Australian Power & Gas FY 2010 Investor Presentation (ASX code: APK) CEO, James Myatt CFO, Warren Kember

IMPORTANT INFORMATION  This presentation (Presentation) has been prepared by Australian Power and Gas Limited (APK).  This Presentation does not purport to contain all the information that a prospective investor may require in connection with any potential investment in APK or its underlying business.  You must take into account all publicly available information and make your own independent assessment of APK before acquiring any shares in APK (Shares). You should not treat the contents of this Presentation, or any information provided in connection with it, as financial advice, financial product advice or advice relating to legal, taxation or investment matters. Before acquiring any Shares, you should consult your own advisers and conduct your own investigation and analysis in relation to APK.  The distribution of this Presentation may be restricted by law in certain jurisdictions. Recipients and any other persons who come into possession of this Presentation must inform themselves about, and observe any such restrictions.  This Presentation contains reference to certain intentions, expectations, future plans, strategy and prospects of APK which APK will work tirelessly to achieve however, those intentions, expectations, future plans, strategy and prospects may or may not be achieved. They are based on certain assumptions, which may not be met or which may be affected by known and unknown risks. The performance and operations of APK may be influenced by a number of factors, many of which are outside the control of APK.  Given that APK’s actual future results, performance or achievements may be influenced by factors outside APK’s control and be materially different from those expected, planned or intended, recipients should take this into account and not place undue reliance on these intentions, expectations, future plans, strategy and prospects. APK does not warrant or represent that the actual results, performance or achievements will be as expected, planned or intended. APK will use it best endeavours to achieve a positive outcome as planned for all shareholders. FY 2010 Investor Presentation – Page 1

AGENDA  FY10 Highlights  FY11 Guidance Update  The Opportunity  The Business Model  Key Outcomes to Date  The Financials  Key Achievements Summary FY 2010 Investor Presentation – Page 2

 Customer account: 145,000, an increase of 44% on the PCP  Revenues: $130.3M, an increase of 79% on the PCP  EBITDA: $12.1M, a $14.6M turnaround on the PCP  EBIT: $5.6M, a $15M turnaround on the PCP  Reported net loss after tax of $3.3M  Following decision to recognise one-off significant items  Related to renewal of $50M finance facility & expansion costs  Significant items excluded, underlying after tax profit was $1.4M FY10 HIGHLIGHTS FY 2010 Investor Presentation – Page 3

 Customer accounts: 250,000  Revenues: $200M to $220M  EBITDA: $21M to $23M  EBIT: $10 to $12M  NPAT: $3.5M to $4.5M FY11 GUIDANCE UPDATE FY 2010 Investor Presentation – Page 4

 APK is an independent electricity and gas retailer  Catalyst was deregulation of the Australian retail energy market  The target market is residential electricity and gas users  APK Strengths:  Licences to operate in all eastern states  Proven product, operating and collection systems, and key management with industry experience  An exclusive strategic agreement with The Cobra Group, the world’s biggest direct sales company, allowing APK to grow aggressively in a low customer involvement market. APK - THE OPPORTUNITY FY 2010 Investor Presentation – Page 5

APK – REVENUE OPPORTUNITY Sources: Electricity Gas Australia, Energy Supply Association of Australia, 2010 & Australian Power & Gas FY 2010 Investor Presentation – Page 6

THE COMPETITIVE LANDSCAPE FY 2010 Investor Presentation – Page 7

 Value proposition  saves consumers money on their existing energy bills  No cyclicality  residential retail energy is a recession proof business  Lean cost base  highly variable cost structure and outsourced business model  Flexible  outsourced sales channels are able to more readily recruit sales staff  Cash focus  billing cycles running daily ensuring that cash is collected on a daily basis  Management of outstanding debt  systems and processes in place to manage and handle these issues at industry leading level  Channel strategy  the direct sales channel has proven to be effective in this consumer market as customers don’t actively seek to change retailers  other channels such as web switching are being developed to take advantage of change in consumer switch behaviour THE BUSINESS MODEL FY 2010 Investor Presentation – Page 8

NET CUSTOMER ACCOUNT GROWTH FY 2010 Investor Presentation – Page 9

REVENUE GROWTH FY 2010 Investor Presentation – Page 10

EBITDA GROWTH FY 2010 Investor Presentation – Page 11

EBIT GROWTH FY 2010 Investor Presentation – Page 12

NPAT OUTLOOK FY 2010 Investor Presentation – Page 13

UNDERLYING CASH FLOW POSITION FY 2010 Investor Presentation – Page 14

APK CAPITAL STRUCTURE FY 2010 Investor Presentation – Page 15

APK DEBT MATURITY PROFILE FY 2010 Investor Presentation – Page 16

APK – GEARING (Net debt to equity) FY 2010 Investor Presentation – Page 17

TOP 20 SHAREHOLDERS FY 2010 Investor Presentation – Page 18

THE EXECUTIVE MANAGEMENT TEAM James Myatt – CEO and Managing Director 25 years industry experience, previously held senior positions with Energy Australia, Duke Energy International, TXU Australia and Solaris Power. Andrew Butler – GM Sales, Marketing and PR Services Marketing professional, previously held senior positions with AGL, CitiPower, Solaris Power, Transurban and Connector Motorways. Warren Kember – Chief Financial Officer 25 years experience in financial management and corporate systems, previously held senior positions with Transfield Telecommunications, AGL and ADT Security. Joanne Shatrov – General Counsel Joanne is an experienced lawyer in wholesale and retail energy, previously held positions with Ergon Energy, Duke Energy and Ebsworth & Ebsworth Lawyers. Deborah Dickens – GM Commercial Operations 16 years commercial and financial experience, previously held senior positions with British Airways in the UK and on the UATP Board. FY 2010 Investor Presentation – Page 19

THE BOARD Ian McGregor – Chairman Ian has over 25 years of professional experience as a financial officer and business manager. He was previously the Company Secretary and Chief Financial Officer of Broadcast Services Australia Limited, and the Chief Financial Officer of Unwired Group Limited. Richard Poole Richard is a qualified lawyer who specialises in mergers and acquisitions. He is a principal of Arthur Phillip Pty Limited, and has been involved in a range of fund raising and advisory projects for public and private clients. Michael Hogg Michael is the Chief Executive Officer of The Cobra Group Australia, part of the Global Cobra Group, a direct sales organisation with over 10,000 sales representatives in 20 countries worldwide. FY 2010 Investor Presentation – Page 20

 Customer growth: 145,000, an increase of 44% on the PCP  Revenues: $130.3M, an increase of 79% on the PCP  EBITDA: $12.1M, a $14.6M turnaround on the PCP  Customer cash receipts $115.2M for the FY10, up 86% on previous corresponding period  Underlying positive cash flow of $4.3M for FY10, up from $0.9M on previous corresponding period  Ranked number one on Business Review Weekly’s 2010 Fast Starters List  Five sales channels successfully launched into the Victorian market  Expansion into Queensland and New South Wales markets underway  Secured a major growth platform: $18.9M C-note funding facility completed $50M receivables facility extended Load following electricity supply contract for Queensland signed KEY ACHIEVEMENT SUMMARY FY 2010 Investor Presentation – Page 21

Thank you & Questions FY 2010 Investor Presentation – Page 22