Chairman’s Presentation Chairman’s Presentation George Bennett George Bennett
Agenda Agenda � Highlights � Financials � Regulation Half Year Financial Results � Strategy and Outlook 6 Months Ended June 2005 2
Highlights Highlights � Fifth consecutive increase in operating profit after tax and before significant items � Increased utilisation of APA pipeline assets � Continued management of regulation � Active capital management Half Year Financial Results 6 Months Ended June 2005 3
Highlights Highlights Acquisitions of :- � Primary remaining interest in Goldfields Gas Transmission Pipeline Dampier � Parmelia Gas Pipeline and gas business Newman GOLDFIELDS GAS Half Year Financial Results TRANSMISSION PIPELINE Mt Magnet 6 Months Ended June 2005 Windimurra Kalgoorlie PARMELIA PIPELINE APA Pipelines Other Pipelines MONDARRA PERTH FACILITY 4
Highlights Highlights � Remaining 30% interest in Carpentaria Gas Pipeline Half Year Financial Results 6 Months Ended June 2005 5
FY2005 Financial Highlights Financial Highlights FY2005 Continuation of Growth Trend Year Ended 30 2005 2004 Change June $m $m % Revenue* 375.8 278.1 35.1 EBITDA* 178.9 133.9 33.6 EBIT 142.1 111.4 27.6 NPAT* – 51.0 45.0 13.4 recurring Half Year Financial Results Significant 18.7 76.3 (75.5) items (after tax) 6 Months Ended June 2005 NPAT – reported 69.7 121.3 (42.6) EPS* 18.55cpu 18.25cpu 1.6 Distribution 22.5c 21.5c 1.0c 6 * before significant item s
Distributions Distributions First Increase in Annual Distribution Since 2002 • FY2005 final distribution 24 of 6.0c declared 30 22 August 2005 20 4.5 6.0 6.4 18 8.5 Capital • Final distribution franked Profit at 40% 16 22.5 14 Half Year Financial Results 17.0 15.5 15.1 12.5 12 6 Months Ended June 2005 10 Actual 01 2002 2003 2004 2005 7
Capital Management Capital Management � Equity – private placement 24.5 million units ($61.7m) – DRP 4.0 million units ($11.5m) � DRP – suspended after 1st interim distribution – remains suspended until further need for capital arises � Debt Half Year Financial Results – syndicated borrowings refinanced in first half 6 Months Ended June 2005 – facilities increased from $500 to $700 million 8
Significant Items Significant Items FY2005 Pre- Tax After tax $m tax $m $m Stress corrosion (23.5) 7.1 (16.4) cracking provision APA Group tax - 33.7 33.7 consolidation benefit Due diligence costs 2.0 (0.6) 1.4 refunded Half Year Financial Results Total significant items – (21.5) 40.2 18.7 FY2005 6 Months Ended June 2005 Total significant items – (18.7) 95.0 76.3 FY2004 9
Regulatory Matters Regulatory Matters Moomba to Sydney Pipeline � Australian Competition Tribunal affirms APA position - ACCC has appealed to Federal Court - APA expects Court will maintain the essence of Tribunal’s decision Goldfields Gas Transmission Pipeline Half Year Financial Results � Access arrangement finalised - APA can now focus on opportunities in W A, ie the recent Pilbara Iron contract 6 Months Ended June 2005 10
Strategic Direction Strategic Direction Core Strategy remains � Expanding utilisation of existing pipelines � Greenfields projects in Australia � Acquiring pipeline assets � Diversification of Assets � Complementary Assets Half Year Financial Results 6 Months Ended June 2005 11 Kogan North Parmelia Pipeline
Portfolio Diversification Portfolio Diversification MSP Reliance Reduced MSP - Moomba to Sydney RBP - Roma to Brisbane APA Revenues 12 Months to 30 June 2004 APA Revenues 12 Months to 30 June 2005 CGP - Carpentaria Gas AGT - Amadeus Gas Trust MWP (WA) MWP (WA) GGT - Goldfields Gas 0.5% 0.5% Transmission MWP - Mid West MSP (NSW) GGT (WA) 33% 34.5% MSP (NSW) 36% GGT (WA) 32.5% Half Year Financial Results 6 Months Ended June 2005 AGT (NT) AGT (NT) 8% CGP (QLD) 9% 11% CGP (QLD) 12% RBP (QLD) RBP (QLD) 11% 12% Note: GGT includes Parmelia Gas business. GGT segment includes 55% of underlying GGT revenue for 2004 and for period until 17 August 2004. 12 Revenues exclude passthrough revenue.
Strategic Direction Strategic Direction Core Strategy remains � Expanding utilisation of existing pipelines � Greenfields projects in Australia � Acquiring pipeline assets � Diversification of Assets � Complementary Assets Half Year Financial Results 6 Months Ended June 2005 13 Kogan North Parmelia Pipeline
Gas Issues Gas Issues Gas Supplies to south-eastern Australia PAPUA - Kutubu Gobe Kopi NEW GUINEA � Northern gas to south-eastern Australia most likely solution Port Torres Strait Moresby Cape Bamaga � PNG firming and APA is positioned to York Gove AGL/Petronas PNG - Qld Gas Pipeline Upstream PNG Gas Pipeline Weipa participate: Existing Pipelines - Mid 2006 targeted as project approval Cooktown Cairns date Townsville - APA has right to acquire minimum of 20% NORTHERN Mt Isa TERRITORY of the project Half Year Financial Results Mackay Cannington Rockhampton � Coal seam methane is a valuable part of Gladstone QUEENSLAND 6 Months Ended June 2005 the solution Roma Moomba SOUTH Brisbane Ballera AUSTRALIA 14
Gas Issues Gas Issues Natural Gas � Important in the energy mix of Australia � Fuel of transition to reduce environmental effects of greenhouse gases � Needs a representative body to champion its benefits Half Year Financial Results 6 Months Ended June 2005 RBP Gatton Compressor Station 15
Objective Objective � Sensible and profitable investment in existing and new pipeline infrastructure and complementary businesses Half Year Financial Results 6 Months Ended June 2005 16
Outlook Outlook � GTD revenue continues although reduced - third party revenues are increasing � SCC plan will ensure that MSP meets safety, legislative and contractual obligations � Queensland and Western Australian business opportunities will continue � Year to date performance is on track, and APA expects to, at least, maintain 2005 operating NPAT Half Year Financial Results � APA will maintain cash distribution 6 Months Ended June 2005 17
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