1. March 2005 Australia’s largest natural gas distribution company NICHOLAS AGE 6 “Envestra is a person and cat inside a circle.” Laura Reed Chief Financial Officer Des Petherick Manager, Corporate Services

2. 2 Agenda

3. 3 An introduction to Envestra

4. 4

5. 5 Where we operate

6. 6 Advance payment of FRC costs “The Accounting Standards require the entire $54.6 million received from the South Australian Government to be treated as revenue for the year ended 30 June 2004. However, the capital expenditure is depreciated over the next five years” “The Directors have a strong view that this receipt would better have been matched against future operating costs and depreciation.” Envestra Media Release 8 July 2004

7. 7 Summary of Financial Performance ($M)  Most indicators are down due to early recording of revenues from SA Government’s FRC contribution last year  Earnings performance is ahead of expectations – forecast loss after loan note interest and tax revised down to $24M – previously $26M

8. 8 Five year financial performance Statement of Financial Performance ($M)

9. 9 Five year financial performance Summary of Cash Flows ($M)

10. 10 Security of gas supplies – SE Australia Developments since Longford incident in 1998

11. 11 Our regulatory position

12. 12 Long-term debt financing  $200 million syndicated debt matures July 2006 and $377 million in June 2007  Debt to be refinanced via 20-year bonds issued under $600 million MTN program  Refinancing brought forward due to: o Increased demand for BBB rated debt o Credit margins at historical lows o Emerging availability of local long-term debt o Will reduce refinancing/liquidity risk  To be concluded by end March

13. 13 Our growth opportunities

14. 14 Our growth opportunities

15. 15 Conclusion Australia’s largest natural gas distributor Envestra is a low risk – high yield stock!

16. ELEANOR AGE 7 “A caterpillar will grow into a cocoon and a butterfly.”