Annual Me e ting Pr e se ntation Atta c he d is the Chairma n s a - PDF document

Austra lia n Pip e line L td ACN 091 344 704 | Austra lia n Pip e line T rust ARSN 091 678 778 | APT I nve stme nt T rust ARSN 115 585 441 xc ha ng e NSW 1225 L e ve l 25, 580 Ge o rg e Stre e t Syd ne y NSW 2000 | PO Bo x R41 Ro ya l E Pho ne +61 2 9693 0000 | F a x +61 2 9693 0093 APA Gro up | a p a .c o m.a u 25 Oc to b e r 2018 ASX ANNOUNCE ME NT APA Gr oup (ASX: APA) (a lso for r e le a se to APT Pipe line s L imite d (ASX: AQH)) Annual Me e ting Pr e se ntation Atta c he d is the Chairma n’ s a nd Ma na g ing Dire c to r’ s a ddre ss to the Annua l Me e ting inc luding pro xy info rma tio n. Ne ve nka Code ve lle Co mpa ny Se c re ta ry Austra lia n Pipe line L imite d F o r furthe r info rma tio n ple a se c o nta c t: Inve stor e nquir ie s: Me dia e nquir ie s: Je nnife r Bla ke L ouise Wa tson T e le pho ne : +61 2 9693 0097 T e le pho ne : +61 2 8011 0591 Mo b : +61 455 071 006 Mo b : +61 419 185 674 Ema il: je nnife r.b la ke @ a pa .c o m.a u Ema il: lwa tso n@ symb o lstra te g ic .c o m.a u About APA Gr oup (APA) APA is a le a ding Austra lia n e ne rg y infra struc ture b usine ss, o wning a nd/ o r o pe ra ting in e xc e ss o f $20 b illio n o f e ne rg y infra struc ture a sse ts. I ts g a s tra nsmissio n pipe line s spa n e ve ry sta te a nd te rrito ry o n ma inla nd Austra lia , de live ring a ppro xima te ly ha lf o f the na tio n’ s g a s usa g e . APA ha s dire c t ma na g e me nt a nd o pe ra tio na l c o ntro l o ve r its a sse ts a nd the ma jo rity o f its inve stme nts. APA a lso ho lds o wne rship inte re sts in a numb e r o f e ne rg y infra struc ture e nte rprise s inc luding SEA Ga s Pipe line , SE A Ga s (Mo rtla ke ) Pa rtne rship, E ne rg y I nfra struc ture I nve stme nts a nd GDI Allg a s Ga s Ne two rks. APT Pipe line s L imite d is a who lly o wne d sub sidia ry o f Austra lia n Pipe line T rust a nd is the b o rro wing e ntity o f APA Gro up. o r mo re info rma tio n visit APA’ s we b site , a pa .c o m.a u F

APA Gr oup 2018 Annual Me e ting 25 Oc tobe r 2018 Addr e ss by Chair man, Mic hae l F r ase r L a die s a nd g e ntle me n, I t’ s b e e n a no the r sig nific a nt a nd pro duc tive ye a r fo r APA. F o r lo ng -time inve sto rs, yo u’ ve b e e n fo rtuna te in he a ring wo rds to tha t e ffe c t fro m the re spe c tive Cha irme n o f APA o ve r the la st 18 ye a rs. APA is a g re a t Austra lia n suc c e ss sto ry a nd I a m ple a se d to sa y tha t we pro duc e d a no the r ye a r o f so lid re sults a nd inc re a se d re turn o n yo ur inve stme nt. Up o n the sc re e n is APA’ s re po rt c a rd fo r F Y18 – a nd a s pe r o ur tra c k re c o rd we a g a in de live re d o n wha t we sa id we wo uld do , a nd tha t wa s to pro duc e a ste a dy inc re a se in APA’ s fina nc ia l re sults. T he 2018 fina nc ia l ye a r wa s a pa rtic ula rly sig nific a nt ye a r fo r the b usine ss a s it’ s the first time o ur o pe ra ting c a sh flo w ha s re a c he d o ve r a b illio n do lla rs. I t wa s up a lmo st 6% to $1.031 b illio n a nd OCF pe r se c urity inc re a se d 4.1% o n the pre vio us ye a r to 90.7 c e nts pe r se c urity. APA’ s E BIT DA a lso we nt pa st $1.5 b illio n fo r the first time , b e ing up 3.3% o n the prio r ye a r. With sig nific a nt c a pita l e xpe nditure in the 2018 fina nc ia l ye a r a s pa rt o f a $1.4 b illio n plus g ro wth pro g ra m, APA ra ise d $500 millio n o f fre sh e q uity in F e b rua ry/ Ma rc h o f this ye a r to he lp fund tha t o rg a nic g ro wth. I ’ d like to tha nk a ll APA Se c urityho lde rs who pa rtic ipa te d in tha t e q uity ra ising . It’ s a lwa ys ple a sing to se e suppo rt fro m o ur inve sto rs fo r the g ro wth stra te g y tha t APA ha s b e e n running fo r a lmo st 2 de c a de s. Ove ra ll, the b a la nc e she e t is in a he a lthy sta te to fund wha t we a re do ing witho ut putting the b usine ss a t risk. Distrib utio ns ha ve c o ntinue d to g ro w susta ina b ly a nd b ro a dly in-line with o pe ra ting c a sh flo w, with a 3.4% inc re a se o n the prio r ye a r. APA’ s c o mpo und a nnua l g ro wth ra te sinc e listing is 17.9% a ssuming a ll distrib utio ns we re re inve ste d. F o r tho se Se c urityho lde rs who ha ve b e e n with us sinc e the b e g inning , yo u ha ve re c e ive d o ve r 5 a nd a ha lf time s the re turns o f the ASX200 to ta l re turn inde x sinc e we liste d in June 2000. T ha t’ s a tra c k re c o rd we a re ve ry pro ud o f. 1

APA ha s ha d a lo ng -te rm fo c us o n g ro wing the b usine ss a nd g ro wing re turns to o ur Se c urityho lde rs – a nd we ’ ve do ne tha t ve ry suc c e ssfully. T ha t suc c e ss ha s c a ug ht the a tte ntio n o f o the rs - mo st no ta b ly the CK I g ro up. L e t me b e c le a r tha t the Bo a rd ha s ne ve r put a ‘ F o r Sa le ’ sig n up o n APA, ho we ve r in June this ye a r, a n unso lic ite d o ffe r wa s put us b y a CK I Co nso rtium, o ffe ring to a c q uire APA a t a c a sh pric e o f $11.00 pe r sta ple d se c urity. Ha ving re c e ive d the Offe r, the Bo a rd ha d a fiduc ia ry duty to a sse ss it a nd de te rmine whe the r we b e lie ve d it wa s in the b e st inte re sts o f Se c urityho lde rs to e ng a g e with CK I a nd try a nd pro g re ss the Offe r. Whic h we did, a nd e nte re d into a n Imple me nta tio n Ag re e me nt with the Co nso rtium. T he ta ke o ve r pro po sa l is sub je c t to a numb e r o f c o nditio ns inc luding c le a ra nc e s b y Austra lia n g o ve rnme nt re g ula to ry b o die s who lo o k a fte r yo ur inte re sts a s c o nsume rs a nd a s Austra lia n c itize ns. No ta b ly, la st mo nth the ACCC de c ide d no t to o ppo se the pro po se d tra nsa c tio n, a fte r a c c e pting a n unde rta king fro m CK I to dive st, tha t is se ll c e rta in g a s a sse ts in We ste rn Austra lia if the tra nsa c tio n g o e s a he a d. T he F o re ig n I nve stme nt Re vie w Bo a rd is c urre ntly re vie wing the ma tte r a nd will ma ke a re c o mme nda tio n to the T re a sure r in due c o urse . I f the T re a sure r a ppro ve s the pro po sa l, the n a Se c urityho lde r’ s Me e ting will b e c a lle d, whe re yo u a s APA’ s Se c urityho lde rs will ha ve the o ppo rtunity to vo te o n whe the r yo u wa nt the tra nsa c tio n to pro c e e d. An E xpla na to ry Me mo ra ndum will b e se nt to yo u se tting o ut de ta ils o f tha t me e ting a nd the re so lutio ns to b e c o nside re d a t the me e ting . T he Bo a rd’ s vie w is tha t the o ffe r ma de b y the CK I Co nso rtium is c o mpe lling . It is a n a ll-c a sh o ffe r g iving c e rta inty o f va lue to Se c urityho lde rs no w. It re pre se nts a pre mium o f o ve r 30 pe r c e nt to APA’ s tra ding pric e imme dia te ly pre c e ding the o ffe r a nd va lue s APA a t a n E nte rprise Va lue o f 14.8 time s E BI T DA. T he Dire c to rs una nimo usly re c o mme nd the tra nsa c tio n in the a b se nc e o f a supe rio r pro po sa l, a nd sub je c t to a n I nde pe nde nt E xpe rt c o nc luding tha t the Offe r is fa ir a nd re a so na b le a nd in the b e st inte re sts o f APA Se c urityho lde rs. T he CK I Co nso rtium is a lre a dy a n e sta b lishe d sta ke ho lde r in the Austra lia n e ne rg y ma rke t with mo re tha n 20 ye a rs o f inve sting in e le c tric ity a nd g a s a sse ts. I nde e d APA ha s ha d a lo ng a sso c ia tio n with CK I, ha ving b e e n c o -sha re ho lde rs in E nve stra a nd no w with APA o p e ra ting tho se a sse ts o n b e ha lf o f CK I a s the so le o wne rs o f tha t b usine ss. T he y ha ve pro ve n to b e ve ry re lia b le b usine ss pa rtne rs fo r the 11 ye a rs we ha ve sha re d a wo rking re la tio nship to g e the r. 2