APA GROUP — Interim / Quarterly Report 2020

Feb 17, 2020

Australian Pipeline Ltd ACN 091 344 704 | Australian Pipeline Trust ARSN 091 678 778 | APT Investment Trust ARSN 115 585 441 Level 25, 580 George Street Sydney NSW 2000 | PO Box R41 Royal Exchange NSW 1225 Phone +61 2 9693 0000 | Fax +61 2 9693 0093 APA Group | apa.com.au

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18 February 2020

ASX ANNOUNCEMENT

APA Group (ASX: APA)

INVESTOR PACK

The following is attached for release to the market:

• APA Group investor pack for the half year ended 31 December 2019

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Nevenka Codevelle Company Secretary Australian Pipeline Limited

For further information, please contact:

Investor enquiries: Media enquiries: Jennifer Blake Louise Watson Head of Investor Relations Media Adviser Telephone: +61 2 9693 0097 Telephone: +61 2 8011 0591 Mob: +61 455 071 006 Mob: +61 419 185 674 Email: jennifer.blake@apa.com.au Email: lwatson@symbolstrategic.com.au

About APA Group (APA)

APA is a leading Australian energy infrastructure business, owning and/or operating around $21 billion of energy infrastructure assets. Its gas transmission pipelines span every state and territory on mainland Australia, delivering approximately half of the nation’s gas usage. APA has direct management and operational control over its assets and the majority of its investments. APA also holds ownership interests in a number of energy infrastructure enterprises including SEA Gas Pipeline, SEA Gas (Mortlake) Partnership, Energy Infrastructure Investments and GDI Allgas Gas Networks.

APT Pipelines Limited is a wholly owned subsidiary of Australian Pipeline Trust and is the borrowing entity of APA Group.

For more information visit APA’s website, apa.com.au

APA Group investor pack.

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As at 18 February 2020

Thanks for your interest in APA.

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In this pack you’ll find:

• Snapshot, Strategy and Value Proposition 4 - 13

• • Company Structure 14 - 16

• Financial Metrics 17 - 20

• • Gas Market Overview 21 - 24

• • Asset Specific Information 25 - 35

APA overview

3

snapshot of APA

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…a leading Australian energy infrastructure business

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Market capitalisation

$13.4 billion (as at 17 February 2020) $0.6 billion (as at 30 June 2000)

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Assets owned/operated ~$21 billion

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Credit ratings

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

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Gas transmission[(1)]

15,425 km transmission pipelines

Gas distribution[(2)]

~29,000 km gas mains & pipelines ~1.4 million gas consumers

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Listed S&P/ASX 50

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Employees ~1,800

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Gas fired power generation[(1)] 418 MW

Renewable energy generation[(1)]

149.3 MW Solar 342 MW Wind

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Register composition

Securities on issue: 1,179.9 million Securityholders: ~75,000 Institutional/retail: 70:30 Domestic/international: 75:25

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Gas storage

12,000 tonnes LNG 18 PJ gas

Gas processing

45 TJ/day processing plants

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Electricity transmission 244 km HV

Notes:

(1) Includes 100% of assets operated by APA Group, which form part of Energy Investments segment, including SEA Gas and EII. (2) Includes 100% of assets operated by APA Group in Queensland, New South Wales, Victoria and South Australia.

4

our footprint

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Darwin
APA assets and investments
APA operated assets
Other natural gas pipelines
Electricity interconnectors
Gas storage
Northern
Wind Farm Territory
Mount
Solar Farm Isa
Queensland
Integrated Operations Centre Gladstone
Western
Gas-fired power station Australia
Gas processing plant Wallumbilla
Brisbane
South
LNG plant Australia Moomba
New
South
Wales
Perth
Sydney
Adelaide
Victoria
Australian gas transmission pipeline ownership by kilometres
Melbourne
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Australian gas transmission pipeline ownership by kilometres

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Jemena 2,555 km
AGIG 4,265 km
15,425 km
SEA
APA Group Gas EII
0 1,500 3,000 4,500 6,000 7,500 9,000 10,500 12,000 13,500 15,000
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Tasmania
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Note: *** includes SEA Gas Pipeline and Mortlake Pipeline. Source:** AER State of the Energy Market November 2019 ; Company reports; APA data as at 31 December 2019 and includes the Ethane Pipeline.

5

APA’s strategy

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• Deliver services our customers value consistent with our Customer Promise

• Continue to strengthen asset and stakeholder management, development and operational capabilities

• Our growth focus is to enhance our portfolio of:

• gas transmission pipelines

• power generation: gas-fired and renewable energy

• midstream energy infrastructure assets, including gas storage and gas processing

• Explore growth opportunities in our core business of gas transmission and distribution in North America

• Maintain APA’s financial strength

6

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asset portfolio development

2017-2019 APA’s largest organic growth capex

20 years / >$14 billion of investment into the Australian gas market

program ~$1.5 billion of energy infrastructure added to APA’s footprint over the 3 year period

2014-2016 Access to LNG export 2011-2013 market – Creation of the East Wallumbilla Gladstone – Coast Grid Pipeline, APA’s first “off shore” asset APA’s East Coast Grid – (revenue in USD) comprises of 2006-2010 7,600 kilometres of – Acquisitions includes More growth interconnected gas – Wallumbilla Gladstone – Obtained investment transmission pipeline, over Pipeline grade credit ratings 40 receipt points and ~100 – Diamantina and – 2001-2005 giving access to delivery points. It provides flexibility for our customers Leichhardt Power – Stations (50% to 100%) Asset consolidation global debt markets to seamlessly move gas – Moomba to Sydney – throughout eastern Ethane Pipeline (6% to Acquisitions: Acquisitions: Australia. - – Victorian Transmission 100%) Roma Brisbane Pipeline (remaining 15%) System Acquisitions: - Carpentaria Gas – Central Ranges Pipeline – South West Queensland – Pipeline Berwyndale Wallumbilla Pipeline - (remaining 30%) Pipeline – Pilbara Pipeline System - Mondarra Gas Storage – Amadeus Gas Pipeline 13 Jun 2000 Facility Credit ratings: – Emu Downs Wind Farm Listed on the -- Parmelia Gas PipelineGoldfields Gas Pipeline –– Moody’s Baa2S&P BBB ASX interest increased to 88.2%

Reedy Creek Wallumbilla Pipeline Yamarna Gas Pipeline and Gruyere Power Station Orbost Gas Processing Plant Agnew Lateral Mt Morgans Gas Pipeline Emu Downs Solar Farm Badgingarra Wind and Solar Farms

Darling Downs Solar Farm

~$15 b ~15 bassetTotal Total

1 foundation contract: Moomba Sydney Pipeline

$6.9 b

$3.0 b $3.1 b $1.3 b

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~$1 b
Total
asset
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7

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our value proposition

“…owner and operator of energy infrastructure underwritten by long term contracts with highly creditworthy counterparties…”

Quality & diversified infrastructure

Ongoing organic growth

Low risk business model

8

why invest in APA?

 Uniquely integrated energy infrastructure portfolio

• Interconnected gas transmission pipeline grid / quality infrastructure assets

• Provide customers with flexibility – multi asset and/or multi service contract options

• Integrated Operations Centre (IOC) / network synergies and benefits

• Complementary energy infrastructure assets provide options for growth

• Generation: gas and renewables (solar and wind)

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~90%

Regulated, Capacity charge, or fixed

• Gas storage: in-pipe, LNG tank, underground

• Gas processing

• Asset management, operational, commercial and development expertise across distribution and transmission assets

 Low risk business model

• Stable and predictable cash flows

• Earnings are not directly tied to commodity price

• Long term take or pay contracts with CPI linkage or price regulated assets

• Credit worthy counterparties and established customer relationships

~93%

Investment Grade

 Long standing, experienced industry-based management team

 Consistent distribution growth – since listing:

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2,141%
TSR
since listing
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9

reliable guidance (historical)

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• Stable cash flows

• Low risk business model

• Majority take or pay contracts with CPI adjustments

• Revenue weighted average contract tenor as at 1 Jan 2020 remains >12 years

• Established customer relationships

• Quality and diversified asset portfolio

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(1)
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Notes: *FY20 EBITDA is based on Bloomberg consensus estimate, accessed 13 Feb 2020.

(1) Guidance of $1,660 million to $1,690 million advised on 20 August 2019, re-confirmed on 18 February 2020.

10

capital expenditure

Growth capex: >$400 m pa average over the last 5 years >$300 m pa average over the last 10 years

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														5 year	10 year
millions	FY08	FY09	FY10	FY11	FY12	FY13	FY14	FY15	FY16	FY17	FY18	FY19	1H FY20	average*	average*
SIB and IT	12	16	15	18	24	25	45	51	53	69	113	118	74	81	53
Growth	182	285	121	155	225	373	402	346	281	272	743	463	145	421	338
Total	194	302	135	173	249	397	447	396	334	341	856	581	214	501	391

Notes: *5 year average is from FY15 to FY19, 10 year average is from FY10 to FY19.

11

continued growth momentum

Normalised EBITDA

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$1,800m
$1,600m
$1,574
$1,518
$1,400m $1,470
$1,331
$1,200m
$1,000m
$800m
$822
$747
$600m $662
$400m
$200m
1H FY19 1H FY20
$788 $842
$0m
FY13 FY14 FY15 FY16 FY17 FY18 FY19 1H FY20
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Total assets
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Normalised operating cash flow

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$1,200m
$1,000m $1,032
$1,012
$974
$800m $862
$600m
$545
$400m $433 $440
$200m
1H FY19 1H FY20
$470 $512
$0m
FY13 FY14 FY15 FY16 FY17 FY18 FY19 1H FY20
60c Distributions
50c
50.0
47.0
45.0
43.5
40c 41.5
38.0
35.5 36.3
30c
20c
10c
1H FY19 1H FY20
21.5 23.0
0c
FY13 FY14 FY15 FY16 FY17 FY18 FY19 1H FY20 12
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distributions and TSR returns

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APA’s distributions have increased every year for nearly two decades 17.2% compound annual growth rate pa

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TSR cents
2500 60.0
TSR: 2,140.6% [(1)] since listing
CAGR: 17.2% pa
50.0
2000 27.0
47.0
45.0
43.5
41.5 40.0
1500 38.0
36.3
34.4 35.0 35.5
32.8 30.0
31.0
29.5
28.0
1000
24.0
22.0 21.5 21.5 21.5 22.5 23.0 20.0
500
10.0
0 0.0
Distributions (RHS) APA TSR (LHS) ASX100 TSR (LHS) ASX 200 Utilities TSR (LHS)
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Note: 1) Indexed from 13 June 2000, the date of APA’s listing on the ASX to 31 December 2019 * Estimated distribution for 2H FY2020

13

company structure

14

group structure

• APA Group is listed as a stapled structure on the Australian Securities Exchange (ASX:APA)

• APA is comprised of two registered managed investment schemes:

• Australian Pipeline Trust (ARSN 091 678 778)

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

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

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

• APT Pipelines Limited (ABN 89 009 666 700), a company wholly owned by APT, is APA’s borrowing entity and the owner of the majority of APA’s operating assets and investments

Financial reporting segments within APT

• 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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Group Structure
APA Group Securityholders
Australian Pipeline Trust APT Investment Trust
(APT) (APTIT)
Australian Pipeline Limited
(Responsible Entity)
APT Pipelines Ltd 100%
Operating assets and
Passive investments
investments
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Tax Structure
APT APTIT
30% tax 0% tax
~73% ~27%
APA Group
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15

APA’s new operating model – as at Feb 2020

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 Clear accountabilities

• Empower our people to make the right decisions at the right level

• Invest resources into the business where they are needed

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Chief Executive Officer and
Managing Director
Rob Wheals
President Group Group Executive Group Executive Group Group Group
North Executive Executive Chief Financial Executive Executive
American Operations Infrastructure CommercialStrategy & Transformation & Technology Officer People, Safety Governance &
Development Development and Culture External Affairs
Ross Darren Kevin Process Process Peter Elise Nevenka
Gersbach Rogers Lester underway underway Fredricson Manns Codevelle
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Business units: Execution

Corporate functions: Govern and Support

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Previous Structure
Chief Group Group Group Group
Group
Executive Executive Executive Chief Financial Executive Executive
Executive
Strategy & Networks and Infrastructure Officer People, Safety Governance,
Transmission
Development Power Development and Culture Risk and Legal
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16

financial metrics

17

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5 year financials

Financial Performance (Statutory)		HY2020	FY2019	FY2018	FY2017	FY2016	FY2015
Revenue	$m	1,313.8	2,452.2	2,386.7	2,326.4	2,094.3	1,553.6
Revenue excluding pass-through(1)	$m	1,077.8	2,031.0	1,941.4	1,888.3	1,656.0	1,119.2
EBITDA	$m	842.2	1,573.8	1,518.5	1,470.1	1,330.5	1,269.5
Depreciation and amortisation expense	$m	(319.4)	(611.4)	(578.9)	(570.0)	(520.9)	(208.2)
EBIT	$m	522.8	962.4	939.6	900.1	809.7	1,061.3
Interest expense	$m	(245.3)	(497.4)	(509.7)	(513.8)	(507.7)	(324.2)
Tax expense	$m	(102.4)	(177.0)	(165.1)	(149.5)	(122.5)	(177.2)
Profit after tax including significant items	$m	175.0	288.0	264.8	236.8	179.5	559.9
Significant items –after income tax	$m	-	-	-	-	-	356.0
Profit after tax excluding significant items	$m	175.0	288.0	264.8	236.8	179.5	203.9
Financial Position
Total assets	$m	15,086.0	15,433.9	15,227.2	15,045.9	14,842.7	14,652.9
Total drawn debt(2)	$m	9,084.7	9,352.1	8,810.4	9,249.7	9,037.3	8,642.8
Total equity	$m	3,473.6	3,599.4	4,126.8	3,978.2	4,029.1	4,382.7
Operating Cash Flow
Operating cash flow(3)	$m	511.9	1,012.1	1,031.6	973.9	862.4	562.2
Key Financial Ratios
Earnings per security(4)	cents	14.8	24.4	23.3	21.2	16.0	56.1(5)
Operating cash flow per security(4)	cents	43.4	85.8	90.7	87.1	77.1	56.3
Distribution per security	cents	23.0	47.0	45.0	43.5	41.5	38.0
Funds From Operations to Net Debt	%	11.4	10.8	10.7	10.8	9.5	6.5(6)
Funds From Operations to Interest	times	3.1	3.0	3.0	3.0	2.7	2.8
Weighted average number of securities(4)	m	1,179.9	1,179.9	1,136.9	1,118.5	1,118.5	999.4(5)

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

(2) APA’s liability to repay debt at relevant due dates of the drawn facilities. This amount represents current and non-current borrowings as per balance sheet and is adjusted for deferred borrowing costs, the effect of unwinding of discount, unrealised foreign exchange differences reported in equity and deducting other financial liabilities that are reported as part of borrowings in the balance sheet.

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

(4) On 23 March 2018, APA Group issued 65,586,479 new ordinary securities, resulting in total securities on issue of 1,179,893,848. The weighted average numbers of securities from FY2015 to FY2018 have been adjusted to account for that rights issue.

(5) Between 23 December 2014 and 28 January 2015, APA issued a total of 278,556,562 new ordinary securities, resulting in total securities on issue of 1,114,307,369. The weighted average number of securities for FY2015 has been adjusted to account for that rights issue.

(6) June 2015 FFO to Net Debt was affected by the $3.7 billion worth of USD denominated debt raised to fund the Wallumbilla Gladstone Pipeline acquisition.

18

5 year financials (con’t)

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EBITDA by Segment
(Excluding Significant Items)		HY2020	FY2019	FY2018	FY2017	FY2016	FY2015
EBITDA (Continuing businesses)
Energy Infrastructure
East Coast:
Queensland	$m	506.3	1,010.1	962.2	925.4	855.8	340.1
New South Wales	$m	81.6	149.4	147.1	149.5	121.7	120.8
Victoria	$m	62.3	114.0	124.6	123.0	120.6	130.2
South Australia	$m	1.2	2.1	2.6	2.3	2.5	1.9
Northern Territory	$m	8.6	19.2	22.9	18.8	17.5	18.0
Western Australia	$m	171.1	277.8	237.6	234.7	217.6	212.6
Energy Infrastructure Total	$m	830.9	1,572.4	1,497.1	1,453.7	1,335.5	823.6
Asset Management	$m	31.3	53.0	66.2	58.7	53.9	49.5
Energy Investments	$m	18.4	28.4	23.1	24.4	27.8	21.8
Corporate costs	$m	(38.4)	(80.1)	(67.9)	(66.7)	(86.7)	(73.6)
Divested businesses(7)	$m	-	-	-	-	-	1.0

(7) Australian Gas Networks Limited sold in August 2014.

19

capital management

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APA’s parameters for capital management and distributions

Capital Management:

• Retain our 2 credit ratings at Baa2/Stable (Moody’s) and BBB/Stable (S&P) to facilitate access to global debt capital markets

• Fund growth with an appropriate mix of funds retained in the business, debt and equity

• Minimise impacts from adverse movements in interest rates through a combination of hedging and raising debt at fixed interest rates

Distribution Policy:

• Fully covered by operating cash flow

• Grow generally in line with operating cash flow

• Sustainable over the long term

• Considered in the context of the capital needs of the business and economic conditions

20

gas market overview

21

gas demand, supply, price trends

Gas supply and demand

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East coast gas demand & production

AEMO 2019 Gas Statement of Opportunities:

• Gas Supply from existing and committed gas developments is forecast to meet gas demands until 2023

• Risks remain that any weather-driven variances could increase gas demand

Transportation costs

• Gas transmission costs have not increased in real terms for more than a decade

• Transportation cost is only 8-10% of the final gas price

Source: Demand – AEMO GSOO 2019

Supply - EnergyQuest (actuals); AEMO 2017-2019 GSOO (forecast)

Wholesale gas price - East coast gas market average

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Source: Gas Trend 2016 and 2017. Large industrial customer data, Jan 2018, Oakley Greenwood.

East coast gas price trends

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$16.0
Historical LNG net back prices
$14.0 AEMO Forecast
wholesale delivered gas
$12.0 price for Residential &
Commercial
$10.0
$8.0
$6.0
$4.0 Forecast LNG
net back prices
$2.0
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Source: LNG netback prices – ACCC, LNG netback price series, 13 Dec 19 Wholesale delivered gas prices forecast – AEMO, Core Energy – Wholesale Gas Price Outlook 2019-2040, Eastern Australia average, neutral scenario

22

regulation of Australian gas pipelines

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APA pipelines by regulation type

• In HY2020, 8.7% of APA’s EBITDA in Energy Infrastructure was from full regulated assets

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• Gas pipelines are regulated by the Australian Energy Regulator (AER) or, the Economic Regulation Authority of Western Australia (ERA)

• Price regulated assets are those which the regulatory authorities have determined, among other things, demonstrate natural monopoly characteristics and a degree of market power

• • Regulation is under a negotiate-arbitrate framework. Pipeline owners and pipeline users negotiate the terms, conditions and prices for access to pipeline services

• There are 2 frameworks under the National Gas Rules (NGR):

• 1) Scheme pipelines (NGR Parts 8-12) are subject to either:

• full regulation, where the AER or ERA must approve a full access arrangement that sets out reference tariffs, terms and conditions, or

• light regulation, where pipeline owners must publish services and prices and comply with information provision requirements to support negotiations or alternatively seek regulatory approval for a limited access arrangement

• 2) Non-Scheme pipelines (NGR Part 23) also reflect the negotiate-arbitrate framework

23

regulation of Australian gas pipelines (con’t)

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Schedule of regulatory reset dates for APA

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• Access • Apply for a 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 and

  • Return on value of regulated assets (regulated asset base) based on WACC determination

• Return is now a binding (defined methodology) rate of return as at Dec 2018 for the next 4 years

• • 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 invested into the asset and reduced by regulatory depreciation costs

24

asset specifics

25

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2019 2020
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history - Energy Infrastructure business segment

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

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**2000 2001 **	**2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 **	**2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 **	**2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 **	**2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 **	**2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 **	**2012 2013 2014 **	**2012 2013 2014 **	**2012 2013 2014 **	2015 2016 2017 2018 2019 2020	2015 2016 2017 2018 2019 2020	2015 2016 2017 2018 2019 2020
Roma Brisbane Pipeline 85%,60 TJ/d	100%, 208 TJ/d					233 TJ/d			Bi-directional
Carpentaria Gas Pipeline 70%, 90 TJ/d		100%, 102 TJ/d	119 TJ/d								Bi-directional
Moomba Sydney Pipeline 100%									Bi-directional
Central West Pipeline 100%
Goldfields Gas Pipeline 40%, 106 TJ/d		88.2%		155 TJ/d		202 TJ/d
Kalgoorlie Kambalda Pipeline 45%		100%
Amadeus Gas Pipeline 96%, 115 TJ/d					100%						165 TJ/d
Mid West Pipeline 50%
Parmelia Gas Pipeline
Mondarra Storage and ProcessingFacility 3 PJ							15 PJ			18 PJ
Victorian Transmission System
Dandenong LNG Storage Facility
SESA Pipeline
Central Ranges Pipeline and Networks
Berwyndale Wallumbilla Pipeline
Emu Downs Wind Farm
South West Queensland Pipeline								Bi-directional
Pilbara Pipeline System
Wallumbilla Gladstone Pipeline
Eastern Goldfields Pipeline 21 TJ/d											57 TJ/d
Moomba Sydney Ethane Pipeline
Diamantina Power Station
Reedy Creek Wallumbilla Pipeline
Mt Morgans Gas Pipeline
Emu Downs Solar Farm
Yamarna Gas Pipeline
Agnew Lateral
Gruyere Power Station
Badgingarra Wind Farm
DarlingDowns Solar Farm
Badgingarra Solar Farm
Orbost Gas ProcessingPlant*
Assets at listing Greenfield new bu Acquisitions Notes: 1) *Asset under commissioning 2) Percentages (%) represents APA’s ownership.

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• 3) Capacity is indicative of major expansions.

Greenfield new builds

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history - Energy Investments and Asset Management segments

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	2006	2007	2008	2009		2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020
SEA Gas Pipeline	33.3%					50%
Allgas Gas Distribution Network	100%						20%
AGN (Envestra)		17%		30.6%					33%	0%,	O&M until	2027
Daandine and X41 Power Stations			19.9%
Kogan North and Tipton West Gas ProcessingPlants			19.9%
Directlink and Murraylink ElectricityInterconnectors			19.9%
Nifty and Telfer Gas Pipelines			19.9%
Wickham Point Pipeline			19.9%
Bonaparte Gas Pipelines			19.9%
Ethane income fund(1)			6%										100% acquired by APA Energy infrastructure
North Brown Hill Wind Farm				20.2%
Hasting Diversified Utilities Fund(1,2)						14.9%			100% acquired by APA Energy infrastructure
Diamantina Power Station(1)										50%			100% acquired by APA Energy infrastructure
Mortlake Gas Pipeline												50%

Notes: 1) Fully acquired and was transferred into Energy Infrastructure.

2) Moomba to Adelaide Pipeline System was divested to QIC in April 2013.

• 3) Percentages (%) represents APA’s ownership.

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historical normalised EBITDA by asset – Energy Infrastructure

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$ millions	FY15	FY16	FY17	FY18	FY19	1H FY20
East Coast Grid
Wallumbilla Gladstone Pipeline	35.8	475.2	488.0	515.9	542.4	267.1
South WestQueensland Pipeline	188.3	240.3	242.4	244.3	250.0	131.5
Moomba SydneyPipeline(1)	120.8	121.7	149.5	147.1	149.4	81.6
VictorianSystems	130.2	120.6	123.0	124.6	114.0	62.3
Roma Brisbane Pipeline	51.1	57.7	58.6	60.9	58.4	27.6
Carpentaria Gas Pipeline	47.9	38.6	35.6	39.0	36.8	15.8
OtherQld assets	17.0	20.6	13.5	14.0	20.7	11.6
East Coast Grid Total	591.1	1,074.7	1,110.6	1,145.7	1,171.5	597.6
Northern Territory
Amadeus Gas Pipeline	18.0	17.5	18.8	22.9	19.2	8.6
Western Australia
Goldfields Gas Pipeline	123.9	115.1	111.5	111.8	125.2	75.1
Eastern Goldfields Pipeline	0.0	14.2	36.3	37.7	45.6	24.9
Mondarra Gas Storage and ProcessingFacility	29.1	31.8	33.6	32.8	33.8	17.6
Pilbara Pipeline System	31.1	28.3	27.5	27.8	28.2	14.9
Other WA assets	6.8	8.2	3.4	4.0	3.6	2.4
South Australia
SESA Pipelineand other SA assets	1.9	2.5	2.3	2.6	2.1	1.2
Power Generation
Diamantina Power Station	0.0	23.3	87.4	88.3	90.9	43.9
Emu Downs Wind and Solar Farms	21.7	19.9	22.4	23.6	23.2	12.7
Badgingarra Wind and Solar Farms	0.0	0.0	0.0	0.0	14.7	18.9
DarlingDowns Solar Farm	0.0	0.0	0.0	0.0	11.0	8.6
Gruyere Power Station	0.0	0.0	0.0	0.0	3.5	4.6
Grand Total	823.6	1,335.5	1,453.7	1,497.1	1,572.4	830.9

Notes: Numbers in the table may not add up due to rounding. (1) includes other NSW Pipelines

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Wallumbilla Gladstone Pipeline, QLD

• Delivers gas to Gladstone for LNG export

• Fully contracted revenue through to 2035, derived through take-or-pay GTAs with foundation shippers (BG Group & CNOOC) with two 10 year options to extend

• APA holds rights to further services and pipeline expansion

• Initial EBITDA guidance based on US$355 million plus CPI[(1)] for 20 years

• Operating costs are passed through to shippers

• Average forward USD/AUD exchange rates: - FY20 0.7192

• - FY21 0.7199

• - FY22[(2)] 0.7099

• At WGP financial close, APA had issued debt totalling USD $3.7 billion equivalent to AUD $4.7 billion[(3)] , borrowed at an all-in of 4.26%

Notes :

• ( 1) US CPI to be applied as at 1 January onwards

• ( 2) Average forward USD/AUD exchange rates hedged to March 2022

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Wallumbilla
Gladstone Gladstone
Pipeline
Wallumbilla
Brisbane
IOC
Di tli k
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Key Stats

	Length	556 km
	Diameter	42 inch
	Capacity	1,510 TJ/ day
	Regulatory Status	Non-Scheme Pipeline
	APA Ownership	100%
	Delivery Point	6
	Receipt Point	7

• (3) Based on FX rates at inception date

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East Coast and Central Region

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Revenue by customer industry

APA’s 7, 600 plus kilometre integrated pipeline grid on the east coast of Australia has the ability to transport gas seamlessly from multiple gas production facilities to gas users across four states and the ACT, as well as to the export LNG market out of Gladstone in Queensland.

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Industrial & Others
5%
Resources
13%
Utility Energy
24% 58%
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The East Coast Grid is comprised:

• Wallumbilla Gladstone Pipeline, 556 km

• South West Queensland Pipeline, 936 km

• Roma Brisbane Pipeline, 583 km

• Moomba Sydney Pipeline, 2,029 km

• Central West Pipeline, 255 km

• Central Ranges Pipeline, 250 km

• Carpentaria Gas Pipeline, 944 km

• Victorian Transmission System, 1,847 km

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Note: East Coast and Central Region Energy Infrastructure revenue including power generation.

Historical financials1, A$m FY15 FY16 FY17 FY18 FY19 HY20	Historical financials1, A$m FY15 FY16 FY17 FY18 FY19 HY20
Revenue 721.1 1,268.1 1,481.3 1,508.2 1,558.4 793.3
EBITDA 611.0 1,118.0 1,218.9 1,259.5 1,294.6 659.9
-Margin 84.7% 88.16% 82.3% 83.5% 83.1% 83.2%
-Growth 23.4% 82.9% 9.0% 3.3% 2.8% (1.0%)
	Key facts
	East Coast gas demand2 (2020) 1,902.8 PJ
	Gas demand growth2 (2019-2028) 6.5%
	2P developed reserve production (2020) 1,919.3 PJ
	Natural gas and ethane reserves (proved and probable) 37,946 PJ

Source: AEMO GSOO 2019, EnergyQuest December 2019 Quarterly report. Note: 1) includes power generation.

2) excludes Northern Territory .

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Western Australia

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APA services a range of customers in Western Australia within the resources, industrial and utility sectors. APA’s assets enable our customers to have a reliable energy source to supply their iron ore, nickel and gold mining operations. Pipeline and storage services also deliver security of supply for Perth and the south-west.

Revenue by customer industry

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Energy
Industrial & Others
2%
13%
Utility
32%
Resources
53%
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Key assets in Western Australia:

• Goldfields Gas Pipeline, 1,546 km

• Eastern Goldfields Pipeline, 293 km

• Pilbara Pipeline System, 249 km

• Mid West Pipeline, 362 km

• Parmelia Gas Pipeline, 448 km

• Mondarra Gas Processing and Storage Facility, 18 PJ

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Note: Western Australia Energy Infrastructure revenue including power generation.

Historical financials1, A$m FY15 FY16 FY17 FY18 FY19 HY20	Historical financials1, A$m FY15 FY16 FY17 FY18 FY19 HY20
Revenue 266.0 260.5 291.7 293.1 340.7 204.6
EBITDA 212.6 217.6 234.7 237.6 277.8 171.1
-Margin 79.9% 83.5% 80.5% 81.0% 81.5% 83.6%
-Growth 12.5% 2.4% 7.9% 1.2% 16.9% 39.4%
	Key facts
	Gas demand (2020) 1,046 PJ
	Gas demand growth (2020-2029) 11.4%
	Potential supply (2020) 1,458 PJ
	Natural gas and ethane reserves (proved and probable) 68,721 PJ

Source: AEMO WA GSOO 2019, EnergyQuest December 2019 Quarterly report. Note: 1) includes power generation.

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power generation - gas and renewables

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Diamantina Power Station in Queensland

• APA owns and/or operates a portfolio of gas , wind and solar power generation assets totalling ~909 MW

• Assets are located in Queensland, South Australia and Western Australia

• Our key power generation assets include:

• Diamantina and Leichhardt Power Stations, 302 MW (own and operate)

• Gruyere Power Station, 45 MW (own and operate)

• Emu Down Wind and Solar Farms, 100 MW (own and operate)

Darling Downs Solar Farm

• Badgingarra Wind and Solar Farms, 149.3 MW (own and operate)

• Darling Downs Solar Farm, 110 MW (own and operate)

• North Brown Hill Wind Farm 132 MW (20.2 % ownership)

• Daandine and X41 Power Stations , 71 MW (19.9% ownership and operate)

• Ownership/investments in renewables since 2009

Badgingarra Wind Farm

• Commenced a pilot project on renewable methane in FY2019

**Historical financials, **	A$m	FY15	FY16	FY17	FY18	FY19	HY20
Revenue					258.7	297.9	171.0
EBITDA		21.7	43.2	109.8	111.8	143.3	88.7
-Margin					45.2%	48.1%	52.9%
-Growth		6.7%	99.1%	154.2%	1.8%	28.1%	47.5%

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mid stream processing and storage

Orbost Gas Processing Plant

• Located approximately 375km east of Melbourne on the Victorian east coast

• Connects Cooper Energy’s Sole gas field to eastern Australian gas market

• Capacity to process up to ~70 TJ/day (commissioning March 2020)

• Scope within the agreements for plant expansion to process gas from the nearby Manta gas field

• Also an existing pipeline connection to Patricia Baleen and Longtom gas fields (subject to approvals)

Mondarra Gas Storage and Processing Plant

• Strategically located at the intersection of APA’s Parmelia Gas Pipeline and the Dampier to Bunbury Natural Gas Pipeline to enhance security of supply for Perth and create cost-effective options

• Provides gas sellers and buyers with the flexibility to better manage their gas production and consumption

• Expanded in 2013 to 15 PJ which was 5 times its original operating capacity, then again in 2016 to 18 PJ

Dandenong LNG storage bullet

• Provides gas buyers, including gas retailers, flexibility in the East Australian gas market, by providing options to manage gas supply and demand during production outages or emergencies and peak demand periods

• Storage of up to 12,000 tonnes of LNG

Kogan North and Tipton West Processing Plants (19.9% investment)

• Kogan North and Tipton West Processing Plants filter, dehydrate, and compress gas for Swanbank E Power Station and the Braemar Power Station in Queensland

• Processes up to 45 TJ/day

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Orbost Gas Processing Plant
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Mondarra Gas Storage
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Dandenong LNG storage
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Asset Management business segment

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• Provides asset management and operational services for most of APA’s energy infrastructure assets, energy investments, as well as to third parties.

• Generally provided under long-term contracts (e.g. AGN contract until 2027)

• Covers assets including gas distribution networks and gas transmission pipelines, high-voltage power, power generation, gas rotating plant and equipment, stationary engines. These operational services include asset inspection, vegetation management, aerial patrols, metering services and specialist utility asset services.

• Customers include Australian Gas Networks Limited (AGN - formerly Envestra), Energy Infrastructure Investments (EII), Mortlake Gas Pipeline, SEA Gas Pipeline and Allgas Distribution Network GDI (EII).

• Around 500 APA employees providing services in this business segment

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Energy investments business segment

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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 cash flow, 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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For further information contact: Jennifer Blake Head of Investor Relations Tel: +61 455 071 006 E-mail: jennifer.blake@apa.com.au

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

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