally omitted <==

----- Start of picture text -----

Australian Pipeline Trust APT Investment Trust
(APT) (APTIT)
100%
100%
APT Pipelines Ltd
100%
Infrastructure
Australian Pipeline assets and
Limited
investments
(Responsible Entity)
----- End of picture text -----

• Reporting segments

• Energy Infrastructure : APA’s wholly or majority owned energy infrastructure assets

• Asset Management : provision of asset management and operating services for the majority of APA’s investments

• Energy Investments : interests in energy infrastructure investments

 30

APA FY15 Results Presentation

Australia’s largest gas pipeline owner by pipeline length, capacity and volume

APA Overview (Ticker: APA AU)

==> picture [800 x 417] intentionally omitted <==

----- Start of picture text -----

A$m
Normalised Continuing Business EBITDA [(1) ]
Market capitalisation A$9.5 billion (as at 25 August 2015)
$1,000m
CAGR: 14.8%
ASX rank S&P/ASX 50
$800m
Moody’s: Baa2 (outlook Stable)
Credit Rating
S&P: BBB (outlook Stable)
$600m
Assets owned/ ~ $19 billion
operated
$400m Gas transmission
14,700 [(2)] km transmission pipelines
$200m
Underground & LNG gas storage
Gas distribution
$0m
27,100 km gas network pipelines
FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
1.3 million gas consumers
Other energy infrastructure
585 MW power generation
Australian gas transmission 244 km HV electricity transmission
pipeline ownership Gas processing plants
Employees More than 1,600
(1) Normalised results exclude one-off significant items, reflecting APA’s core
earnings from operations.
(2) Includes 100% of the pipelines operated by APA Group which form part of
its energy investments including Ethane Pipeline Income Fund, SEA Gas
and EII. Figure does not include APA’s Eastern Goldfields Pipeline (293 km)
which is currently under construction in WA.
----- End of picture text -----

Source: AER State of the Energy Market Dec 2014 ; IMO Gas Market Statement of Opportunities Dec 2014; and APA data as at 30 Jun 2015.

 31

APA FY15 Results Presentation

Maximising value for securityholders

Total securityholder return since listing

==> picture [683 x 222] intentionally omitted <==

----- Start of picture text -----

1600
1400 TSR: 1,304%
TSR CAGR: 19.2% p.a.
1200
1000
800
600
400
200
0
----- End of picture text -----

==> picture [667 x 32] intentionally omitted <==

APA total securityholder returns S&P/ASX 200 accumulation index Utilities accumulation index

Indexed to 100 from listing date, 13 June 2000 to 30 June 2015 Source: IRESS data

==> picture [403 x 177] intentionally omitted <==

----- Start of picture text -----

60% Total annual return
47%
40% 33%
28% 30%
24%
22%
20% 12%
0%
2009 2010 2011 2012 2013 2014 2015
-20%
APA Total Securityholder Return
-40%
S&P/ASX200 Accumulation Index  32
----- End of picture text -----

APA FY15 Results Presentation

Stable and predictable cashflows

• Customers associated with many contracted assets provide essential services:

• Regulated gas distribution systems

• Major power generation facilities

FY2015 Revenue by Customer Credit Rating

FY2015 Revenue by Customer Industry Segment

==> picture [399 x 302] intentionally omitted <==

==> picture [369 x 302] intentionally omitted <==

==> picture [781 x 28] intentionally omitted <==

----- Start of picture text -----

Stable and predictable cash flow from regulated assets and long term contracts with quality customers
----- End of picture text -----

 33

APA FY15 Results Presentation

Balance sheet

$ million	30 June 2015 30 Jun 2014 Change
Current assets Property, plant and equipment Goodwill and other intangibles Other non-current assets	721.3 203.4 254.7% 8,355.2 5,574.5 49.9% 4,696.7 1,321.3 255.5% 879.7 873.4 0.7%
Total Assets	14,652.9 7,972.5 83.8%
Current debt Other current liabilities Total current liabilities Long term debt	164.4 - nm 644.4 373.5 72.5%
	808.8 373.5 116.5%
	9,141.5 4,708.3 94.2%
Other long term liabilities	320.0 394.2 (18.8%)
Total long term liabilities	9,461.5 5,102.5 85.4%
Total Liabilities	10,270.2 5,476.0 87.5%
Net Assets	4,382.7 2,496.5 75.6%

 34

APA FY15 Results Presentation

Debt facilities

Total committed debt facilities at 30 June 2015

$million(1)	Facility amount	Drawn amount	Tenor
2013 Bilateral borrowing	200	0	5 years maturing December 2018
2014 Syndicated facilities(2)	1,100	125	2.25,3.25 and 5.25year trances maturingSeptember 2016,2017 and 2019
2003 US Private placement	281	281	12 and 15 year tranches maturing September 2015 and 2018
2007 US Private placement	811	811	10, 12 and 15 year tranches maturing May 2017, 2019 and 2022
2009 US Privateplacement	185	185	7 and 10year tranches maturingJuly2016 and 2019
2010 AUD Medium Term Notes	300	300	10 year tranche maturing July 2020
2012 JPY Medium Term Notes	126	126	6.5 year tranche maturing in June 2018
2012 CAD Medium Term Notes	289	289	7.1 year tranche maturing in July 2019
2012 US144a/Reg S Notes	735	735	10 year tranche maturing October 2022
2012 GBP Medium Term Notes	536	536	12year tranche maturingin November 2024
2012 Subordinated Notes	515	515	60year term,first call date March 2018
2015 US144a/Reg S Notes	1,777	1,777	10 and 20 year tranches maturing March 2025 and March 2035
2015 GBP Medium Term Notes	1,140	1,140	15 year tranche maturing March 2030
2015 EUR Medium Term Notes	1,826	1,826	7 and 12year tranches March 2022 and 2027
Total	9,820	8,645

• (1) Australian dollars. Any foreign notes issued have been hedged into fixed-rate Australian dollar obligations.

• (2) Comprises three facilities, one of $400 million and two of $425 million. This facility was amended on 22 July 2015 to incorporate a new limit of $830m and 2.25, 3.25 and 5.25 year tranches maturing September 2017, 2018 and 2020.

 35

APA FY15 Results Presentation

 36  36

==> picture [843 x 141] intentionally omitted <==

APA FY15 Results Presentation APA FY15 Results Presentation

==> picture [842 x 186] intentionally omitted <==

For further information contact Yoko Kosugi Investor Relations, APA Group Tel: +61 2 9693 0049 E-mail: yoko.kosugi@apa.com.au

Delivering Australia’s energy

or visit APA’s website

www.apa.com.au