APA GROUP — Interim / Quarterly Report 2021

Feb 22, 2021

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

==> picture [118 x 47] intentionally omitted <==

23 February 2021

ASX ANNOUNCEMENT

APA Group (ASX: APA)

FINANCIAL RESULTS PRESENTATION

APA Group (ASX: APA), a leading Australian energy infrastructure business today released the following to the market:

• APA Group financial results presentation for the half year ended 31 December 2020

==> picture [110 x 41] intentionally omitted <==

Authorised for release by Nevenka Codevelle Company Secretary Australian Pipeline Limited

For further information, please contact:

Investor enquiries: Yoko Kosugi General Manager, Investor Relations & Analytics Telephone: +61 2 9693 0073 Mob: +61 438 010 332 Email: Yoko.Kosugi@apa.com.au

Media enquiries: Ben Pratt General Manager, External Affairs & Reputation Telephone: +61 2 9228 8300 Mob: +61 419 968 734 Email: Ben.Pratt@apa.com.au

About APA Group (APA)

APA is a leading Australian energy infrastructure business. 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 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. APA is one of Australia’s largest owners and operators of renewable power generation assets, with wind and solar projects across Western Australia, South Australia and Queensland. APA recently announced its first hybrid energy microgrid project at the Gruyere Gold Mine in Western Australia, combining solar energy with battery energy storage.

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

Results for the half year ended 31 December 2020

==> picture [152 x 60] intentionally omitted <==

23 February 2021

==> picture [720 x 161] intentionally omitted <==

22/02/2021

Disclaimer

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 forwardlooking 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.

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 nonIFRS 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 nonIFRS 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.

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.

2

1H21 summary

• Solid financial performance in challenging market conditions, confirming resilient business model

• Revenue down 0.6%, EBITDA down 2.3% and OCF up 1.4%*

• Volume growth in key markets including WA, NT and sections of the East Coast Grid

• Flat overall revenue reflects softer contract renewals and lower energy consumption

• Lower EBITDA due to higher insurance & compliance costs, and higher investment in development opportunities and capability more broadly

• Distribution growth reflects confidence to deliver sustainable growth

• 1H21 distribution of 24.0 cps representing 4.3 % growth

• FY21 distribution guidance of 51.0 cps, growth of 2.0%

• Recognised a non-cash pre-tax impairment charge of $249 million against Orbost, resulting in a loss after tax of $12 million (profit after tax excluding significant item $163 million)

• Maintained safe and reliable operations

• Strong progress with our organic development opportunities, expectation that we will now exceed $1 billion growth capex over the next 2-3 years

• Continued progress towards a sustainable future including our ambition to achieve Net Zero emissions by 2050

• Refreshed strategy including the launch of APA’s Pathfinder Program to unlock next generation energy solutions

• Strong balance sheet with opportunities being assessed to maximise the efficiency of the capital structure

**Note: *** revenue excluding pass-through. EBITDA excludes Orbost impairment, which is reported as a significant item

3

Significant energy infrastructure investment required as global energy market transitions

US $50+ trillion of investment required in next 20 years regardless of scenario

Gas will continue to play critical role in the energy market regardless of scenario

Global Energy Investments

==> picture [217 x 131] intentionally omitted <==

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

STEPS US$ 54.3t
SDS US$ 67.8t
----- End of picture text -----

==> picture [227 x 146] intentionally omitted <==

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

Global Energy Demand
18,000
25%
23%
12,000 23%
6,000
0
2019 2040 STEPS 2040 SDS
Energy demand (Mtoe)
----- End of picture text -----

Oil and gas Electricity networks Other Renewable Energy efficiency

Natural gas Coal Nuclear Renewables Oil

Source: International Energy Agency (IEA 2020), "World Energy Outlook 2020", IEA, iea.org/reports/world-energy-outlook-2020; STEPS – Stated Energy Policy Scenario, SDS – Sustainable Development Scenario, energy demand in millions of tonnes of oil equivalent (Mtoe).

4

Gas will continue to play a critical role in Australia’s energy mix

• Future energy market requires both clean and reliable generation and transmission technologies, with gas providing

• energy companion for renewables and a net zero future

Australian Domestic Gas Demand Under Different Climate Change Scenarios

• energy security

• high heat energy source for industrial sector (hard to abate)

• preferred source of fuel for heating and cooking

• APA is central to government’s gas fired recovery plan o Progressive expansion of the East Coast Grid critical:

  • Cost and time efficient

  • FEED underway, FID during FY21

• Engaged with government on National Gas Infrastructure Plan (NGIP) and Wallumbilla Hub

• Natural gas pipeline infrastructure to transport clean molecules (e.g. hydrogen)

==> picture [294 x 175] intentionally omitted <==

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

8,000 PJ
4 °C Scenario
2,000 PJ
1,500 PJ
2-3 °C Scenario
1,000 PJ
1.5 °C Scenario
500 PJ
0 PJ
2020 2025 2030 2035 2040 2045 2050
----- End of picture text -----

Note: *Front End Engineering Design (FEED), Final Investment Decision (FID)

Source: Gas demand under different climate change scenarios - APA Resilience Report 2020, Energetics based on IIASA’s SSP Database, IEA, AEMO, Frontier Economics. For full information supporting databases, refer “Supporting Information” section of APA’s Resilience Report 2020.

5

Strong organic growth outlook

• Forecast >$1 billion of organic growth capex over FY21-23

• Significant progress made during 1H21 with $500 million+ committed

• APA’s prospective organic growth pipeline >$5 billion (renewables and gas generation, transmission and energy storage)

	FY21	FY21	FY22	FY23
Committed Projects
Northern Goldfields Interconnect Western Outer Ring Main Gruyere Hybrid Energy Microgrid Mt Isa – Thomson Power Station Other committed projects ECG Expansion*				$460m $167m
			$38m
			~$40m ~$70m
					U	p to $700m

6

Note: *subject to Final Investment Decision (FID) FY21

Growth markets for energy infrastructure has informed APA’s refreshed strategy

• Significant growth opportunities in renewables and firming, electrification and hydrogen infrastructure

• In Australia - > $60 billion of investment opportunities to 2040

• Renewables + firming + storage >$40 billion

• Electrification (primarily transmission) >$20 billion

• In USA - US$2.6 trillion of investment opportunities to 2040

• Gas pipeline infrastructure US$25 billion

• Renewables + firming US$1.6 trillion

• Electrification US$1 trillion

• The hydrogen economy - up to US$11 trillion of investments worldwide to 2050

==> picture [336 x 255] intentionally omitted <==

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

Vision
To be world
class in energy
solutions
----- End of picture text -----

• Source : BNEF, AEMO ISP, estimates; 2035 The Report, IEA WEO 2020, INGAA Infrastructure Study 1) Based on AEMO ISP includes renewables and gas

• 2) Assumes clean molecules assumptions are based on average hydrogen cost, capital costs based on BNEF

7

North America transaction pathway

Lessons learned through recent assessment of opportunities:

Transaction pathway entry either via

• gas pipelines and utilities; or

• Opportunities in both the listed and unlisted space

  • electricity integrated energy infrastructure

• Limited opportunities in 2020, driven by valuation gaps due to

• political uncertainty;

• oil price volatility; and

• COVID-19

• Large proportion of gas infrastructure assets are part of diversified energy infrastructure businesses

• many integrated across gas and electricity assets

• APA remains disciplined to ensure that any acquisition achieves our strategic and financial objectives

==> picture [187 x 113] intentionally omitted <==

8

APA launches Pathfinder Program to unlock next generation energy solutions

Designed to identify opportunities to extend our core business by doing:

• Pilot projects and strategic partnerships that focus on scalability and replicability

==> picture [31 x 41] intentionally omitted <==

Focused on innovation to support the growth opportunities presented by energy transition

• Equity investments in technology with clear market potential in the medium term

• Research and development that builds on our core competencies

Purpose to:

• Strengthen and grow our core infrastructure business

• Forge partnerships to compete and scale in emerging growth markets

• Create value for our customers, investors and people

Initial target markets and technologies include:

• Clean Molecules : Hydrogen production, storage, transmission and use

• Off-grid Renewables : Energy technologies and systems integration capability

• Storage : Renewable generation firming through energy storage

==> picture [258 x 200] intentionally omitted <==

9

Pathfinder Program: APA’s Parmelia Gas Pipeline transformation to 100% hydrogen-ready

• An Australian-first and one of few similar pipeline projects in the world today

• 43 km section of the Parmelia Gas Pipeline (PGP) targeted to be 100% hydrogen-ready

• Kwinana industrial precinct an ideal location

• Supported by The Future Fuels Cooperative Research Centre, Wollongong University and specialist

• engineering support

• Aligns with Australian Government’s hydrogen ambition and the WA Government’s hydrogen blending

==> picture [207 x 147] intentionally omitted <==

==> picture [209 x 17] intentionally omitted <==

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

Research team preparing pipe sections for testing
----- End of picture text -----

• goal of 10 per cent by 2030

Note: Southern 43km section of PGP to be converted

10

Refreshed strategy leveraging proven capability in energy infrastructure

Refreshed Strategy:

• Contracted and regulated energy infrastructure (gas, electricity and renewables) in Australia and North America

• Next generation energy technologies (Pathfinder Program), leveraging APA’s energy infrastructure capabilities

• Deliver on our Customer Promise

• Disciplined investment, optimising securityholder returns and maintaining a strong balance sheet (including BBB/Baa2 credit ratings)

==> picture [58 x 58] intentionally omitted <==

Purpose: We strengthen communities through responsible energy Vision: To be world class in energy solutions

11

Investing in capability to support the delivery of our strategy

==> picture [59 x 45] intentionally omitted <==

==> picture [43 x 44] intentionally omitted <==

New Executive Leadership Team and Structure

New Capabilities

Efficiency and Scale

• A new operating model and organisational structure

• Aligned with strategic imperatives

• Strengthening our talent pool

• Sustainability and Community

• Pathfinder program to identify and pursue new energy market solutions

• Enhancing operational and corporate systems & processes

• Leveraging cloud-based technology and data storage

12

APA’s ambition to achieve Net Zero emissions by 2050

APA supports global transition to a lower carbon future

• Net Zero emissions by 2050 to be embedded into decision-making, planning and business processes

• Ambition is to achieve net zero operations emissions (Scope 1 and 2) by 2050

• Interim targets to be established in FY2022

• Building on recent climate change initiatives:

• TCFD-aligned Climate Change Resilience Report confirmed resilience under modelled scenarios

• Investment in excess of $750 million in renewable energy generation (490MW+ capacity to date)

• A Climate Change Management Plan developed with five key priorities:

• Reduce and avoid – optimise emissions reductions in portfolio and during FEED

• Innovate – leverage technology and ensure readiness

• Invest – net zero ambition embedded in strategy and capital allocation

• Robust – built on strong foundations

• Responsible – responsible, integrated and transparent approach

Note: *Front End Engineering Design (FEED)

13

Building our sustainability credentials and roadmap

Sustainability at APA: it’s about being responsible in how we do business and contribute to society, so we create value for all stakeholders

==> picture [225 x 240] intentionally omitted <==

• Strengthened our sustainability and community capability

• Developing a Sustainability Roadmap to guide and strengthen our approach and performance

• Accelerated our climate momentum

• Strengthened non-financial disclosures in alignment with key benchmarks and frameworks (TCFD, SASB, GRI)

• Increased ambition for gender equality and CEO member of Champions of Change Coalition

• Improved controls to identify modern slavery risks

• Participated in key forums: The Energy Charter; Australian Industry Energy Transitions Initiative

• Recent achievements: MSCI ESG Ratings Report score of AAA (2020); Top 100 Employer finalist

14

1H21 sustainability summary

• APA’s Climate Change Resilience Report released, demonstrating resilience under a range of climate scenarios including 1.5 c

• Developed the Climate Change Management Plan Framework

• Strengthened risk and procurement processes for modern slavery and published our first Modern Slavery Statement

• Supported employees, customers, suppliers and the community with a range of programs in response to COVID-19

==> picture [179 x 250] intentionally omitted <==

15

1H21 operational summary

Health, Safety, Environment and Heritage (HSEH)

• TRIFR (7.73) and LTIFR (1.93) above target (6.5 and 1.0 respectively)

• Continue to implement safety education and awareness activities throughout the business, particularly when on-boarding contractors

• Process safety program roll out tracking to plan and winner of 2020 APGA Safety Award

• Completed our corridor condition inspections in Northern Territory, utilising Indigenous Ranger Group

==> picture [265 x 104] intentionally omitted <==

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

16 TRIFR
12 12.2 Contractor
8 7.7 APA overall
4 4.5 Employee
0
FY16 FY17 FY18 FY19 FY20 1H FY21
----- End of picture text -----

• Environmental survey of invasive weeds across our transmission pipelines in Queensland

Customers and Stakeholders

• Continued stakeholder engagement ahead of regulatory reviews

• Improved customer offering with APA Grid portal

• Supported Qenos , a critical domestic manufacturer of plastics, with new agreement

• Supported customers and suppliers with a range of COVID-19 response initiatives:

• Flexible terms for customers

• Implemented fee relief and no disconnections program

==> picture [103 x 91] intentionally omitted <==

• Energy Charter’s ‘We’ve Got You’ set of Initiatives

Note: LTI = Lost Time Injury, TRIFR = Total Recordable Injury Frequency Rate, LTIFR = Lost Time Injury Frequency Rate. Certain medical treatment injuries have been re-classified to align with market expectations and international standards.

16

1H21 operational summary

Operational Performance

• Diamantina Power Station major overhaul completed on budget and schedule, 70,000 hours worked with no LTIs. Tremendous team effort:

• Challenges of moving specialist and parts from overseas and interstates; and

• Completed with excellent health and safety performance

• Orbost Gas Processing Plant

• Phase 2A works successfully completed to enable absorbers to run in parallel

Diamantina Power Station in Qld

• Sustainable output improving through commissioning, January: 27.7 TJ/d, current: ~45 TJ/d

• Transition Agreement amended to enable the commencement of Cooper Energy’s gas supply agreements

• Ongoing targeted improvement work and Root Cause Analysis to improve plant performance

• COVID management – return to workplaces with minimal risk and support new working arrangements, with the technology in place for all staff remotely concurrently

• 99.92% delivery reliability on customer gas nominations

• Operational flexibility provided on East Coast Grid, significant increase in shorter term transportation and storage services

• Reliable energy delivery on the fully contracted Goldfields Gas Pipeline

Gas turbine disassembled during the overhaul at DPS

17

Financial performance Adam Watson Chief Financial Officer

1H21 results summary

Results excluding significant item $ million	1H21 1H20 Change Key Drivers
Revenue excluding Pass-through(1)	1,071.8 1,077.8 (0.6%) Volume growth in key markets, offset by softer contract renewals and lower energy consumption
EBITDA Depreciation and Amortisation	822.8 842.2 (2.3%) Higher investment in strategic development opportunities and capability, plus higher insurance and compliance costs (331.4) (319.4) (3.7%) Larger asset base vs 1H20
EBIT Net Interest Expense	491.5 522.8 (6.0%) (229.1) (245.3) 6.6% Unrealised gains on hedges, higher interest income and higher capitalised interest
Profit before tax Income tax expanse	262.4 277.5 (5.4%) (99.6) (102.4) 2.8%
Profit after tax excluding significant item	162.8 175.0 (7.0%)
Operating Cash Flow(2)	519.2 511.9 1.4% Timing of receipts and payments
Operating Cash Flow per Security (cents)	44.0 43.4 1.4%
Significant item(3)	(249.3) - Impairment in relation to Orbost Gas Processing Plant
(Loss)/Profit after tax including significant item	(11.7) 175.0 (106.7%)

Notes: Numbers in the table may not add due to rounding.

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

• 2) Operating cash flow = net cash from operations after interest and tax payments.

• 3) Non-cash pre-tax impairment in relation to Orbost Gas Processing Plant of $249.3 million, resulting in loss after tax of $11.7 million including significant item. Please refer to slide 39 for results summary including significant item

19

Orbost Gas Processing Plant non-cash impairment

Orbost Gas Processing Plant update

• APA and Cooper Energy continue to work together to improve the plant’s operation and processing capacity, with the objective to achieve nameplate capacity of 68 TJ/day

• Works planned over the next 12 months include:

• Ongoing Root Cause Analysis to address foaming and fouling issues

• Targeted improvement works to support a reliable and sustainable production rate

• Sustainable reduction in operating costs

Non-cash asset impairment charge

• APA recognises a non-cash pre-tax impairment charge of $249.3 million[1]

• The non-cash impairment charge is not expected to impact APA’s FY21 EBTIDA guidance or its ability to pay FY21 distributions to securityholders

• Given current production levels, management has moderated its view on the following key assumptions:

• Capital cost to reach nameplate capacity

• Lower assumed revenue based on current production rates

• Higher operating cost largely due to foaming and fouling in the absorbers

1) Post tax impairment charge of $174.5 million, recognised as a significant item

20

1H21 EBITDA waterfall

Key Drivers

• Inflation linked tariff escalation

• FX movements on CPI portion of Wallumbilla Gladstone Pipeline contract

• Revenue from new asset (principally Orbost)

• Variable revenues impacted by lower gas volumes in Victoria, lower revenues from renewables and power assets, offset by stronger demand on the Goldfields Gas Pipeline

• Softer contract renewals on the South West Queensland Pipeline and the Carpentaria Gas Pipeline

• Lower, but more normalised equity income from Energy Investments (1H20 benefitting from interest income on shareholder loans)

==> picture [667 x 189] intentionally omitted <==

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

$5.9
$11.4
$2.6
$15.7 $17.4
$842.2
$13.4
$0.3 $2.2 $4.7 $822.8
1H20 EBITDA Tariff FX rate - New assets- Volume related Net contract Operations Asset Mgt Energy Invs Corporate 1H21 EBITDA
escalation revenue revenue and variable - expiry and costs
- revenue revenue and renewals maintenances
----- End of picture text -----

Note: EBITDA excludes significant item

21

1H21 operating expenditure waterfall

Key Drivers

• Operations and maintenance higher, consistent with volume growth and inflation

• Asset Management included system upgrades in 1H20

• Higher investment in development opportunities and strengthening of capability

• Corporate costs include further increases in insurance premiums and compliance costs

==> picture [667 x 200] intentionally omitted <==

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

$246.4
$0.1
$6.4
$4.7
$13.4
$234.8
1H20 Opex Operations and Asset Management Strategic development Other corporate costs 1H21 Opex
maintenace and capability investment
----- End of picture text -----

22

1H21 capital expenditure

$ Million	1H21 1H20
Growth Capex Regulated 21.3 28.4 Non-Regulated Queensland 39.5 14.1 Victoria 42.5 77.7 New South Wales 2.7 7.0 Western Australia and Northern Territory 39.0 10.6 Other 9.3 7.3
Total growth capex 154.2 145.1 Stay-in business capex 81.3 52.6 IT capex 16.1 15.9
Total capital expenditure(1) 251.6 213.6

Key drivers:

Growth Capex:

• Thomson Power Station construction

• Wallumbilla Hub capacity upgrade

• Orbost Gas Processing Plant commission

• Eastern Goldfields Pipeline capacity expansion

• Gruyere Hybrid Energy Microgrid upgrade

• Lake Way Gas Lateral for Salt Lake Potash

• Karlawinda Gas Lateral for Capricorn

Stay-in business Capex:

• Major periodic overhaul on the Diamantina Power Station

Notes: Numbers in the table may not add due to rounding.

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

23

Sustainable distributions

1H21 Distributions

• 1H21 distribution of 24.0 cps, 4.3% increase on 1H20

• Payout ratio[(1)] of 54.5%

Distribution Guidance

• FY21 distribution guidance of 51.0 cps reflects confidence in ability to consistently grow distributions, timing of capex funding requirements and significant capacity in the balance sheet

Cash Tax

• $84.5 million tax paid for FY20 (FY2019: $71.8 million)

• FY20 effective cash tax rate of 16.7% reflecting utilisation of available fraction tax losses and timing differences

==> picture [119 x 9] intentionally omitted <==

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

Free Cash Flow Waterfall
----- End of picture text -----

==> picture [376 x 207] intentionally omitted <==

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

443.4
28.9
19.4 32.0
0.2 421.5
2.8
5.4
2.8
1H20 FCF EBITDA Equity Equity Tax paid Interest Working SIB and 1H21 FCF
income distri- paid (net) capital IT capex
bution
----- End of picture text -----

Distribution Policy Review

• Review of capital strategy includes distribution policy and APA’s form of guidance

Notes: 1) Distribution payout ratio: distribution applicable to the 1H21 as a percentage of operating cash flow.

24

Resilience in a rising rate environment

• Diverse range of long-dated debt facilities mitigates APA exposure to rising interest rate environment

• Debt facilities prudently hedged against interest and currency exposure

• All interest rate exposure fixed or hedged (99.0%, as at 1H20)

• Average interest rate of existing debt (5.2% average for 6 year average maturity) significantly higher than current spot rates

• Majority of revenue benefits from inflation linked escalation

==> picture [401 x 263] intentionally omitted <==

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

AUD debt [(1)]
$10,000 US 144A Notes
Medium Term Notes
US Private Placement Notes
Fixed interest rate debt [(2)]
$8,000
$6,000
$4,000
$2,000
$0
FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38
----- End of picture text -----

Notes :

• 1) Fixed rate debt divided by drawn debt as at 31 December 2020.

• 2) Foreign currency risk is 100% hedged into Australian Dollars.

25

Strong balance sheet with opportunity to further enhance the capital structure

• Cash and committed undrawn facilities of $2,054 million at 31 December 2020

• Prudent during uncertain market conditions, however demonstrated to be well in excess of business needs

• Commitment to investment grade credit ratings: S&P BBB (Stable); Moody’s Baa2 (Stable)

• Headroom within rating bands

• Opportunity to further lower interest costs: spot interest rates significantly lower (~200-300 bp delta) than APA average cost of debt

• Opportunity to further extend the average maturity of debt

Metrics	Dec 2020	Dec 2019
Funds from Operations to Net Debt(1) 12.1% 11.4% Funds from Operations to interest(1) 3.2 times 3.1 times Average interest rate applying to drawn debt(2) 5.18% 5.35% Interest rate exposure fixed or hedged 100% 99.0% Average maturity of drawn debt 6.1 years 6.5 years

Notes:

1) APA calculation

2) For the purpose of the calculation, drawn debt that has been kept in USD (rather than AUD) and is in a designated hedge relationship with USD revenue, has been nominally exchanged at AUD/USD exchange rates of 0.7772 for Euro and GBP MTN issuances and 0.7879 for the US144A notes at respective inception dates.

26

Summary and outlook Rob Wheals

CEO and Managing Director

Outlook and FY21 guidance

FY21 Guidance – On Track

• FY21 EBITDA: $1,625 million to $1,665 million

• FY21 Distribution per security: 51.0 cps (upgraded)

• FY21 Net interest: $490 million to $500 million

• Growth capital expenditure – expected to now exceed $1 billion over FY21-23

Outlook – Growth and scalability

• Solid financial performance in challenging market conditions reflecting resilience of APA's business model

• Refreshed strategy aligned with energy infrastructure growth opportunities across Australia and North America

• Ambition to achieve Net Zero operational emissions by 2050, with interim targets to be developed during FY22

• Capital management review underway

• Investing in capability with a focus on ensuring the business is highly efficient and scalable

• Pathfinder Program launched to extend APA’s leading role in energy infrastructure into new energy solutions

28

Note: EBITDA excludes significant item

Delivering our vision: to be world class in energy solutions

==> picture [46 x 46] intentionally omitted <==

Refreshed Strategy Aligned with purpose and vision and targeted at energy infrastructure growth markets

Growth opportunities

Energy infrastructure in Australia and North America

Strengthening capability Strong balance sheet People, systems, processes, Opportunities to further organisational design, operating enhance capital structure models

==> picture [31 x 42] intentionally omitted <==

Technology and innovation New energy infrastructure solutions (Pathfinder Program)

Net Zero ambition Responsible energy solutions

==> picture [46 x 46] intentionally omitted <==

29

Questions and Answers

==> picture [720 x 161] intentionally omitted <==

Supplementary information

==> picture [720 x 161] intentionally omitted <==

APA overview

Snapshot of APA ….. a leading energy infrastructure business

==> picture [31 x 24] intentionally omitted <==

==> picture [33 x 33] intentionally omitted <==

==> picture [44 x 30] intentionally omitted <==

Market capitalisation

$10.9 billion (as at 19 February 2020)

$0.6 billion (as at 30 June 2000)

Credit ratings

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

Listed S&P/ASX 50

==> picture [31 x 26] intentionally omitted <==

==> picture [18 x 28] intentionally omitted <==

==> picture [24 x 20] intentionally omitted <==

==> picture [30 x 28] intentionally omitted <==

Gas transmission[(1)] Gas storage 15,425 km transmission pipelines 12,000 tonnes LNG 18 PJ gas

Gas distribution[(2)]

29,500 km Gas mains and pipelines Gas processing[(3)] >1.4 million gas consumers 113 TJ/day processing plants Gas fired power generation[(1)] 418 MW

==> picture [16 x 19] intentionally omitted <==

Electricity transmission 243 km HV

Renewable energy generation[(1)] 149.3 MW Solar 342 MW Wind

==> picture [35 x 32] intentionally omitted <==

Employees

~1,900

Australian gas transmission pipeline ownership by kilometres

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

Register composition

Securities on issue: 1,179.9 million Securityholders: ~80,000

APA Group AGIG 4,321 km Jemena 2,621 km

15,425 km

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.

• (3) Includes Orbost Gas Processing Plant at 68 TJ/day nameplate capacity

• (4) Pipeline length data includes SEA Gas and EII, source from company reports and APA data as at 31 December 2020

33

Asset footprint

==> picture [699 x 308] intentionally omitted <==

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

GLOSSARY:Assets and Investments Glossary Darwin
WPP
AGPBGPBWSFBWPCGP Amadeus Gas PipelineBonaparte Gas PipelineBadgingarra Wind and Solar FarmsBerwyndaleCarpentaria Gas PipelineWallumbilla Pipeline 16,830 PJBrowse Basin Bonaparte 734 PJBasin BGP BasinWiso McArthur Sub-basinBasinBeetaloo Other natural gas pipelinesAPA new greenfield pipelinesAPA operated assetsAPA assets and investments
CRP Central Ranges Pipeline and network
CWP Central West Pipeline AGP Electricity interconnectors
DDSFDPS & LPS EGPEDWSFEPGGPGHEM Darling Downs Solar FarmDiamantina & Leichhardt Power StationsEastern Goldfields PipelineEmu Downs Wind and Solar FarmsEthane PipelineGoldfields Gas PipelineGruyere Hybrid Energy Microgrid 45,669 PJCarnarvon Basin PPS NGPTGP Canning Basin Northern Territory GeorginaBasin Mount Isa DPS & LPS Queensland X41 PS GalileeBasin Bowen Basin Gas storageWind FarmSolar FarmIntegrated Operations Centre
(Microgrid under construction) CGP Gladstone Battery
IOCKKP Integrated Operations CentreKalgoorlie Kambalda Pipeline GGP AustraliaWestern AmadeusBasin 247 PJ 30,766 PJ WGP Gas-fired power station
MWPMGPMGPSFMSPNGP Mid West PipelineMortlake Gas PipelineMondarra Gas Storage and Processing FacilityMoomba Sydney PipelineNifty Gas Pipeline MWPNGI YGPGHEM AustraliaSouth Moomba1,129 PJCooper Basin SWQP WallumbillaBasinSurat RCWPDDSFBWP Tipton West GPPDirectlink RBP Daandine PS & Kogan North GPPBrisbane IOC Gas processing plantLNG plantNatural Gas & ethane 2P reserves,
NGIOGPPPGP Northern Goldfields InterconnectOrbost Gas Processing Plant (under commissioning)Parmelia Gas Pipeline Perth Basin1,178 PJPerth MGPSFPGPBWSFEDWSF KKP EGP EP MSP WalesSouthNew CRP as at Nov 2020 Source: EnergyQuest Dec 2020
PPS Pilbara Pipeline System CWP
RBPRCWP Roma Brisbane PipelineReedy Creek Wallumbilla Pipeline North Brown Hill Wind Farm Sydney5 PJ
SESA South East South Australia Pipeline Murraylink
SGP SEA Gas Pipeline Adelaide Victoria
SWQP South West Queensland Pipeline SGP VTS
TGPVTS WGP Telfer Gas PipelineVictorian Transmission SystemWallumbilla Gladstone Pipeline SESA MGP Melbourne Dandenong LNG Facility OGPP
WPPX41YGP Wickham Point PipelineX41 Power StationYamarna Gas Pipeline Otway Basin 584 PJ 166 PJ BasinBass 2,363 PJGippslandBasin
----- End of picture text -----

Tasmania

34

Continued growth momentum

EBITDA

==> picture [256 x 129] intentionally omitted <==

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

$1,654
$1,574
$1,518
$1,470
$1,331
$822
$747
1H20 1H21
$842 $823
FY14 FY15 FY16 FY17 FY18 FY19 FY20 1H21
----- End of picture text -----

Total assets

==> picture [256 x 116] intentionally omitted <==

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

$16,007
$14,653 $14,843 $15,046 $15,227 $15,434 $15,218
$7,973
FY14 FY15 FY16 FY17 FY18 FY19 FY20 1H21
----- End of picture text -----

Operating cash flow

==> picture [280 x 121] intentionally omitted <==

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

$1,096
$1,032 $1,012
$974
$862
$545
$440
1H20 1H21
$512 $519
FY14 FY15 FY16 FY17 FY18 FY19 FY20 1H21
----- End of picture text -----

Distributions

==> picture [280 x 112] intentionally omitted <==

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

50c
47c
44c 45c
42c
38c
36c
1H20 1H21
23c 24c
FY14 FY15 FY16 FY17 FY18 FY19 FY20 1H21
----- End of picture text -----

Notes: EBITDA excludes significant item

35

Sustainable distributions

60 cents 55 cents 50.0 50 cents 47.0 45.0 45 cents 43.5 41.5 40 cents 38.0 34.4 35.0 35.5 36.3 35 cents 32.8 31.0 29.5 30 cents 28.0 25 cents 22.0 21.5 21.5 21.5 22.5 24.0 20 cents 15 cents 24.0 10 cents 5 cents 0 cents FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 1H21

36

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

==> picture [267 x 155] intentionally omitted <==

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

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

==> picture [269 x 121] intentionally omitted <==

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

Tax Structure
APT APTIT
30% tax 0% tax
~74% ~26%
APA Group
----- End of picture text -----

37

Financial Metrics

1H21 results summary including significant item

Results $ million	1H21 1H20 Change Key Drivers
Revenue excluding Pass-through(1)	1,071.8 1,077.8 (0.6%) Volume growth in key markets, offset by softer contract renewals and lower energy consumption
EBITDA(2) Depreciation and Amortisation	822.8 842.2 (2.3%) Higher investment in strategic development opportunities and capability, plus higher insurance and compliance costs (331.4) (319.4) (3.7%) Larger asset base vs 1H20
EBIT(2) Net Interest Expense	491.5 522.8 (6.0%) (229.1) (245.3) 6.6% Unrealised gains on hedges, higher interest income and higher capitalised interest
Profit before tax(2) Significant item Income tax expense	262.4 277.5 (5.4%) (249.3) - Impairment in relation to Orbost Gas Processing Plant (24.8) (102.4) (75.8%)
(Loss)/Profit after tax including significant item	(11.7) 175.0 (106.7%)
Operating Cash Flow(3)	519.2 511.9 1.4% Timing of receipts and payments
Operating Cash Flow per Security (cents)	44.0 43.4 1.4%

Notes: Numbers in the table may not add due to rounding.

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

• 2) Excludes significant item.

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

39

Segment EBITDA by state

$ million	1H21	1H20	Change	Key drivers
Queensland 495.5 506.3 (2.1%) • Softer contract renewals
New South Wales 83.6 81.6 2.4% • Higher gas volumes
Victoria & South Australia 59.6 63.5 (6.1%) • Lower energy consumption due to COVID
Northern Territory 11.4 8.6 33.1% • New gas transportation agreement
Western Australia 168.7 171.1 (1.4%) • Higher gas volumes in Goldfields • Network curtailment (renewables)
Energy Infrastructure total 818.8 830.9 (1.5%)
Asset Management 31.0 31.3 (0.9%) • Timing of third-party projects
Energy Investments 16.2 18.4 (12.3%) • Lower equity income
Corporate costs (43.1) (38.4) 12.1% • Costs related to departure of two Executives • Higher insurance and compliance costs • Higher Executive recruitment costs
Total EBITDA 822.8 842.2 (2.3%)

40

Notes: EBITDA excludes significant item

5 year financials

Financial Performance		1H21	FY20	FY19	FY18	FY17	FY16
Revenue	$m	1,295.0	2,590.6	2,452.2	2,386.7	2,326.4	2,094.3
Revenue excluding pass-through(1)	$m	1,071.8	2,129.5	2,031.0	1,941.4	1,888.3	1,656.0
EBITDA(2)	$m	822.8	1,653.9	1,573.8	1,518.5	1,470.1	1,330.5
Depreciation and amortisation expenses	$m	(331.4)	(651.6)	(611.4)	(578.9)	(570.0)	(520.9)
EBIT(2)	$m	491.5	1,002.4	962.4	939.6	900.1	809.7
Interest expense	$m	(229.1)	(497.3)	(497.4)	(509.7)	(513.8)	(507.7)
Significant item	$m	(249.3)	-	-	-	-	-
Income tax expense	$m	(24.8)	(187.9)	(177.0)	(165.1)	(149.5)	(122.5)
Profit/(Loss)after tax includingsignificant item	$m	(11.7)	317.1	288.0	264.8	236.8	179.5
Financial Position
Total assets	$m	15,218.0	16,007.2	15,433.9	15,227.2	15,045.9	14,842.7
Totaldrawn debt(3)	$m	9,684.4	9,983.6	9,352.1	8,810.4	9,249.7	9,037.3
Totalequity	$m	3,282.5	3,223.9	3,599.4	4,126.8	3,978.2	4,029.1
Operating Cash Flow
Operating cash flow(4)	$m	519.2	1,095.9	1,012.1	1,031.6	973.9	862.4
Key Financial Ratios
Earningsper securityincludingsignificant item(5)	cents	(1.0)	26.9	24.4	23.3	21.2	16.0
Operating cash flowper security(4)	cents	44.0	92.9	85.8	90.7	87.1	77.1
Distributionper security	cents	24.0	50.0	47.0	45.0	43.5	41.5
Funds From Operations to Net Debt	%	12.1	12.2	10.7	10.7	10.8	9.5
Funds From Operations to Interest	times	3.2	3.3	3.0	3.0	3.0	2.7
Weighted average number of securities(4)	m	1,179.9	1,179.9	1,179.9	1,136.9	1,118.5	1,118.5

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

(2) Excludes significant item

(3) 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.

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

(5) 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 FY2016 to FY2018 have been adjusted to account for that rights issue

41

5 year financials (con’t)

Segment EBITDA
(Excluding Significant Item)		1H21	FY20	FY19	FY18	FY17	FY16
EBITDA (Continuing businesses)
Energy Infrastructure
East Coast:
Queensland	$m	495.5	1,007.9	1,010.1	962.2	925.4	855.8
New South Wales	$m	83.6	160.8	149.4	147.1	149.5	121.7
Victoria	$m	58.4	101.9	114.0	124.6	123.0	120.6
South Australia	$m	1.2	2.3	2.1	2.6	2.3	2.5
Northern Territory	$m	11.4	19.9	19.2	22.9	18.8	17.5
Western Australia	$m	168.7	337.1	277.8	237.6	234.7	217.6
Energy Infrastructure Total	$m	818.8	1,629.8	1,572.4	1,497.1	1,453.7	1,335.5
Asset Management	$m	31.0	63.3	53.0	66.2	58.7	53.9
Energy Investments	$m	16.2	35.7	28.4	23.1	24.4	27.8
Corporate costs	$m	(43.1)	(75.0)	(80.1)	(67.9)	(66.7)	(86.7)
Divested businesses	$m	-	-	-	-	-	-
Capital expenditure		1H21	FY20	FY19	FY18	FY17	FY16
Growth Capex	$m	154.2	287.7	462.8	742.9	271.9	281.0
SIB Capex and other IT expenditure	$m	97.4	139.4	118.4	112.6	68.8	52.7

42

Historical EBITDA by asset – Energy Infrastructure

$ millions	1H21	FY20	FY19	FY18	FY17	FY16
East Coast Grid
Wallumbilla Gladstone Pipeline	270.0	538.9	542.4	515.9	488.0	475.2
South West Queensland Pipeline	118.0	254.4	250.0	244.3	242.4	240.3
Moomba Sydney Pipeline(1)	83.6	160.8	149.4	147.1	149.5	121.7
Victorian Systems	58.4	101.9	114.0	124.6	123.0	120.6
Roma Brisbane Pipeline	27.1	56.9	58.4	60.9	58.6	57.7
Carpentaria Gas Pipeline	15.2	29.5	36.8	39.0	35.6	38.6
Other Qld assets	11.9	23.1	20.7	14.0	13.5	20.6
East Coast Grid Total	584.1	1,165.5	1,171.5	1,145.7	1,110.5	1,074.8
Northern Territory
Amadeus Gas Pipeline	11.4	19.9	19.2	22.9	18.8	17.5
Western Australia
Goldfields Gas Pipeline	76.1	149.9	125.2	111.8	111.5	115.1
Eastern Goldfields Pipeline	26.6	51.0	45.6	37.7	36.3	14.2
Mondarra Gas Storage and Processing Facility	18.6	36.1	33.8	32.8	33.6	31.8
Pilbara Pipeline System	12.9	27.6	28.2	27.8	27.5	28.3
Other WA assets	1.7	7.0	3.6	4.0	3.4	8.2
South Australia
SESA Pipeline and otherSAassets	1.2	2.3	2.1	2.6	2.3	2.5
Power Generation
Diamantina Power Station	45.6	89.4	90.9	88.3	87.4	23.3
Badgingarra Wind and Solar Farms	16.2	33.5	14.7	0.0	0.0	0.0
Emu Downs Wind and Solar Farms	12.9	24.8	23.2	23.6	22.4	19.9
Darling Downs Solar Farm	7.7	15.7	11.0	0.0	0.0	0.0
Gruyere Power Station	3.8	7.2	3.5	0.0	0.0	0.0
Grand Total	818.8	1,629.8	1,572.4	1,497.1	1,453.7	1,335.6

Notes: EBITDA excludes significant item

43

Low risk business model

• Solid risk management processes in place

• Continue to manage counterparty risks by:

• Diversification of customers and industry exposures

• Assessment of counterparty creditworthiness

• Entering into long term contracts to support major capital spend

Energy Infrastructure revenue split

==> picture [590 x 168] intentionally omitted <==

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

7.8%
10.2%
2.8%
12.2% 23.4%
8.2%
~89% ~92% 42.7% Diverse
48.7%
Take or pay/ Investment Source of
regulated Grade revenue
77.7% 37.0% 24.7%
Capacity charge Throughput & other variable A- rated or better Not rated Energy Resources
Regulated Flexible short term BBB to BBB+ rated Sub-investment grade Utility Industrial & Others
Contracted fixed Other Investment grade
----- End of picture text -----

44

Debt maturity profile

APA maintains diversity of funding sources and spread of maturities[(1)]

==> picture [669 x 254] intentionally omitted <==

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

Undrawn committed facilitates
Bank borrowings
US Private Placement Notes
US 144A Notes
Medium Term Notes
USD denominated obligations [(2)]
Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun
20 21 21 22 22 23 23 24 24 25 25 26 26 27 27 28 28 29 29 30 30 31 31 32 32 33 33 34 34 35
50
296
150
1,132 1,396 (USD1,100) 1,109
1,018
500
1,140 (USD 886)
735 742
879 (USD 683)
500 536
200
133 381 (USD 300)
50
----- End of picture text -----

Notes:

(1) APA debt maturity profile as at 31 December 2020.

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

45

Funding source

==> picture [172 x 160] intentionally omitted <==

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

3%
11%
33%
Total
facilities
A$11b
53%
----- End of picture text -----

Undrawn Bank Facilities Drawn Bank Facilities Medium Term Notes US 144A Notes USPP Notes

	31 Dec 2020 Total Debt Facilities $10,947m Drawn Debt Facilities $9,697m Drawn Bank Facilities $0m Undrawn Bank Facilities $1,250m Cash at Bank $804m Available Liquidity $2,054m*

46

Debt facilities

Total committed debt facilities at 31 December 2020

$ million	Facility	Drawn	Tenor
	amount	amount
2017, 2019 & 2020 Bilateral bank facilities	250	0	3 to 5 year facilities maturing between May 2022 to December 2025
2018 Syndicated bank facilities	1,000	0	5 and 5.5 year tranches maturing June and December 2023
2007 US Private placement	296	296	15 year tranche maturing May 2022
2012 US144a/RegS Notes	735	735	10year tranche maturingOctober 2022
2012 GBP Medium Term Notes	536	536	12 year tranche maturing November 2024
2015 US144a/Reg S Notes(1, 2)	1,777	1,777	10 and 20 year tranches maturing March 2025 and March 2035
2015 GBP Medium Term Notes(1, 2)	1,140	1,140	15 year tranche maturing March 2030
2015 EUR Medium Term Notes(2)	1,132	1,132	7 year tranche maturing March 2022
2015 EUR Medium Term Notes(1, 2)	879	879	12 year tranche maturing March 2027
2016 AUD Medium Term Notes	200	200	7 year tranche maturing October 2023
2017 US144a/Reg S Notes	1,109	1,109	10.3 year tranche maturing July 2027
2019 GBP Medium Term Notes	742	742	12.3 year tranche maturing July 2031
2019 JPY Medium Term Notes	133	133	15 year tranche maturing June 2034
2020 EUR Medium Term Notes	1,018	1,018	10.2 year tranche maturing July 2030
Total	10,947	9,697

47

Energy market dynamics and overview

Australian gas market overview

Gas supply and demand

AEMO 2020 Gas Statement of Opportunities:

==> picture [672 x 277] intentionally omitted <==

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

Gas Supply from existing and committed gas developments is forecast to meet gas demands until 2023/24 WPP Darwin
Risks remain that any weather-driven variances could increase gas demand Bonaparte 734 PJBasin BGP McArthur Basin
Gas demand and production 16,830 PJBrowse Basin BasinWiso Sub-basinBeetaloo
AGP
45,669 PJCarnarvon Basin PPS NGPTGP Canning Basin Northern Territory GeorginaBasin Mount Isa DPS & LPS Queensland X41 PS GalileeBasin Bowen
Basin
CGP Gladstone
demand GGP AustraliaWestern AmadeusBasin 247 PJ 30,766 PJ WGP
SWQP RCWP BWP Daandine PS &
MWPNGI AL YGPGHEM AustraliaSouth Moomba1,129 PJCooper Basin WallumbillaBasinSurat DDSF Tipton West GPPDirectlink RBP Kogan North GPPBrisbane IOC
0 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 supply Perth Basin1,178 PJPerth MGPSFPGPBWSFEDWSF MMGPKKP EGP EP MSP WalesSouthNew WSPCRP
Source: AEMO GSOO 2020, WA GSOO 2020 North Brown Hill Wind Farm CWP 5 PJ
Murraylink Sydney
Australian gas transmission pipeline ownership by kilometres AdelaideSGP Victoria
VTS
APA assets and investments Integrated Operations Centre SESA Dandenong LNG Facility OGPP
MGP
APA Group 15,425 km Other natural gas pipelinesAPA new greenfield pipelinesAPA operated assets Gas-fired power stationBattery Otway Basin 584 PJ Melbourne166 PJ CPPP BasinBass 2,363 PJGippslandBasin
AGIG 4,321 km Electricity interconnectors Gas processing plant Tasmania
Gas storage LNG plant
Jemena 2,621 km Wind Farm Natural Gas & ethane 2P reserves,
Solar Farm as at Nov 2020 Source: EnergyQuest Dec 2020
----- End of picture text -----

• Gas Supply from existing and committed gas developments is forecast to meet gas demands until 2023/24

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

==> picture [300 x 131] intentionally omitted <==

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

Gas demand and production
3,600
3,400
3,200
demand
3,000
2,800
supply
0
2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Source: AEMO GSOO 2020, WA GSOO 2020
----- End of picture text -----

Note: *** includes SEA Gas Pipeline and Mortlake Pipeline. Source:** Company reports; APA data as at 31 December 2020

49

Regulation of Australian gas pipelines

APA pipelines by regulation type

• In 1H21, 8.2% of Energy Infrastructure revenue was from full regulated assets

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

• Australia’s economic regulatory regime for gas pipelines is set out in the National Gas Law (NGL) and the National Gas Rules (NGR). Some of APA’s pipelines have been covered by the National Gas Access Regime since it was introduced in the 1990’s. There are 2 frameworks under the NGR:

• 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. Pipeline users can opt for non-regulated services on full regulation pipelines, or

Full regulation pipelines Light regulation pipelines Non-scheme pipelines Partly full regulation/ non-scheme pipelines

• 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. A regulatory negotiate-arbitrate mechanism is available in the case of access disputes.

• 2) Non-Scheme pipelines (NGR Part 23) – The Part 23 regime came into effect from August 2017 and provides for additional information disclosure and a commercial negotiate-arbitrate mechanism as part of a dispute resolution framework.

50

Regulation of Australian gas pipelines (con’t)

Schedule of regulatory reset dates for APA	2021 2022 2023 2024 2025 Amadeus Gas Pipeline Roma Brisbane Pipeline Victorian Transmission System Current regulatory period Goldfields Gas Pipeline
Access arrangement • •	Apply for a term, generally 5 years 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 tariff • •	Provides a default tariff for customers seeking the reference service but tariffs can also be negotiated for other services Determined with reference to regulated revenue, capacity and volume forecasts
Regulated revenue • •	Determined using the building block approach to recover efficient costs • 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 asset base (RAB) • •	Opening RABs have been settled with the regulator; there are no reassessments for approved RABs RABs adjusted every access arrangement period • Increased by capital invested into the asset and reduced by regulatory depreciation costs

51

For further information contact:

Yoko Kosugi GM Investor Relations and Analytics

M: +61 438 010 332 E: yoko.kosugi@apa.com.au Or visit the APA website at: www.apa.com.au