Slide 1: Financial Results Half Year ended 31 December 2006
Financial Results Half Year ended 31 December 2006 Mick McCormack.- Managing Director Rick Francis -.CFO Stephen Ohl --Group.GM Operations Sydney 27 February 2007... O
Slide 2: Highlights
Highlights Financial Review Operational Review. Concluding Remarks Mick McCormack Managing Director
Slide 3: Half Year Income Statement
Half Year Income Statement Acquisitions Underpin Strong Cash Flow $ million Dec.2006 Dec 2005 Change Revenue" 243.3 186.7 30.3% EBITDA* 134.9 “4100.1 34.8% NPAT*# 32.6 31.2 44% Cash Metrics Free Cash Flow” 64.9 52.5 23.6% Free.Cash Flow per.unit 19.8¢ 18.1¢ 9.0% Distribution cents per-unit 14.0 12.0
Slide 4: Highlights of HY06
Highlights of HY06 ®@ Successful execution of strategy: : »-Driving organic. growth (underlying revenue. up 9%) »Targeting value-adding acquisitions » Controlling costs (underlying business costs constrained to 1%) @ -GasNet and Allgas performing to plan = Growing complementary assets ($100 million)
Slide 5: HY Cash Flow & Distribution Growth
HY Cash Flow & Distribution Growth Strong Cash Flow Drives Increased Distributions $m 70.0 60.0 50.0 40.0 @ Free Cash Flow & Distributions 0.0 “T T - T | Dec.02 -Dec 03 . Dec.04 Dec 05 Dec_.06.
Slide 6: Total Assets to Dec 2006
Total Assets to Dec 2006 Growth of Assets Continues $bn 45 4.0 3.5 3.0 2.5 20 : 1.88 1.5 1.0 “0.5 0.0 June 03 June 04 June 05 June 06 Dec 06
Slide 7: Legend
LEGEND Pipelines Murraylink mains. Proposed Stata and Territory bouncry I LNG Facitiry Hf Aligas Distribution System, IS Gas storage facility I Gas processing facility Ef Capital cities @ Point of interest
Slide 8: Financial Review
Financial Review m Income Statement @ Analysis m Cash Flow a Capital Expenditure @ Capital Management m@ Distributions aiid | | : Rick Francis Chief Financial Officer
Slide 9: Contribution from Acquisitions
Contribution from Acquisitions @ Contribution from acquisitions during half > GasNet: three months from October 2006. > Allgas: two months from November 2006 > Murraylink: full six months (acquired March 2006)
Slide 10: HY Income Statement
HY Income Statement Strong Financial Performance $ million Dec 2006 Dec 2005 Change Revenue* 243.3 186.7 30.3% EBITDA* 134.9 100.1 34.8% EBIT* 105.8 81.3 30.1% Net Interest Expense* (57.1) (34.8) 64.3% Tax* (15.9) (15.1) 5.3% Minorities (0.1) (0.2) N/A Free Cash Flow * Before significant items Non-r
Slide 11: Revenue & Asset Charts
Revenue & Asset Charts REVENUE 2001 HY. ~ “REVENUE 2006 HY. 9% 17% 25% . mNSW oa, mNSW 4% ent i @ NT ~/oaLp ; , cap GWA 50% OWA 4 @ vic 24% 30% ASSET VALUE 2001 HY ASSET VALUE 2006 HY 2% 20% 281% /mNSW mNSW 0% BINT NT. ; OaLD ca@LD WA @WA aa VIC 34% it
Slide 12: HY Analysis of Total Revenue
HY Analysis of Total Revenue Continued Revenue Growth $m 138.3 137.7 175.5. 186.6 243.3 250 200 @ Bectricity Transmission & Tolling “ Allgas 150 : @ GasNet 36.8 L. Interest & Other. Revenue 100 Fy : Passthrough Revenue | Pipeline Revenue - SCP Equity Contribution 50 + @ Pipeline Revenue. -. Transpor
Slide 13: HY Analysis of Revenue by Asset
HY Analysis of Revenue by Asset @ Gas Transmission O Passthrough Revenue @ Complementary Assets 30 40.8 | 47.6 20 42.4 41.4 27.6 10 01 10.8 7.4 2005. 2006 2005. 2006 2005, 2006 2005. 2006 2005. 2006 2005. 2006 2005 2006 2005. 2006 MSP : AGT. REP CGP. WA Comp Allgas GasNet Assets 13
Slide 14: HY Year on Year Movement in EBITDA
HY Year on Year Movement in EBITDA $m 135 4 130.4 125.4 120 + 115 5 110 5 105 4 100 | aoe 95.7 90-5 85 5 80-4 “Dec 2005 MSP. AGT. RBP CGP WA -. Comp .- GAS ALL “Corp Dec 2006 EBITDA : Assets, EBITDA. EBITDA movements are before significant items 14
Slide 15: HY Cash Flow Summary
HY Cash Flow Summary Net cash from operations 70.5 54.6 investing Activities: - SIB capex : . 5.6 : 2.1 ~ Acquisitions & Growth : - 986.9 : 68.0 992.5 70.4 Financing Activities: - Distributions paid (net of DRP)} (28.7) (33.7) - Issue of units (net) 816.4 . : “ - Acquisition bridge/debt facilities :
Slide 16: HY Free Cash Flow
HY Free Cash Flow Strong Cash Flows Underpin Distribution Growth EBITDA pre-significant items Non-cash movements Net working capital movements SCC. payments Other Significant item Net cash received. Net interest paid Tax payments Operating cash flow Payments for SIB Capex Free Cash Flow Free Cash Fl
Slide 17: HY Capital Expenditure
HY Capital Expenditure Growing the Business ES : ; Dec 2006 Dec 2005 $m $m Stay in business : . 5.6 2.1 Growth Kogan North - QLD : - LT Compressors - WA & NSW ; 8.8 : 3.3 Daandine -.QLD ; . 13.3 ; - Mt Isa power.station - QLD 6.0 ~ Allgas -.QLD : 2.2 - GasNet - VIC. . : ; 5.2 - Mondarra gas storage
Slide 18: Capital Management
Capital Management Substantial Investor Support m Successfully raised $598m of equity — Institutional placement @ $4.55 ($190m) -. Security purchase plan @ $4.50 ($40m) -'Renounceable rights issue @ $3.75 ($356m) ~ Continued operation of DRP. ($11.5m) @ 428,514,000 units on issue — Weighted average
Slide 19: Capital Management
Capital Management Strong Balance Sheet a Gearing 66.0% (covenant 72.5%) a -Complied with all covenants during period _ Available cash for Directlink ($170m) m Committed, undrawn facilities ($203m) | Viewed_as investment grade — strong BBB to BBB+ Debt Portfolio @ -$2.5bn, including $756m bridge fin
Slide 20: FY2007 Distributions
FY2007 Distributions Forecasting FY2007 Annual Distribution of 28.0 cps, up 16.7% cents 3 : , . 7.0¢ 0% 44.7% 46.7% 4 16.7% 30 i ] 25 Li 20 15 10 Q2 Distribution ° APTIT — Capital 0 ~APTIT — income, 2004 2005 : 2006 907 unfranked . : “APT ~ income, + YTD FY2007 distributions 14.0c vs FY 2006.12.0¢ u
Slide 21: Operational Review
Operational Review @ Gas Pipelines @ Distribution Network m Gas Facilities m Gas Fired Generation a Electricity Transmission Stephen Ohl Group General Manager Operations ai
Slide 22: Gas Pipelines - WA
Gas Pipelines - WA u Goldfields Gas Transmission (GGT) >». Commissioned $15 million compressor expansion for transportation of.gas to Hamersiey Iron Paraburdoo mine » Commissioned connection between DBNGP and GGT inlet > Operating at record capacity due to resources boomin WA a Parmelia Gas Pipeline
Slide 23: Gas Pipelines — NSW
Gas Pipelines — NSW = Moomba to Sydney (MSP). > GTD contracted revenue down $2.9 million and third party revenue. up $1.9 million » Negotiations continuing with AGL Energy regarding terms for.gas transportation from 2007 to 2016. ‘There is a potential fora dispute ; >. Substantial business developme
Slide 24: Gas Pipelines — NSW
Gas Pipelines — NSW = Central West Pipeline (CWP) »~ Deliveries commenced into the Central Ranges Pipeline at “Dubbo »-- Additional revenue of $1-2 million per‘annum @ North Gas Link (QLD to NSW) . > . Pipeline to connect QLD gas ‘system to NSW, SA and VIC . systems > Undertook joint Front End Engin
Slide 25: Gas Pipelines — QLD
Gas Pipelines — QLD m Roma to Brisbane Pipeline (RBP) » Revenue up 18.2% to $18.8 million from HA additional CSG transported to meet. growing SEQ demand » \deally located for continued growth as CSG industry expands ».-Access Arrangement to be finalised shortly. Revenues unaffected until 2012 | Carp
Slide 26: Gas Pipelines — NT
Gas Pipelines — NT @ NT Gas (96% APT) Steady throughput growth consistent with increase in NT electricity demand a Bonaparte Gas Pipeline (BGP) ». Gas transport from Wadeye to Amadeus Pipeline for NT electricity generation >» Detailed Engineering, Land Access:and Environmental activities underway ».
Slide 27: Gas Pipelines — VIC
Gas Pipelines — VIC ® GasNet Business > Acquisition included from October 2006 »- Principal business is the transport of all gas for the Victorian market » Other operations include Telfer/Nifty pipeline, Dandenong LNG ‘facility, - Metering and SEAGas operation >» System expansion is underway with $8
Slide 28: Distribution Network - QLD
Distribution Network - QLD lm Allgas Gas Distribution Business > Acquired November 2006 ». Services high growth areas from Brisbane to Northern NSW, Toowoomba and Oakey »- Expansion program underway to achieve regulated Asset Base growth from $303 million to $447 million for the period 2006 to 2011
Slide 29: Gas Facilities - WA
Gas Facilities - WA @ Mondarra Gas Storage Facility » Expansion of Mondarra Gas Storage Facility scheduled for completion early 2007 ». 5 year-agreement, plus 5 year option, with WA’s Verve Energy > Considerable interest from other users for storage service ». Another step in the development.of the
Slide 30: Gas Facilities - QLD
Gas Facilities - QLD ™ Kogan North CSG processing plant >» Volumes steadily increasing ~ 15 year life — capacity of 4 petajoules/annum Tipton West CSG processing plant >» Construction of $31 million coal seam - gas processing facility almost complete ». Commissioning expected March 2007 » Gas tollin
Slide 31: Gas Fired Generation - QLD
Gas Fired Generation - QLD B Daandine Gas-Fired Power Station > First unit commissioned December:2006 with electricity generated to. feed into southern Queensland grid > Gas tolling revenue of approximately $5.5 million/year over.15 years ™ Mt. Isa Gas-Fired Power Station » Agreements signed to buil
Slide 32: Electricity Transmission
Electricity Transmission a Murraylink > 220 MWHigh voltage direct current 180 km. interconnect linking SA and VIC. »~Low. risk asset with fixed revenues ‘to 2013 and beyond ®@ Directlink ~ >. Purchase to be finalised shortly » High voltage direct current connection - NSW to QLD power grids —-convert
Slide 33: Concluding Remarks
Concluding Remarks m Corporate Update | > Alinta » Future Gas Supply m Strategic Focus @ Priorities and Guidance for FYO7.: @ Summary... Mick McCormack — Managing Director. ~ 33
Slide 34: Alinta currently has 35% of APA units
Alinta currently has 35% of APA units - 10% is subject to a divestment order bythe Takeovers Panel Decisions are expected shortly on Federal Court appeals by both Alinta and APA, including on the 10% Alinta has undertaken to the ACCC to sell all of its APA units and its shares in APL, unless APA sel
Slide 35: Future Gas Supply
Future Gas Supply Gas supply to eastern Australia remains an important issue for the next decade PNG Project »--Gas options being reviewed — delay will increase gas prices »- APA remains committed to taking a significant and increased ownership.in the_pipeline when the project resumes = Other.Northe
Slide 36: Predictable Returns With Growth Opportunities
Predictable Returns With Growth Opportunities @ Targeted developments. @ Existing Pipelines @ Allgas @ GasNet - @ Cables Retun ———,> indicative ratio based on book value of funds employed. ; 36
Slide 37: Priorities and Guidance for FY07
Priorities and Guidance for FY07 @ Integration of GasNet, Allgas and DirectLink businesses | Prudent acquisitions, organic growth and manage costs a Development opportunities # Minimise impact on revenue of expiry of GTD and Return — Tariff -& Guidance — 28 cents per unit distribution ~ —$58-61m NPA
Slide 38: Executing our strategy to be a major player
@ Executing our strategy tobea major player in developing, owning and operating energy infrastructure across the country @ Proven, low-cost business model generating long term, sustainable and reliable returns to securityholders @ Disciplined approach to capital management i Growing free cash flow t
Slide 39: We Deliver Energy
We Deliver Energy
Slide 40: Business Model Appendix
Business Model Appendix 1 Australian Pipeline Trust Unitholders a “Manager - APA Personnel | Controls Barefts of iow Wi Querating Expendiiawe cost suche WW Captlal expenditure returned i full IW Reguistery affairs to unitvokiers. iit Reverse contracts: Electricity transmission Oiber complementary as
Slide 41: HY Key Financial Ratios
HY Key Financial Ratios Appendix 2 Sound Fundamentals Dec 2006 Dec 2005 % Change Free cash flow (cps) 19.86 18.1¢ 9.0% Weighted average units on issue (m) 328.5m 289.8m 13.4% Payout ratio 70.9% 66.2% +4.6% EPS (cps) - recurring 9.93¢ 10.78¢ (7.9)% -.including significant items 9.82c 11.57¢ (15.1)% I
Slide 42: Significant Items Appendix
Significant Items Appendix 3 HY 2006 : : Pre-Tax Tax After Tax : : $m $m $m Advisory. and legal. costs. . (4.0) 1.2. (2.8) Fair value movements in GasNet 3.4 (4.0) 2.4 interest rate hedges Total. : (0.6) 0.2 (0.4) HY. 2005 Settlement of tariff dispute : 3.3 (1.0) 2.3 Total “own 3.3 (4.0) 2.3 42
Slide 43: Acquisition — GasNet Appendix 4.1
Acquisition — GasNet Appendix 4.1 Acquisition price: $445.8m (including initial investment (6.2%) and transaction costs) Acquisition control date: »4 October 2006 | ~ Fair value of Assets & Liabilities Acquired: . Provisional Fair Value Fair Value on Book Value _ Uplift Acquisition o $m : $m ; $m Cu
Slide 44: Acquisition — Allgas Appendix 4.2
Acquisition — Allgas Appendix 4.2 Acquisition price: $538.4m (including transaction costs) Acquisition control date: 41.November 2006 Fair value of Assets & Liabilities Acquired: - Provisional Fair Value Fair Value on Book Value ; Uplift Acquisition $m $m $m Current Assets ; 1.0. ; = 1.0 Non-Current
Slide 45: Balance Sheet — Consolidated Stapled Group
Balance Sheet — Consolidated Stapled Group June, 2006 GasNet ‘Aligas Equity issues Rights Issue Stapling Other Dee. 2006 $m > $m $m $m. $m $m $m $m. Cash 13.07 28.6.0. (3.4) (8.6). 170.0 - 27.6 227.1 Other Curent Assets 47.9 19.9 4.0 - - - 87° 775 Total Current Assets. : 60.9 48.5 (2.4) (8.6) 170.0
Slide 46: Equity & Reserves — Consolidated Stapled Group Appendix 5.2
Equity & Reserves — Consolidated Stapled Group Appendix 5.2 dune 2006 GasNet Aligas Equity Issues . Rights issue Stapling ; Other...” ‘Dec 2006 $m $m $m $m. $m $m. $m $m Issued Capital 505.3 : - 238.9 349.0 (302.0) 0.1 791.3 Reserves . (14.8) - ms : a a 15.3. 08 Retained Profits : ; 100.5 - - (40.1)
Slide 47: 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 accountin