APA GROUP — Investor Presentation 2011

Oct 25, 2011

26 October 2011

==> picture [585 x 97] intentionally omitted <==

ASX RELEASE

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:

• Enhancing portfolio value presentation by Ross Gersbach, Group Manager Commercial to the Citi Australian and New Zealand conference

Yours sincerely

==> picture [163 x 37] intentionally omitted <==

Mark Knapman Company Secretary

==> picture [842 x 186] intentionally omitted <==

Enhancing portfolio value

Ross Gersbach, Group Manager Commercial Citi Australian and New Zealand Conference 26 October 2011

Disclaimer

This presentation has been prepared by Australian Pipeline Limited (ACN 091 344 704) the responsible entity of the Australian Pipeline Trust (ARSN 091 678 778) and APT Investment Trust (ARSN 115 585 441) ( APA Group ).

Summary information

This presentation contains summary information about APA Group and its activities current as at the date of this presentation. The information in this presentation is of a general background nature and does not purport to be complete. It should be read in conjunction with the APA Group’s other periodic and continuous disclosure announcements which are available at www.apa.com.au.

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 consult an investment adviser if necessary.

Past performance

Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

Future performance

This presentation contains certain “forward-looking statements” such as indications of, and guidance on, future earnings and financial position and performance. 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.

This presentation contains such statements that are subject to risk factors associated with the industries in which APA Group operates which may materially impact on future performance. Investors should form their own views as to these matters and any assumptions on which any forward-looking statements are based. APA Group assumes no obligation to update or revise such information to reflect any change in expectations or assumptions.

Investment risk

An investment in securities in APA Group is subject to investment and other known and unknown risks, some of which are beyond the control of APA Group. APA Group does not guarantee any particular rate of return or the performance of APA Group.

Not an offer

This presentation does not constitute an offer, invitation or recommendation to subscribe for or purchase any security.

 2

APA: Citi Australia Conference, October 2011

Agenda

 About APA

 Enhancing portfolio value

• Diamantina Power Station – Mount Isa

• Mondarra Gas Storage Facility – Western Australia

• Emu Downs wind farm – Western Australia

 Conclusion

 3

APA: Citi Australia Conference, October 2011

About APA Group

 Energy Infrastructure:

EBITDA split by segment

• Own and operate gas pipelines, interconnected gas storage facilities and gas distribution networks across Australia

• Own and operate a wind farm

 Asset Management:

• Provision of asset management, operating and maintenance services to the majority of APA’s energy investments

• Energy Investments:

• Minority interests in energy infrastructure investments

==> picture [321 x 142] intentionally omitted <==

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

Energy Infrastructure 87 %
Qld
Asset Management 8 %
WA & NT
Energy Investments 5 % NSW
Vic & SA
----- End of picture text -----

Australian gas transmission pipelines owners by length (km)

==> picture [441 x 164] intentionally omitted <==

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

Prime
1,105 [(1)]
Infrastructure
DUET 1,480 [(1)]
Singapore
1,425
Power
Epic Energy [(2)] 2,340
SEA 12,800
APA APA ENV EII
Gas 10,890 [(1)]
2,000 4,000 6,000 8,000 10,000 12,000 14,000
Pipeline length (km)
----- End of picture text -----

(1) Proportional ownership

• (2) APA has a 19.4% interest in HDF, owner of Epic Energy

APA’s is Australia’s largest gas infrastructure business

 4

APA: Citi Australia Conference, October 2011

APA is well positioned in a growing industry

 Unrivalled gas asset footprint

• Transporting more than half the gas used in Australia

• Stable and secure cash flow

• Regulated and contracted revenue

• Attractive growth opportunities

• Enhancing capacity in APA’s portfolio to meet increasing energy demand

• Integrated portfolio of assets

• Providing revenue and operating synergies

• Internally managed and operated business

• Highly skilled & experienced workforce

APA’s national portfolio connects major gas sources to major markets

 5

APA: Citi Australia Conference, October 2011

Strategy for growth, value and security

• Enhancing APA’s portfolio of gas infrastructure assets in a growing energy market

• Facilitating the development of gas related projects that enhance APA’s infrastructure portfolio

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

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

• Strengthening financial capability

==> picture [470 x 298] intentionally omitted <==

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

Amadeus
Gas Pipeline
Diamantina
Power Station
Roma
Brisbane
Pipeline
Mondarra
APA Gas
Gas Storage
Network
Facility
Emu Downs M oomba
Sydney
Pipeline
APA energy infrastructure Victorian
APA investments Transmission
Other natural gas pipelines System
----- End of picture text -----

 6

APA: Citi Australia Conference, October 2011

A cost effective energy solution for Mount Isa

APA and AGL developing the Diamantina Power Station, supplying energy users in Mt Isa and surrounding regions

==> picture [264 x 375] intentionally omitted <==

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

Xstrata
mine
Mt Isa
township
Carpentaria
Gas Pipeline
Proposed
APA/AGL
Diamantina Mica Creek
Power Station Power Station
2 km
----- End of picture text -----

• Energy efficient

• 242 MW combined cycle plant, with high energy efficiency of 55% (compared with 35% for coal fired)

• – Local generation, with no transmission losses

• Cost efficient

• Use existing gas and electricity transmission infrastructure

• Ideally suited to expand in line with regional growth

• Significantly lower cost than state grid alternative

• – Significantly lower carbon impact than state grid electricity

 User pays

• No government subsidies or cross subsidies

 7

APA: Citi Australia Conference, October 2011

Win-win solution with local gas fired generation

 High supply reliability

• Infrastructure unaffected by weather

==> picture [114 x 58] intentionally omitted <==

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

APA assets and investments
Other pipelines
HV electricity transmission
Copper String proposal
----- End of picture text -----

• Fewer links exposed to interruption

• Fast start and efficient generation

 Infrastructure flexibility

• Capacity can grow in line with the energy needs of the region

 Local investment

==> picture [132 x 83] intentionally omitted <==

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

Mt Isa
DIAMANTINA
Cannington
POWER
STATION
CARPENTARIA
GAS PIPELINE
----- End of picture text -----

• Ongoing local employment for pipeline and power station operations

• Enhancing APA’s portfolio

• Secures future value for Carpentaria Gas Pipeline

==> picture [189 x 34] intentionally omitted <==

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

More than 90% of the
state’s electricity is
BRISBANE
generated in the region
----- End of picture text -----

• Attractive returns from Diamantina Power Station

APA: Citi Australia Conference, October 2011

8

Mondarra Gas Storage Facility expansion

Drivers for expansion

• Increasing demand for gas storage services for downstream Western Australian market

• Power generation and peak gas supply

• Recent gas supply interruptions highlighted vulnerability of supply

• Gas storage capacity will mitigate potential future interruptions

• Anticipated demand from gas users for temporary storage services

• Market arbitrage / users operations changes / gas portfolio management

==> picture [327 x 417] intentionally omitted <==

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

MONDARRA
GAS STORAGE
PARMELIA FACILITY
PIPELINE
PERTH
----- End of picture text -----

 9

APA: Citi Australia Conference, October 2011

Mondarra Gas Storage Facility expansion

 Operating gas storage facility (depleted gas reservoir)

• Additional services developed

• Increased production service – injection and withdrawal rates

• Increased storage service

• Full interconnection with two pipelines – Parmelia Gas Pipeline and Dampier Bunbury Pipeline

==> picture [487 x 379] intentionally omitted <==

 10

APA: Citi Australia Conference, October 2011

Emu Downs wind farm

• Acquired at attractive multiples

• FY12 EBITDA multiple of approx. 8.5 times

• $2.2 million per installed MW

• Includes 130 MW wind farm development rights on an adjacent site

 Earnings secure

• Long term revenue contracts for black and green products from the existing wind farm

• No commodity price risk

• Well understood and predictable wind resource – 5 year operating dataset and 10 year wind dataset

• Long term O&M agreement with capacity availability warranty above 97%

• (1) Capacity factor is the ratio of actual yield to the maximum output of the wind farm. Capacity factor includes the warranted availability of at least 97%

==> picture [279 x 247] intentionally omitted <==

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

SWIS HV
electricity
transmission
line
130 MW
development
Parmelia
site
Gas
Pipeline
Emu Downs
Existing
80 MW
wind farm
10 km
----- End of picture text -----

Emu Downs existing wind farm	Emu Downs existing wind farm
Location	200 km north of Perth, Western Australia
Capacity	79.2 MW – 48 Vestas turbines x 1.65 MW
Capacity factor(1)	37% - average based on almost 5 years operating data
Operation	Operating since October 2006

11

APA: Citi Australia Conference, October 2011

APA assets provide total energy solution

• Wind generation and gas fired generation linkage

• Variability in wind generation production supplemented with gas peaking generation

• Essential in WA market

• Provides an opportunity for gas-fired peaking generation to be developed

• Located adjacent to APA assets

• Wind farm and potential new gas-fired generation near APA’s gas pipeline and gas storage facility (Parmelia Gas Pipeline and Mondarra Gas Storage Facility)

• Access to existing electricity infrastructure

• Proposed expansion of transmission line capacity accommodates new generation

==> picture [361 x 431] intentionally omitted <==

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

Geraldton
Mondarra Gas
Storage Facility
Wind generation
Emu Downs
supported by
Wind Farm Parmelia gas fired generation
Gas Pipeline
Well supported region for
developing further power
generation infrastructure
APA natural gas pipeline
APA gas storage facility
APA power generation
Muchea
Other power generation
132 kV electricity transmission line
Proposed 330 kV electricity transmission line
To Perth
0 25 50
kilometres
----- End of picture text -----

Source: APA, Western Power (Mid West Energy Project)

12

APA: Citi Australia Conference, October 2011

Conclusion

 Enhancing APA’s position in a growing market

• Expanding our energy infrastructure portfolio across Australia in line with increasing demand for gas and energy

 Creating value for the long term

• Preserving or increasing the value of APA’s energy infrastructure portfolio through strategic development and acquisition of related projects

• Developing responsive energy infrastructure and service solutions to meet the requirements of our customers in a dynamic energy market

 13

APA: Citi Australia Conference, October 2011

==> picture [842 x 186] intentionally omitted <==

For further information contact Chris Kotsaris Investor Relations, APA Group Tel: +61 2 9693 0049 E-mail: chris.kotsaris@apa.com.au

Delivering Australia’s energy

or visit APA’s website www.apa.com.au