1. Laura Reed Finance Manager Envestra’s Second Full-Year Profit Financial Results for Year Ended 30 June 2004 Ian Little Managing Director 25 August 2004

2. 2 Agenda

3. 3 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

4. 4 Summary Of Financial Performance ($M) Year ended 30 June 2004 Note: Results impacted by advance payment of $54.6 million from SA Government for gas contestability system.

5. 5 Financial Performance ($M)

6. 6 Gas Delivered (PJ) (1) Reduction of volumes in SA due mainly to closure of Mobil Refinery – down 4.3 PJ

7. 7 Envestra initiated FRC project in early 2003 – new system to allow retailers to compete for customers in South Australia Followed similar system introduced in Victoria in 2002/3 – Capital costs around $30M Regulated tariffs were anticipated to recover costs and ROI over 5 years SA Government decided to subsidise gas consumers and avoid tariff increase – entered contract with Envestra to provide lump sum ($54.6M) on 30 June, 2004 Accounting Standards require recording of ‘lump sum’ as revenue even though operating costs and depreciation for FRC will continue over next 5 years (approximately $11M p.a.) Early Revenues from Full Retail Contestability (FRC)

8. 8 Statement Of Cash Flow ($M)

9. 9 Segment Results ($M) All networks operating profitably

10. 10 Historical Returns Shareholder Return:1 Yr to 30 June ‘04 Capital Growth: 1.07¢  1.06¢ = (1.0%) Distribution: 9.5¢ = 8.9% Total Return: = 7.9% Accumulated Return from Listing* $1,000 investment in Envestra at time of IPO versus All Ordinaries Accumulation Index All Ordinaries Accumulation Index Envestra Accumulated Return * Envestra return calculation assumes that distributions that are announced in a given financial year are reinvested at the Envestra security price as at the end of that financial year (or part thereof). Transaction costs are ignored. 1999 rights issue is not included.

11. 11 Milestones

12. 12 Milestones (cont’d)

13. 13 Regulatory Outcomes

14. 14 2004/05 Outlook

15. 15 Summary