APA GROUP — Interim / Quarterly Report 2015

Mar 17, 2015

INNOVATING TODAY TRANSFORMING TOMORROW

MARCH 2015 IN THE PIPELINE APA GROUP 2015 Half Year Results Summary

Dear Securityholders

APA has continued to deliver a sound fi nancial performance for the six months ending December 2014. During the period, we announced the QCLNG Pipeline acquisition which not only adds 543 km to our 7,000 km interconnected east coast grid, but also enhances APA’s exposure to the burgeoning LNG industry in Gladstone. The acquisition is consistent with APA’s long term strategy that underpins our ongoing growth and, importantly, creates value for investors.

Our market capitalisation is now around $10 billion which ranks us within the top 30 companies on the ASX - a signifi cant and proud achievement for the business given we listed with a market capitalisation of less than half a billion dollars in 2000.

SOUND PERFORMANCE

A summary table of both our statutory and normalised results is provided overleaf. I will report on APA’s “normalised” results for the period, which exclude signifi cant items, as they are the more relevant measure of our operating performance. Notably, our key fi nancial measures were:

• an increase in earnings before interest, tax, depreciation and amortisation (EBITDA) - continuing business of 8.7 per cent to $401.3 million;

• cent to $111.2 million due primarily to the loss of equity earnings and tax implications of the fi nal dividend received from Envestra; and

• 21.5 per cent to $263.2 million and operating cash fl ow per security was up 20.0 per cent to 30.0 cents.

The results included a strong contribution from the South West Queensland Pipeline given the new enhanced capability from bi-directional fl ow and increased compression capacity, contribution from the Pilbara Pipeline System and the expanded Goldfi elds Gas Pipeline, new contracts on the expanded Mondarra Gas Storage Facility and additional revenue on the Amadeus Gas Pipeline.

include $430 million EBITDA relating to profi t recorded on APA’s sale of its Envestra shareholding, and $17 million from recovery of performance fees from Hastings Funds

Management following our prevailing in the NSW Court of Appeal. The after tax impact of these items was $356.0 million.

The Board has maintained the half year distribution at 17.5 cents, putting us on track to meet the full year guidance of at least 36.25 cents. Distributions were fully funded by operating cash fl ow and, with stronger normalised cashfl ow this half, the payout ratio is 55.6 per cent.

CONTINUED GROWTH

APA’s unrivalled gas infrastructure portfolio and industry expertise continue to drive growth and sustainable returns for securityholders. A number of recent expansion and enhancement projects have contributed to strong organic growth in the half year, while the profi t recorded on the sale of our Envestra shareholding is now available for investment in projects that meet APA’s strict criteria including the QCLNG Pipeline acquisition.

During the period, APA spent $162.0 million on growth capital expenditure, including expansions and enhancements to its gas infrastructure in New South Wales, Victoria, Queensland and Western Australia. These organic growth projects are an ongoing part of our business as we engage with our customers to fi nd innovative ways to provide services that leverage and enhance our interconnected infrastructure. We are on track to invest more than $300 million in growth projects for the full year.

The Diamantina Power Station project was completed during the half year with both Diamantina and Leichhardt gas-fi red power stations now fully online and commercially operating.

Enhancements and expansions to our 7,000 km east coast gas grid continue. These capital works will enable our pipelines to deliver gas bi-directionally, and more of it. An integrated grid provides APA with the ability to assist customers move gas across the eastern states easily and seamlessly which in turn, ensures security of gas supply for our customers.

Pipeline in Western Australia is due to commence in the second half of FY2015 with 16,500 pieces of line pipe safely delivered to various stockpile sites along the 292 km

pipeline route. Commencement date for services is 1 January 2016.

In December 2014, APA was shortlisted by the Northern Territory Government as part of its selection process for the construction, operation and ownership of the proposed North East Gas Interconnector - a pipeline connection between Northern Territory and eastern Australia. APA commenced its own two-year commercial feasibility study a year ago and will continue to progress this, with the government outcome not expected to be known until late calendar year 2015.

QCLNG PIPELINE ACQUISITION

In December 2014, APA announced an agreement with BG Group to acquire the Queensland Curtis LNG (QCLNG) Pipeline for US$5 billion – the largest transaction undertaken by APA to-date. The acquisition provides APA with take-or-pay contract revenue for 20 years and expands our interconnected east coast grid providing direct access to the growing LNG industry in Gladstone. Financial close of the acquisition is expected to be completed in the second quarter of 2015. We are fi nancing the purchase with a mixture of equity and debt, recently raising $1.8 billion of new equity from investors in December and January and securing a US$4 billion 2 year bridge debt facility.

OUTLOOK

Barring unforeseen circumstances, we expect our normalised continuing business EBITDA for FY2015 to be in the range of $816 million to $873 million. Excluding the estimated contribution from the QCLNG Pipeline, normalised EBITDA for the full year is expected to be in the range of $775 million to $790 million, an upward revision of some 4 per cent from our previous FY2015 EBITDA guidance of $740 million to $760 million.

Thank you for your continued support, especially that shown during the recent equity raising. I look forward to reporting APA’s full year results to you in August.

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Len Bleasel AM APA Group Chairman

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APA Group comprises two registered investment schemes, Australian Pipeline Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441), the securities of which are stapled together. Australian Pipeline Limited (ACN 091 344 704) is the responsible entity of those trusts. The registered offi ce is HSBC building, Level 19, 580 George Street, Sydney NSW 2000.

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FULLY COVERED DISTRIBUTIONS

FINANCIAL ACHIEVEMENTS 1H15 Normalised1 $ million Change % Normalised 1H15 Statutory $ million Change % Statutory Revenue 740.1 4.0 740.1 4.0 Revenue excluding pass-through2 522.7 2.6 522.7 2.6 EBITDA 402.3 0.9 849.6 113.0 EBITDA – continuing businesses 401.3 8.7 418.5 13.4 EBITDA – divested business3 1.0 n/m 431.0 n/m Prof t after income tax and non-controlling interests 111.2 (7.9) 467.3 287.0 Earnings per security (cents) 12.7 (8.6) 53.2 282.7 Operating cash f ow 263.2 21.5 280.4 34.6 Operating cash f ow per security (cents) 30.0 20.0 31.9 32.4 Distribution per security (cents) 17.5 n/m 17.5 – Distribution payout ratio (%) 55.6 – 52.2 – 1. Normalised f nancial results exclude signif cant items 2 hh i hih i i d On target to deliver distribution guidance for FY2015 0 10 20 30 40 50 60 1H15 FY14 FY13 FY12 FY11 FY10 cents 51.9 52.5 56.0 52.6 31.9 17.5 36.3 35.5 35.0 34.4 32.8 52.6 Operating cash fow per security Distribution per security	FINANCIAL ACHIEVEMENTS 1H15 Normalised1 $ million Change % Normalised 1H15 Statutory $ million Change % Statutory Revenue 740.1 4.0 740.1 4.0 Revenue excluding pass-through2 522.7 2.6 522.7 2.6 EBITDA 402.3 0.9 849.6 113.0 EBITDA – continuing businesses 401.3 8.7 418.5 13.4 EBITDA – divested business3 1.0 n/m 431.0 n/m Prof t after income tax and non-controlling interests 111.2 (7.9) 467.3 287.0 Earnings per security (cents) 12.7 (8.6) 53.2 282.7 Operating cash f ow 263.2 21.5 280.4 34.6 Operating cash f ow per security (cents) 30.0 20.0 31.9 32.4 Distribution per security (cents) 17.5 n/m 17.5 – Distribution payout ratio (%) 55.6 – 52.2 – 1. Normalised f nancial results exclude signif cant items 2 hh i hih i i d On target to deliver distribution guidance for FY2015 0 10 20 30 40 50 60 1H15 FY14 FY13 FY12 FY11 FY10 cents 51.9 52.5 56.0 52.6 31.9 17.5 36.3 35.5 35.0 34.4 32.8 52.6 Operating cash fow per security Distribution per security	FINANCIAL ACHIEVEMENTS 1H15 Normalised1 $ million Change % Normalised 1H15 Statutory $ million Change % Statutory Revenue 740.1 4.0 740.1 4.0 Revenue excluding pass-through2 522.7 2.6 522.7 2.6 EBITDA 402.3 0.9 849.6 113.0 EBITDA – continuing businesses 401.3 8.7 418.5 13.4 EBITDA – divested business3 1.0 n/m 431.0 n/m Prof t after income tax and non-controlling interests 111.2 (7.9) 467.3 287.0 Earnings per security (cents) 12.7 (8.6) 53.2 282.7 Operating cash f ow 263.2 21.5 280.4 34.6 Operating cash f ow per security (cents) 30.0 20.0 31.9 32.4 Distribution per security (cents) 17.5 n/m 17.5 – Distribution payout ratio (%) 55.6 – 52.2 – 1. Normalised f nancial results exclude signif cant items 2 hh i hih i i d On target to deliver distribution guidance for FY2015 0 10 20 30 40 50 60 1H15 FY14 FY13 FY12 FY11 FY10 cents 51.9 52.5 56.0 52.6 31.9 17.5 36.3 35.5 35.0 34.4 32.8 52.6 Operating cash fow per security Distribution per security
	0 10 20 30 40 50 60 FY cents 51. 3 D	1H15 FY14 FY13 FY12 FY11 10 9 52.5 56.0 52.6 31.9 17.5 36.3 35.5 35.0 34.4 2.8 52.6 Operating cash fow per security istribution per security

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

CAPITAL EXPANSION PROJECTS – CONTINUED GROWTH

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FY2014 FY 201 5 FY 2016
Eastern Goldfields New 292 km gas pipeline in the Goldfields
Pipeline region, WA
Goldfields Gas Pipeline Pipeline expansions COMPLETED 1H15
Moomba Sydney Southern lateral expansion for
northern gas flow;
Pipeline Bi-directional capability
ets and investments
Moomba Compression for eastern haul COMPLETED eline under development
compression transportation 1H15 eline (financial close pending)
erated assets
Victorian Southern and northern section capacity expansion; atural gas pipelines
Transmission Other capital expenditure as approved under the rage
System current access arrangement arm
NT Link
Roma Brisbane ed power station Feasibility study in progress
Bi-directional capability ocessing plant
Pipeline
Eastern haul (including Berwyndale
South West Wallumbilla Pipeline bi-directional flow) COMPLETED
Queensland Pipeline and additional compression capacity 1H15 QCLNG Pipeline
for deliveries to Gladstone LNG Financial close pending
Diamantina 242 MW gas fired power station COMPLETED
Power Station 60 MW back up generation 1H15 Berwyndale Wallumbilla Pipeline
Bi-directional capability
Roma Brisbane Pipeline
Bi-directional capability
APA assets and investments
APA pipeline under development Moomba Sydney Pipeline
Bi-directional capability
APA pipeline (financial close pending)
APA operated assets Eastern Goldfields Expansion
Other natural gas pipelines New 292 km pipeline under construction Moomba Sydney Pipeline
Gas storage southern lateral Capacity expansion
Wind Farm
Victorian Transmission
Gas-fired power station System Capacity expansion
Gas processing plant
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Complete Interim Financial Reports Information including webcast of the Interim Results presentation is available under “Investor Relations’ on our website www.apa.com.au

DISCLAIMER APA Group comprises two registered investment schemes, Australian Pipeline Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441), the securities of which are stapled together. Australian Pipeline Limited (ACN 091 344 704), the responsible entity of Australian Pipeline Trust and APT Investment Trust, is not licensed to provide fi nancial product advice in relation to securities in APA Group and this publication does not constitute such advice. Before relying on any statements in this publication, you should consider the appropriateness of the information, having regard to your own objectives, fi nancial situation and needs, and consult an investment adviser if necessary. Certain forward looking statements made in this publication are not based on historical fact and necessarily involve assumptions as to future events and analysis, which may or may not be correct. Such statements should not be relied on as an indication or guarantee of future performance.