APA GROUP — Investor Presentation 2009

May 6, 2009

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ASX RELEASE

7 May 2009

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:

• CFO Presentation to Macquarie Securities Australia Conference

Yours sincerely

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Mark Knapman Company Secretary

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Macquarie Securities Australia Conference

Ross Gersbach, Chief Financial Officer Sydney, 7 May 2009

APA Group overview

• APA is Australia’s leading gas transmission and distribution infrastructure owner and operator

• Gas transmission and distribution : gas pipelines, interconnected gas storage facilities across Australia, and gas distribution networks in Queensland and New South Wales

• Asset Management : provides asset management, operating and maintenance services

• Energy Investments : minority interests in energy infrastructure investments, including Envestra, SEA Gas Pipeline, Energy Infrastructure Investments and Ethane Pipeline Income Fund

• APA generates secure cash flows from contractual and regulatory arrangements on its assets

• with more than 90% of revenue from regulated (natural monopoly) assets and long term contracts

• APA has direct management and operational control over its assets and investments

• no fee leakage or conflicts that arise with external management model

• employing over 1,100 skilled and experienced people who perform all commercial, engineering and operations functions for APA assets and investments

APA delivers more than half of Australia’s domestic gas use annually

May 09 � 2

High quality gas infrastructure portfolio

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• Australia has an abundance of natural gas reserves

• 56,700 PJ of 2P reserves, with almost half (26,100 PJ) in eastern Australia

• Increasing demand for gas

• particularly gas fired power generation

• APA delivers gas from all major gas production sources to all major gas markets

• More than 50% of gas used in Australia is transported through APA’s pipelines

• APA infrastructure is crucial to Australia’s eastern states

• APA transports more than 70% of gas in Australia’s eastern states

• Progressing new links for gas between east Australian states

APA has an unrivalled portfolio of pipelines, connecting all major gas sources May 09 �� to major markets

May 09 �� 3

APA’s strengths

� Unrivalled gas asset footprint

• largest gas transporter of natural gas across Australia by pipeline length, capacity and volume

• Integrated portfolio of gas pipeline assets

• providing revenue and operating synergies

� Attractive growth opportunities

• enhancing capacity in APA’s existing pipelines serving major growth markets across Australia

� Stable cash flow

• regulated and contracted revenue

� Internally managed and operated business

• highly skilled and experienced workforce, extracting greater value from the business and responding to a dynamic energy market

APA owns and operates strategically positioned gas infrastructure assets across Australia

May 09 � 4

APA’s strategy

Maximise value for securityholders by

• Focusing on gas infrastructure assets in Australia’s growing gas market and further enhance APA’s portfolio of assets

• Capturing revenue and operational synergies from APA’s significant asset base

• Pursuing opportunities that leverage APA’s knowledge and skills base

• Maintaining a strong balance sheet

May 09 � 5

Proven financial performance

EBITDA

Operating cash flow

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500
450 431
400
350
300
249
250
200
150
100
50
0
FY2004 FY2005 FY2006 FY2007 FY2008 HY2009
$m
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200 192
180
160
140
123
120
100
80
60
40
20
0
FY2004 FY2005 FY2006 FY2007 FY2008 HY2009
$m
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Operating cash flow per security

Distributions per security

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45 42.7
40
35
30
25.8
25
20
15
10
5
0
FY2004 FY2005 FY2006 FY2007 FY2008 HY2009
cents
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45
40
35
29.5
30
25
20
15.0
15
10
5
0
FY2004 FY2005 FY2006 FY2007 FY2008 HY2009
cents
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On target to meet FY09 guidance – EBITDA $420-430 million

May 09 � 6

Strong performance in 1H09

Financial highlights

• Underlying revenue (excluding pass-through) $368 million, up 20%

• Underlying EBITDA $249 million, up 16%

• Underlying operating cash flow $123 million, up 12%

• Underlying operating cash flow per security 25.8 cents, up 3.3%

• Distribution 15.0 cents, up 3.4% (distributions covered by operating cash flow)

Strategic highlights

• Established Energy Infrastructure Investments (EII)

• Proceeds in excess of book value, with $647 million used to pay down debt

• APA asset manager for EII

• Construction of the Bonaparte Gas Pipeline

• Organic growth on gas transmission pipelines – Goldfields (WA), Carpentaria (Qld), Moomba Sydney (NSW)

• Attractive investments – Central Ranges Pipeline, Envestra equity

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Pipeline stringing - Bonaparte Gas Pipeline

May 09 � 7

Stable and secure revenue

• More than 90% of APA’s revenues are derived from price regulated (natural monopoly) assets and long-term contracts

• Tariffs are set by regulation for price regulated assets, but existing contract terms remain

• Tariffs commercially negotiated for all other pipelines and new capacity on all pipelines[(1)] , with contract

• Contract terms are often for periods of in excess of 5 years, and APA’s current average contract length is approximately 7 years

FY2008 Revenue Split

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Other
3%
Subject to
Contracted
price
44% regulation
53%
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Price Regulated Commercially Negotiated Tariffs set by Contract terms Light regulation No regulation regulation remain Victorian Roma Brisbane Moomba Sydney Moomba Sydney Transmission System Pipeline Pipeline (Marsden Pipeline (Marsden APA Gas Network Goldfields Gas downstream) upstream) Central West Pipeline Pipeline[(2)] Carpentaria Gas Parmelia Gas Pipeline Central Ranges Pipeline Amadeus Gas Pipeline Mid West Pipeline Pipeline Central Ranges Network

• (1) Except Victorian Transmission System

• (2) Some contracts provide for regulated price to apply

May 09 � 8

Regulatory overview

• Regulatory resets are spread out over five years, with on average one reset per year

• Next major asset reset is 1 January 2010 – Goldfields Gas Pipeline

� AER Review of WACC for regulated electricity transmission & distribution:

• Regulated electricity assets, not gas.

• Decision may influence but is not binding for gas assets - WACC for gas assets are set at the time of individual price reviews, having regard to particular characteristics of that asset.

APA’s major price regulated assets - regulatory resets over the next five years

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2009 2010 2011 2012 2013
Goldfields Gas Pipeline
APA Gas Network
Roma Brisbane Pipeline
Victorian Transmission System
Current regulatory period Next regulatory period
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May 09 � 9

Diversified customer base

• APA’s revenue stream is diversified across customers and industries

FY08 revenue (excluding pass-through) by customer type

• Customers are among the largest in the energy market and include BHP (A+), Origin Energy (BBB+) and AGL Energy (BBB)

• State Government Businesses include Energy Australia, Country Energy, CS Energy, NT’s Power and Water Corporation and WA’s Verve Energy

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5% Other
Government
businesses [5%]
Large mining and Retail energy
36% 54%
industrial (including utilities
gas producers)
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May 09 � 10

Integrated pipelines facilitate retail market dynamics

• Small number of retailers across 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 infrastructure can move gas from multiple supply sources to multiple markets

• Cost advantage in expanding or augmenting existing infrastructure

May 09 � 11

Increased demand for natural gas

Natural gas and Australian primary energy consumption Growth rates

• It is estimated that Australia’s underlying gas demand will grow an average of 4%* annually over the next 10 years. Key growth drivers include:

• Greater use of gas in electricity generation, mining and energy-intensive refining

• Introduction of carbon reducing legislation should increase use of gas for electricity generation (as gas becomes more competitive)

• Continued growth expected in coal seam gas (CSG) production

• APA infrastructure is ideally positioned to participate in this growth through the sale of transport, load shaping and storage services

Note*: ABARE – Energy Update 2008

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7.0%
6.0%
Natural gas Total
5.0%
4.0%
3.0%
2.0%
1.0%
0.0%
Australian primary energy consumption
9,000 25%
8,000 Natural gas as a
proportion of primary
7,000 energy use (RHS) 20%
6,000
15%
5,000
4,000
10%
3,000 Total energy consumption (LHS)
2,000 5%
1,000
Natural gas consumption (LHS)
0 0%
Historical Forecast
2006-07 2008-09 2010-11 2012-13 2014-15 2016-17 2018-19 2020-21 2022-23 2024-25 2026-27 2028-29
1960-61 1965-66 1970-71 1975-76 1980-81 1985-86 1990-91 1995-96 2000-01 2005-06 2010-11 2015-16 2020-21 2025-26
Energy (PJ)
Natural gas proportion
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Source: ABARE - Energy Update 2008

May 09 � 12

Increased pipeline capacity requirements for power generation

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• APA primarily sells pipeline capacity

• Gas fired power generation requires pipeline capacity and gas throughput:

• Baseload generation

• capacity and gas volumes throughout the year

• Peak/intermediate generation

• capacity and storage required throughout the year

Growth in gas fired power generation

Growth in capacity

Growth in pipelines

May 09 � 13

Capital expenditure and timing is discretionary

• APA has a low level of stay-in-business capex which is required annually – up to $20 million per annum

• Bulk of the assets are underground and require a minimal level of maintenance capex

• APA controls the timing of non-critical capex

• APA maintains flexibility in relation to the amount and timing of larger growth capex projects

• Growth capex enables APA to leverage additional value from its existing assets

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APA’s infrastructure is underground and require minimal level of stay-in-business capex

May 09 � 14

Secure long term debt portfolio

• Cash and committed undrawn facilities of $710 million at 31 December 2008, with $300 million MTN repaid in March 2009

� Recent debt raising experience

• $165 million bilateral debt facility - August 2008

• $538 million of non-recourse debt raised for EII – December 2008

• 1H09 metrics

• Gearing[(1)] of 69.7%

• Interest Cover Ratio of 1.9x

• Interest rates - 80% fixed, with portfolio average interest rate of 7.44%

• Track record of prudent debt portfolio management

• Refinancing obligations spread over 13 years

• Currently working on the next debt refinancing due June 2010

Facility	Amount (A$m)	Tenor
Bilateral borrowings(2)	165	July 2011
2003 US Private Placement	496	7, 10, 12 and 15 year tranches (Sep 2010, 2013, 2015, 2018)
2007 US Private Placement	811	10, 12 and 15 year tranches (May 2017, 2019, 2022)
2007 Syndicated Facility	900	June 2010
2007 Syndicated Facility(3)	900	June 2012

• (1) Gearing ratio determined in accordance with the syndicated loan facilities

• (2) Facility is undrawn

• (3) Amount drawn at 31 December 2008 was A$755 m

May 09 � 15

Capital management and refinancing

� Debt maturing in the next 18 months:

• $900 million syndicated bank facility – June 2010

• $102 million USPP 2003 Tranche A – September 2010

� Refinancing strategy

• Access diverse markets and broader range of financing options

• Reduce discretionary capital expenditure

� Capital management strategy

• Move towards having no more than 20% debt maturing in any one year

• Maintain and enhance diversity in APA’s debt capital

• Maintain hedging policy of between 65% and 90% of outstanding debt facilities

• Target gearing of 65-70%

• Maintain Distribution Reinvestment Plan (DRP) and Security Purchase Plan (SPP)

May 09 � 16

Summary

• APA continues to deliver value to its securityholders through growth in distributions and operating cash flow

• Quality portfolio of gas infrastructure assets throughout Australia

• Direct management and operational control over APA’s assets and investments delivers further value to the business

• Attractive growth opportunities with APA’s pipelines serving Australia’s major growth markets

• Strong focus on capital management and upcoming refinancing

May 09 � 17

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Supplementary information

May 09 � 18

APA’s gas infrastructure business

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May 09 � 19

APA business segments

		FY2008 EBITDA %1
Gas Transmission and Distribution	�Australia’s largest gas pipeline owner, present in each mainland state and territory �APA manages and operates all its major gas transmission and distribution assets �Gas transmission pipelines: – Approximately10,000 km of high pressure gas transmission pipelines across Australia – Transports more than half of the natural gas used in Australia annually �Gas distribution networks: – 2,800 km of distribution network – More than 75,000 gas users in Queensland and New South Wales �Gas storage: – Mondarra gas storage facility (WA) and Dandenong LNG storage facility (Victoria)	79%
Energy Investments	�Envestra Limited (30.6% interest) – ASX-listed, one of Australia’s largest natural gas distribution companies – 20,100 km of distribution networks and 1,100 km of transmission pipeline, serving 1.1 million customers �SEA Gas Pipeline (33.3% interest) – An unlisted 680 km pipeline, transporting over half of Adelaide’s natural gas requirements �Energy Infrastructure Investments Pty Limited (19.9% interest) – Unlisted infrastructure company, holding various low growth annuity-style assets �Ethane Pipeline Fund (6.1% interest) – ASX listed, with sole operating assets the 1,375 km Moomba Sydney Ethane Pipeline	15%
Asset Management	�APA provides commercial and operating services and/or asset maintenance services to all its investment enterprises, under long term contracts	6%

(1) FY2008 EBITDA includes 100% of assets sold into Energy Infrastructure Investments

May 09 � 20

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.

May 09 � 21

Delivering Australia’s energy

For further information visit APA’s website www.apa.com.au

May 09 � 22

ASX RELEASE

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7 May 2009

For further information please contact:

Investor enquiries: Media enquiries: Chris Kotsaris Joanne Collins Investor Relations APA Group Kreab Gavin Anderson Telephone: (02) 9693 0049 Telephone: (02) 9552 8939 Mob: 0402 060 508 Mob: 0423 029 932 Email: chris.kotsaris@apa.com.au Email: jcollins@gavinanderson.com

About APA Group (APA)

APA Group, comprising Australian Pipeline Trust and APT Investment Trust, is the major ASX-listed energy transmission company in Australia with interests in almost 12,000 km of natural gas pipeline infrastructure, over 2,300 km of gas distribution networks in south east Queensland.

APA manages and operates all its assets and also provides management and operation services to gas distribution and transmission company Envestra and other third parties.