APA GROUP — Investor Presentation 2008

Jun 10, 2008

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MEDIA RELEASE

11 June 2008

11 June 2008

The Manager

Company Announcements Office Australian Securities Exchange 4[th] Floor, 20 Bridge Street Sydney NSW 2000

Electronic Lodgement

Dear Sir or Madam

Company Announcement

I attach the following announcement for release to the market:

• Presentation given by APA Group Managing Director, Mick McCormack, at the UBS

• Australian Infrastructure and Utilities Conference in Sydney

Yours sincerely

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Sandra Dureau

Company Secretary

Page 1

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APA Group and its natural gas infrastructure

Mick McCormack APA Group Managing Director UBS Australian Infrastructure and Utilities Conference 2008, Sydney 11 June, 2008

APA Group is Australia’s leading gas transmission and distribution business

APA Group owns and operates strategically positioned gas infrastructure assets across Australia

Objective

� Grow the business,

… distribution and operating cash flow growth of at least 5% per annum

and maximise value for securityholders in the short, medium and long term

Strategy

� Focus on core gas infrastructure assets that have growth potential

… transmission, storage and distribution across Australia

and further enhance this portfolio of assets

� Leverage internal commercial and operational knowledge and skill base

2

APA has grown its portfolio of gas infrastructure assets and internal operations capability

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GAS INFRASTRUCTURE
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3

APA now has an asset base of $4 billion with assets under management of over $8 billion

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4

APA is focussing on enhancing existing infrastructure through expansion and new build

Bonaparte Gas Pipeline

• Long term arrangement with NT Power and Water Corporation for ~ 30 PJ/a

• 285 km, 12" 15 MPa pipeline

• Construction contract - AJ Lucas

• Construction commenced May 2008

• First gas January 2009

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Goldfields Gas Transmission Pipeline

• New transportation agreements

• Growth facilitated by 2 new compressor stations at Wyloo West and Ned’s Creek

Carpentaria Gas Pipeline

• New Transportation agreements

• Growth facilitated by new compressor station at Davenport Downs

• Pipeline capacity to increase by 15%

Roma Brisbane Pipeline

• FEED stage of pipeline expansion project following Expression of Interest for additional capacity

APA Distribution Network – SE Qld - Expansion of network to deliver gas to 9,000 new homes

• $17 million capex over 3 years

• Pipeline capacity to increase by 20%

Moomba Sydney Pipeline

• Current capacity to increase by 20% to meet winter peak demand - Increased capacity fully contracted - Total $100 million capex over a few years

Victorian Transmission System

• Brooklyn Lara looping and compressor station

• 57 km pipeline and compressor to increase VTS capacity and storage - Included in RAB

Moomba Sydney Pipeline / Interconnect

• Capacity increase to expand gas flows to and from Vic and NSW - Contract to supply NewGen Power station at Uranquinty, NSW

• Capacity increase facilitated by new compressor at Culcairn - Commissioning due mid 2008

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Brownfield growth of APA’s gas infrastructure: Resources boom

• WA and Qld pipeline expansion due to increased gas demand in resource rich mining areas, with new pipeline capital underpinned by new capacity contracts

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Source: ABARE Australian Mineral Statistics Dec 2007

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Brownfield growth of APA’s gas infrastructure: Increasing gas demand

• Gas fired generation and increasing gas demand in major markets is driving expansion of gas infrastructure, particularly to supply demand in peak periods

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Brownfield growth of APA’s gas infrastructure: Gas distribution

• Growth in residential and commercial gas use within South East Queensland

• Fast growing population and housing in Brisbane and Gold Coast – APA Allgas area

• State Government initiatives encouraging gas use for water heating (Climate Smart 2020)

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Source: Queensland Government – Department of
Local Government and Planning Nov 2006
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Greenfield developments: Gas infrastructure for power generation

Proposed gas fired generation locations

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Townsville
Mt Isa
Gladstone
Brisbane
Adelaide Sydney
APA pipelines Canberra
Non-APA pipelines Melbourne
Proposed gas fired
generation
Hobart
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Source: Data from AER State of the Energy Market 2007
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� Gas fired power generation – OCGT and CCGT

• CCGTs meeting new base load requirements

– OCGTs for peak demand

• Gas infrastructure requirements are a function of generation capacity, not gas volume

• Renewable targets affect gas volume, not generation capacity

� NSW electricity privatisation – Owen Report

• 1,300 MW of base load generation for NSW by 2013/4

• NSW gas demand forecast to double by 2015

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Greenfield developments: New supply routes

• Shifting gas supply source for Northern Territory

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Bonaparte
Basin
Qld CSG –
Amadeus Bowen/Surat
Basin Basins
Cooper/
Eromanga
Basin
NSW CSG
Bass/Otway Gippsland
Basins Basin
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• Bonaparte Gas Pipeline - shift from Amadeus Basin to Bonaparte Basin

• Shifting gas supply sources for NSW

• Gas into the NSW market – shift away from Cooper Basin to Queensland and Victoria

  • Victorian gas north

  • Queensland CSG south

  • NSW CSG to market

• APA will provide a competitive offering of infrastructure to move Queensland and NSW CSG to southern markets.

• APA able to offer competitive mechanism for utilisation of its new and existing infrastructure across East Australia

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Greenfield developments: Multiple point delivery

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• Small number of retailers across the East Australian gas and electricity markets

• Three largest retailers (excluding NSW electricity) supply majority of the East Australian retail market

• Retailers’ gas portfolios are diversified across gas basins and producers

• Three largest retailers hold more than two thirds of East Australia’s contracted gas

• APA’s new and existing infrastructure can move gas from multiple sources to multiple markets

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Greenfield developments: East coast CSG opportunities

East Australia Natural Gas and Ethane

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2P Reserves (as at May 2008)
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Bowen/Surat
Basins
7,234 PJ
Cooper/
Eromanga 249 PJ
Basin
1,183 PJ NSW CSG
692 PJ
CSG
Conventional
gas
Bass/Otway Gippsland
Basins Basin
1,791 PJ 5,353 PJ
Source: EnergyQuest May 2008
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• Vast CSG reserves being proved and developed in Queensland and New South Wales

• Significant growth opportunities to deliver CSG to markets

• LNG export and new gas infrastructure requirements

• Queensland power generation – 18% of electricity from gas fired generation by 2020 (Climate Smart initiative)

• New South Wales power generation (Owen Report)

• Growing gas demand in southern markets

� APA is a major owner and operator of gas infrastructure in Queensland and New South Wales

• APA is continuing to participate in CSG development and growth opportunities

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Selling down APA’s position in assets that have a low growth profile

� Unlisted vehicle to hold a number of APA’s annuity-style assets

• Electricity cables: Murraylink and Directlink

• Other APA assets with long term stable annuity-style revenue streams

� APA’s continued involvement

• Retain minority interest in the vehicle

• Provide long term management and operation of the assets

• Funds of around $500 million released to focus on greenfield and brownfield growth opportunities

• Timing – target to complete the transaction within the current calendar year

Structure of proposed vehicle

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APA Group Third party equity
minority interest
Holding company
Asset company
Debt finance
APA electricity
APA Group transmission assets
management
and operation Other APA
services annuity-style assets
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Integration and leveraging of internal industry knowledge and skills

• APA Group’s internal industry knowledge and skill base is a valuable resource from which we extract value

• Deep understanding of the assets – operations, commercial and regulatory

• Alignment of operations and commercial

• Alignment of thinking across assets

• Leveraging internal operations to create profit generators

• Identifying and developing unique solutions – commercial/operations

• Extracting synergy benefits across assets

• With its internal capabilities, APA is extracting more value from its assets by running its business smarter and adapting to a changing market

14

APA Group’s business is built on a solid base

• Secure cash flow through regulated returns and long term agreements

• Recent regulatory reset accounts for market conditions – higher debt and equity costs

• Contract revenue indexed to CPI

• Able to grow distributions by at least 5% per annum

• Operating cash flow growing by more than 5% per annum

• Distributions continue to be fully funded by operating cash flow

� Strong capital management

• Able to refinance debt – $150 million refinanced

• Facilities in place to fund growth over the next 12 months (prior to funds from unlisted vehicle)

• Quality portfolio of gas infrastructure assets spread throughout Australia

• Internal management and operations

• No fee drain

• Able to deliver unique and profitable solutions

15

APA Group is able to deliver continued strong results with growth

• APA Group’s focus is on growing and enhancing its extensive gas infrastructure portfolio across Australia

� Brownfield growth of APA’s infrastructure

• Capacity expansion to meet new and increased gas demand in resource rich areas

• Capacity expansion to meet increasing gas and peak demand

• Growth of APA Allgas Distribution in South East Queensland

� Greenfield developments

• Developing competitive mechanism for new and existing infrastructure to deliver gas to East Australian markets

• for gas fired generation

• via new supply routes

• and facilitating multiple point supply and delivery

• Continuing to participate in CSG development and growth opportunities

� Redirecting capital to new growth opportunities

� Leveraging internal commercial and operational knowledge and skill base

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We deliver energy

www.pipelinetrust.com.au

For further information on APA Group contact Chris Kotsaris, Manager Investor Relations Email: chris.kotsaris@pipelinetrust.com.au Tel: +61 2 9693 0049 Mob: +61 402 060 508

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Disclaimer

The information contained in this presentation is given without any liability whatsoever to Australian Pipeline Trust or APT Investment Trust or any of its related entities (collectively “APA Group”) or their respective directors or officers, and is not intended to constitute legal, tax or accounting advice or opinion. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or thoroughness of the content of the information. The recipient should consult with its own legal, tax or accounting advisers as to the accuracy and application of the information contained herein and should conduct its own due diligence and other enquiries in relation to such information.

The information in this presentation has not been independently verified by APA Group. APA Group disclaims any responsibility for any errors or omissions in such information, including the financial calculations, projections and forecasts set forth herein. No representation or warranty is made by or on behalf of APA Group that any projection, forecast, calculation, forward-looking statement, assumption or estimate contained in this presentation should or will be achieved.

Please note that, in providing this presentation, APA Group has not considered the objectives, financial position or needs of the recipient. The recipient should obtain and rely on its own professional advice from its tax, legal, accounting and other professional advisers in respect of the addressee’s objectives, financial position or needs.

This presentation does not carry any right of publication. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by APA Group. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of APA Group.

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MEDIA RELEASE

11 June 2008

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About APA Group (APA)

APA Group, comprised of Australian Pipeline Trust and APT Investment Trust, is the major ASX-listed energy transmission company in Australia with interests in almost 12,000 kms of natural gas pipeline infrastructure, over 2,300 kms of gas distribution networks in south east Queensland, Coal Seam Gas processing plants, gas fired power stations, gas storage facilities and two high voltage direct current interconnector systems.

APA manages and operates all its assets and also provides management and operation services to gas distribution and transmission company Envestra (which owns 19,100 km of natural gas distribution networks and 1,029 km of natural gas transmission pipelines). It also holds an 18.3 percent stake in Envestra and a one-third interest in the SEAGas pipeline. APA Group has a varied and quality customer base including AGL Energy, Cooper Eromanga Basin Producers, Xstrata, Newmont, CS Energy, BHP Billiton, Zinifex, Incitec Pivot, Origin, RioTinto, Nickel West, Synergy and Verve Energy.