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 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 xc ha ng e NSW 1225 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

• up (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

• 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

• uise 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

• up (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

• 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. F

• r mo re info rma tio n visit APA’ s we b site , a pa .c o m.a u

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APA Gr

• up 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

• 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

• 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

• 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.

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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

• 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

• 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

• 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

• 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.

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I n te rms o f timing , it a ll de pe nds o n if a nd whe n the T re a sure r we re to g ive his a ppro va l. I f a ppro va l we re to b e g ive n in the ne xt we e k o r so , we e nvisa g e a me e ting o f APA Se c urityho lde rs to b e he ld e a rly in De c e mb e r. If the tra nsa c tio n wa s a ppro ve d a t tha t me e ting , the n pa yme nt to APA Se c urityho lde rs wo uld b e ta rg e te d to o c c ur b y mid-Ja nua ry 2019. I f the T re a sure r’ s a ppro va l is de la ye d, the n it ma yb e tha t a Se c urityho lde rs me e ting wo uld no t b e he ld until the Ne w Ye a r. I f the tra nsa c tio n do e s no t pro c e e d, fo r APA the po sitio n is simple , we will re ve rt to

• ur o rig ina l Pla n A, whic h is to c o ntinue o n with the suc c e ssful g ro wth stra te g y we

ha ve e mplo ye d fo r a lmo st 2 de c a de s. L e t me no w turn to a fe w b rie f re ma rks o n the po litic s o f e ne rg y po lic y in this c o untry. T

• sta te the o b vio us e ne rg y po lic y in Austra lia is in disa rra y a t b o th a F

e de ra l a nd Sta te Go ve rnme nt le ve l a nd the re a re c o nse q ue nc e s, whic h impa c t a ll o f us flo wing fro m tha t disa rra y. T he re a re ma ny re a so ns a s to why g a s a nd e le c tric ity pric e s ha ve inc re a se d so sig nific a ntly o ve r the la st fe w ye a rs, a nd I do n’ t pro po se to run thro ug h the lo ng list this mo rning . But wha t I do wa nt to hig hlig ht is tha t whe n yo u b o il it a ll do wn, it’ s E c o no mic s 101 tha t’ s b e e n a ke y drive r o f pric e s in who le sa le g a s a nd e le c tric ity ma rke ts, tha t is the simple e c o no mic s o f supply a nd de ma nd. I n the e le c tric ity ma rke t, the surg e in who le sa le pric e s o ve r the la st fe w ye a rs ha s b e e n drive n b y the c lo sure o f a numb e r o f c o a l-fire d po we r sta tio ns, c o mb ine d with inc re a se s in the who le sa le pric e o f g a s, inc re a sing the c o st o f g a s-fire d po we r g e ne ra tio n. Mo re spe c ific a lly in the E a st Co a st g a s ma rke t, pric e s ha ve b e e n drive n up b y the c o nstruc tio n o f thre e la rg e L NG e xpo rt fa c ilitie s in Gla dsto ne , virtua lly a ll c o mmissio ne d a t the sa me time , c o mb ine d with the sta te s o f Vic to ria a nd NSW fa iling to a llo w the de ve lo pme nt o f ne w g a s supply re so urc e s. Re duc e d supply a nd inc re a se d de ma nd is E c o no mic s 101 fo r hig he r e ne rg y pric e s. Whilst I to ta lly re spe c t the c o nc e rns a ro und c lima te c ha ng e a nd e nviro nme nta l issue s to do with wa te r a nd wa ste , we a lso ne e d to unde rsta nd tha t the re a re c o nse q ue nc e s to no t a llo wing the de ve lo pme nt o f g a s re so urc e s, a s is c urre ntly the c a se in Vic to ria a nd NSW,tha t wo uld a llo w a n a ppro pria te tra nsitio n to a lo w c a rb o n future . T ho se c o nse q ue nc e s a re hig he r g a s a nd e le c tric ity pric e s a nd lo ss

• f jo b s, pa rtic ula rly in Austra lia ’ s dwindling ma nufa c turing se c to r.

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T ha t is a n ho ne st c o nve rsa tio n tha t ne e ds to b e ha d whe n we a s a c o mmunity a nd po litic ia ns o n o ur b e ha lf, ma ke c ho ic e s a s to whe the r to a llo w the de ve lo pme nt o f c e rta in pro je c ts o r no t, a nd it sho uldn’ t just b e the lo ude st vo ic e who se a rg ume nts pre va il. F

• r APA – we ’ ll c o ntinue to do o ur pa rt to try a nd ke e p e ne rg y b o th re lia b le a nd

a ffo rda b le while Austra lia tra nsitio ns to a lo we r c a rb o n future , b ut g o ve rnme nts o f a ll pe rsua sio ns ne e d to ste p up to the pla te a nd ma ke we ll c o nside re d po lic y de c isio ns tha t b e ne fit the c o mmunity a s a who le . One o the r ma tte r I wa nte d to c o mme nt o n wa s o ur E SG o r E nviro nme nta l, Susta ina b ility a nd Go ve rna nc e fra me wo rk. Ove r the la st ye a r we ha ve c o mme nc e d a b ro a d ra ng ing re vie w o f o ur fra me wo rk. T his inc lude s a re vie w o f re le va nt susta ina b ility me tric s a nd ta rg e ts a nd a n a sse ssme nt o f APA’ s c lima te risk a g a inst the T a sk F

• rc e o n Clima te Re la te d F

ina nc ia l Disc lo sure s c rite ria . We unde rsta nd the impo rta nc e o f this to inve sto rs, c usto me rs, e mplo ye e s a nd the c o mmunity a nd unde rsta nd we ha ve ro o m fo r impro ve me nt in this spa c e . L

• o king to the ye a r a he a d a nd e a rning s g uida nc e

E BIT DA is e xpe c te d to fa ll within the ra ng e o f $1.55 b illio n to $1.575 b illio n. Distrib utio ns fo r the ye a r will o b vio usly de pe nd o n whe the r the CK I pro po sa l pro c e e ds o r no t. I f the pro po sa l do e s no t pro c e e d, we e xpe c t to pa y to ta l distrib utio ns fo r the ye a r in the o rde r o f 46.5 c e nts pe r se c urity plus a ny a llo c a tio n

• f fra nking c re dits sho uld the se b e a va ila b le .

I n c lo sing o n b e ha lf o f the Bo a rd a nd o ur Se c urityho lde rs, I wo uld like to tha nk APA’ s Ma na g ing Dire c to r, Mic k Mc Co rma c k, the ma na g e me nt te a m a nd a ll o f

• ur e mplo ye e s, fo r the ir c o mmitme nt a nd the e ffo rt tha t ha s de live re d a no the r

suc c e ssful ye a r fo r the c o mpa ny. T

• APA’ s inve sto rs, yo ur c o ntinue d suppo rt o f the c o mpa ny a nd e nthusia sm fo r
• ur b usine ss is sinc e re ly a ppre c ia te d b y the Bo a rd a nd APA te a m.

I will no w a sk Mic k to a ddre ss the me e ting .

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Addr e ss by Managing Dir e c tor , Mic k Mc Cor mac k

T ha nk yo u, Cha irma n, a nd g o o d mo rning , la die s a nd g e ntle me n. As I wa s pre pa ring this a ddre ss a nd g ive n the c irc umsta nc e s a ro und the pro po se d tra nsa c tio n with CK I, I wa s re fle c ting tha t to da y is the 14th time I ha ve a ddre sse d APA’ s Annua l Me e ting a s the CE O. T he e ne rg y ma rke t we o pe ra te in to da y is va stly diffe re nt to the ma rke ts o f o ld a s we tra nsitio n to a c le a ne r e ne rg y future . We ’ ve o fte n use d the wo rds dyna mic e ne rg y ma rke t, b ut in F Y18 we c o uld a dd the de sc ripto rs o f “a turb ule nt ma rke t re fle c ting po lic y dysfunc tio n a nd inde c isio n”. But e ve n in the se unc e rta in a nd c ha lle ng ing time s, a s the Cha irma n ha s just pre se nte d, I a m pro ud to sa y tha t APA ha s c o ntinue d to g ro w a nd pro spe r. And a g a in o n re fle c tio n, wha t I a m mo st pro ud o f is the ‘ q ua dre lla ’ we ’ ve a c hie ve d: in 18 ye a rs sinc e listing we ha ve ne ve r c ut a divide nd; ne ve r writte n do wn a n a sse t; ne ve r issue d hig hly dilutive e q uity to re pa ir o ur b a la nc e she e t; a nd ne ve r ma de who le sa le re dunda nc ie s. I b e lie ve the re is o ne simple re a so n fo r this suc c e ss a nd tha t is do wn to the sing ula r fo c us o f pursuing a prude nt a nd susta ina b le stra te g y. We fo c us o n o ur c usto me rs a nd the ‘ b ig pic ture ’ o f wha t Austra lia ’ s e ne rg y ne e ds will b e – no t just to da y, b ut in the future - a nd the n we de live r o n tha t b y inve sting in the infra struc ture to suppo rt it. Up o n the sc re e n is my fa vo urite slide – a ma p sho wing a ll o ur a sse ts plus so me o f the ke y hig hlig hts fo r F Y18. We ’ ve c o ntinue d to do a ll ma nne r o f de a ls dire c tly with o ur c usto me rs during the pe rio d, a nd a ll within the ne w g a s ma rke t disc lo sure a rb itra tio n e nviro nme nt – b e the y – ne w, e xte nsio ns, a lte ra tio ns o r re -c o ntra c ting . T he se ha ve a ll b e e n do ne

• n the b a c k o f the stre ng th o f o ur lo ng -te rm re la tio nships we ha ve with o ur

c usto me rs. One c o ntra c t I a m pa rtic ula rly ple a se d a b o ut is with Inc ite c Pivo t tha t will se e g a s tra nspo rte d a ro und 3,300 kilo me tre s fro m the No rthe rn T e rrito ry to IPL ’ s Gib so n I sla nd fe rtilise r pla nt in Brisb a ne , utilising fo ur o f APA’ s inte rc o nne c te d pipe line s. I t is a c o ntra c t whe re g a s pro duc e rs, tra nspo rte rs a nd the c usto me r ha ve a ll wo rke d to g e the r. T he impo rta nc e o f this is the se c uring o f a ro und 500 Austra lia n jo b s a t the IPL pla nt fo r a t le a st a no the r ye a r whilst the y so urc e a fina nc ia lly via b le future g a s supply. T he ma p sho ws yo u the dive rsity o f o ur la te st e ne rg y infra struc ture pro je c ts b o th g e o g ra phic a lly a nd a c ro ss o ur skill b a se - ne w pipe line s, wind a nd so la r re ne wa b le pro je c ts, g a s-fire d po we r g e ne ra tio n a nd g a s pro c e ssing .

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T he se pro je c ts a re a ll b a ng o n o ur stra te g y o f le ve ra g ing o ur e xisting po rtfo lio b a se to g ro w the b usine ss. T his dive rsity no t o nly inc re a se s o ur a sse t po rtfo lio , o ur physic a l fo o tprint a nd o ur e xpe rtise , b ut it simulta ne o usly he lps dive rsify o ur risk pro file . APA is in the midst o f the la rg e st c a pita l spe nd in the c o mpa ny’ s histo ry. Ac ro ss a 3 ye a r pe rio d tha t will c o mple te in F Y19, we ’ ll spe nd o ve r $1.4 b illio n o n c o mmitte d, a nd fully unde rwritte n g ro wth pro je c ts. I n F Y18 we virtua lly do ub le d

• ur a nnua l c a pe x spe nd, inve sting mo re tha n $740 millio n in ne w e ne rg y

infra struc ture . Our e xpe c ta tio n o f $425 millio n o f g ro wth c a pita l spe nd in F Y19 pre tty muc h ro unds o ut the ro ug hly $1.5 b illio n o utlo o k o f g ro wth pro je c ts tha t we spo ke o f in Aug ust 2016. I mpo rta ntly, b o th the b usine ss a nd yo u a s inve sto rs will b e g in to re a p the re wa rd

• f this sig nific a nt g ro wth unde rta king fro m this fina nc ia l ye a r a s we fo re c a st

a dditio na l re ve nue o f $75m plus a nd the n the re a l kic kup in re turn in F Y20 whe n a ll o f the se pro je c ts will b e g e ne ra ting full ye a r re ve nue s o f in e xc e ss o f $215 millio n. I t’ s the sma rts o f ma king the mo st o f the syne rg ie s within o ur a sse t po rtfo lio whic h ha s b e e n a c o re pla nk o f o ur o ng o ing stra te g y tha t ha s he lpe d g ro w APA’ s po rtfo lio to a va lue o f o ve r $20 b illio n in o wne d a nd/ o r o pe ra te d a sse ts. I t’ s a lso the q ua lity o f the re la tio nships with o ur c usto me rs. We strive to le a rn a b o ut the ir b usine ss a nd liste n to wha t the ir ne e ds a re so we c a n de ve lo p so lutio ns fo r the ir e ne rg y po rtfo lio s a nd re q uire me nts fo r the ir c usto me rs. We do n’ t inve st o r b uild o n spe c a nd the n ho pe to find a c usto me r we c a n re tro spe c tive ly fit o ur so lutio n to fix the ir pro b le m. We c usto m b uild so lutio ns tha t minimise risks fo r b o th pa rtie s, pro viding b e tte r lo ng -te rm o utc o me s fo r o ur c usto me rs in pa rtic ula r. And, we put sa fe ty a b o ve a ll e lse – o ur me ssa g e is tha t if yo u do n’ t fe e l sa fe in wha t yo u o r wha t yo ur wo rk ma te s a re do ing , the n put the to o ls do wn a nd a sse ss the situa tio n. Disa ppo inting ly, de spite the inc re a se d fo c us o n sa fe ty initia tive s a nd tra ining during the re po rting pe rio d, o ne o f o ur ke y me a sure s fo r sa fe ty, the T

• ta l

Re c o rda b le I njury F re q ue nc y Ra te inc re a se d to 8.9 fro m 7.5. We a re a lre a dy wo rking ve ry dilig e ntly to impro ve o urse lve s in this a re a – inc luding utilising da ta a na lytic s to ta rg e t kno wn injury drive rs to g e t tha t me a sure do wn to 7 o r b e tte r, g o ing fo rwa rd. L

• o king a he a d a t future o ppo rtunitie s fo r the b usine ss, we c o ntinue to se e mo re

g ro wth a he a d o f us – a c ro ss a ll a sse t c a te g o rie s a nd in the o rde r o f $4 b illio n o ve r the ne xt 5 – 10 ye a rs. Pe nding the CK I pro po sa l o utc o me , we a lso still se e

• ppo rtunity fo r e xte nding o ur e xpe rtise o ve rse a s into the US.

7

E ve n tho ug h the pro po se d Na tio na l E ne rg y Gua ra nte e po lic y is de a d fo r the time b e ing , the simple fa c t unde rlying tha t po lic y is tha t we ne e d to b a la nc e the g ro wing pro po rtio n o f re ne wa b le e ne rg y so urc e s with dispa tc ha b le , re lia b le e ne rg y – like g a s, whic h sho uld b e g o o d fo r APA. As a re sult o f g o o d visib ility o n tho se o ppo rtunitie s, in te rms o f g ro wth c a pe x fo r F Y20 a nd b e yo nd – we e xpe c t to spe nd $300 to $400 millio n pe r a nnum the re a fte r o n furthe r g ro wth pro je c ts. I ’ d like to ta lk a little mo re a b o ut APA’ s a ppro a c h to o ur c usto me rs a nd b uilding stro ng re la tio nships with the m fo r the lo ng te rm. T his is pa rtic ula rly in the lig ht o f re c e nt we ll pub lic ise d c a se s o f b usine sse s so me time s lo sing sig ht o f who it is we a re a c tua lly se rving . Ye s, b usine sse s like APA e xist to ma ke mo ne y fo r o ur Se c urityho lde rs, b ut we c a n ne ve r fo rg e t tha t it is ultima te ly the c usto me rs in o ur industry tha t we se rve . APA simply wo uldn’ t e xist witho ut c usto me rs - we c o uld o wn a ll the e ne rg y infra struc ture in Austra lia , b ut witho ut the a c tua l e ne rg y supply o r de ma nd to utilise it, o ur infra struc ture wo uld b e use le ss. APA’ s a ppro a c h ha s b e e n to lo o k a t

• ur b usine ss thro ug h the e ye s o f o ur c usto me rs – wha t a re the ir ne e ds, no w a nd

into the future . Ho w c a n we he lp o ur c usto me rs b e st de live r fo r the ir c usto me rs the e ne rg y the y re q uire , re c o g nising tha t the who le supply c ha in ha s a ro le to pla y in de live ring the b e st o utc o me s fo r Austra lia n c o nsume rs a nd b usine sse s? We ’ ve unde rta ke n a numb e r o f initia tive s tha t fo c us o n putting o ur c usto me rs first. We ’ ve a ske d o ur c usto me rs fo r the ir fe e db a c k o n o ur pe rfo rma nc e a nd ho w we c o uld b e tte r se rvic e the ir ne e ds a nd we ’ ve liste ne d ha rd to wha t the y ha d to sa y. T his in pa rt le d to a re fre sh o f o ur se rvic e o ffe ring s pro viding c usto me rs with mo re

• ptio ns a nd a dditio na l fle xib ility, ma king it simple r fo r the m to ma na g e the ir

e ne rg y po rtfo lio s. T

• g e the r with 14 o the r e ne rg y b usine sse s a c ro ss the supply

c ha in, we a re a lso pro ud to ha ve c o mmitte d to de ve lo ping a n industry wide Cha rte r – the E ne rg y Cha rte r - to de live r b e tte r c usto me r o utc o me s. As I c o nc lude my a ddre ss, I wo uld like to tha nk APA’ s inve sto rs fo r yo ur c o ntinue d suppo rt o f this g re a t b usine ss. Ove r the ye a rs we ha ve inve ste d o ve r $13 b illio n into Austra lia n e ne rg y infra struc ture a nd the b ro a de r e c o no my sinc e listing , g ro wing a po rtfo lio o f a sse ts a nd inve stme nts tha t is o ve r 20 time s la rg e r in va lue tha n it wa s whe n we sta rte d. I think I c a n spe a k fo r e ve ryo ne he re o n this sta g e whe n I sa y we a re ve ry pro ud

• f wha t we ’ ve a c hie ve d a s a c o mpa ny o ve r the la st 18 ye a rs.

APA ha s a lwa ys b e e n ‘ a he a d o f the c urve ’ a nd we fo llo we d thro ug h o n o ur visio n tha t ha s suppo rte d the g ro wth o f the e ne rg y industry in Austra lia .

8

No w, o ur suc c e ss ha s b e e n re c o g nise d b y a c o mpe lling o ffe r ma de b y CK I to o ur Se c urityho lde rs. But re g a rdle ss o f ho w it pa ns o ut, the ha rd wo rk, visio n a nd pe rsiste nc e tha t ha s le d to o ur suc c e ss re ma ins unc ha ng e d. We will still b e the sa me c o mpa ny we a lwa ys ha ve b e e n – with a te a m o f hig hly skille d pe o ple wo rking o n a dive rse a nd g ro wing po rtfo lio o f e ne rg y a sse ts, with ple nty o f g ro wth a he a d o f us. He re I wo uld like to a c kno wle dg e the 1,700 APA e mplo ye e s who se unriva lle d e xpe rtise a nd da ily de dic a tio n to the jo b , ke e ps the b usine ss g o ing a nd g ro wing . T hro ug h this ha rd wo rk, a nd fo c us, we ha ve de live re d va lue a nd g ro wn re turns fo r yo u, o ur Se c urityho lde rs. APA’ s to ta l Se c urityho lde r re turn sinc e listing ha s

• utpe rfo rme d the ma rke t a nd o ur pe e rs in the utilitie s se c to r. A do lla r inve ste d in

APA a t listing , with distrib utio ns re inve ste d, wo uld ha ve g ro wn mo re tha n 18 time s in va lue to da y. One Se c urityho lde r who ha s b e e n suppo rting the c o mpa ny sinc e da y o ne is my mo the r De ll. Mum ha s c o me do wn fro m No rth Que e nsla nd fo r e ve ry Annua l Me e ting we ’ ve ha d, a nd she is he re a g a in to da y. I ha ve sa id b e fo re , whe the r it’ s ta lking a b o ut g a s supply, re g ula tio n o r $23 b illio n ta ke o ve rs, I a m a lwa ys g uide d in wha t I sa y b y c o nside ring the ‘ mum’ te st; wha t a re the fa c ts; ha ve I g o t to the nub o f the issue , a nd c a n it b e unde rsto o d b y a ll the punte rs o ut the re . So tha nks mum fo r yo ur g uida nc e a nd the suppo rt yo u ha ve a lwa ys g ive n me . And with tha t, I’ ll ha nd b a c k o ve r to Mic ha e l to g e t o n with the b usine ss o f the me e ting . T ha nk yo u.

[E NDS]

APA Group 25 Oc tobe r 2018. 2018 a nnua l me e ting .

disc la ime r

2 T his p re se nta tio n ha s b e e n p re p a re d b y Austra lia n Pip e line L imite d (ACN 091 344 704) a s re sp o nsib le e ntity o f the Austra lia n Pip e line T rust (ARSN 091 678 778) a nd APTInve stme nt T rust (ARSN 115 585 441) (APA Gro up ). T he info rma tio n in this p re se nta tio n d o e s no t c o nta in a ll the info rma tio n whic h a p ro spe c tive inve sto r ma y re q uire in e va lua ting a p o ssib le inve stme nt in APA Gro up a nd sho uld b e re a d in c o njunc tio n with APA Group’s

• the r p e rio dic a nd c o ntinuo us d isc lo sure a nno unc e me nts whic h a re a va ila b le a t www.a p a .c o m.a u.

All re fe re nc e s to d o lla rs, c e nts o r ‘$’ in this p re se nta tio n a re to Austra lia n c urre nc y, unle ss o the rwise sta te d .

Not financ ia l produc t a dvic e : Ple a se no te tha t Austra lia n Pip e line L

imite d is no t lic e nse d to p ro vid e fina nc ia l p ro duc t a d vic e in re la tio n to se c uritie s in APA Gro up . T his p re se nta tio n is fo r info rma tio n p urp o se s o nly a nd is no t fina nc ia l p ro duc t o r inve stme nt a d vic e o r a re c o mme nd a tio n to a c q uire o r d e a l in APA Gro up se c uritie s a nd ha s b e e n p re pa re d witho ut ta king into a c c o unt the o b je c tive s, fina nc ia l situa tio n o r ne e d s o f ind ivid ua ls. Be fo re ma king a n inve stme nt d e c isio n, p ro sp e c tive inve sto rs sho uld c o nsid e r the a p p ro pria te ne ss o f the info rma tio n ha ving re g a rd to the ir o wn o b je c tive s, fina nc ia l situa tio n a nd ne e ds a nd se e k p ro fe ssio na l a d vic e if ne c e ssa ry.

Past pe rformanc e : Pa st p e rfo rma nc e info rma tio n sho uld no t b e re lie d o n a s (a nd is no t) a n ind ic a tio n o f future p e rfo rma nc e . F

• rward looking state me nts: T

his p re se nta tio n c o nta ins c e rta in fo rwa rd lo o king info rma tio n, inc lud ing a b o ut APA Gro up , whic h is sub je c t to risk fa c to rs. “Forward-lo o king statements” ma y inc lude ind ic a tio ns o f, a nd g uid a nc e o n, future e a rning s a nd fina nc ia l p o sitio n a nd p e rfo rma nc e . F

• rwa rd -lo o king sta te me nts c a n g e ne ra lly b e id e ntifie d b y the use o f fo rwa rd -lo o king wo rds suc h a s, 'e xp e c t', 'a ntic ip a te ', 'like ly', 'inte nd ', 'c o uld',

'may', 'pre dic t', 'plan', 'pro po se ', 'will', 'b e lie ve ', 'fo re c a st', 'e stima te ', 'ta rg e t', 'o utlo o k', 'g uida nc e ' a nd o the r simila r e xpre ssio ns and inc lude , b ut a re no t limite d to , fo re c a st E BI T a nd E BI T DA, o pe ra ting c a sh flo w, d istrib utio n g uid a nc e a nd e stima te d a sse t life . APA Gro up b e lie ve s tha t the re a re re a so na b le g ro und s fo r the se fo rwa rd lo o king sta te me nts a nd d ue c a re a nd a tte ntio n ha ve b e e n use d in pre p a ring this p re se nta tio n. Ho we ve r, the fo rwa rd lo o king sta te me nts,

• pinio ns a nd e stima te s p ro vid e d in this p re se nta tio n a re b a se d o n a ssump tio ns a nd c o nting e nc ie s whic h a re sub je c t to c ha ng e witho ut no tic e , a s a re sta te me nts a b o ut ma rke t a nd ind ustry tre nd s, whic h a re b a se d
• n inte rp re ta tio ns o f c urre nt ma rke t c o nd itio ns a nd a re sub je c t to risk fa c to rs a sso c ia te d with the ind ustrie s in whic h APA Gro up o pe ra te s. Fo rwa rd -lo o king sta te me nts, o pinio ns a nd e stima te s a re no t g ua ra nte e s o r

p re d ic tio ns o f future p e rfo rma nc e a nd invo lve kno wn a nd unkno wn risks a nd unc e rta intie s a nd o the r fa c to rs, ma ny o f whic h a re b e yo nd the c o ntro l o f APA Gro up , a nd ma y invo lve sig nific a nt e le me nts o f sub je c tive jud g e me nt a nd a ssump tio ns a s to future e ve nts whic h ma y o r ma y no t b e c o rre c t. T he re c a n b e no a ssura nc e tha t a c tua l o utc o me s will no t ma te ria lly d iffe r fro m the se fo rwa rd -lo o king sta te me nts, o pinio ns a nd e stima te s. A numb e ro f imp o rta nt fa c to rs c o uld c a use a c tua l re sults o r p e rfo rma nc e to d iffe r ma te ria lly fro m suc h fo rwa rd -lo o king sta te me nts, o pinio ns a nd e stima te s. I nve sto rs sho uld fo rm the ir o wn vie ws a s to the se ma tte rs a nd a ny a ssump tio ns o n whic h a ny fo rwa rd -lo o king sta te me nts a re b a se d . APA Gro up a ssume s no o b lig a tio n to up d a te o r re vise suc h info rma tio n to re fle c t a ny c ha ng e in e xp e c ta tio ns o r a ssump tio ns.

Inve stme nt risk: An inve stme nt in APA Gro up se c uritie s is sub je c t to inve stme nt a nd o the r kno wn a nd unkno wn risks, so me o f whic h a re b e yo nd the c o ntro l o f APA Gro up . APA Gro up d o e s no t g ua ra nte e a ny p a rtic ula r

ra te o f re turn o r the pe rfo rma nc e o f APA Gro up.

Non-IF RS financ ial me asure s: APA Gro up re sults a re re p o rte d unde r Austra lia n Ac c o unting Sta nd a rd s a nd o the r a utho rita tive p ro no unc e me nts o f the Austra lia n Ac c o unting Sta nd a rd s Bo a rd a nd a lso c o mp ly with

I nte rna tio na l F ina nc ia l Re p o rting Sta nd a rd s (IF RS). Ho we ve r, inve sto rs sho uld b e a wa re tha t this p re se nta tio n inc lud e s c e rta in fina nc ia l me a sure s tha t a re no n-IF RS fina nc ia l me a sure s fo r the p urp o se s o f p ro vid ing a mo re c o mp re he nsive und e rsta nd ing o f the p e rfo rma nc e o f the APA Gro up . T he se no n-IF RS fina nc ia l me a sure s inc lude E BI T , E BI T DA a nd o the r “normalised” me a sure s. Suc h no n-IF RS info rma tio n is una ud ite d , ho we ve r the numb e rs ha ve b e e n e xtra c te d fro m the a ud ite d fina nc ia l sta te me nts.

Not an offe r: T

his p re se nta tio n d o e s no t c o nstitute a n o ffe r, invita tio n o r re c o mme nda tio n to sub sc rib e fo r o r p urc ha se a ny se c urity. In p a rtic ula r, this p re se nta tio n d o e s no t c o nstitute a n o ffe r to se ll, o r a so lic ita tio n o f a n o ffe r to b uy, a ny se c uritie s in the Unite d Sta te s. Se c uritie s ma y no t b e o ffe re d o r so ld , d ire c tly o r ind ire c tly, in the Unite d Sta te s o r to p e rso ns tha t a re a c ting fo r the a c c o unt o r b e ne fit o f p e rso ns in the Unite d Sta te s, unle ss the y ha ve b e e n re g iste re d unde r the U.S. Se c uritie s Ac t o f 1933, a s a me nd e d (the U.S. Se c uritie s Ac t), o r a re o ffe re d a nd so ld in a tra nsa c tio n e xe mp t fro m, o r no t sub je c t to , the re g istra tio n re q uire me nts o f the U.S. Se c uritie s Ac t a nd a ny o the r a p p lic a b le sta te se c uritie s la ws.

Non-GAAP fina nc ia l me asure s: Inve sto rs sho uld b e a wa re tha t c e rta in fina nc ia l d a ta inc lud e d in this p re se nta tio n a re "no n-G AAP fina nc ia l me a sure s" und e r Re g ula tio n G o f the U.S. Se c uritie s E

xc ha ng e Ac t o f 1934, a s a me nde d . T he se me a sure s a re E BI T DA, no rma lise d E BI T DA a nd sta tuto ry E BI T

• DA. T

he d isc lo sure o f suc h no n-G AAP fina nc ia l me a sure s in the ma nne r inc lude d in the p re se nta tio n ma y no t b e p e rmissib le in a re g istra tio n sta te me nt unde r the U.S. Se c uritie s Ac t. T he se no n-GAAP fina nc ia l me a sure s do no t ha ve a sta ndardise d me aning pre sc ribe d by Austra lia n Ac c o unting Sta nda rds a nd the re fo re ma y no t b e c o mpa ra ble to simila rly title d me a sure s p re se nte d b y o the r e ntitie s, a nd sho uld no t b e c o nstrue d a s a n a lte rna tive to o the r fina nc ia l me a sure s de te rmine d in a c c o rd a nc e with Austra lia n Ac c o unting Sta nd a rds. Altho ug h APA Gro up b e lie ve s the se no n-GAAP fina nc ia l me a sure s p ro vid e use ful info rma tio n to use rs in me a suring the fina nc ia l pe rfo rma nc e a nd c o nd itio n o f its b usine ss, inve sto rs a re c a utio ne d no t to p la c e und ue re lia nc e o n a ny no n- GAAP fina nc ia l me a sure s inc lud e d in this p re se nta tio n.

APA Gr

• up Cha ir

ma n

Mic ha e l F ra se r

3

APA Gr

• up Boa r

d

Mic k Mc Cor ma c k

Mana g ing Dir e c tor

Ste ve Cr a ne Russe ll Hig gins AO Shir le y In’t Ve ld Pa tr ic ia Mc Ke nzie

4

De bbie Goodin Pe te r Wasow

APA Gr

• up se nior

ma na ge me nt

Ne ve nka Code ve lle

Compa ny Se c re ta ry

Sa m Pe a r c e Pe te r F r e dr ic son Ross Ge r sbac h Ke vin L e ste r E lise Manns Rob Whe a ls

5

a g e nda

a nnua l me e ting 2018.



Chairman’s address



Managing Director’s a ddre ss



F

• rma l busine ss



Ge ne ra l busine ss



Me e ting c lose

Chairman’s address

Construc tion of the Re e dy Cre e k Wa llumbilla Pipe line in Que e nsla nd, c ommissione d in Ma y 2018

F Y2018 r e sults

F Y2018 c ha ng e

Statutor y re sults

Re ve nue e xc luding pa ss-thro ug h(1)

$1,941.4 m

Up 2.8% E BI T DA

$1,518.5 m

Up 3.3% Ne t pro fit a fte r ta x

$264.8 m

Up 11.8% Ope ra ting c a sh flo w(2)

$1,031.6 m

Up 5.9% Ope ra ting c a sh flo w pe r se c urity

90.7 c

Up 4.1%

Distr ibutions

Distrib utio ns pe r se c urity

45.0 c

Up 3.4% F ra nking c re dits pe r se c urity

6.3 c

Distrib utio n pa yo ut ra tio (3)

51.5%

Note s:

(1) Pa ss-thro ug h re ve nue is re ve nue o n whic h no ma rg in is e a rne d. (2) Ope ra ting c a sh flo w = ne t c a sh fro m o pe ra tio ns a fte r inte re st a nd ta x pa yme nts. (3) Distrib utio n pa yo ut ra tio = to ta l distrib utio n a pplic a ble to the fina nc ial ye a r a s a pe rc e nta g e o f o pe ra ting c a sh flo w.

8

CKI update

• 13 June 2018: APA a nno unc e d indic a tive , unsolic ite d no n-b inding pro po sa l – due dilig e nc e c o mme nc e d
• 13 Aug ust 2018: Conditiona l Imple me nta tion Ag re e me nt a nno unc e d
• A$11.00 pe r

se c ur ity c a sh o ffe r

• APA Boa r

d una nimously r e c omme nds the c ompe lling offe r

(1):

–

>30% pre mium (5 da y, 1 mo nth, 3 mo nth VWAPs)

–

15.3x F Y2017 E V/ E BIT DA a nd 14.8x F Y2018 E V/ E BIT DA(2)

• Sub je c t to a numbe r
• f c onditions, inc luding a ppro va l fro m

 ACCC : 12 Se pte mb e r – a ppro va l g ra nte d

?

F IRB pro c e ss o ng o ing

?

CK A sha re ho lde rs - vo te

?

APA Se c urityho lde rs - vo te

• Se c ur

ityholde r s do not ne e d to ta ke a ny a c tion a t this time – Sc he me b o o kle t a nd vo ting info rma tio n will b e se nt to

se c urityho lde rs in a dva nc e o f Sc he me Me e ting s

• Additio na l 4.0 c e nts pe r se c urity fo r e a c h full mo nth in c a le nda r 2019 whic h e la pse s po st 31 De c e mb e r 2018 a nd

prio r to imple me nta tio n (up to 31 Ma rc h 2019)

……it is business as usual at APA during this process

Note (1): In the a b se nc e o f a supe rio r pro po sa l a nd sub je c t to the Inde pe nde nt E

xpe rt c o nc luding the Sc he me s a re fa ir a nd re a so na b le a nd in the b e st inte re st o f APA Se c urityho lde rs.

(2): Ba se d o n 1,179,893,848 APA sta ple d se c uritie s o n issue , APA ne t de b t a s a t 30 June 2018 a s pe r No te 18 o f the F

Y2018 fina nc ia l sta te me nts, APA F Y2017 E BIT DA o f A$1,470.1 millio n fo r the F Y2017 multiple a nd APA F Y2018 E BIT DA o f A$1,518.5 millio n fo r the F Y2018 multiple .

9

long te rm inve stme nt – c a pital inte nsive

inve sto rs ne e d a le ve l o f c e rta inty to ma ke c o nfide nt inve stme nt de c isio ns

Da r ling Downs Sola r F a r m ~$200 m Wallumbilla Gla dstone Pipe line ~$6 b Or bost Gas Pr

• c e ssing Pla nt ~$270 m

F Y2019 outlook

• Ba se d o n c urre nt o pe ra ting pla ns a nd a va ila b le

info rma tio n, E BI T DA fo r F Y2019 is e xpe c te d to b e within a ra ng e o f $1,550 million to $1,575 million

• I

n the e ve nt tha t the CK I pro po sa l do e s no t pro c e e d a nd APA re ma ins a sta nd-a lo ne liste d c o mpa ny fo r the full fina nc ia l ye a r, distrib utio ns pe r se c urity fo r F Y2019 a re e xpe c te d to b e in the

• rde r of 46.5 c e nts pe r se c ur

ity, with a dditio na l

fra nking c re dits a rising fro m the filing o f the F Y2019 ta x re turn

11

Managing Director’s address

E mu Downs Sola r F a rm in WA, c ommissione d in Ja nua r y

F Y18 hig hlig hts

13

Ya ma rna Ga s Pipe line & Powe r Sta tion

Mt Morgan’s Gas Pipeline

• 2 ne w c ustome rs
• 203 km of ne w pipe line
• ne w 45MW g a s- fire d powe r sta tion

DPS – ne w c ustome r E mu Downs & Ba dg ing a rra 167.5MW of ne w sola r a nd wind fa rm de ve lopme nts

– utilising sha re d

infra struc ture Orbost Ga s Proc e ssing Pla nt

– ne w g a s sourc e of supply

for e a ste rn Austra lia

20MW E DSF – c ommissione d in Ja nua ry

5 mining c ustome rs now utilising the inte rc onne c te d Goldfie lds Grid Re e dy Cre e k Wa llumbilla Pipe line

– ne w bi- dire c tiona l pipe line

a c c e ssing the e a ste rn Austra lia g a s ma rke t Da rling Downs Sola r F a rm

• 110MW of ne w

re ne wa ble e ne rg y We ste rn Slope s Pipe line Crib Point Pa ke nha m Pipe line

• pre limina ry inve stig a tions,

subje c t to F ID

c ustome r s a t the c e ntr e of our de c ision-making

• Inte r

c onne c te d g r id

• Se a mle ss se r

vic e s

• Inte g r

a te d Ope r a tions Ce ntre

• Syste ms a nd te c hnology
• Pr
• duc t a nd se r

vic e s r e fr e sh

• Custome r

r e la tionships T he E ne r g y Cha r te r – industr y initia tive

Simplic ity

• Obje c tive : re c onne c t industry a s a whole with its

purpose a nd c re a te c olle c tive a c c ounta bility for be tte r c ustome r outc ome s

• Cha rte r Princ iple s foc us on:
• E

mb e dding c usto me r-minde d c ulture fo r b e tte r c usto me r o utc o me s

• Impro ving e ne rg y a ffo rda bility
• Pro viding e ne rg y re lia b ly, sa fe ty a nd susta ina b ly
• Impro ving the c usto me r e xpe rie nc e
• Suppo rting c usto me rs in vulne ra ble

c irc umsta nc e s

14

Cla rity F le xibility

APA – 18 ye a r s of gr

• wth

400 800 1,200 1,600 2,000 2,400 APA tota l se c ur ityholder r e tur n Utilitie s a c c umulation inde x S&P/ ASX 200 a c c umulation inde x

17.9% c ompound a nnua l g rowth ra te sinc e listing

$13b n inve ste d b y APA into Austra lia n e ne rg y infra struc ture g lo b a lly uniq ue E a st Co a st Grid >7,500km inte rc o nne c te d pipe line s 18 ye a rs o f distrib utio n g ro wth e xte nsive e xpe rtise : tra nsmissio n, po we r g e ne ra tio n (g a s & re ne wa b le s), g a s sto ra g e & pro c e ssing

distribution g rowth sinc e listing

17.9% c o mpo und a nnua l g ro wth ra te sinc e listing

15

F

• rmal busine ss

Ya ma rna Powe r Sta tion, unde r c onstruc tion, We ste rn Austra lia

r e g istr a tion a nd voting

Ye llo w c a rd - pe rso n e ntitle d to vo te / a sk q ue stio ns Blue c a rd

• no n-vo ting me mb e r / a sk q ue stio ns

Re d c a rd

• visito r a nd no n-vo ting

17

Or dina r y Re solutions

• Re solution 1:

Ado ptio n o f the Re mune ra tio n Re po rt

• Re solution 2:

No mina tio n o f De b ra Go o din fo r re -e le c tio n a s a Dire c to r

• Re solution 3:

No mina tio n o f Russe ll Hig g ins AO fo r re -e le c tio n a s a Dire c to r

• Re solution 4:

No mina tio n o f Shirle y In’t Ve ld fo r e le c tio n a s a Dire c to r

• Re solution 5:

No mina tio n o f Pe te r Wa so w fo r e le c tio n a s a Dire c to r

18

Re solution 1

Ado ptio n o f the Re mune ra tio n Re po rt

19

“That the Remuneration Report for the year ended 30 June 2018 be adopted.”

Re solution 1

 Ado ptio n o f F

Y2018 Re mune ra tion Re port

 Va lid a va ila b le pro xy vo te s re c e ive d:

for

• pe n

a g a inst a bsta in*

526,738,642 9,370,701 180,007,389 3,714,239

73.55% 1.31% 25.14%

• 20

* vo te s b y a pe rso n who a b sta ins o n a n ite m a re no t c o unte d in c a lc ula ting the re q uire d ma jo rity o n a po ll

Or dina r y Re solutions 2, 3, 4 a nd 5

• Re solution 2:

No mina tio n o f De b ra Go o din fo r re -e le c tio n a s a Dire c to r

• Re solution 3:

No mina tio n o f Russe ll Hig g ins AO fo r re -e le c tio n a s a Dire c to r

• Re solution 4:

No mina tio n o f Shirle y In’t Ve ld fo r e le c tio n a s a Dire c to r

• Re solution 5:

No mina tio n o f Pe te r Wa so w fo r e le c tio n a s a Dire c to r

21

Re solution 2

No mina tio n o f

De bra Goodin

fo r re -e le c tio n a s a Dire c to r

22

“That the nomination of Debra Goodin

to be r e -e le c te d as a Dir e c tor

• f

Austr alian Pipe line L imite d

be approved.”

Re solution 2



No mina tio n o f De bra Goodin fo r re -e le c tio n a s a Dire c to r



Va lid a va ila b le pro xy vo te s re c e ive d:

for

• pe n

a g a inst a bsta in*

701,963,417 9,743,136 6,249,869 1,874,549

97.77% 1.36% 0.87%

• 23

* vo te s b y a pe rso n who a b sta ins o n a n ite m a re no t c o unte d in c a lc ula ting the re q uire d ma jo rity o n a po ll

Re solution 3

No mina tio n o f

Russe ll Hig g ins AO

fo r re -e le c tio n a s a Dire c to r

24

“That the nomination of Russell Higgins AO

to be r e -e le c te d as a Dir e c tor

• f

Austr alian Pipe line L imite d

be approved.”

Re solution 3



No mina tio n o f Russe ll Hig g ins AO fo r re -e le c tio n a s a Dire c to r



Va lid a va ila b le pro xy vo te s re c e ive d:

for

• pe n

a g a inst a bsta in*

580,278,020 9,783,518 127,893,681 1,876,057

80.82% 1.36% 17.81%

• 25

* vo te s b y a pe rso n who a b sta ins o n a n ite m a re no t c o unte d in c a lc ula ting the re q uire d ma jo rity o n a po ll

Re solution 4

No mina tio n o f

Shir le y In’t Ve ld

fo r e le c tio n a s a Dire c to r

26

“That the nomination of Shirley In’t Veld

to be e le c te d as a Dir e c tor

• f Austr

alian Pipe line L imite d

be approved.”

Re solution 4



No mina tio n o f Shir

le y In’t Ve ld fo r e le c tio n a s a Dire c to r



Va lid a va ila b le pro xy vo te s re c e ive d:

for

• pe n

a g a inst a bsta in*

705,498,679 10,184,409 2,172,313 1,975,875

98.28% 1.42% 0.30%

• 27

* vo te s b y a pe rso n who a b sta ins o n a n ite m a re no t c o unte d in c a lc ula ting the re q uire d ma jo rity o n a po ll

Re solution 5

No mina tio n o f

Pe te r Wasow

fo r e le c tio n a s a Dire c to r

28

“That the nomination of Peter Wasow

to be e le c te d as a Dir e c tor

• f

Austr alian Pipe line L imite d

be approved.”

Re solution 5



No mina tio n o f Pe te r Wasow fo r e le c tio n a s a Dire c to r



Va lid a va ila b le pro xy vo te s re c e ive d:

for

• pe n

a g a inst a bsta in*

703,833,862 10,002,909 3,835,427 2,159,078

98.07% 1.39% 0.53%

• 29

* vo te s b y a pe rso n who a b sta ins o n a n ite m a re no t c o unte d in c a lc ula ting the re q uire d ma jo rity o n a po ll

voting a nd pr

• xy vote s

F OR OPE N AGAINST ABST AIN* Re solution 1

526,738,642 9,370,701 180,007,389 3,714,239

Ado ptio n o f the Re mune ra tion Re port

73.55% 1.31% 25.14%

• Re solution 2

701,963,417 9,743,136 6,249,869 1,874,549

No mina tio n o f

De bra Goodin fo r

re -e le c tio n a s a Dire c to r

97.77% 1.36% 0.87%

• Re solution 3

580,278,020 9,783,518 127,893,681 1,876,057

No mina tio n o f

Russe ll Hig g ins AO fo r

re -e le c tio n a s a Dire c to r

80.82% 1.36% 17.81%

• Re solution 4

705,498,679 10,184,409 2,172,313 1,975,875

No mina tio n o f

Shirle y In’t Ve ld fo r

e le c tio n a s a Dire c to r

98.28% 1.42% 0.30%

• Re solution 5

703,833,862 10,002,909 3,835,427 2,159,078

No mina tio n o f

Pe te r Wa sow fo r

e le c tio n a s a Dire c to r

98.07% 1.39% 0.53%

• Ye llo w c a rd

Pe r son e ntitle d to vote

Re d c a rd

Non- voting me mbe r

Blue c a rd

Visitor a nd non- voting

30

* vo te s b y a pe rso n who a b sta ins o n a n ite m a re no t c o unte d in c a lc ula ting the re q uire d ma jo rity o n a po ll

Ge ne ra l busine ss

Ba dg ing a rra Wind F a rm, unde r c onstruc tion, We ste rn Austra lia

for more informa tion visit www.a pa.c om.a u