APA GROUP — Interim / Quarterly Report 2016

Aug 23, 2016

financial results year ended 30 June 2016.

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24 August 2016

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disclaimer

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

The information in this presentation does not contain all the information which a prospective investor may require in evaluating a possible investment in APA Group and should be read in conjunction with the APA Group’s other periodic and continuous disclosure announcements which are available at www.apa.com.au. All references to dollars, cents or ‘$’ in this presentation are to Australian currency, unless otherwise stated.

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 seek professional advice if necessary. Past performance: Past performance information should not be relied upon as (and is not) an indication of future performance.

Forward looking statements: This presentation contains certain forward looking information, including about APA Group, which is subject to risk factors. “Forward-looking statements” may include indications of, and guidance on, future earnings and financial position and performance. Forward-looking 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 and include, but are not limited to, forecast EBIT and EBITDA, operating cashflow, distribution guidance and estimated asset life.

APA Group believes that there are reasonable grounds for these forward looking statements and due care and attention have been used in preparing this presentation. However, the 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. 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.

Non-GAAP financial measures: 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.

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strategic highlights Mick McCormack Managing Director and CEO.

financial highlights

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$ million	2016	2015	change
Statutory results
EBITDA	1,330.5	1,269.5	Up	4.8%
Net profit after tax	179.5	559.9	Down	67.9%
Operating cash flow(1)	862.4	562.2	Up	53.4%
Operating cash flow per security (cents)	77.4	56.5	Up	37.0%
Normalised results(2)
EBITDA from continuing businesses(3)	1,330.5	821.3	Up	61.8%
Net profit after tax	179.5	203.9	Down	12.0%
Operating cash flow(1)	862.4	545.0	Up	58.2%
Operating cash flow per security (cents)	77.4	54.8	Up	41.2%
Distributions
Distributions per security (cents)	41.5	38.0	Up	9.2%
Distribution payout ratio(4)	53.6%	68.8%	Down	15.2

Notes:

• (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. There were no significant items for the period, therefore normalised and statutory results are the same for FY16. FY15 $356.0 million of significant items (post tax).

• (3) EBITDA from continuing businesses excludes divested business for FY15 (EBITDA during FY15 from AGN (formerly Envestra)).

• (4) Distribution payout ratio = total distribution payments as a percentage of normalised operating cash flow. 10/08/2016

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success through investments and innovation

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• To meet our customers’ evolving needs in a dynamic energy market

East Coast Grid

  - **WGP** – full year contribution

• Investments

• to enhance our infrastructure

• to increase our service offering

  • Multi-asset and flexible services

  • Major bi-directional pipeline projects completed

  • SWQP and VNI contracts contributing

• to maintain comprehensive inhouse infrastructure expertise

• Innovation

Western Australia

• EGP commissioned and contracts commenced

• flexible multi-asset contracts

• Additional EGP contract

• in-pipe and capacity trading

• New contract at Mondarra

• hub services

• Integrated Operations Centre

IOC enabling dynamic asset and service management

• systems and processes

Growth investments

• $281.0 million growth capex

• $339.9 million acquisitions

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delivering for customers and the energy industry

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Since listing in 2000, APA has invested in…

• 2,000km+ pipelines added

• $2.5bn+ organic growth capex

• ~$10bn acquisition of complementary assets

• $150m+ in IT & asset management systems

Efficiency benefits of the East Coast Grid to the market of $120-$150m since 2012 and $15-32m p.a. going forward*

LNG case study

Southern markets case study

Customer request:

Market need:

• Borrow sizeable amount of gas

• Move gas from Queensland to South Australia for peaking gas fired generation, to alleviate electricity shortages in South Australia

• Repay that gas and park additional quantities of gas over the following week

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Benefits to customers:

• Avoided well turndowns

• Avoided unnecessary flaring

• Assisted with meeting production targets

Benefits to customers:

• Continuous supply of electricity to South Australian consumers

• No interruption of gas supply to NSW and Victorian consumers

*** Notes:** Study by The Brattle Group, 2016

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a disciplined and prudent approach to growth

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Acquisitions

Organic growth

Diamantina acquisition

• Enterprise value $700m

• Financial close on 31 March 2016

• Long term contracts with Glencore’s Mount Isa Mines and the Queensland government owned Ergon Energy

• Aligns with APA’s strategy of building out energy infrastructure assets

Eastern Goldfields Pipeline

• $140m capex spend

• 293km greenfield pipeline, connecting to APA’s Goldfields Gas Pipeline, delivering gas across 1,800km

• Foundation shipper AngloGold Ashanti’s mines at Tropicana and Sunrise Dam

EPX acquisition

• Enterprise value $130m

• Acquisition completed on 16 June 2016

• Long term contract with Qenos to 2030

• Aligns with APA’s core business of owning and operating transmission pipeline assets

• New customer already taking gas – Gold Fields’ Granny Smith

Victoria – Northern Interconnect

• $240m+ total capex spend

• 3 customers (EA, Origin, Lumo) entered into Phase 1 expansion taking delivery

• Work continues for other customers

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industry best practice in safety and operations

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Health and safety

• Zero Harm workplace

• Safeguard+ : new incident reporting platform

• Health & Safety audit – 95% compliance rating

• Conclusion of initial 3-year HSE Strategic Improvement Plan, a new 3-year plan commenced from FY17

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TRIFR [(1) ]
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LTIFR [(2) ]
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Environment

• Full compliance with relevant standards and regulations

• Increase in emissions and energy consumption relate to increase in compressor use (growing business)

Operational excellence - Enterprise Asset Management

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Scope 1 CO2 emissions [(3) ]
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• Integrated asset management system

• Standardised processes and systems for managing and maintaining all of our assets

• Ongoing initiatives on delivering improved crew utilisation and asset reliability

• Continue to build on solid foundation of in-house asset management expertise

Notes:

• (1) Total reportable injury frequency rate (TRIFR) is measured as the number of lost time and medically treated injuries sustained per million hours worked. All data includes both employees and contractors.

• (2) 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 data only.

• (3) In accordance with National Greenhouse and Energy Reporting obligations. Submitted in October 2015. FY16 numbers to be finalised in October 2016. Units = ‘000 tonnes

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Peter Fredricson Chief Financial Officer

reconciliation – statutory and normalised results

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$ million	FY2016	FY2015	Change
Revenue excluding pass-through(1)	Statutory Significant items Normalised 1,656.0 - 1,656.0	Statutory Significant items Normalised 1,119.2 - 1,119.2	Normalised
			48.0%
EBITDA – continuing businesses(2) EBITDA – divested business(3)	1,330.5 - 1,330.5 - - -	838.5 17.2 821.3 431.0 430.0 1.0	62.0%
			nm
EBITDA Depreciation and amortisation	1,330.5 - 1,330.5 (520.9) - (520.9)	1,269.5 447.2 822.3 (208.2) - (208.2)	61.8%
			(150.2%)
EBIT Net interest expense	809.7 - 809.7 (507.7) - (507.7)	1,061.3 447.2 614.1 (324.2) - (324.2)	31.9%
			(56.6%)
Pre-tax profit Tax	302.0 - 302.0 (122.5) - (122.5)	737.1 447.2 289.9 (177.2) (91.2) (86.0)	4.2%
			(42.5%)
Net profit after tax	179.5 - 179.5	559.9 356.0 203.9	(12.0%)
Operating cash flow	862.4 - 862.4	562.2 17.2 545.0	58.2%

Notes: Numbers 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 businesses.

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

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FY16 result: EBITDA by business segment

$ million	2016	2015	Change	% of EBITDA(4)
Energy Infrastructure Queensland 855.8 340.1 151.6% 60.4% New South Wales 121.7 120.8 0.7% 8.6% Victoria & South Australia 123.1 132.1 (6.8%) 8.7% Northern Territory 17.5 18.0 (2.8%) 1.2% Western Australia 217.6 212.6 2.3% 15.4%
Energy Infra total 1,335.6 823.6 62.2% 94.2% Asset Management 53.9 49.4 8.9% 3.8% Energy Investments 27.8 21.8 27.6% 2.0% Corporate costs (86.7) (73.6) 17.8% (6.1%)
Continuing business EBITDA(1) 1,330.5 821.3 62.0% CC/EBITDA(2) 6.1% 8.2% (2.1%) Divested business(3) 0.0 1.0 n/m Significant items 0.0 447.2 n/m Total EBITDA 1,330.5 1,269.5 5.1%

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.

(4) Continuing business operating EBITDA (i.e. Before Corporate costs)

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FY16 result: EBITDA by business segment EBITDA bridge

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• 6% organic growth achieved

• $469.3 million contribution from WGP, DPS and EPX

*** Note:** Includes net contribution from the 100% ownership of Wallumbilla Gladstone Pipeline, Ethane Pipeline Income Fund and the Diamantina & Leichhardt Power Stations.

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low risk business model

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Energy Infrastructure revenue split
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• APA has solid risk management processes in place

• Continue to manage counterparty risks by:

• Diversification of customers & industry exposures

By contract type

• Assessment of counterparty creditworthiness

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By customer industry
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By customer credit rating

• Entering into term contracts to support major capital spend

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FY16 operational summary – Energy Infrastructure

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East Coast Grid + Northern Territory

Western Australia

• EBITDA from APA’s ECG increased by 82%

• WGP contributed $475 million for the full year

• • Queensland assets performed strongly, increasing 17% (ex WGP), from expansions completed previously

• VNI expansion benefits reflected in NSW and Victoria, partially offset by weaker volumes and one-off item recorded in Victoria in FY15

• • Bi-directional capabilities across major ECG pipelines

• • Continued to asset and service enhancements to meet customer demand

• • Ongoing demand from customers to move gas around to manage market volatility

• EBITDA from WA assets increased by 2%

• EGP contributed 7 months’ earnings from AngloGold contract and 3 months from Granny Smith contract

• Mondarra benefited from new contract from well enhancement project commissioned during the year

• Partially offset by GGP regulatory decision

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FY16 operational summary – Asset Management, Energy Investments and Corporate costs

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Asset Management

Asset Management EBITDA

• Organic growth from more connections

• Natural gas = fuel of choice for more residential homes

• Customer contribution average remains ~$10m p.a.

Energy Investments

• EPX and DPS transferred out of the segment, into Energy Infrastructure as 100% owned assets

• Investments generally performed well

Corporate costs

• Corporate cost increased due to one-off items

Corporate costs

Energy Investment EBITDA

Note: Historical earnings from EPX and DPS in this graph is classified as Divested & transferred investments.

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capital expenditure and investment cash flows

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$ million	2016	2015
Growth capex
Regulated – Victoria	130.9	136.1
Non-regulated
Queensland	14.0	104.4
New South Wales	4.8	12.1
Western Australia	97.6	64.2
Customer contributions	5.3	2.7
Other	28.4	26.3
Total growth capex	281.0	345.8
Stay-in business capex	52.7	50.6
Total capex	333.7	396.3
Investments & acquisitions	339.9	5,888.0
Total capital & investment expenditure	673.6	6,284.3

Notes:

• (1) Capital expenditure (“capex’) represents cash payments as disclosed in the cash flow statement

Notes:

• (1) Value of acquisitions represents value of acquisitions as prescribed in the notes to the financial statements

• EGP construction, including Granny Smith connection (completed)

Growth capex projects included:

• MSP and RBP bi-directional projects (completed)

• VNI expansion (ongoing)

• Mondarra Gas Storage Facility enhancement (completed)

Acquisitions and investments included:

• Diamantina and Leichhardt Power Stations (50%  100% interest)

• • Ethane Pipeline (6%  100% interest)

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capital management

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• Cash and committed undrawn facilities of around $755.4 million as at 30 June 2016 to meet the continued capital growth needs of the business

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

• Key capital ratios are as follows:

Metrics(1)	Jun 2016	Dec 2015	Jun 2015
Gearing(1, 2) 66.4% 63.7% 63.4% Interest cover ratio 2.60 times 2.52 times 2.59 times Average interest rate applying to drawn debt(1, 3) 5.64% 5.69% 6.76% Interest rate exposure fixed or hedged 86.5% 93.9% 94.0% Average maturity of senior facilities 7.4 years 8.2 years 8.5 years

Notes:

• (1) For the purpose of the calculation, drawn debt that has been kept in USD (rather than AUD) 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 the US144A notes.

• (2) Ratio of net debt to net debt plus book equity.

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

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debt maturity profile

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• APA maintains diversity of funding sources and spread of maturities

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Note:

• (1) USPP notes of $86m matured in July2016 and were repaid

(2) USD denominated obligations translated to AUD at the prevailing rate at inception (USD144A - AUD/USD=0.7879, EMTN & Sterling - AUD/USD=0.7772)

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fully covered distributions

• FY2016 distribution payout ratio[(1, 2)] of 53.6%

• Distribution components:

• 31.46 cents APT profit distribution

• 1.78 cents APT capital distribution

• 7.63 cents APTIT profit distribution

• 0.63 cents APTIT capital distribution

• 41.50 cents

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APA’s Distribution Policy

• Fully covered by Operating Cash Flow

• Regard for capital needs of the business and economic conditions

• Grow generally in line with Operating Cash Flow

• Sustainable over the long term

• Funding growth with appropriate mixture of funds retained, debt and equity to maintain BBB/Baa2 ratings

Notes:

• (1) Distribution payout ratio: distribution payments as a percentage of operating cash flow. (2) Based on normalised operating cash flow.

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FY17 guidance

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• Based on current operating plans and available information, EBITDA for FY2017 is expected to be within a range of $1,425 million to $1,445 million

• Net interest costs for FY2017 expected within a range of $510 million to $520 million

• Distributions per security for FY2017 expected to be in the order of 43.5 cents per security, prior to the benefit of any franking credits that may arise as a result of the filing of the FY2016 tax return

Guidance waterfall

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Mick McCormack Managing Director and CEO.

APA supports objective of developing a liquid gas market

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Market dynamics

East coast gas consumption

• Gas consumption on the east coast of Australia has trebled in the last couple of years

• Gladstone export gas pipeline volumes show daily swing in volumes

• Gas transmission tariffs have not increased in real terms since 2002

Pipeline infrastructure has:

• Demonstrated track record of investing and innovating

• Provided customers with services and capacity they needed, when they needed them

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Source: AEMO

Wholesale gas price – east coast gas market average

Gladstone export gas pipeline volumes

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Source: Gas Price Trends Report, large industrial customer data, Feb 2016, Oakley Greenwood, commissioned for the Department of Industry, Innovation and Science

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Source: Gas Bulletin Board

APA’s growth strategy and opportunities

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Organic growth opportunities

• Over the short term (~3 years), $1.5bn opportunities are available • Pipeline extensions and expansions c.$700m

• • Expand renewables and generation foot print c.$500m

• • Expand mid-stream asset footprint c.$300m

Growth strategy

VNI expansion works

• Continuing in context of:

• Appropriate funding and capital structure

• Contracts with strong counterparties

• Appropriate allocation of risk between parties

• Leverage operational expertise

• Ongoing assessment of international opportunities

Emu Downs Wind Farm

Wallumbilla Compressor Station

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Mondarra Gas Storage Facility
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10/08/2016

supplementary information

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24/08/2016
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snapshot of APA

Australian gas transmission pipeline ownership by kilometres ~ APA is Australia’s largest gas pipeline owner ~

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APA Overview (Ticker: APA AU)

Market cap A$10.3 billion (as at 23 Aug 2016) ASX rank S&P/ASX 50

Credit rating Moody’s: Baa2 (outlook Stable) S&P: BBB (outlook Stable)

Note: includes SEA Gas Pipeline and Mortlake Pipeline Source: AER State of the Energy Market Dec 2015 ; Company reports; APA data as at 30 June 2016 and includes the Ethane Pipeline.

Total securityholder returns since listing vs index ~ Strong track record of delivering securityholder returns ~

Assets owned/ operated

~$20 billion

Gas transmission[(1)]

15,134km transmission pipelines Underground & LNG gas storage Gas distribution[(2)]

28,424 km gas mains & pipelines 1.3 million gas consumers

Other energy infrastructure 585 MW power generation 244 km HV electricity transmission Gas processing plants

Employees ~1,600

Notes:

• (1) Includes 100% of pipelines operated by APA Group, which form part of Energy Investments segment, including SEA Gas and EII.

Source: IRESS

• (2) Includes 100% of assets operated by APA Group in Queensland, New South Wales, Victoria and South Australia.

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group structure

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

• 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

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• Reporting business 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

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strong historical performance

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Normalised EBITDA Normalised operating cash flow Total assets Distributions

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Total assets
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debt facilities

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Total committed debt facilities at 30 June 2016

$ million	Facility	Drawn	Tenor
	amount	amount
2015 & 2016 Bilateral bank facilities	550	85	2 to 5year facilities maturingbetween May2018 to May2021
2015 Syndicated bank facilities	830	622	2.25, 3.25 and 5.25 year tranches maturing September 2017, 2018 and 2020
2003 US Privateplacement	96	96	15year tranche maturingSeptember 2018
2007 US Private placement	811	811	10, 12 and 15 year tranches maturing May 2017, 2019 and 2022
2009 US Private placement	185	185	7 and 10 year tranches maturing July 2016 ($85m repaid on maturity date of 1 Jul 2016)and July2019
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	12 year tranche maturing in November 2024
2012 Subordinated Notes	515	515	60 year term, first call date March 2018
2015 US144a/Reg S Notes(1)	1,777	1,777	10 and 20 year tranches maturing March 2025 and March 2035
2015 GBP Medium Term Notes(1)	1,140	1,140	15 year tranche maturing March 2030
2015 EUR Medium Term Notes(1)	1,826	1,826	7 and 12 year tranches March 2022 and 2027
Total	9,714	9,042

Note: (1) Notes have been hedged into fixed rate US dollar obligations.

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regulatory update

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• Approximately 10% of APA’s Energy Infrastructure revenues in FY16 was regulated revenue

• APA’s major regulatory resets over the next few years are as follows:

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• Goldfields Gas Pipeline access arrangement review

  • Western Australian Economic Regulation Authority (“ERA”) issued its final decision in June 2016

  • Tariff reduction stems mainly from a reduction in the rate of return; a change in methodology to calculate depreciation; a change in allocation of certain costs between regulated and unregulated services; and a clawback of revenues arising from higher tariffs during the 18 month delay in ERA’s decision

  • Regulated tariffs apply to approximately 20% of contracted shipper services

  • Clawback has been provided for in FY16 accounts

• Amadeus Gas Pipeline access arrangement review

• Australian Energy Regulator (“AER”) issued its final decision in May 2016

• The final decision will have minimal impact on APA’s revenue as the vast majority of service is provided at rates determined under contract

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economic regulation of gas pipelines and networks

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Regulator	•	The Australian Energy Regulator (AER) is responsible for the economic regulation of gas
		transmission and distribution networks and enforcing the National Gas Law and National Gas
		Rules in all jurisdictions except Western Australia
	•	The Economic Regulation Authority of Western Australia (ERA) is the independent economic
		regulator for Western Australia
Access	•	Apply for a fixed term, generally 5 years
arrangement	•	Set out the terms and conditions of third party access, including
		• At least one reference service that is commonly sought by customers – for pipelines, this is
		generally firm forward-haulage services
		• A reference (benchmark) tariff for the reference service
Reference	•	Provides a default tariff for customers seeking the reference service but tariffs can also be
tariff		negotiated for other services
	•	Determined with reference to regulated revenue, capacity and volume forecasts
Regulated	•	Determined using the building block approach to recover efficient costs
revenue		• Forecast operating and maintenance costs
		• Regulatory asset depreciation costs and
		• Return on asset capital (regulated asset base) based on WACC determination
	•	WACC based on 60:40 debt equity split
Regulated	•	Opening RABs have been settled with the regulator; there are no reassessments for approved
asset base		RABs
(RAB)	•	RABs adjusted every access arrangement period
		• Increased by capital added to the asset and reduced by regulatory depreciation costs
Regulatory	•	The larger distribution networks and some transmission pipelines are covered by economic
coverage		regulation
	•	Price regulated assets are those which the regulatory authorities have determined, among other
		things, demonstrate natural monopoly characteristics and a degree of market power
	•	Coverage can be revoked
	•	“Light-handed” regulation is effectively a negotiate/arbitrate regime, where tariffs are
		negotiated with users and are
		subject to determination by the regulator only where the customer initiates a dispute

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

Or visit the APA website at: www.apa.com.au

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