APA 2020 Vir tual Inve stor Day APA Gro up (ASX: APA) to d a y pro - - PDF document

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APA 2020 Vir tual Inve stor Day APA Gro up (ASX: APA) to d a y pro - - PDF document

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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

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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

8 Ma y 2020 ASX ANNOUNCE ME NT

APA Gr

  • up (ASX: APA)

APA 2020 Vir tual Inve stor Day

APA Gro up (ASX: APA) to d a y pro vide s the a tta c he d pre se nta tio ns fro m APA Gro up’ s ma na g e me nt te a m in re la tio n to its 2020 Virtua l I nve sto r Da y. T he Virtua l Inve sto r Da y will b e we b c a st live a t 8:30a m (Sydne y time ) to da y, F rida y 8 Ma y 2020. A re pla y o f the we b c a st will b e ma de a va ila b le o n APA’ s we b site to vie w o n de ma nd fo r tho se una b le to a tte nd the live we b c a st. F urthe r de ta ils a re a va ila b le o n APA’ s we b site in the inve sto r re po rts a nd pre se nta tio n se c tio n.

Author ise d for r e le a se by 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 Va ne ssa Puli

He a d o f I nve sto r Re la tio ns He a d o f Co rpo ra te Co mmunic a tio ns T e le pho ne : +61 2 9693 0097 T e le pho ne : +61 2 9228 8300 Mo b : +61 455 071 006 Mo b : +61 436 469 356 Ema il: je nnife r.b la ke @ a pa .c o m.a u Ema il: va ne ssa .puli@ a pa .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 a ro und $21 b illio n o f e ne rg y infra struc ture a sse ts. Its 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 , SEA 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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SLIDE 2

APA Gr

  • up

inve stor br ie fing day 2020.

F rida y, 8 Ma y 2020 Virtua l e ve nt

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SLIDE 3

Disc laime r

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

2

T his pre se nta tio n ha s b e e n pre pa re d b y Austra lia n Pipe line L imite d (ACN 091 344 704) a s re spo nsib le e ntity o f the Austra lia n Pipe 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 pre se nta tio n do e s no t c o nta in a ll the info rma tio n whic h a pro spe c tive inve sto r ma y re q uire in e va lua ting a po 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 the APA Gro up’ s o the r pe rio d ic a nd c o ntinuo us disc lo sure a nno unc e me nts whic h a re a va ila b le a t www.a pa .c o m.a u. All re fe re nc e s to do lla rs, c e nts o r‘ $’ in this pre se nta tio n a re to Austra lia n c urre nc y, unle ss o the rwise sta te d. Not financ ial pr

  • duc t advic e : Ple a se no te tha t Austra lia n Pipe line L

imite d is no t lic e nse d to pro vide fina nc ia l pro duc t a dvic e in re la tio n to se c uritie s in the APA Gro up. T his pre se nta tio n is fo r info rma tio n purpo se s o nly and is no t fina nc ia l pro duc t o r inve stme nt a dvic e o r a re c o mme nda tio n to a c q uire APA Gro up se c uritie s a nd ha s b e e n pre 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 ds o f individua ls. Be fo re ma king an inve stme nt de c isio n, pro spe c tive inve sto rs sho uld c o nside rthe a ppro pria te ne ss o f the info rma tio n ha ving re g a rd to the iro wn o b je c tive s, fina nc ia l situa tio n a nd ne e ds a nd se e k pro fe ssio na l a dvic e if ne c e ssa ry. Past pe r for manc e : Pa st pe rfo rma nc e info rma tio n sho uld no t b e re lie d upo n a s (a nd is no t) a n indic a tio n o f future pe rfo rma nc e . F

  • r

war d looking state me nts: T his pre 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. “F

  • rward-lo o king sta te me nts” ma y inc lude indic a tio ns o f, and g uida nc e o n, future

e a rning s a nd fina nc ia l po sitio n a nd pe rfo rmanc e . F

  • rwa rd-lo o king sta te me nts c a n g e ne ra lly b e ide ntifie d b y the use o f fo rward-lo o king wo rds suc h a s, 'e xpe c t', 'a ntic ipa te ', 'like ly', 'inte nd', 'c o uld', 'ma y', '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 rsimila r e xpre ssio ns a nd inc lude , b ut a re no t limite d to , fo re c a st E BITa nd E BIT DA, o pe ra ting c a sh flo w, distrib utio n g uida 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 unds fo r the se fo rwa rd lo o king sta te me nts a nd due c a re and a tte ntio n ha ve b e e n use d in pre pa ring this pre se ntatio n. Ho we ve r, the fo rwa rd lo o king sta te me nts, o pinio ns a nd e stima te s pro vide d in this pre se nta tio n a re b a se d o n a ssumptio 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 and industry tre nds, whic h a re b a se d o n inte rpre ta tio ns o f c urre nt marke t c o nditio ns a nd a re sub je c t to risk fa c to rs a sso c ia te d with the industrie s in whic h APA Gro up o pe ra te s. F

  • 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 pre dic tio ns o f future pe rfo rmanc e a nd invo lve kno wn and 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 judg e me nt a nd a ssump tio ns a s to future e ve nts whic h ma y o r may no t be 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 diffe 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 r o f impo rtant fa c to rs c o uld c a use a c tua l re sults o r pe rfo rma nc e to diffe 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 ssumptio 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 upda te o r re vise suc h info rma tio n to re fle c t a ny c ha ng e in e xpe c ta tio ns o ra ssumptio ns. Inve stme nt r isk: An inve stme nt in se c uritie s in APA Gro up is sub je c t to inve stme nt and 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 do e s no t g ua ra nte e any pa 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 ia l me asur e s: APA Gro up re sults a re re po rte d unde r I nte rna tio na l F ina nc ia l Re po rting Sta nda rds (IF RS). Ho we ve r, inve sto rs sho uld b e a wa re tha t this pre se nta tio n inc lude s c e rta in fina nc ia l me a sure s tha t a re no n-I F RS fina nc ia l me a sure s fo r the purpo se s o f pro vid ing a mo re c o mpre he nsive unde rsta nding o f the pe rfo rmanc 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 BIT DA a nd o the r “no rmalise d” me a sure s. Suc h no n-I F RS info rma tio n is una udite d, ho we ve rthe numb e rs ha ve b e e n e xtra c te d fro m the a udite d fina nc ia l sta te me nts. Not an offe r : T his pre se nta tio n do 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 purc ha se a ny se c urity. I n pa rtic ula r, this pre se nta tio n do 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 an 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, dire c tly o r ind ire c tly, in the Unite d Sta te s o r to pe 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 pe 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 nde d (the U.S. Se c uritie s Ac t), o ra re o ffe re d a nd so ld in a tra nsa c tio n e xe mpt fro m, o rno 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 ra pplic a b le sta te se c uritie s la ws. Non- GAAP financ ial me asur e s: I nve sto rs sho uld b e a wa re tha t c e rta in fina nc ia l da ta inc lude d in this pre se nta tio n a re "no n-G AAP fina nc ia l me a sure s" unde 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 BIT DA, no rma lise d E BIT DA a nd sta tuto ry E BIT

  • DA. T

he disc lo sure o f suc h no n-GAAP fina nc ia l me a sure s in the ma nne r inc lude d in the pre se nta tio n ma y no t b e pe 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-G AAP fina nc ia l me a sure s do no t ha ve a sta nda rdise d me a ning pre sc rib e d b y Austra lia n Ac c o unting Standa rds a nd the re fo re ma y no t b e c o mpa ra b le to simila rly title d me a sure s pre se nte d b y o the r e ntitie s, a nd sho uld no t be c o nstrue d a s a n a lte rna tive to o the rfina nc ia l me a sure s de te rmine d in a c c o rda nc e with Austra lia n Ac c o unting Sta nda rds. Altho ug h APA Gro up b e lie ve s the se no n-G AAP fina nc ia l me a sure s pro vide 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 nditio n o f its b usine ss, inve sto rs a re c a utio ne d no t to pla c e undue re lia nc e o n a ny no n-GAAP fina nc ia l me a sure s inc lude d in this pre se nta tio n.

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SLIDE 4

Age nda

8/ 5/ 2020 – APA Inve sto r Brie fing Da y 2020

3

8:30a m

Je nnife r Blake Inve stor Re lations

  • we lc o me & lo g istic s

8:33a m

Rob Whe als CE O & Managing Dir e c tor

  • o ve rvie w & g ro wth
  • ppo rtunitie s

9:03a m

Ross Ge r sbac h Pr e side nt Nor th Ame r ic an De ve lopme nt

  • US upda te

9:21a m

Hannah Mc Caughe y GE T r ansfor mation & T e c hnology

  • me g a tre nds & e ne rg y

tra nsfo rmatio n

9:33a m

Q&A se ssion

10:05a m 15m

BRE AK

10:20a m

Dar r e n Roge r s GE Ope r ations

  • o ve rvie w

10:28a m

Cr aig Stallan Ac ting GE Str ate gy & Comme r c ial Ke vin L e ste r GE Infr astr uc tur e De ve lopme nt

  • Orb o st pro je c t

10:36a m

Pe te r F r e dr ic son Chie f F inanc ial Offic e r

  • c a pita l

ma nag e me nt

10:45a m

Ne ve nka Code ve lle GE Gove r nanc e & E xte r nal Affair s

  • wo rking with

sta ke ho lde rs to c re a te lo ng te rm va lue

10:51a m

E lise Manns GE Pe ople , Safe ty & Cultur e

  • uniq ue e nviro nme nts

& PSC fo c us a re a s

11:00a m

Q&A r

  • undup

~11:30a m

E ND

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SLIDE 5

Ask a que stion

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

4

At a ny time during the we b c a st, yo u c a n sub mit a q ue stio n using the ASK A QUE

ST ION b o x

  • n the we b c a st da shb o a rd:
  • 1. Se le c t the ‘Ask a que stion’

box unde r ‘Inte r a c t’ on the da shboa r d me nu.

  • 2. A que stion box will

pop- up whe r e you c a n type a nd submit your que stion. No ne e d to inc lude your de ta ils.

  • 3. T
  • c lose the da shboa r

d vie w a t a ny time c lic k the minus button a t the top

  • f the da shboa r

d me nu. Q fo r Ro b re : xxxxx xxxx

Ana lysts using the

te le c onfe re nc e fa c ility dia l *1

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SLIDE 6

Rob Whe als CE O & Managing Dir e c tor

  • We lc o me & o ve rvie w
  • T

he c ha ng ing e ne rg y la ndsc a pe

  • Purpo se , visio n & stra te g ic impe ra tive s
  • De c isio n c o mpa ss, va lue s & c usto me r pro mise
  • Ope ra ting mo de l a nd le a de rship te a m
  • Gro wth o ppo rtunitie s
  • Summa ry

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

5

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SLIDE 7

A le ading Austr alian e ne r gy infr astr uc tur e busine ss

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

6

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SLIDE 8

T wo de c ade s of gr

  • wth & adaptation

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

7

2000 Pipe line c ompa ny 2020 E ne rg y Infra struc ture c ompa ny

  • f inve stme nt into the Austra lia n e ne rg y ma rke t
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SLIDE 9

20 ye ar s c r e ating value for se c ur ityholde r s

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

8

str

  • ng tr

ac k r e c or d

22.0 21.5 21.5 21.5 22.5 24.0 28.0 29.5 31.0 32.8 34.4 35.0 35.5 36.3 38.0 41.5 43.5 45.0 47.0 23.0 27.0*

0.0 10.0 20.0 30.0 40.0 50.0 60.0 500 1000 1500 2000 2500 Distr ibutio ns (R HS) APA T SR (L HS) ASX100 T SR (L HS) ASX 200 Utilities T SR (L HS) T SR c e nts

APA’s distr ibutions have inc r e ase d e ve r y ye ar for ne ar ly two de c ade s T SR: 2,140% (1) sinc e listing CAGR: 17.2% pa

Note :

1) Inde xe d fro m 13 June 2000, the da te o f APA’ s listing o n the ASX to 31 De c e mb e r 2019 * E stima te d distrib utio n fo r 2H F Y2020

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SLIDE 10

Covid-19 & oil pr ic e s

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

9

  • Pivo ta l pa rt o f e sse ntia l se rvic e supply c ha in
  • c a pa c ity c o ntra c ts & re g ula te d re ve nue s pro te c t a g a inst ne a r-te rm vo lume risk
  • b ut no t e ntire ly immune fro m lo ng e r te rm e c o no mic do wnturn
  • E

mplo ye e s ha ve re spo nde d to the c ha lle ng e

  • e na b le d c o ntinuing stro ng re sults & c o nfirma tio n o f distrib utio n g uida nc e
  • Ample liq uidity & a va ila b le he a dro o m with ra ting s me tric s
  • de b t ma rke ts re ma ine d o pe n to inc re a se liq uidity a nd re duc e c o st o f de b t
  • Ne a r te rm o rg a nic g ro wth like ly to b e impa c te d in c urre nt e nviro nme nt
  • b a se -c a se is U-sha pe d re c o ve ry, po ssib ly e xte nde d, with so me c usto me r de c isio ns de fe rre d
  • Optima l timing fo r a c q uisitio ns ma y b e pushe d o ut
  • a ltho ug h c urre nt ma rke t mig ht c re a te uniq ue o ppo rtunity if rig ht ta rg e t ide ntifie d
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SLIDE 11

L

  • ng- te r

m suc c e ss dr ive n by fundame ntals

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

10

  • Gro wth in g lo b a l e ne rg y de ma nd
  • Re silie nc e o f o ur lo w risk b usine ss mo de l thro ug h e c o no mic c yc le s
  • Po rtfo lio o f hig h-q ua lity lo ng -life a sse ts
  • Stro ng skills a nd c a pa b ility to na vig a te a c o nsta ntly c ha ng ing

e nviro nme nt

  • Ope ra tio na l a nd sa fe ty e xc e lle nc e
  • F

ina nc ia l stre ng th a nd fle xib ility

slide-12
SLIDE 12

Rob Whe als CE O & Managing Dir e c tor

  • We lc o me & o ve rvie w
  • T

he c ha ng ing e ne rg y la ndsc a pe

  • Purpo se , visio n & stra te g ic impe ra tive s
  • De c isio n c o mpa ss, va lue s & c usto me r pro mise
  • Ope ra ting mo de l a nd le a de rship te a m
  • Gro wth o ppo rtunitie s
  • Summa ry

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

11

slide-13
SLIDE 13

global pr imar y e ne r gy de mand

c ontinue s to gr

  • w unde r

most sc e nar ios

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020 Sourc e : I

E A Wo rld E ne rg y Outlo o k 2019, Va c la v Smil (2017)

Global Pr imar y E ne r gy Consumption

1920-2018, mto e

F

  • r

e c ast Global Pr imar y E ne r gy Consumption (IE A sc e nar ios) 2018-2040, mto e 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 22,000 1920 2000 2018 2025 2030 2035 2040 Millio ns o f to nne s o f o il e quiva lent +547% +43% +34% +24%

  • 7%

12

slide-14
SLIDE 14

13

T he e ne r gy tr ansfor mation is unde r way

signific ant ongoing inve stme nt r e quir e d

  • Co a l to re ne wa b le s & g a s
  • Ro o fto p so la r
  • Co nsume rs se lling into g rid
  • E

le c trific a tio n e .g . E Vs

  • Custo me rs & te c hno lo g y

T r ansfor mation is unde r way

  • F

irming g e ne ra tio n

  • Ma rke t struc ture
  • Ne w g a s supply
  • Ne w te c hno lo g ie s
  • E

mo tio ns ve rsus e c o no mic s

Challe nge s & oppor tunitie s Signific ant ongoing inve stme nt in ge ne r ation r e quir e d ~ US$122bn (1) for Austr alia

Sour c e : (1) Blo o mb e rg Ne w E

ne rg y

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

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SLIDE 15

T r ansfor mation r e quir e s an holistic appr

  • ac h
  • Amb itio n ne e ds to b e

suppo rte d b y a pla n

  • Pla n ne e ds to inc lude impa c t
  • n c o sts, re lia b ility a nd

re silie nc e

14

Ambition to r e duc e e missions De c ar bonise de mand Powe r c onve r sion Balanc ing c osts and te c hnologie s De c ar bonise supply

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

HOL IST IC APPROACH

slide-16
SLIDE 16

A spe c tr um full of busine ss oppor tunity for APA

15

Alte r native Polic y appr

  • ac he s

de e p de c ar bonisation highe st inve stme nt

$ $$$$$$$

low de c ar bonisation lowe st inve stme nt

Sta tus quo Pa r tia l de c a r bonisa tion (~50% by 2050) T e c hnolog y T r a nsition de c a r bonisa tion (~75% by 2050) Ne t ze r

  • c a r

bon (~100% by 2050)

  • E

c o no mic tra nsitio n fro m c o a l to g a s & re ne wa b le s

  • So me po lic y

inte rve ntio n

  • Ne w te c hno lo g y

whe re e c o no mic a l

  • T

ra nsitio n a wa y fro m c o a l to g a s a nd re ne wa b le s

  • Pa rtia l E

V

  • E

ne rg y e ffic ie nc y

  • Ne w te c hno lo g y

thro ug h c usto me r a d o ptio n

  • Ca rb o n po we r o ffse t
  • Hig h E

V ta ke -up

  • L

a rg e -sc a le e ne rg y e ffic ie nc y

  • Ne t ze ro c a rb o n fue l &

ne w te c hno lo g ie s –

Bio g a s; re n. me tha ne

–

CCUS

–

Hydro g e n

–

Ba tte rie s

  • 100% c a rb o n po we r
  • ffse t
  • Ve ry hig h E

V ta ke -up

  • L

iq uid fue ls tra nsitio n to Hyd ro g e n

  • Ne t ze ro fue ls a nd
  • the r ne w

te c hno lo g ie s whe re e le c trific a tio n no t fe a sib le

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

Illustr ative

along the e ntir e de c ar bonisation c ontinuum Histor ic asse t c lasse s Ne w asse t c lasse s

slide-17
SLIDE 17

Gas is a ke y e nable r

  • f the futur

e e ne r gy mix

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

Sour c e : Inte rna tio na l E

ne rg y Ag e nc y (IE A 2019), "Wo rld E ne rg y Outlo o k 2019", IE A, Pa ris https:/ / www.ie a .o rg / re po rts/ wo rld-e ne rg y-o utlo o k-2019

r e gar dle ss of futur e sc e nar io

  • E

le c tric ity – de c a rb o nising & firming

  • I

ndustria l – ke y e ne rg y so urc e

  • Re side ntia l & Co mme rc ia l – c o st

e ffic ie nt a nd sma ll e missio ns c o ntrib utio n

  • Gro wth in o ur ta rg e t re g io ns

T he futur e of gas

T

  • tal for

e c ast wor ldwide natur al gas usage

  • 1,000

2,000 3,000 4,000 5,000 6,000 7,000 2018 2025 2030 2035 2040 BCM North Americ a n APAC Other r e gions Sta ted Po licies Sc ena r io Current Policies Sc ena r io Susta ina ble Develo pme nt Scena rio +49% +37%

  • 2%

16

slide-18
SLIDE 18

Rob Whe als CE O & Managing Dir e c tor

  • We lc o me & o ve rvie w
  • T

he c ha ng ing e ne rg y la ndsc a pe

  • Purpo se , visio n & stra te g ic impe ra tive s
  • De c isio n c o mpa ss, va lue s & c usto me r pro mise
  • Ope ra ting mo de l a nd le a de rship te a m
  • Gro wth o ppo rtunitie s
  • Summa ry

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

17

slide-19
SLIDE 19

APA - e mbr ac ing c hange – adapting and le ading

8/ 5/ 2020 – APA Inve sto r Brie fing Da y 2020

18

Pur pose : why we e xist

We stre ng the n c o mmunitie s thro ug h

r esponsible ener gy Vision: what we aspire to

T

  • b e wor

ld c lass in

e ne rg y so lutio ns

By r

e sponsible e ne r gy we me a n:

  • Do ing the rig ht thing , e ve n in to ug h situa tio ns
  • Cre a ting va lue fo r a ll o ur sta ke ho ld e rs
  • T

a king a lo ng te rm vie w, b e ing he re fo r future g e ne ra tio ns

  • Inve sting in ne w te c hno lo g ie s & ne w e ne rg y
  • Inno va ting fo r a susta ina b le future

As wor

ld c lass we wa nt to b e kno wn fo r:

  • Hig h inte g rity & c re d ib ility
  • L

e a d e rship in re spo nsib le e ne rg y

  • Custo me r fo c us
  • Ope ra tio na l c a pa b ility, sa fe ty & e nviro nme nta l

pe rfo rma nc e

  • Whe re pe o ple a re pro ud to wo rk
  • Ma king a po sitive impa c t o n c o mmunitie s
slide-20
SLIDE 20

Our Str ate gic Impe r ative s

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

19

Pe ople & Cultur e

  • E

mpo we r e mplo ye e s to ma ke de c isio ns.

  • F
  • ste r ro b ust g o ve rna nc e .
  • Re wa rd the rig ht b e ha vio urs.

Ope r a tional E xc e lle nc e

  • L

e ve ra g e o ur e xpe rtise to drive va lue .

Custome r Ce ntr ic

  • Pro vide sing le po int o f a c c o unta b ility.
  • Allo w us to pro vide the rig ht so lutio n e ve ry time .

F ina nc ia l Str e ng th

  • Optimise va lue , e ffic ie nc y a nd e ffe c tive ne ss.
  • E

nsure c o sts a re c o ntro lle d a nd justifia b le .

Gr

  • wth &

Innova tion

  • Po sitio n us fo r future g ro wth a nd suc c e ss.

Sta ke holde r R e la tionships

  • E

na b le us to b uild stro ng inte rna l a nd e xte rna l re la tio nships.

Stra te g ic impe ra tive s

(Whe re we aspire to b e wo rld c lass)

slide-21
SLIDE 21

Our De c ision Compass, Value s & Custome r Pr

  • mise

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

20

Our Pur pose is we str e ngthe n c ommunitie s thr

  • ugh r

e sponsible e ne r gy. Our Vision is to be wor ld c lass in e ne r gy solutions. Our Custome r Pr

  • mise is to de live r

se r vic e you value . We will…

  • L

iste n to unde r stand.

  • E

nable our pe ople to r e spond.

  • Do what we say we 'll do.

Our De c ision Compass:

  • Do things safe ly.
  • T

ake a long- te r m foc us.

  • Manage APA mone y as if our
  • wn.
  • Do what we say we ’ll do.
  • Know our

r e putation matte r s. Our ST ARS value s: Safe . T r ustwor thy. Adaptable . Re sults. Se r vic e .

slide-22
SLIDE 22

Ope r ating mode l & le ade r ship te am

7/ 05/ 2020 8/ 5/ 2020 – APA Inve sto r Brie fing Da y 2020

Ope r a tions Nor th Ame r ic a K e vin L e ste r Da rre n Ro g e rs Ro ss Ge rsb a c h F inanc e Gove r na nc e & E xte r na l Affa ir s T r a nsfor ma tion & T e c hnology Pe ople , Sa fe ty & Cultur e Str a te gy & Comme r c ia l Infr a str uc tur e De ve lopme nt E lise Ma nns Pe te r F re dric so n Ne ve nka Co de ve lle Ha nna h Mc Ca ug he y Pro c e ss Unde rwa y

Co rpo ra te F unc tio ns: Go ve rn & Suppo rt Busine ss Units: E xe c utio n

CE O & MD

Ro b Whe a ls

str ate gic alignme nt

21

slide-23
SLIDE 23

Rob Whe als CE O & Managing Dir e c tor

  • We lc o me & o ve rvie w
  • T

he c ha ng ing e ne rg y la ndsc a pe

  • Purpo se , visio n & stra te g ic impe ra tive s
  • De c isio n c o mpa ss, va lue s & c usto me r pro mise
  • Ope ra ting mo de l a nd le a de rship te a m
  • Gro wth o ppo rtunitie s
  • Summa ry

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

22

slide-24
SLIDE 24

gr

  • wth str

ate gy

APA’s strate gy:

  • De live r se rvic e s o ur c usto me r va lue

c o nsiste nt with o ur Custo me r Pro mise

  • Gro w o ur pipe line s a nd midstre a m

po rtfo lio

  • E

xpa nd re ne wa b le a nd g a s po we r po rtfo lio

  • Se c ure No rth Ame ric a n inve stme nt
  • De e p e xplo ra tio n into te c hno lo g y

tra nsfo rma tio n o f e ne rg y

  • Ma inta in BBB/ Ba a 2 c re dit ra ting s

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

23

playing a le ade r ship r

  • le in a r

e sponsible e ne r gy e nvir

  • nme nt

NORT H AME RICA

“c o re skillse t"

  • due dilig e nc e b e ing

unde rta ke n o n re g ula te d L DC / g a s tra nsmissio n b usine sse s

E NE RGY F UT URE

“lo we r c a rb o n”

  • re ne wa b le s infra struc ture
  • firming po we r re q uire d
  • ne w te c hno lo g ie s

WE ST

“de ma nd”

  • ne w infra struc ture

fo r ne w pro je c ts

E AST

“supply”

  • ne w infra struc ture

to c o nne c t ne w g a s supplie s to ma rke ts

slide-25
SLIDE 25

182 285 121 155 225 373 402 346 281 272 743 463 145 $0m $100m $200m $300m $400m $500m $600m $700m $800m F Y08 F Y09 F Y10 F Y11 F Y12 F Y13 F Y14 F Y15 F Y16 F Y17 F Y18 F Y19 1H F Y20 A$m

*

L ine of sight to ove r $4bn of gr

  • wth oppor

tunitie s

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

24

Pr

  • spe c tive & Ac tive

5- 10 ye ar s >$4bn Ac tive 2- 3 ye ar s ~$1bn

T r ac k r e c or d of gr

  • wth c ape x inve stme nt:

>$400 m pa a ve ra g e o ve r the la st 5 ye a rs >$300 m pa a ve ra g e o ve r the la st 10 ye a rs

~250 F Y20e

slide-26
SLIDE 26

Conne c tion to ne w gas supply - E ast

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

25

E AST

E ast Coast Austr alia gas supply and de mand

Sour c e : AE

MO GSOO 2020

  • So uthe rn b a sins in a c c e le ra te d d e c line , a d d itio na l

vo lume s re q uire d 2021

  • Ne w supply re q uire d to me e t e xisting d e ma nd
  • We ste rn Slo pe s Pipe line
  • F

ro ntie r b a sin o ppo rtunitie s inc lud ing : – Be e ta lo o / Mc Arthur – Ga lile e (Mo U Co me t Ridg e & Vinta g e E

ne rg y)

– Bo we n (Mo U Blue E

ne rg y)

– Nic ho lso n – Offsho re NT

  • Gippsla nd b a sin (Mo U E

mpe ro r E ne rg y)

  • L

NG impo rt te rmina ls: – Multiple o ptio ns c o nsid e re d , with Crib Po int (AGL ) a nd Po rt K e mb la (AIE ) a he a d in te rms o f time ta b le

slide-27
SLIDE 27
  • Ava ila b le a nd a ffo rda b le supply
  • Pro spe c tive Pe rth b a sin
  • Re so urc e o utlo o k re ma ins stro ng with ne w

c o nne c tio n de ma nd c o ntinuing I ro n o re Go ld, Silve r Nic ke l, Co b a lt, Ma ng a ne se , Va na dium Co ppe r L ithium, Ma g ne sium Ba uxite Ra re e a rth

De mand gr

  • wth - We st

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

26 GGP MP E DWSF NGP T GP Pe rth

We ste rn Australia

BWSF GP S YGP

45,669 PJ 16,830 PJ 734 PJ 848 PJ

E GP

MMGP

KKP

AL

P GP P PS MGPSF

Sour c e : Ma jo r Mine s a nd Mine ra l De po sits in Austra lia , Ge o sc ie nc e Austra lia

WE ST

slide-28
SLIDE 28

E ne r gy tr ansfor mation

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

27

planning for an or de r ly tr ansition

E NE RGY F UT URE

  • Re ne wa b le s – fo r APA’ s g a s c usto me rs
  • F

irming g a s g e ne ra tio n

  • Ne w te c hno lo g ie s
  • Re ne wa b le me tha ne de mo nstra tio n

pla nt - unde rwa y “…the o nly way to me e t the e ne rg y ne e ds o f the future witho ut sac rific ing standards o f living , o r unde rmining the e c o no my, is b y planning fo r

an

  • r

de r ly tr ansitio n that e mbr ac e s sc ie nc e and te c hno lo gy as the ste pping sto ne s to the future

we want.” “… we ne e d a n e ne r

gy c ompanion to da y tha t

c a n re a c t ra pidly to c ha ng e s in so la r a nd wind

  • utput. An e ne rg y c o mpa nio n tha t is itse lf

r e lative ly low in e missions, a nd tha t o nly o pe ra te s

whe n ne e de d….natur

al gas will play that c r itic al r

  • le .”

Dr Alan F inke lAO, Australia’ s Chie f Sc ie ntist, 12 F e b 2020

slide-29
SLIDE 29

US due dilige nc e

28

NORT H AME RICA

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

  • Ga s ind ustry d yna mic s

– Sig nific a nt re se rve s, >30 ye a rs – Co nse rva tive pric ing – Inc re a sing do me stic & e xpo rt de ma nd – Co st o f e le c trific a tio n in c o lde r re g io ns is pro hib itive & c o unte rpro duc tive fro m a n e missio ns pe rspe c tive

  • Dive rsity o f o ppo rtunitie s
  • Po litic a l sta b ility
  • Appro pria te risk/ re turn

e nviro nme nt

  • Suppo rtive re g ula to ry e nviro nme nt
slide-30
SLIDE 30

Summar y

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

29

Gr

  • wth with Re asonable Yie ld
  • Hig h q ua lity a sse t fo o tprint
  • L
  • ng te rm & lo w risk

g ro wth c a pe x

  • Ste a dy & g ro wing

distrib utio ns

Str

  • ng busine ss fundame ntals
  • L
  • ng te rm c o ntra c ts
  • Cre ditwo rthy

c o unte rpa rtie s

  • Re g ula te d a sse ts
  • I

nte re st ra te / infla tio n pro te c tio n

  • F

ina nc ia l stre ng th

Capability to navigate a c onstantly c hanging wor ld

  • Hig hly e xpe rie nc e d te a m
  • Ope ra tio na l & sa fe ty

e xc e lle nc e

Re silie nc e thr

  • ugh all phase s of the e c onomic c yc le
slide-31
SLIDE 31

Ross Ge r sbac h Pr e side nt Nor th Ame r ic an De ve lopme nt

30

  • US na tura l g a s ma rke t o ve rvie w
  • Curre nt ma rke t tre nds – L

DCs a nd pipe line s

  • E

c o no mic & re g ula to ry e nviro nme nt

  • Sc re e ning c rite ria & ta rg e t se c to rs
  • US de c a rb o nisa tio n c o nside ra tio ns

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

30

slide-32
SLIDE 32

31

8/ 5/ 2020 – APA Inve sto r Brie fing Da y 2020

U.S natur al gas mar ke t ove r vie w

shale plays pr

  • viding abundant, low- pr

ic e d natur al gas

100 200 300 400 500 600 $0.0 $1.5 $3.0 $4.5 $6.0 $7.5 $9.0 $10.5 2008 2010 2012 2014 2016 2018 pro ve d re se rve s pric e pro ve d re se rve s pric e

U.S. na tur a l g a s pr

  • ve d r

e se r ve s & He nr y Hub pr ic e (tc f & USD)

200 400 600 800 1000 1200 1400 2017 2018 2025E 2030E 2035E 2040E

U.S. pr

  • je c te d na tura l g a s c onsumption (tc f)

39% o f g a s pro duc tio n Ga s pro duc tio n in the So uthwe st is a sso c ia te d with c rude o il fro m Pe rmia n, E a g le F

  • rd a nd SCOOP/ ST

ACK b a sins; No rthe a st pro duc tio n is prima rily dry g a s

Niobra ra 3.8 Ba kke n 2.0 Pe rmia n 11.4 Ha yne sville 9.4 E a g le F

  • rd

4.5 Ba rne tt 2.2 Woodford 5.8 F a ye tte ville 1.2 Ma rc e llus/ Utic a 31.1

Sourc e : U.S. E

I A: Annual Summary o f Natural Gas Pro d uc tio n; I E A

Curre nt da ily a ve ra g e dry g a s pro duc tio n b y re g io n (De c e mb e r 2019, b c f/d)

slide-33
SLIDE 33

T ar ge t se c tor s

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

32

APA is foc ussing on lowe r r isk busine sse s

slide-34
SLIDE 34

Sc r e e ning c r ite r ia

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

33

APA’s e xpe r ie nc e to date has r e ve ale d a pr e fe r e nc e for the following asse t c har ac te r istic s

#3

  • T

ra nspa re nt a nd q ua ntifia b le pe rfo rma nc e re c o rd a nd / o r e xisting infra struc ture ma na g e me nt te a m with pro ve n tra c k re c o rd Or ganisational str uc tur e #4

  • Suppo rtive o f c re dit ra ting ta rg e ts b a se d o n S&P/ Mo o dy’ s c rite ria
  • Minima l c o unte rpa rty risk

Cr e dit #5

  • Ac c e pta b le IRR
  • OCF

a c c re tive in first full fisc a l ye a r F inanc ial r e tur ns #6

  • Appro pria te size fo r initia l inve stme nt
  • Me a ning ful size b ut no t “b e tting ” the c o mpa ny

Inve stme nt size #1

  • Re g ula te d a nd/ o r c o ntra c te d b usine sse s
  • Suppo rtive re g ula to ry e nviro nme nt
  • Ge o g ra phic a dva nta g e s a nd a va ila b ility o f fo llo w o n tra nsa c tio ns

Comme r c ial e nvir

  • nme nt

#2

  • E

xisting o pe ra tio na l e xpe rtise tha t fits with c urre nt APA b usine sse s Ope r ational alignme nt #7

  • Co mpa tib le with lo ng -te rm e ne rg y tra nsitio n o b je c tive s

E nvir

  • nme ntal

impac ts

slide-35
SLIDE 35

E c onomic & r e gulator y e nvir

  • nme nt

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

34

Pipe line s

  • Re turns a re sig nific a ntly hig he r in the US tha n in Austra lia ,

due to diffe ring o b je c tive s a mo ng the re g ula to rs –

US F e de r al E ne r gy Re gulator y Commission (F E RC)

ha s a po sitive o b lig a tio n to e nc o ura g e inve stme nt thro ug h a n a ttra c tive ra te o f re turn

  • Ma nda te d b y the la w a nd c o urt

de c isio ns(1) –

Austr alian E ne r gy Re gulator (AE R) wa nts lo w pric e s

  • Allo we d ROE

s a re usua lly in the 13-15% ra ng e . Ra te c a se s a re no t usua lly initia te d unle ss shippe rs se e tha t e a rne d ROE s a re >15% a nd the y se e a sc o pe fo r ra te re duc tio n

  • Pipe line s’ re ve nue is de te rmine d b y c o ntra c tual

a rra ng e me nts se t a s e ithe r fo unda tio n c o ntra c ts o r o n c o ntra c t re ne wa l. – Ge ne ra lly, c o mpe titio n a mo ng pipe line s is a la rg e r de te rmina nt o f re turns tha n F E RC a llo wanc e s

(1) E

xa mp le : F PC v. Ho p e Na tura l Ga s Co ., 320 U.S. 591 (1944); Blue fie ld Wa te r Wo rks & I mp ro ve me nt Co . v. Pub lic Se rvic e Co mm'n, 262 U.S. 679 (1923). Sourc e : S&P Glo b a l

US r e gulator s have diffe r e nt obje c tive s than Austr alian r e gulator s

L DC’s

  • L

DC re turns a re se t b y Sta te b a se d re g ula to rs a nd o fte n se t a s pa rt o f a “b la c k b o x” ne g o tia tio n

  • Re c e nt a llo we d ROE

s ha ve b e e n in the ra ng e o f 9-10%

  • E

q uity is usua lly 50-55% o f to ta l c a pita l

slide-36
SLIDE 36

Cur r e nt mar ke t tr e nds in US L DCs & pipe line s

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

35

  • L

DCs inve sting he avily in re lia b ility, mo d e rnisa tio n

& inte g rity pro g ra ms, o fte n pre -a ppro ve d b y re g ula to rs & with fa vo ura b le re turns o n e q uity, to re pla c e b a re -ste e l & unsuita b le pla stic pipe line s

  • Pipe line o pe ra to rs ha ve turne d inwa rd to r

e wor k the ir balanc e she e ts & c or por ate str uc tur e s a fte r

the d islo c a tio n o f 2014-2015 – Mo st g re e nfie ld pro je c ts fo c use d o n c o nne c ting the Pe rmia n Ba sin to e a ste rn T e xa s ma rke t hub s, a s we ll a s L NG e xpo rt te rmina ls & pe tro c he mic a l fa c ilitie s – So me g re e nfie ld pro je c ts c o nne c ting the Ma rc e llus/ Utic a g a s pro d uc ing re g io ns to e a st c o a st ma rke t c e ntre s; ho we ve r, tho se a re fa c ing sig nific a nt o ppo sitio n fro m e nviro nme nta l g ro ups

Note s: (1) E

stima te d a sse t c la ss b a se d o n ra te b a se fo r F E RC-re g ula te d inte rsta te p ip e line s, g a s utilitie s a nd g a s p la nt va lue within d ive rsifie d utilitie s Sourc e : S&P Glo b a l

e stimate d asse t c lass of appr

  • ximate ly USD 450 billion at the e nd of 2019(1)
  • Oppor

tunitie s e xist for APA to pa rtic ipa te in a sse t sa le

pro c e sse s to d a y – Hig hly le ve re d mid stre a m c o mpa nie s ma y put a sse ts o n the ma rke t to ra ise c a pita l

  • Pa nd e mic a nd fa ll in o il pric e s ha ve c a use d

sub sta ntia l b a la nc e she e t pre ssure – L DC o wne rs a re lo o king to take advantage of

c ur r e nt valuation le ve ls

slide-37
SLIDE 37

Pr ic e c yc le s

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

36

APA’s c ur r e nc y r e lative to US gas L DC & pipe line pe e r s has be e n quite favour able

5.0x 8.0x 11.0x 14.0x 17.0x 20.0x Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20

APA 12.6x +25% Pipe line 7.4x (24% )

Note : Ga s L

DC pe e rs inc lude AT O, CPK, NI , NJR, NWN, OGS, SJI, SR a nd SWX; Pipe line pe e rs inc lude T RP-CA, E NB-CA, E T , KMI , E PD a nd WMB Ga s L DCs 12.5 x +46%

NT M e nte r pr ise value / E BIT DA multiple – last 10 ye ar s NT M e nte r pr ise value / E BIT DA multiple – 2020 YT D

4.0x 7.0x 10.0x 13.0x 16.0x 1-Jan 16-Jan 31-Jan 15-Feb 1-Mar 16-Mar 31-Mar 15-Apr 30-Apr

Gas L

DCs

(8%)

APA (3% ) Pipe line

(9%)

Sour c e : F

a c tSe t a s o f 30 April 2020

slide-38
SLIDE 38

US de c ar bonisation c onside r ations

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

37

  • No US fe de ra l po lic y o n e c o no my-wide CO2 e missio ns

re duc tio n – Unlike ly o ne will b e e na c te d in the ne a r te rm g ive n the po litic a l e nviro nme nt

  • So me sta te s ha ve se t a g g re ssive e missio ns-re duc tio n ta rg e ts

re q uiring c o ntrib utio ns fro m a ll se c to rs – inc lude s the re side ntia l a nd c o mme rc ia l b uilding s se rve d b y L DCs,(o nly 8.5% o f to ta l US CO2 e missio ns) – Assume s tha t na tura l g a s usa g e is re pla c e d b y re ne wa b le e le c tric ity

  • L
  • c a l c lima te is a lso a n impo rta nt c o nside ra tio n a s winte r

spa c e he a ting is a ke y drive r o f na tura l g a s use – 46% o f the US po pula tio n live s in c lima te s with c o ld winte rs – Co lde r c lima te s ha ve muc h hig he r pe a k usa g e – Re q uire s mo re ne w re ne wa b le g e ne ra tio n a nd distribution infrastructure → substantially hig he r c o st

Sourc e : NOAA

(1) De fine d a s sta te s with >5,000 me a n to ta l he a ting d e g re e d a ys p e r ye a r (b lue , p ink, p urp le re g io ns o n the ma p )

signific ant r e gional var iation in c ost and fe asibility

slide-39
SLIDE 39

tra nspo rta tio n fue l e ffic ie nc y me a sure s po we r se c to r GHG c re dits (2018) po lic y-drive n c o a l g e ne ra tio n re tire me nt so c ia l c o st o f c a rb o n re ne wa b le na tura l g a s tra nspo rta tio n lo w c a rb o n fue l sta nda rd na tura l g a s de ma nd side ma na g e me nt a tmo sphe ric CO 2 re mo va l

Re side ntial E le c tr ific ation

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

38

GHG e mission r e duc tion options

$900 $800 $700 $600 $500 $400 $300 $200 $100 $0 ($300)

($345) to $5 $4 to $16 < $26 $42 to $72 Up to $100 Up to $123 Up to $188 $94 to $232

$572 to $806

e le c tr ific ation of r e side ntial he ating the most c ostly option for de c ar bonisation

(US D* / mt o f CO 2e re mo ve d)

Sourc e : I

mplic atio ns o f Po lic y-Drive n Re side ntial E le c trific atio n, Ame ric a n Ga s Asso c ia tio n, July 2018

re side ntia l e le c trific a tion

  • Doe s not inc lude the sig nific a nt c ost of infr

a str uc tur e modific a tions to a c c ommodate r e side ntia l e le c tr ific a tion

  • Doe s not inc lude c ost of c omme r

c ia l building e le c tr ific ation

* F ig ure s in re a l 2016 USD

slide-40
SLIDE 40

US de c ar bonisation & gas pipe line s

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

39

c ontinue d use s of natur al gas will r e quir e pipe line tr anspor tation for ye ar s to c ome

Sourc e : T

he Ro le o f Natural Gas in a T ransitio n to a L

  • we r-Carb o n E

c o no my, T he I NGAA F

  • und a tio n, I

nc ., Ma y 2019; Blo o mb e rg Ne w E ne rg y F ina nc e

  • Na tura l g a s ha s use s in the U.S. no t impa c te d b y sta te -

impo se d e missio ns ma nda te s o r g o a ls – Pe tro c he mic a ls a nd pla stic s, L NG e xpo rts a nd e xpo rts to Me xic o

−

L NG e xpo rts pro je c te d a t 16.8 PJ/ d b y 2040, up fro m 7.4 PJ/ d to da y

  • E

ve n with de c a rb o nisa tio n, ma ny na tura l g a s po we r pla nts will re ma in ne e ding re lia b le a nd c o nsiste nt a c c e ss to fue l

−

Blo o mb e rg pro je c ts 703 GW o f na tura l g a s po we r g e ne ra tio n to b e in se rvic e in the U.S. in 2050, c o mprising 36% o f po we r g e ne ra tio n c a pa c ity

−

46% inc re a se fro m the 481 GW insta lle d to da y

  • Also , na tura l g a s utilitie s will ne e d re lia b le a nd c o nsiste nt

a c c e ss to na tura l g a s in o rde r to me e t the ir se rvic e

  • b lig a tio ns
  • T

he g e o g ra phic dive rsity o f the se use s o f g a s, a nd the c o nc e ntra tio n o f lo w-c o st g a s pro duc tio n in a fe w disc re te supply b a sins, c a n mo de ra te the impa c t o f de c a rb o nisa tio n o n pipe line s

−

We a the r, lo c a l po litic s a nd o the r g e o g ra phic a nd ma rke t-spe c ific c o nside ra tio ns a re c ruc ia l va lue drive rs

slide-41
SLIDE 41

Hannah Mc Caughe y GE T r ansfor mation & T e c hnology

40

8/ 5/ 2020 – APA Inve sto r Brie fing Da y 2020

  • T

he e ne rg y tra nsfo rma tio n is unde rwa y

  • K

e y te c hno lo g y tra nsfo rma tio ns in pla y to da y a nd ne w wa ve s e me rg ing

  • Ga s is a ke y e na b le r o f e ne rg y de c a rb o nisa tio n
slide-42
SLIDE 42

c le ar tr e nds ar e e me r ging

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

41

T r ansfor mation of e ne r gy is r e shaping our wor ld

Ke y T r e nds

De c ar bonisation is unde r way – signific ant inve stme nt alr e ady made and mor e r e quir e d A por tfolio of te c hnology solutions will be r e quir e d to me e t the e ne r gy tr ile mma Data and te c hnology will tr ansfor m lar ge infr astr uc tur e into smar t infr astr uc tur e

slide-43
SLIDE 43

that ar e still playing out

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

42

L NG (and floating L NG) ha s c re a te d ne w ma rke ts a nd furthe r

de ve lo pme nts in te c hno lo g y will inc re a sing ly drive pric e c o nve rg e nc e .

Shale gas ha s c ha ng e d the e c o no mic s o f US industry a nd g lo b a l e ne rg y

ma rke ts a nd sig nific a nt re duc e d e missio ns fro m po we r industry.

Ne w suite s of fir ming and stor age te c hnology a re e me rg ing to suppo rt

re ne wa b le s inc luding g a s re c ipro c a ting , b a tte rie s a nd pla tfo rms

1 2 3 4

Re ne wable s, spe c ific a lly, c o st o f e le c tric ity fro m so la r ha s dro ppe d 85%

a nd wind ha s fa lle n 49% a nd inc re a sing ly a re pric e se tting te c hno lo g y

F

  • ur

major e ne r gy te c hnology tr ansfor mations fr

  • m r

e c e nt de c ade s

slide-44
SLIDE 44

Gas is a ke y e nable r

  • f the e ne r

gy de c ar bonisation r

  • admap

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

43

slide-45
SLIDE 45

Q&A – se ssion 1

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

44

15min BR E AK – sta y log g e d into we bc a st

  • te le c onfe r

e nc e pa r tic ipa nts c a n ha ng up & dia l in a g a in pr e - ne xt se ssion

Ne xt se ssio n: 10:20a m Da r

r e n R

  • g e r

s – Ope r a tions

Use the ASK A QUE

ST ION

b utto n to sub mit a q ue stio n. F

  • r tho se dia lle d in, pr

e ss *1

& wa it fo r the o pe ra to r b e fo re a sking yo ur q ue stio n.

slide-46
SLIDE 46

Dar r e n Roge r s GE Ope r ations

  • Ope ra tio ns – le ve ra g e sc a le & e ffic ie nc y
  • Custo me r fo c us
  • I

nte g ra te d Ope ra tio ns Ce ntre

  • Ope ra tio na l e xc e lle nc e

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

45

slide-47
SLIDE 47

Ope r ating mode l - ope r ations

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

46

Pur pose

APA ha s b ro ug ht to g e the r its Po we r, T ra nsmissio n, Midstre a m a nd Ne two rk a sse ts to safe ly dr

ive e ffic ie nc y and e ffe c tive ne ss by le ve r aging its sc ale to de live r value for its c ustome r s. Str ate gic impe r ative s

Ope r a tional e xc e lle nc e Custome r c e ntr ic Pe ople & c ultur e Sta ke holde r r e la tionships F ina nc ia l str e ng th Gr

  • wth &

Innova tion

slide-48
SLIDE 48

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

47

Ope r ations ove r vie w

Custome r s Asse ts

Ope r a tions Ca pa bility

Pe ople skills – se nior manage me nt

  • T

ra nsmissio n Pipe line s: + 15,000km , +250 Re c e ipt & De live ry

  • 74 c o mpre sso rs, + 30 o pe ra ting b a se s a c ro ss e ve ry sta te &

te rrito ry

  • 357 MW o f re ne wa b le e ne rg y, 377 MW g a s fire d g e ne ra tio n
  • Sto ra g e : Da nde no ng L

NG ~12,400 T

  • nne s, Mo nda rra : ~18PJ
  • Mid stre a m a sse ts K
  • g a n No rth, DL

NG & Mo nda rra sa fe

  • pe ra tio ns fo r + 10 yrs
  • + 210 yrs industry e xpe rie nc e in se nio r te a m
  • Dive rse industry b a c kg ro unds:

– Ga s T ra nsmissio n a nd Ne two rks – Upstre a m & Do wnstre a m Oil & Ga s – Po we r Ge ne ra tio n – Re ne wa b le E ne rg y – Co mme rc ia l & Ma rke t Ope ra tio ns 1250 F T E – 1500 Contr ac tor s

slide-49
SLIDE 49

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

48

Custome r c e ntr ic - IOC

c e ntr al point of c ontac t for all national c ustome r s (sc he duling, c ontr

  • l and payme nt)
  • Re c e ntly inc or

por ate d powe r & mid str e am c apability

  • Sc ale de live r

s be ne fits – te c hnology inve stme nt has paid off

– 7.5m kilo me tre s drive n e ve ry ye a r, a ll mo nito re d thro ug h I VMS – Co ntro ls & mo nito rs 74 c o mpre sso rs a t 34 site s – Re mo te ly mo nito rs ~156,000 SCADA po ints re spo nding to o ve r 340,000 a la rms p.a . – Sc he dule s, a llo c a te s & invo ic e s o ve r 6,500 shippe r no mina tio n po ints e a c h da y – Ge ne ra te s a nd se nds o ve r 10,500 ma rke t a nd re g ula to ry re po rts e a c h ye a r – Ce ntra l e me rg e nc y re spo nse 107,000 c a lls to the I OC e a c h ye a r

  • Covid 19 – te c hnology inve stme nt be ne fits r

e alise d

  • Critic a l se rvic e s pro vide d thro ug ho ut the pa nde mic with little o pe ra tio na l

impa c t to c usto me rs

  • Ba c k up c o ntro l ro o ms, so c ia l dista nc ing a nd re mo te a c c e ss to site s

ma inta ine d

  • I

nve stme nt b y APA in the I OC re mo te c o ntro l a nd mo nito ring te c hno lo g y ha s pa id o ff I OC – e sse ntia l o pe ra tio ns pra c tising so c ia l dista nc ing re q uire me nts

slide-50
SLIDE 50

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

49

Ope r ational e xc e lle nc e - pr

  • c e ss safe ty
  • Pr
  • c e ss Safe ty - T

he sa fe

  • pe ra tio n o f APA’ s a sse ts

suc h tha t the re is no major

ac c ide nt e ve nt a s a re sult

  • f a ha rmful sub sta nc e

re le a se .

  • APA fra me wo rk b a se d o ff

inte rna tio na l b e st in c la ss

  • F

ina l sta g e s o f a 2 ye a r imple me nta tio n

  • K

PI & da shb o a rd to drive pe rfo rma nc e a nd c o mplia nc e with se nio r ma na g e me nt re vie w

Ala rms pe r ho ur

slide-51
SLIDE 51

Inte gr ity and r e liability

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

50

Inte gr ity Mainte nanc e

Co mpre he nsive pro g ra m to e nsure the inte g rity o f o ur a sse ts inc luding

  • I

nte llig e nt pig g ing , dire c t e xc a va tio n a nd inspe c tio n

  • f pipe line s
  • I

nte g rity pro g ra m fo r a b o ve g ro und fa c ilitie s K e y c o ntrib uto r to Austra lia n sta nda rd upda te s Sha re industry b e st pra c tic e in USA/ Ca na da a nd Austra lia

Risk Base d Inspe c tion (RBI)

Syste ma tic a ppro a c h b a se d o n risk to c o nc e ntra te e ffo rt o n mo st impo rta nt inte g rity wo rk

Re liability Ce ntr e d Mainte nanc e (RCM)

Rig ht ta sks, rig ht e q uipme nt a t the rig ht time

slide-52
SLIDE 52

Cr aig Stallan Ac ting GE Str ate gy & Comme r c ial Ke vin L e ste r GE Infr astr uc tur e De ve lopme nt

7/ 05/ 2020

51

8/ 5/ 2020 – APA Inve sto r Brie fing Da y 2020

  • Orb o st Ga s pro c e ssing pla nt

51

slide-53
SLIDE 53

Or bost gas pr

  • c e ssing plant – pr
  • je c t bac kgr
  • und

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

52

  • a c q uire d b y APA fro m Co o pe r E

ne rg y in 2017

  • e xte nsive upg ra d e o f the pla nt b y APA

– Multi Ye a r Ga s Pro c e ssing Ag re e me nt + Optio ns

  • F
  • rme r Pa tric ia Ba le e n Ga s Pla nt

– Co mmissio ne d 2003 – Pro c e ss Pa tric ia Ba le e n Ga s, e xpo rt to E GP – Upg ra de d fo r L

  • ng to m Ga s in 2008/ 9

– Me rc ury Re c o ve ry Unit Upg ra de s in 2009/ 10 – L

  • ng to m fie ld shut-in Ja nua ry 2015

– Pla nt in c a re & ma inte na nc e

slide-54
SLIDE 54

Plant c ompar ison

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

53

  • r

iginal c ur r e nt

slide-55
SLIDE 55

T r ansac tion & pr

  • je c t time line

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

54

  • Ja n 2017

Co o pe r E ne rg y c o mme nc e d So le Pro je c t de ta ile d de sig n

  • Q1 2017

APA Due dilig e nc e o f g a s pla nt & de ve lo pme nt pro je c t

  • Q2 2017

APA a c q uire d Orb o st g a s pla nt fro m Co o pe r E ne rg y

  • Co nditio na l a g re e me nts with Co o pe r fo r pla nt, pro je c t & pro c e ssing
  • 1 Jul 2017

APA ta ke s c o ntro l o f o nsho re de ve lo pme nt pro je c t

  • Oc t 2017

T ra nsa c tio n c o mple tio n

  • Ja n 2017 – Ja n 2019

De ta ile d de sig n & pro c ure me nt a c tivitie s

  • Aug 2017 – Ja n 2020

Co nstruc tio n

  • Se pt 2019 – F

e b 2020 Pre -c o mmissio ning

  • No v 2019 - o ng o ing

Co mmissio ning

  • Ma r 2020

F irst g a s e xpo rte d

  • Co mme rc ia l o pe ra tio ns a s so o n a s pra c tic a b le
slide-56
SLIDE 56

Or bost supply

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

55

E mpe r

  • r

E ne r g y o wn the Judith g a s fie ld lo c a te d

b e twe e n L

  • ng to m a nd

Ma nta . APA ha ve a n Mo U with E mpe ro r to a ssist with the c o nc e pt de ve lo pme nt wo rk. T he L

  • ng tom g a s fie ld

wa s de ve lo pe d a nd c o nne c te d to Orb o st fo llo wing de ple tio n o f Pa tric ia / Ba le e n fie lds.

Or bost Ga s Pr

  • c e ssing

Pla nt wa s o rig ina lly b uilt

to pro c e ss g a s fro m the Pa tr

ic ia / Ba le e n fie lds. Coope r E ne r g y

de ve lo pe d the Sole Ga s

fie ld with two we lls a nd

c o nstruc te d a 65km pipe line c o nne c ting the fie ld to Orb o st.

Coope r E ne r g y a lso o wn

the Ma nta g a s fie ld. APA ha s a de ve lo pme nt a nd pro c e ssing a g re e me nt with Co o pe r E ne rg y.

Coope r E ne r gy de ve lopme nts Judith Gas F ie ld (E mpe r

  • r

E ne r gy) L

  • ngtom Gas F

ie ld (Se ve n Gr

  • up Holdings)
slide-57
SLIDE 57

APA upgr ade pr

  • je c t sc ope

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

56

  • Pla nt upg ra de s to pro c e ss so ur g a s to me e t sa le g a s spe c ific a tio n

– De sig n spe c ific a tio n - so ur g a s c o nta ining up to 3000ppm H2S a t 68T J/ d

  • Upg ra de a nd mo dific a tio n to the e xisting Orb o st Ga s Pla nt:

– Sub se a c o ntro l inte rfa c e s – I nle t me te ring & q ua lity mo nito ring – I nle t se pa ra tio n – Me rc ury re mo va l – Sulphur re mo va l a nd ha ndling – De w po int c o ntro l unit mo dific a tio ns – Re lo c a te d fla re fa c ilitie s – I nte g ra tio n o f OGP into APA c o mmunic a tio ns a nd c o ntro ls syste ms

  • I

nte g rity wo rks to re insta te the pla nt to fit-fo r-se rvic e o pe ra tio n a nd c o mplia nc e

  • Ne w ma jo r ha za rdo us fa c ility pla nt lic e nc ing
  • I

nspe c tio n a nd a sse ssme nt o f de sig n life fo r sa le g a s pipe line re insta te me nt

slide-58
SLIDE 58

F low & pr

  • c e ss of gas at Or

bost

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

57

slide-59
SLIDE 59

Highlights & c halle nge s

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

58

  • So le a nd Orb o st Ga s Pla nt will supply 10% o f Vic to ria ’ s

g a s d e ma nd

  • HSE

pe rfo rma nc e – 1.4 millio n ma n ho urs a nd 20 mo nths o f c o nstruc tio n a nd c o mmissio ning with ze ro L T Is (T RIF R = 2), no re po rta b le e nviro nme nta l inc id e nts a nd ze ro c o mmunity c o mpla ints

  • APA is a sig nific a nt e mplo ye r a nd suppo rte r o f the

lo c a l c o mmunity

  • E

c o lo g ic a lly se nsitive a re a with string e nt E PA re q uire me nts o n no ise , e missio ns, wa te r d isc ha rg e a nd sulphur wa ste d ispo sa l

  • Wo rksa fe a sse ssme nt a s Ma jo r Ha za rd o us F

a c ility (MHF )

  • Co nstruc tio n a nd c o mmissio ning c ha lle ng e s with ho t

a nd inc le me nt we a the r, b ush fire s, sub se q ue nt smo ke a nd COVID19

  • Re g io na l Ind ustria l Re la tio ns
  • E

ng ine e ring d e la ys impa c ting pro c ure me nt pro c e sse s a nd c o nstruc tio n c o ntra c ting stra te g y

Sour c e : Sno wy Rive r Ro ve rs F

  • o tb a ll a nd Ne tb a ll Club
slide-60
SLIDE 60

Or bost – Mar c h 2020

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

59

slide-61
SLIDE 61

Pe te r F r e dr ic son Chie f F inanc ial Offic e r

7/ 05/ 2020

60

8/ 5/ 2020 – APA Inve sto r Brie fing Da y 2020

  • Ca pita l ma na g e me nt
  • De b t ma turity pro file & E

MT N o utc o me

  • Co ntra c t & c o unte rpa rty c re ditwo rthine ss
  • F

Y20 Guida nc e

60

slide-62
SLIDE 62

Str

  • ng liquidity & de bt position

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

61

Me tric s(1) c urre nt De c 2019 Jun 2019

F unds F ro m Ope ra tio ns to De b t(1) 10.9% 11.2% 10.7% F unds F ro m Ope ra tio ns to I nte re st(1) 3.1 time s 3.1 time s 3.0 time s Ave ra g e inte re st ra te a pplying to dra wn de b t(2) 5.2% 5.35% 5.53% I nte re st ra te e xpo sure fixe d o r he dg e d 97% 99% 100% Ave ra g e ma turity o f se nio r fa c ilitie s 6.5 ye a rs 6.5 ye a rs 6.8 ye a rs

Note s:

(1) APA Ca lc ula tio n a s a t 31 Ma rc h 2020. (2)F

  • r the purpo se o f the c a lc ula tio n, dra wn de b t ha s b e e n ke pt in USD (ra the r tha n AUD) a nd is in a de sig na te d he dg e re la tio nship with USD re ve nue , ha s b e e n

no mina lly e xc ha ng e d a t AUD/ USD e xc ha ng e ra te s o f 0.7772 fo r E uro a nd GBP MT N issua nc e s a nd 0.7879 fo r the US144A no te s a t re spe c tive inc e ptio n da te s

 Susta ina b le o ve r the lo ng te rm  Co nsid e re d in the c o nte xt o f the

c a pita l ne e d s o f the b usine ss a nd e c o no mic c o nd itio ns Ca sh a nd c o mmitte d und ra wn fa c ilitie s o f a ro und $2.2 bn as at

30 Apr il 2020 to me e t the

c o ntinuing ne e d s o f the b usine ss

  • ve r

vie w

Moody’s Baa2

(o utlo o k Sta b le , c o nfirme d F e b 2020)

c r e dit r atings

S&P BBB

(o utlo o k Sta b le , c o nfirme d F e b 2020)

 Gro w g e ne ra lly in line with o pe ra ting

c a sh flo w

distr ibution polic y  F

ully c o ve re d b y o pe ra ting c a sh flo w

Ke y c apital r atios:

slide-63
SLIDE 63

De bt matur ity pr

  • file – post E

ur

  • MT

N

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

62

E UR 600 million 10.2 ye ar Me dium T e r m – 24 Apr il 2020

  • Ma turity d a te o f 15 July 2030
  • F

ixe d c o upo n ra te o f 2.0% p.a .

  • All-in fixe d ra te o f 3.866%

(princ ipa l a nd inte re st o b lig a tio ns he d g e d into AUD d o lla rs)

  • Ave ra g e po rtfo lio te rm 6.5 ye a rs
  • Re d uc e d APA’ s a ve ra g e c o st o f

d e b t to a ro und 5.2% (a nnua lise d )

  • Co ntinue d stro ng suppo rt fro m the

g lo b a l d e b t c a pita l ma rke ts APA’ s d e b t ma turity pro file a s a t 30 April 2020

$0m $200m $400m $600m $800m $1,000m $1,200m $1,400m $1,600m Hea dr

  • om (ba nk bo r

r

  • wing s)

Ba nk bor r

  • wings

Ster ling MT N E ur

  • MT

N US 144A Notes Japanese MT N Austr a lian MT N US Pr ivate Plac ement Notes USD denom ina ted

  • blig a tions(2)

$300m AMT N ma turing July 2020(1)

(1)

Note s:

(1) Pro c e e d s fro m re c e nt €600m E MT N to b e use d to re p a y (a ) $270m b a nk d e b t in Ma y 2020 a nd (b ) $300m AMT N in July 2020. (2) USD d e no mina te d o b lig a tio ns tra nsla te d to AUD a t the p re va iling ra te a t inc e p tio n (USD144A - AUD/ USD=0.7879, E uro a nd Ste rling - AUD/ USD=0.7772).

slide-64
SLIDE 64

Contr ac t & c ounte r par ty c r e ditwor thine ss

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

63

1H F Y20 E ne r g y Infr a str uc tur e r e ve nue split:

Re ve nue T ype Custome r Cr e dit Rating

  • APA’ s a sse ts d e live r e ne rg y to ma rke ts, o fte n lo ng d ista nc e s

fro m whe re g a s is pro d uc e d

  • E

ne rg y re ma ins a n e sse ntia l input into o ur d a ily live s

  • APA ha s no t se e n ma te ria l & unusua l c ha ng e s to e ne rg y

vo lume s g o ing thro ug h o ur a sse ts o ve r the la st 6 we e ks

  • Co ntra c tua lly, we no te tha t:
  • Ma jo rity o f o ur re ve nue s a re d e rive d fro m lo ng te rm

c o ntra c ts, b a se d o n c a pa c ity re se rve d

  • Ma jo rity o f o ur c usto me rs ha ve inve stme nt g ra d e c re d it

ra ting s

  • We c o ntinue to wo rk with o ur c usto me rs’ a nd mo nito r the ir

c re d it & liq uid ity po sitio ns

slide-65
SLIDE 65

F Y20 guidanc e – 21 Apr il 2020

8/ 05/ 2020 –APA Inve sto r Brie fing Da y 2020

64

1H F Y2020 r e sults Re vise d 21 Apr il 2020 Re vise d vs F Y2019 r e sults E BIT DA

$1,660 - $1,690 millio n

$1,635 - $1,655 million +3.8% to +5.2%

($1,574 millio n)

Distr ibution pe r se c ur ity

In the o rd e r o f 50.0 c e nts pe r se c urity

Unc hange d

+6.4% (47.0c ps)

  • E

BIT DA re fle c ts the full ra ng e o f po ssib ilitie s o f timing o f c o mme rc ia l o pe ra tio ns a t the Orb o st Ga s Pro c e ssing Pla nt

  • DPS – po te ntia l fo r furthe r fra nking c re d its to b e a llo c a te d to the fina l d istrib utio n
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SLIDE 66

Ne ve nka Code ve lle GE Gove r nanc e & E xte r nal Affair s

7/ 05/ 2020

65

8/ 5/ 2020 – APA Inve sto r Brie fing Da y 2020

Wor king with our stake holde r s to c r e ate long te r m value

  • Sta ke ho lde r va lue c re a tio n
  • Co nsume rs a nd c o mmunitie s
  • Go ve rnme nt a nd re g ula to rs
  • Susta ina b le g ro wth – a lo ng te rm vie w

65

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SLIDE 67

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Stake holde r value c r e ation

A pur pose - le d or ganisation

Driving c ha ng e a nd sha ping o ur inte rna l a nd e xte rna l e nviro nme nt thro ug h:

  • stra te g ic fo c us o n APA’ s ro le in a n

inte rc o nne c te d e ne rg y syste m

  • stre ng the ne d re la tio nships with a ll

sta ke ho lde rs, inc luding with c usto me rs, re g ula to rs a nd Go ve rnme nt

  • c o lla b o ra tio n a c ro ss the va lue

c ha in to drive sta ke ho lde r sha re d va lue

  • e mb e dding a ma ture risk c ulture

str engtheni ng c ommunities thr

  • ugh

r esponsibl e ener gy e mploye e s c ustome rs re g ula tors inve stors g ove rnme nt c ommunitie s c onsume rs e ne rg y industry

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SLIDE 68

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Custome r s and e ne r gy industr y

ge tting it r ight

Re d Dot Pr

  • gr

am

F

  • c us o n c o rpo ra te c ulture

e nha nc e me nt, me a sure me nt a nd impro ve me nt initia tive s.

Custome r Pr

  • mise

K e e ping the c usto me r a t the c e ntre o f e ve rything we d o .

T he E ne r gy Char te r

F

  • und ing sig na to ry to T

he E ne rg y Cha rte r, le a d a nd c o ntrib ute to # Be tte rT

  • g e the r initia tive s
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SLIDE 69

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Consume r s and c ommunitie s

ne w ways of wor king

I nc re a se d fo c us o n the pe o ple who use the e ne rg y we de live r fo r the live s the y live E ng a g ing with, a nd liste ning to c o nsume rs a nd the c o mmunitie s we o pe ra te in – Co nsume r Re fe re nc e Gro ups e sta b lishe d fo r ke y pro je c ts Co mmunity I nve stme nt Pro g ra m c o nne c ting o ur b usine ss a nd o ur pe o ple to the c o mmunitie s whe re we wo rk Unde rsta nding a nd c o mmunic a ting o ur va lue pro po sitio n fo r c o nsume rs a nd c o mmunitie s

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SLIDE 70

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c ollabor ating for c ommon goals E volving ways of wor king…

  • Stre ng the n re la tio nship with re g ula to rs a nd

Go ve rnme nt

  • Co lla b o ra tive a ppro a c h, c o -de sig n fo r

mutua lly b e ne fic ia l o utc o me s

  • Bro a de ning ra ng e o f sta ke ho lde r

unde rsta nding a nd e ng a g e me nt

to dr ive be tte r

  • utc ome s
  • E

ng a g ing with c usto me rs, c o nsume r g ro ups in le a d up to re g ula to ry e ng a g e me nt

  • Pa rtic ipa ting in b ro a de r po lic y

de ve lo pme nt a s we ll a s re g ula to ry re se ts

  • Unde rsta nding a nd c o mmunic a ting o ur

va lue pro po sitio n fo r a ll sta ke ho lde r g ro ups

Gove r nme nt and r e gulator s

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SLIDE 71

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T aking a long te r m vie w

making r isk- base d de c isions today to de live r sustainable gr

  • wth for

the futur e

Risk ma turity: fra me wo rks, me a sure s a nd me tric s. E mb e dding risk c ulture . De ve lo ping E SG c a pa b ility, inte g ra te d a ppro a c h. Unde rsta nding e me rg ing risks, inc luding no n-fina nc ia l risk. Co rpo ra te g o ve rna nc e fra me wo rk, e a rly a do ptio n o f sta nda rds.

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SLIDE 72

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E SG spotlight: Re sponding to the r isks and oppor tunitie s of c limate c hange

Climate c hange position state me nt

  • APA Clima te Cha ng e Po sitio n

Sta te me nt pub lishe d

  • F
  • ur g uid ing princ iple s tha t

a rtic ula te o ur po sitio n a nd info rm d e c isio n-ma king

Sc e nar io analysis

  • Se c o nd c lima te -re la te d sc e na rio

a na lysis in flig ht

  • Build ing a nd impro ving o n 2019

a na lysis

  • Re sults pub lishe d in T

CF D-a lig ne d d isc lo sure s in a nnua l re po rting suite

Car bon manage me nt plan

  • E

nte rprise -wid e c a rb o n ma na g e me nt pla n

  • F
  • c ussing o n b o th stra te g ic

a nd ta c tic a l a c tio ns

Unde rsta nd Ac t Co mmunic a te

E xa mple s

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SLIDE 73

E lise Manns GE Pe ople , Safe ty & Cultur e

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8/ 5/ 2020 – APA Inve sto r Brie fing Da y 2020

  • Ope ra ting unde r uniq ue c irc umsta nc e s
  • F
  • c us a re a s
  • HSE

Stra te g ic Pla n F Y20-F Y22

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SLIDE 74

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Our pe ople ar e our str e ngth

fr

  • m r

aging bush fir e s, floods and a global Pande mic , this ye ar has be e n like no othe r

  • K

e e ping o ur pe o ple a nd o ur c o ntra c to rs sa fe a nd he a lthy e ve ryda y;

  • Pro a c tive ly ma na g ing o ur b usine ss thro ug h

b usine ss c o ntinuity pla ns with a fo c us o n o ur c usto me rs’ a nd e mplo ye e s’ e xpe rie nc e ;

  • E

nsuring the re is no ma te ria l impa c t to the sa fe a nd re lia b le o pe ra tio n o f o ur a sse ts & se rvic e s

  • Be ing a g ile , fle xib le a nd re spo nsive in c ha ng ing

the wa y we wo rk e spe c ia lly in a COVID 19 wo rld;

  • Co lla b o ra tive sta ke ho lde r re la tio ns to suppo rt

c o mmunitie s in the sho rt a nd lo ng te rm

  • E

mb ra c ing a de -c e ntra lise d a nd dig ita lly e nha nc e d o pe ra ting mo de l to de live r industry le a ding suppo rt a t the fro nt line ;

  • L

e ve ra g ing o ur c ulture o f c a re a nd dive rsity to pro vide inc lusive le a de rship in trying time s.

Our foc us has be e n on:

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SLIDE 75

Ke y Ar e as of F

  • c us

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74

Safe ty and E nvir

  • nme nt:
  • F

Y 2020 T RIF R ra te is d isa ppo inting b ut L T IR re ma ins lo w

  • Ne w HSE

Stra te g y with ta rg e te d he a lth, sa fe ty a nd we llb e ing inte rve ntio ns

  • Org a nisa tio na l struc tura l c ha ng e s to put e xpe rtise in the fo nt-line
  • Build ing g re a te r g o ve rna nc e a nd c a pa b ility
  • No ma te ria l Sa fe ty o r E

nviro nme nta l re g ula to ry b re a c he s

Pe ople:

  • Our Purpo se a nd Va lue s a re the c o re c o mpo ne nt in e ve rything we d o
  • Ne w o rg a nisa tio na l d e sig n d e live ring ne w wa ys o f wo rking – c usto me r c e ntric , e mpo we re d ,

c o lla b o ra tive a nd inno va tive

  • Dig ita l pe o ple stra te g y ta king sha pe fo r imple me nta tio n a c ro ss F

Y21

  • Re c o g nitio n a nd re wa rd s pro g ra ms re sha pe d to suppo rt pe rfo rma nc e & c ulture
  • L

e a d e rship & re sults thro ug h multiple c risis’ s d e mo nstra te s the e ffe c tive ne ss o f o ur d e ve lo pme nt pro g ra ms

Our ST ARS value s: Safe . T r ustwor thy. Adaptable . Re sults. Se r vic e .

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SLIDE 76

HSE Str ate gic F r ame wor k: F Y20 – F Y22

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HSE le ade r ship and c ultur e Contr ac tor manage me nt He alth and we llbe ing T e c hnology syste ms and analytic s E nvir

  • nme nt

and he r itage manage me nt Pr

  • c e ss safe ty

Caring fo r pe o ple , c o mmunitie s, the e nviro nme nt and o ur asse ts

Cre a ting a pro a c tive HSE c ulture with e mpo we ring le a de rship a nd stro ng e na b ling b e ha vio urs Critic a l to

  • pe ra tio na l

e xc e lle nc e – a c c o unta b le , stre a mline d, pe rfo rming Ca ring fo r the who le pe rso n – a t wo rk a nd b e yo nd I nc re a sing e ffic ie nc y a nd simplic ity o f HSE pro c e sse s, da ta a nd a na lytic s Deliver ing on our r esponsibili ti es to the envir

  • nment

and c ommunities – past, pr esent and futur e Cle a r

  • wne rship b y

the b usine ss a nd inte g ra te d pro c e sse s to suppo rt

  • pe ra tio na l

e xc e lle nc e

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SLIDE 77

F inal Q&A se ssion

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76

Conta c t: Je nnife r Bla ke – He a d of Inve stor R e la tions E Je nnife r .bla ke @apa.c om.a u +61 455 071 006

Use the ASK A QUE

ST ION

b utto n to sub mit a q ue stio n. F

  • r tho se dia lle d in, pr

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& wa it fo r the o pe ra to r b e fo re a sking yo ur q ue stio n.