APA GROUP — Investor Presentation 2009

Mar 31, 2009

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ASX RELEASE

1 April 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:

• APA Group UBS Emerging Australian Companies Conference presentation

Yours sincerely

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Mark Knapman Company Secretary

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APA Group UBS Emerging Australian Companies Conference

Mick McCormack, Managing Director Sydney, 1 April 2009

APA is Australia’s leading gas pipeline business

Objective

• Maximise value for securityholders in the short, medium and long term … by growing distributions and operating cash flow

Strategy

• Focus on gas infrastructure assets in Australia’s growing gas market

• … transmission, storage and distribution across Australia

and further enhance this portfolio of assets

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

• … commercial, regulatory, engineering and operational

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

April 09 � 2

APA’s gas infrastructure business

• Owner of strategic gas infrastructure across Australia: – More than 12,000 km of gas transmission pipelines

• 23,000 km of gas distribution networks and 1.1 million connections (APA and Envestra)

• Internal management and operation of APA’s wholly and partially owned assets/investments, with 1,100 employees

Gas transmission and distribution

Queensland

R oma Brisb ane Pipeline C arpentaria Gas Pip eline APA Gas Network

N ew South Wa les

Moo mba Sydney Pipelin e C entral West Pipelin e C entral R anges Pi peline N SW interconn ect w ith Victoria

Victoria

Victorian Transmission System D andenong LN G facil ity

South A ustralia

SESA Pip eline

Western A ustralia

Goldfiel ds Gas Pipel ine (88%) Mi d West Pi peline (50%) Parmeli a Pipeline Mon darra Gas Storage

N orthern Territory Amadeus Gas Trust/NT Gas (96%)

Energy investments

Energy Infrastruc ture Investments (19.9%) Bonaparte Gas Pi peline (N T) Wickham Poi nt Pipelin e (N T) Telfer Gas Pipeline (WA ) Murraylink (SA-Vic) D irectli nk (N SW-Qld) X41 & D aandine p ower stations (Ql d) Kogan N orth & Tipton West gas plants (Qld)

Envestra Limited (3 0.6%)

Gas distributi on netw orks (SA, Vi c, Qld, N T) Alice Springs Pipe line (N T) Gladsto ne to M aryborough Pipel ine (Qld) R iverland & Mi ldura Pipeli nes (SA-Vic)

SEA Gas Pipeline (33.3%)

Ethane Pipeline Income Fund (6%) Moom ba Botany Ethane Pipeli ne (N SW)

Asset Management

Commercial and operational serv ices to: - APA Gas transmi ssio n & distri bution assets - Energy Infrastructure Investmen ts

• Ethane Pipel ine Income Fund

Operational services to:

- Envestra Limi ted

APA assets APA investments

• SEA Gas Pi peline

April 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

April 09 � 4

Solid track record in delivering value

EBITDA

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Revenue (excluding passthrough)
500
700
615 450 431
600
400
500 350
300
400
250
300 200
150
200
100
100
50
0 0
2004 2005 2006 2007 2008 2004 2005 2006 2007 2008
Total assets (at 30 June) Operating cash flow
6,000 200 192
5,097 180
5,000
160
140
4,000
120
3,000 100
80
2,000
60
40
1,000
20
0 0
2004 2005 2006 2007 2008 2004 2005 2006 2007 2008
$m $m
$m $m
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Operating cash flow and distributions per security

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45 42.7
40
35
29.5
30
25
20
15
10
5
0
2004 2005 2006 2007 2008
OCF per security Distribution per security
cents
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April 09 � 5

Continued strong underlying growth in 1H09

$ million	1H09	1H08		Change
Underlying revenue1excluding pass-through	367.7	305.5	�	20%
Underlying EBITDA1	248.8	214.7	�	16%
Underlying NPAT1	56.7	44.7	�	27%
Underlying OCF2	122.8	109.3	�	12%
Underlying OCF per security (cents)	25.8	25.0	�	3.3%
Interim distribution	15.0	14.5	�	3.4%
Distribution payout ratio	59.8 %	60.8 %

(1) Adjusted for significant items, and includes Envestra distributions and complementary asset finance leases.

(2) OCF (Operating Cash Flow) - Net cash from operations after interest and tax payments, adjusted for significant items.

Distributions fully funded by operating cash flow

April 09 � 6

Strategic and operational highlights 1H09

• Completed the establishment of Energy Infrastructure Investments (EII)

• Proceeds in excess of book value

• $647 million used to pay down debt

• Strong equity partners – Marubeni Corporation and Osaka Gas of Japan

• APA continues as asset manager for EII

• Construction of the Bonaparte Gas Pipeline – Completed ahead of schedule and on budget

• Organic growth on gas transmission pipelines – Goldfields Gas Pipeline, Carpentaria Gas Pipeline, Moomba Sydney Pipeline

• Attractive investments

• Central Ranges Pipeline – part of APA’s New South Wales pipeline system

• Increase in Envestra equity interest to 31% (Feb 09)

Meeting strategic objectives and strengthening the business

April 09 � 7

Capital management

Strong balance sheet

Secure long term debt portfolio

• Cash and committed undrawn facilities of $710 million at 31 December 2008

• Refinanced $150 million MTNs in August 2008 (plus additional $15 million debt facility)

• Gearing[*] of 69.7% within target range of 65-70%

• Equity raising of $80 million (FY09 to date) through SPP and DRP

• Interest Cover Ratio – 1.88x

• Repaid $300 million MTN in March 2009

• Interest rates - 80% fixed, with portfolio average interest rate of 7.44% (1H09)

• Recent debt raising experience - $546 million for EII

• Prudent management of debt portfolio

• Gearing ratio determined in accordance with the syndicated loan facilities.

• Refinancing obligations spread over 13 years

• Currently working the next debt refinancing due in June 2010

Committed facilities to support ongoing business growth

April 09 � 8

APA’s quality gas infrastructure portfolio

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• Delivering 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

• Importance of APA pipelines in eastern states

• Transporting more than 70% of gas in this region

• Continue to progress new links for gas between eastern states

• Victorian conventional gas NORTH

• Queensland/NSW coal seam gas SOUTH

April 09 � 9

Growing demand for gas - power generation

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• Pipelines primarily sell capacity - gas fired power generation requires pipeline capacity and gas throughput:

• Baseload � volume throughput

• Peak/intermediate � capacity and storage

Growth in gas fired power generation Growth in capacity Growth in pipelines

April 09 � 10

Opportunities in a carbon constrained environment

• Implementation of Carbon Pollution Reduction Scheme (CPRS) and expanded Renewable Energy Target (RET) requires significant new generation investments in the next decade.

• $33 billion in new generation capacity, including back-up gas fired generation capacity to support increased renewables (Acil Tasman)

• Gas is a mature generation technology and is critical in providing peaking power.

• Federal Government is finalising the RET legislation

• Committed to a 20% RET target (45,000 GWh in 2020)

• Draft CPRS legislation released in March – Treasury modelling suggests permit price of $35-$53 in 2020

• Analysis of impact of $42 permit price plus RET (Acil Tasman) suggests reduced coal fired generation, 15,000 MW of new capacity of which 7,000 MW is gas-fired plant and 10% reduction in emissions

• Significant new investment in gas networks and transmission will be required to facilitate uptake of gas-fired generation – transportation and storage services

• APA has the infrastructure to provide services to new gas fired generation

April 09 � 11

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

April 09 � 12

Regulated and contracted revenue

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• Two categories of price regulated assets:

• (1) Tariffs set by regulation eg Victorian Transmission System (VTS) and APA Gas Network;

• (2) Tariffs set by regulation but existing contract terms remain

• Tariffs commercially negotiated for all other pipelines and new capacity on all pipelines (except VTS)

• Light regulation applies to Moomba Sydney Pipeline (Marsden to Sydney) and Carpentaria Gas Pipeline in the event of a dispute with a shipper the regulator will arbitrate the tariff

.

April 09 � 13

Summary

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

• Strong focus on capital management

• Quality portfolio of gas infrastructure assets throughout Australia

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

• Internal management and operations to deliver further value to the business

April 09 � 14

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Supplementary information

Total committed debt facilities (at 31 December 08)

Facility Facility amount Tenor Medium term notes $300 million March 2009 Bilateral borrowings[1] $165 million July 2011 2003 US private placement $496 million 7, 10, 12 and 15 year tranches September 2010, 2013, 2015 and 2018 2007 Syndicated facility[2] $1,800 million Equal 3 year and 5 year tranches June 2010 and 2012 2007 US private placement $811 million 10, 12 and 15 year tranches May 2017, 2019 and 2022

(1) Facility is undrawn (2) Amount drawn at 31 December 2008 was $1,655 million

April 09 � 16

Regulatory resets over the next five years

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• The Carpentaria Gas Pipeline and Moomba Sydney Pipeline are now both Light Regulation pipelines.

• Murraylink and Directlink assets were sold to EII. The current regulatory revenue arrangements for these electricity transmission assets are due for reset in 2013 and 2015 respectively.

April 09 � 17

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April 09 � 18

Delivering Australia’s energy

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

1H09 Results Presentation � 19

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.

April 09 � 20

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ASX RELEASE

1 April 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.