2009 Full Year Resultss3-us-west-2.amazonaws.com/brr-streamguys/files/BBI/BBI...provided by BBI. Neither this presentation nor any of its contents may be reproduced or used for any

2009 Full Year Results Financial year ended 30 June 2009

26 August 2009, Sydney

2

Disclaimer

To the maximum extent permitted by law, none of Babcock & Brown Infrastructure Limited, Babcock & Brown Investor Services Limited as responsible entity of the Babcock & Brown Infrastructure Trust, Babcock & Brown Infrastructure Management Pty Limited, nor any of their related entities (collectively “BBI”) nor their respective directors or officers or any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including without limitation, any liability arising from fault or negligence on the part of BBI or their respective directors or officers or any other person. The information contained in this presentation is not intended to constitute legal, tax or accounting advice or opinion. No representation or warranty, express or implied, is made as to the accuracy, completeness, fairness, correctness or thoroughness of the information contained in the presentation. The recipient should consult with its own legal, tax or accounting advisers as to the accuracy and application of the information contained in the presentation and should conduct its own due diligence and other enquiries in relation to such information. The information in this presentation has not been independently verified by BBI. Actual results may vary from the information in this presentation and any variation may be material. BBI disclaims any responsibility for any errors or omissions in such information, including the financial calculations, projections and forecasts set out in the presentation. No representation or warranty, express or implied, is made by or on behalf of BBI that any projection, forecast, calculation, forward-looking statement, assumption or estimate contained in this presentation should or will be achieved. This presentation is not an offer or invitation for subscription or purchase of or a recommendation of securities. In providing this presentation, BBI has not considered the objectives, financial position or needs of the recipient. The recipient should obtain and rely on its own professional advice from its tax, legal, accounting and other professional advisers in respect of the recipient’s objectives, financial position or needs. This presentation does not carry any right of publication. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by BBI. Neither this presentation nor any of its contents may be reproduced or used for any other purpose whatsoever without the prior written consent of BBI.

3

Agenda

1. Performance Summary

2. Operational Highlights & Outlook: Transport

3. Operational Highlights & Outlook: ET&D

4. Internalisation

5. Asset Sales Update

6. Changes in accounting treatments

7. Financial Summary & Capital Management

8. Appendix (includes asset performance)

Presenters:Jeff Kendrew - Chief Executive OfficerJonathon Sellar - Chief Financial Officer

For further information please contact:Helen LiossisInvestor Relations+61 2 9229 [email protected]

4

Performance Summary

Performance Summary• Revenue was up 8% on pcp, to $2.457.6 billion

• Group statutory EBITDA was flat on pcp, to $733.8 million

• Group proportionally consolidated EBITDA has increased to $1.0 billion, up from $789 million in pcp.

• Operating cash flow was down on pcp, to $243.8 million(1)

• Consolidated gearing(2) has reduced from 64% at June 2008 to 62%.

• Maintenance capex of $107.2 million up 7.6% on pcp

• Final Impairment (non cash) charge of $895.1 million

Other Key Developments• Governance and management arrangements

• Internalisation

• Asset sales

*Before expansionary capex funding and asset level debt repayment

1. Operating cash flow before debt repaid at the asset level and funding of organic growth capex.2. Proportionally consolidated debt over proportionally consolidated assets, excluding the current year impairment adjustment and keeping the USD FX rate consistent. Including the current year impairment charge and the current USD FX rate BBI’s consolidated gearing is 66% at 30 June 2009

EBITDA (Proportional)

788.9

1,036.0

0

400

800

1,200

FY08 FY09

AU

D m

illio

n

Revenue (Statutory)

2,275.62,457.6

0

1,000

2,000

3,000

FY08 FY09

AU

D m

illio

n

Operating Cash Flow(1)

279.0

243.8

0

100

200

300

FY08 FY09

AUD

mill

ion

Maintenance Capex

99.6107.2

0

40

80

120

FY08 FY09

AUD

mill

ion

5

Operational Highlights & Outlook: Transport

Suppressed volumes as a result of poor economic climate throughout the EU. Liquidity issues through the group addressed through the sale of 40% to Antin and Arcus. Diversity of product and revenue streams mitigated impact when compared to many other European port companies.

Euroports

Overall volume declines on the back of very weak UK economic climate. Poor heavy bulk and steel performance as a result of Corus issues. Further port centric distribution centre developments with Tesco opening in August 09.

PD Ports

Above budget and prior year EBITDA performance. Strong grain year. Stable mineral traffic performance. Lower than budgeted intermodal traffic as a result of economic conditions.

WestNet Rail

Completion of expansion to 85 Mtpa capacity.DBCT

OutlookPerformance to expectation

Business Unit

6

Operational Highlights & Outlook: ET&D

Continuing stable growth of around 3% for new connections, despite slowing WA economy. Tariff re-set work underway for July 2010.

WAGN

Continued expansion (Stage 5B).DBNGP

Delivery of Stage 5B expansion project (DBNGP) mid 2010, and growth in electricity contracting revenues.

Westnet Energy

Continuing growth in load and new connections due to gas’ competitive price and environment advantage verses other fuels.

TGN

Stable performance expected from the island businesses and existing UK gas connections. Deterioration in new orders and connections growth in the UK.

IEG (UK and Islands)

Growth in NZ electricity business despite slowing NZ economy. Tariff re-set to commence April 2010. Gas tariff final decision last year enables improved planning of future marketing and investment.

Powerco

Continued high availability.CSC

Stable volume and connection growth.Multinet

Growth in volume and capacity sales through new industrial load and cogeneration.TGP

Continued strong demand for transportation and storage services due to NGPL’s strategic proximity to key supply areas, and to the Chicago and Mid West markets.

NGPL

OutlookPerformance to expectation

Business Unit

7

Internalisation

• Terminates the Management Agreement and Exclusive Financial Advisory Agreement between BBI and BNB

• BBI will settle all outstanding unpaid financial advisory fees (mainly relating to Euroports acquisitions)

• All BBI corporate employees will be offered re-employment in an internalised management structure within BBI

• BNB to provide services as the RE until 2012 (at the latest) for a fee of $2 million per annum (increased for CPI), however BBI security holders will have right to appoint and remove directors of the RE

• BBI will (subject to securityholder approval) change its name to Prime Infrastructure Holdings Limited

• BNB will provide support (at cost) during a transition period to facilitate transfer of assets and IT systems to BBI

• Internalisation is subject only to approval by BBI’s corporate lenders (BBI is in an advanced stage of the process to secure Corporate Lender approval)

8

Asset Sales Update

• During the year BBI made substantial progress with its asset sale program:- In February 2009, BBI sold 58% of Powerco New Zealand to funds managed by

QIC- In May 2009, BBI sold IEG’s operations in Portugal to Fundo Explorer II- In July 2009, BBI completed the sale of 40% of the Euroports portfolio to Arcus

and Antin Partners • The net sales proceeds from these asset sales have been applied to:

- The repayment of BBI’s corporate and asset level debt, - Increased ownership of Westnet Rail and - To satisfy other commitments within the portfolio

• BBI is awaiting binding bids for PD Ports and DBCT. Both these processes have shown interest at both the minority and 100% level. There is no current activity with WestNet Rail.

9

As a consequence of the two recently announced asset sales (i.e. Powerco and Euroports), the Accounting Standards require these investments to now be accounted for in a different manner as illustrated below:

Accounting Changes – due to announced asset sales

Powerco

&

Euroports

As at 30 June 2009 or up until sale completesAs at 30 June 2008

Post asset sale completion

Profit & Loss StatementConsolidated results

reported in the Profit & Loss Statement

Balance Sheet100% of Assets &

Liabilities consolidated in the Balance Sheet

CONSOLIDATED

Profit & Loss StatementNet Profit after Tax of each

business reported in oneline in the P&L as “loss from

discontinued operations”Balance Sheet

All assets of these businesses (current & non-current) reported

in one line on the balance sheet as “non current assets

classified as held for sale”All Liabilities of these

businesses (current & non-current ) reported as one line

in the Balance Sheet “Liabilities directly associated

with non-current assets classified as held for sale”

HELD FOR SALEProfit & Loss Statement

BBI will take up its share of the businesses

profit / loss after tax & movement in reserves

(using the equity accounting method)

Balance SheetBBI will record its shareof the net assets of its

businesses in one line ofthe Balance Sheet(using the equity

accounting method)

EQUITY ACCOUNTED

sale announced

post sale completion

10

Statutory Reporting : AASB Interpretation 12

• AASB Interpretation 12 ‘Service Concession Arrangements’ became mandatory from 1 July 2008

• Changes required:– Concession assets now classified as intangible assets– Comparatives restated– Results in a reclassification of DBCT lease from PPE to Intangibles– The term of the DBCT lease is longer than the period that the asset was

previously depreciated over and this results in an increase in net assets– The full effect of the implementation of AASB Interpretation 12 can be seen in

Note 1 (2) of the financial statements

11

FY09 Results Summary

Actual Actual Actual Actual12 months to 12 months to 12 months to 12 months to

30 Jun 09 30 Jun 08 Variance Variance($'m) ($'m) ($'m) %

REVENUETransport Infrastructure 1,709.5 1,508.2 201.3 13%Energy Transmission & Distribution 748.1 767.4 (19.3) -3%Total Revenue 2,457.6 2,275.6 182.0 8%EBITDATransport Infrastructure 454.2 420.3 33.9 8%Energy Transmission & Distribution 309.1 364.4 (55.2) -15%Corporate Overheads (28.4) (20.5) (7.9) 39%Base Fee (1.1) (21.8) 20.7 -95%Incentive Fee - - -Operating EBITDA 733.8 742.4 (8.6) -1%Net FX (losses) / gains (27.2) (17.6) (9.6) 55%Net gains / (losses) 107.4 (7.9) 115.3 -1453%Total EBITDA 814.0 716.9 97.1 14%Impairment (895.1) - (895.1) -Depreciation & Amortisation (268.4) (305.9) 37.5 -12%EBIT (349.5) 411.0 (760.5) -185%Borrowing costs (net of interest revenue) (569.9) (465.5) (104.4) 22%Net hedge accounting (expense) / gain (227.0) 8.3 (235.3) -2835%NLBT (1,146.4) (46.2) (1,100.3) 2380%

12

Operating Cash Flow By Business

1. Refer to reconciliation of EBITDA to operating cash flow on slide 15.

$141.3 mTOTAL

$32.4 mEuroports

$6.8 mPD Ports

$33.1 mWestNet Rail

$69.0 mDBCT

Transport(Before repayment of asset level debt and

funding of organic growth capex)

Operating cash flow from operating businesses pre funding organic growth capex and repayment of asset level debt

$321.4 m

$78.1 mNGPL

$180.1 mTOTAL

$29.6 mAET&D

$11.7 mCSC

$50.0 mIEG

$10.7 mPowerco

Energy Transmission & Distribution(Before repayment of asset level debt and

funding of organic growth capex)

Less: Net equity funding of organic growth capex($112.9 m)

Less: Repayment of asset level debt($31.9 m)

Less: corporate overheads, management fees and net corporate interest expense(including BBI EPS)

($77.6 m)

Operating cash flow$99.0 m¹

13

Hedged between 91% and 83% to Dec 2010

-

2,000

4,000

6,000

8,000

10,000

12,000

Jun-09 Dec-09 Jun-10 Dec-10

A$

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%

Forecast Debt Profile Natural hedge Fixed Debt & Swaps Weighted Average Rate

Average debt maturity between 4 - 5 years

0

500

1000

1500

2000

2500

3000

Jun-2010 Jun-2011 Jun-2012 Jun-2013 Jun-2014 Jun-2015 Jun-2016 Jun-2017 2017 +

Facility Limit (A$m)

Corporate debt Non-recourse asset level debt

BBI Capital Management SummaryBBI Debt Maturity Profile(¹)Debt position is well placed

• ~ 9% of total debt maturing in FY10 on a proportionally consolidated basis.

• BBI continues to refinance and place new debt: – BBIPAL and Finnish Ports debt refinanced for two years to

August 2011.– Powerco debt maturities in Nov 09 (NZ$420m) – credit

approved commitments secured in Aug 09 to refinance via two and three year debt facilities.

– Multinet $135m bonds maturing in July 09 repaid from proceeds under a new $100m debt facility (established April 2009) and other liquidity sources.

– The above represents c. 47% of the FY10 maturities.• Current existing committed and undrawn debt facilities ($526m) will

fund all material near term organic growth capex.

Interest Rate Risk(3) BBI’s has hedged its interest rate exposure

• 100bp increase in rates in every jurisdiction that BBI operates in equates to circa 0.9 cents per security.

• Regulated assets contribute circa 78% of BBI’s proportionate share of EBITDA.

• Regulated regimes and inflation-linked revenues provide natural hedges to movements in interest rates.

• Underlying assets have strong credit characteristics in sectors with inherently low credit volatility.

• BBI’s corporate debt interest cover at 30 June 2009 was 2.4x (2) (31 December 2008: 3.3x) – default occurs at 1.5x.

• Proportionally consolidated FY09 EBITDA / Interest cover of 1.65x (excluding EPS) at 30 June 2009.

1. Based on BBI’s proportionate ownership share and assumes all debt in place at 30 June 2009 is drawn to the facility limit at maturity. NZ SPARCS and BBI EPS are excluded from profile as for this analysis it is assumed these instruments will be redeemed or converted into BBI securities at maturity.

2. The BBI Corporate Facility definition of Interest cover ratio was amended in February 2009. The amendment changed the definition of distributable cash to actual cash distributed. The ratio at 31 December 2008 has been restated under the revised definition.

3. Forecast debt profile based on proportionate ownership interest but excludes NZ SPARCS and BBI EPS.

14

APPENDIX

15

Reconciliation of EBITDA To Operating CashActual Actual

12 months to 12 months to30 Jun 09 30 Jun 08

($'m) ($'m)EBITDA 733.8 742.4less Equity accounted profit of non-controlled entities + Other non-cash items 25.9 (11.3)

759.7 731.1Less Interest paid (net of interest received) (489.6) (429.4) Net cash tax paid (19.1) (13.7) Maintenance capital expenditure (107.2) (99.6) Cash available attributable to minority interests (23.4) (35.6) OtherAdd Cash reserves released and disposal of trading assets 31.2 30.9 Dividends / share of operating cash flow from investments in minority interests 68.9 50.8 Net FX gain on cash flow hedges 16.5 15.4 BBI's share of Australian ET&D operating cash flow for July and August 2007 - 24.2 Other 6.8 4.9Operating cash flow 243.8 279.0

BBI's proportionate share of debt / finance lease principal repayment at asset level (31.9) -BBI's proportionate share of recurring organic growth capex (230.0) (164.7)BBI's proportionate share of debt funding of recurring organic growth capex 117.1 112.7

99.0 227.0Operating cash flow post funding recurring organic growth capex funding and debt repayments

16

Revenue (Statutory Basis)Actual Actual Actual Actual

12 months to 12 months to 12 months to 12 months to30 Jun 09 30 Jun 08 30 Jun 09 30 Jun 08(A$'m) (A$'m) (Local CCY 'm) (Local CCY 'm)

Transport InfrastructureDBCT (AUD) 265.2 194.3 265.2 194.3PD Ports (GBP) 264.1 299.2 121.6 133.6WestNet Rail (AUD) 210.7 193.5 210.7 193.5Total Continuing Operations 740.0 687.0Euroports (Euro) (a) 969.5 821.2 523.6 500.2Total Discontinued Operations 969.5 821.2

TOTAL TRANSPORT REVENUE 1,709.5 1,508.2

Energy Transmission & DistributionIEG (GBP) 203.4 168.1 93.7 75.5CSC (USD) 30.3 22.5 22.2 20.2Australian ET&D (AUD) 273.7 232.5 273.7 232.5NGPL (USD) - - - -TGN (AUD) 18.7 15.5 18.7 15.5Continuing Operations 526.1 438.6Powerco (NZD) (b) 193.1 298.4 248.7 348.4IEG - Gascan Business 28.9 30.4 13.3 13.6Total Discontinued Operations 222.0 328.8TOTAL ENERGY REVENUE 748.1 767.4

(a) The statutory reported revenue for Euroports for the current year represents 100% of Euroports revenue for the period 1 July 2008 to 30 June 2009. The result is reported as “discontinued operations” as a partial sale of Euroports was announced during the current year.

(b) The statutory reported revenue for Powerco for the current year represents 100% of Powerco’s NZ operations during the period 1 July 2008 to 26 February 2009. For the period 27 February 2009 to 30 June 2009 BBI owned 42% of Powerco and as such has equity accounted for its investment in Powerco during that period.

17

Revenue (Statutory Basis) – Australian ET&D


30 Jun 09 30 Jun 08 30 Jun 09 30 Jun 08(A$'m) (A$'m) (Local CCY 'm) (Local CCY 'm)

WAGN 136.4 103.4 136.4 103.4WNE 184.9 162.1 184.9 162.1DBP - - - -MGN - - - -TGP 23.4 23.0 23.4 23.0Head Office (elim recharges between business units) (71.1) (56.0) (71.1) (56.0)TOTAL Australian ET&D 273.7 232.5

18

EBITDA (Statutory Basis)Actual Actual Actual Actual


Transport InfrastructureDBCT (AUD) 153.7 97.1 153.7 97.1PD Ports (GBP) (a) 71.4 127.8 32.6 59.5WestNet Rail (AUD) 103.6 93.7 103.6 93.7Total Continuing Operations 328.7 318.6Euroports (Euro)

(b) 125.4 101.7 67.7 63.4

Total Discontinued Operations 125.4 101.7

TOTAL TRANSPORT EBITDA 454.2 420.3

Energy Transmission & DistributionIEG (GBP) 73.2 61.4 33.8 27.8CSC (USD) 21.6 15.5 15.9 13.9Australian ET&D (AUD) 74.2 83.3 74.2 83.3NGPL (USD) (2.2) 4.6 (1.7) 4.3TGN (AUD) 3.0 2.6 3.0 2.6Continuing Operations 169.7 167.4Powerco (NZD) (c) 126.3 187.7 153.6 219.5IEG - Gascan Business 13.2 9.2 6.0 4.1Total Discontinued Operations 139.5 196.9TOTAL ENERGY EBITDA 309.1 364.4

(a) FY08 includes a one off statutory adjustment of A$30.8m (£14.9m) which increased the market value of land where the Tesco distribution warehouse has been built.

(b) The statutory reported EBITDA for Euroports for the current year represents 100% of Euroports EBITDA for the period 1 July 2008 to 30 June 2009. The result is reported as “discontinued operations” as a partial sale of Euroports was announced during the current year.

(c) The statutory reported EBITDA for Powerco for the current year represents 100% of Powerco’s NZ operations for the period 1 July 2008 to 26 February 2009. For the period 27 February to 30 June 2009 BBI owned 42% of Powerco and as such has equity accounted for its investment in Powerco for that period.

19

EBITDA (Statutory Basis) – Australian ET&D

(a) FY09 includes a one off provision for doubtful debts of $36.5m relating to a long term receivable.



WAGN 91.6 70.6 91.6 70.6WNE 17.8 19.3 17.8 19.3DBP 6.2 6.6 6.2 6.6MGN 0.1 (1.4) 0.1 (1.4)

TGP (a) (16.7) 15.4 (16.7) 15.4Head office - AET&D (24.8) (27.2) (24.8) (27.2)TOTAL Australian ET&D 74.2 83.3

20

Revenue (Proportional)Actual Actual Actual Actual


Transport InfrastructureDBCT (AUD) 265.2 194.3 265.2 194.3PD Ports (GBP) 264.1 299.2 121.6 133.6WestNet Rail (AUD) 160.1 147.1 160.1 147.1Euroports (Euro) 762.2 316.6 411.7 194.3

TOTAL TRANSPORT REVENUE 1,451.7 957.2

Energy Transmission & DistributionPowerco (NZD) (a) 244.7 298.3 294.2 348.4IEG (GBP) 232.4 201.4 107.0 90.4CSC (USD) 30.3 22.5 22.2 20.2Australian ET&D (AUD) 380.1 364.3 380.1 364.3NGPL (USD) 326.2 100.1 243.9 93.5TGN (AUD) 18.7 15.5 18.7 15.5TOTAL ENERGY REVENUE 1,232.4 1,002.2TOTAL 2,684.0 1,959.4

WAGN 136.4 97.7 136.4 97.7WNE 184.9 200.4 184.9 200.4DBP 70.1 60.3 70.1 60.3MGN 36.3 34.2 36.3 34.2TGP 23.4 27.7 23.4 27.7Head Office (elim recharges between business units) (71.1) (56.0) (71.1) (56.0)TOTAL Australian ET&D 380.1 364.3

(a) The proportionally consolidated revenue for Powerco for the current year represents 100% of the Powerco NZ operations for the period 1 July 2008 to 26 February 2009 and 42% of the Powerco NZ operations for the period 27 February 2009 to 30 June 2009. The prior year result represents 100% of the Powerco NZ operations for the full year.

As a comparison had BBI owned the Powerco NZ operations for the full 2009 Financial Year the proportionally consolidated reported revenue would have been A$290.5m (NZ$357.1m).

21

EBITDA (Proportional)



Transport InfrastructureDBCT (AUD) 153.7 97.1 153.7 97.1PD Ports (GBP) 71.4 127.8 32.6 59.5WestNet Rail (AUD) 86.9 71.4 86.9 71.4Euroports (Euro) 94.2 27.6 50.9 16.9

TOTAL TRANSPORT EBITDA 406.2 323.9

Energy Transmission & DistributionPowerco (NZD) (a) 147.4 188.0 176.7 219.5IEG (GBP) 86.3 70.9 39.9 32.0CSC (USD) 21.6 15.5 15.9 13.9Australian ET&D (AUD) 126.5 157.6 126.5 157.6NGPL (USD) 239.7 72.8 179.2 67.9TGN (AUD) 3.0 2.6 3.0 2.6TOTAL ENERGY EBITDA 624.5 507.4TOTAL 1,030.8 831.2

(a) The proportionally consolidated EBITDA for Powerco for the current year represents 100% of the Powerco NZ operations for the period 1 July 2008 to 26 February 2009 and 42% of the Powerco NZ operations for the period 27 February 2009 to 30 June 2009. The prior year result represents 100% of the Powerco NZ operations for the full year.

As a comparison had BBI owned the Powerco New Zealand operations for the full 2009 Financial Year the proportionally consolidated reported EBITDA would have been A$180.3m (NZD$221.6m).

22

EBITDA (Proportional) – Australian ET&D



WAGN 67.8 68.4 67.8 68.4WNE 17.8 26.7 17.8 26.7DBP 54.9 46.3 54.9 46.3MGN 27.5 24.4 27.5 24.4TGP (16.7) 19.0 (16.7) 19.0Head office - AET&D (24.8) (27.2) (24.8) (27.2)TOTAL Australian ET&D 126.5 157.6

23

Reconciliation Of Profit To EBITDA

* Note references refer to the statutory reported financials of BBI for June 2009.

Actual Actual12 months to 12 months to

30 Jun 09 30 Jun 08($'m) ($'m)

Profit / (loss) before tax expense from continuing operations (on the face of the Income Statement) (1,004.5) (40.3)

Profit / (loss) before tax expense from discontinued operations (refer note 37)* (245.0) (3.7)

Net profit on disposal of businesses (refer note 5)* 103.0 (2.2)

Add back net hedge (gain) / expense (from continuing and discontinued operations - refer note 4)* 227.0 (8.3)

Add back finance costs (from continuing and discontinued operations - refer note 4)* 697.5 517.4

Add back depreciation and amortisation expense (from continuing and discontinued operations - refer note 5)* 266.3 305.9

Add back impairments of non-current assets (from continuing and discontinued operations - refer note 5)* 895.1 -

Add back interest revenue (from continuing and discontinued operations - refer note 3)* (127.6) (51.9)

Other non-cash items included in EBITDA 2.2 -

Total EBITDA per results summary (refer to slide 11) 814.0 716.9

Add back non cash items in EBITDA:

Net FX losses 27.2 17.6

Net gains on disposal of non-current assets (107.4) 7.9

Provision for doubtful debts (from continuing and discontinued operations - refer note 5)* 38.0 -

Less equity accounted profit of non-controlled entities (on the face of the Income Statement) (9.0) (7.5)

Less equity accounted profit of non-controlled entities (discontinued operations - refer Note 37)* (2.2) -

Other non-cash items included in EBITDA (0.9) (3.8)

EBITDA reported in Cash Flow Available analysis (refer to slide 15) 759.7 731.1

24

Reconciliation Of Revenue In FY09 Report To Results Summary

* Note references refer to the statutory reported financials of BBI for June 2009.

Actual Actual12 months to 12 months to

30 Jun 09 30 Jun 08($'m) ($'m)

Revenue per statutory Income Statement 1,407.6 2,361.2Revenue from discontinued operations (refer note 37)* 1,221.7 -Less interest revenue (from continuing and discontinued operations - refer note 3)* (127.6) (51.9)Less gains on disposal on non-current assets included in Revenue (refer note 5)* (30.4) (5.6)

(10.9) (30.0)Other (2.8) 1.9

Total revenue per results summary (refer to slide 11) 2,457.6 2,275.6

Less change in fair value of investment properties (refer note 5)*

25

Proportionally Consolidated EBITDA & Interest

EBITDA Interest12 months to 12 months to

30 Jun 09 30 Jun 09($'m) ($'m)

Reported in reconciliation of EBITDA to distributable cash 759.7 (489.6)Less minority interest in:

- WestNet Rail (16.6) 6.8

- BBI Euroports (31.2) 13.0

- Australian ET&D: WA Gas Networks (formerly AlintaGas Networks) (23.7) 11.4

Add proportionate share of:

- NGPL 239.7 (86.7)

- Australian ET&D: DBNGP + Multinet 79.0 (22.1)

- Powerco (4 months during which Powerco was equity accounted) 29.1 (9.8)

Add back interest revenue on shareholder loans to equity accounted investments (72.8)

Add back interest on BBI EPS (paid in cash) 20.3

Total proportionally consolidated EBITDA and Interest 1,036.0 (629.5)

26

Proportionally Consolidated Assets

As at30 Jun 09

$'bn

Total assets per statutory accounts 12.6

Less equity accounted investments included in total assets (0.6)

Less shareholders loans to equity accounted investments included in total assets (0.7)

Less minority share of total assets associated with:

- WestNet Rail (0.1)

- BBI Euroports (0.5)

- Australian ET&D: WA Gas Networks (formerly AlintaGas Networks) (0.2)

Add BBI's proportionate share of assets from investments in:

- NGPL 3.1

- Australian ET&D: DBNGP + Multinet 1.0

- Powerco 0.5

Total proportionally consolidated assets 15.1

27

Impairment Summary

$199.4Euroports

Write-Downs ($m)Asset

$895.1TOTAL IMPAIRMENT LOSS

$38.9PAG (TGN)

$373.9PD Ports

$50.9WestNet Rail

$232.0AET&D

Impairment Summary

• The table below summarises the impairment write-down across the BBI group for the year ended 30 June 2009

28

Proportionally Consolidated Debt

(a) The total value of SPARCS and EPS as at 30 June 2009 recorded in the Financial Statements is A$0.8 billion.

As at30 Jun 09

$'bn

Total debt per statutory accounts:

- Current borrowings 0.5

- Non-current borrowings 6.5

- Borrowings associated with assets held for sale 1.2 8.2

Less minority share of debt associated with:

- WestNet Rail (0.0)

- BBI Euroports (0.4)

- Australian ET&D: WA Gas Networks (formerly AlintaGas Networks) (0.2)

Add BBI's proportionate share of debt from investments in:

- NGPL 1.2

- Australian ET&D: DBNGP + Multinet 0.7

- Powerco 0.4

Total proportionately consolidated debt (including SPARCS & BBI EPS) (a) 9.9

Total proportionally consolidated assets 15.1

BBI proportionally consolidated gearing 65%BBI proportionally consolidated gearing (excluding SPARCS & BBI EPS) 61%

29

Maintenance Capex By Asset


30 Jun 09 30 Jun 08 30 Jun 09 30 Jun 08($'m) ($'m) ($'m) ($'m)

Transport InfrastructureDBCT - - - -PD Ports 10.2 11.0 10.2 11.0WestNet Rail 30.7 34.1 26.1 19.1Euroports 27.8 16.6 22.2 12.0

68.7 61.7 58.6 42.0

Energy Transmission & DistributionPowerco 15.6 25.5 21.9 25.5IEG 10.8 10.7 10.8 10.7CSC - - - -Australian ET&D 9.2 1.7 10.8 11.0NGPL - - 15.6 1.3TGN 2.9 - 2.9 -

38.5 37.9 62.0 48.5TOTAL 107.2 99.6 120.6 90.5

Statutory Proportional

Maintenance Capex - Australian ET&DWAGN 8.5 1.1 6.3 1.6WNE 0.6 0.6 0.6 0.6DBP - - 1.7 3.9MGN - - 2.2 4.8TGP - - - -TOTAL Australian ET&D 9.2 1.7 10.8 11.0

30

BBI Capital Management – Debt Maturities FY2010

1. Based on BBI’s proportionate ownership share. Assumes all debt fully drawn on maturity.2. In conjunction with 40% sell down in Euroports in July 2009 and acquisition of BBIPAL minorities, BBIPAL and Finnish

Ports facilities were refinanced out to August 2011 with a partial paydown of BBIPAL facility and cancellation of undrawn limits at Finnish Ports. BBI’s ownership share post sale totals c. €74.5m of the refinanced facilities.

€87.5m bank facility152Oct-09Finnish Ports (Euroports) 2

€40.9m bank facility71Aug-09BBIPAL (Euroports)2

£100m holdco facilities205Jul-09PDP

£3m working capital facility6Jan-10IEG

NZ$176.4m bank debt facilities142Nov-09Powerco

NZ$42m Subordinated bonds34Apr-10Powerco

Working capital facility4Apr-10MGH

Credit Wrapped bonds27Jul-09MGH

Working capital facility

Working capital facility

£82.2m bank facility

Detail

4May-10DBNGP

15Sept-09WAGN

829FY 10 Total

169Feb-10Corporate

Facilities (A$m)1Maturity DateAsset

31

BBI Capital Management – Debt Maturities FY2011

Bank facilities96May-11DBNGP

US$193.7m bank debt facilities239Feb-11CSC

Holdco bank debt facility259Jan-11AET&D

US$6m letter of credit facilities7Dec-10CSC

€224.6m bank debt facilities390Nov-10BPH (Euroports)2

Credit Wrapped bonds148Sept-10WAGN

NZ$125m bank facility101Dec-10Corporate

Bank debt facilities

£14.5m bank debt facility

NZ$42m credit wrapped bonds

NZ$12.6m working capital facility

Phase 2/3 expansion facility

US$275m and A$145m bank facility

Detail

10Mar-11Powerco

287Feb-11DBCT

602Jun-11WestNet Rail

30Mar-11IEG

34Mar-11Powerco

2,687FY 11 Total

484Feb-11Corporate

Facilities (A$m) 1Maturity DateAsset

1. Based on BBI’s proportionate ownership share. Assumes all debt fully drawn on maturity.2. Post 40% sell down in Euroports in July 2009 and acquisition of minority interest in BPH, BBI’s proportionate ownership share reduces to c. €179.7m of the BPH debt

facilities.

32

ASSET RESULTS

33

• Volumes negatively impacted from November to February as a result of global slow down. Strong volumes since February largely as aresult of Chinese demand for coal. No impact on EBITDA from these volume fluctuations as contracts are 100% take or pay.

• Throughput of 47Mt for FY09, approximately 9% up on prior year.

• EBITDA was $154m, 59% up on prior year due to increased contributions from 7X expansion phases. This result was $9.5m less than budgeted predominantly due to the delay in the Phase 2/3 –Step B commissioning.

• The final phase of DBCT’s 7X expansion project was formally handed over to the operator on 30 June 2009.

• Operational efficiency of the terminal continues to improve in line with the increased capacity.

Performance

• Terminal capacity now 85Mtpa and focus on maximising terminal performance and throughput to service customer needs.

• Progression of non-expansionary capex works ongoing to maintain service levels of facility. These costs will be incorporated into the terminal RAB and therefore increase EBITDA.

• Progress preparation for DBCT Regulatory Reset (reset date is 31December 2009 or later if extension to current regime is requested).

• Investigations into further expansion of the terminal beyond 85 Mtpa continuing through discussions with customers.

Outlook

DBCT

Source: DBCT management

* "Current Contracted Demand" assumes current contracts exercised at current levels with extension of expiry date option. "Indicative Future Demand" based on Access Applications as currently received from coal producers for additional terminal capacity.

Source: DBCT management

DBCT - Capacity & Contracted Demand

0

20

40

60

80

100

31 Dec 05 31 Dec 06 31 Dec 07 31 Dec 08 30 Jun 09

Cap

acity

(Mtp

a)

0

20

40

60

80

100

Con

trac

ted

Dem

and

(Mtp

a)

Terminal Capacity Contracted Demand

DBCT - Contracted Demand & Indicative Future Demand*

Current Contracted

Demand

Indicative Future Demand

0

50

100

150

200

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2020

Cont

ract

ed &

Indi

cativ

e Fu

ture

Dem

and

(Mtp

a) Current Contracted Demand Indicative Future Demand

34

WNR - Tonnage hauled

0

10

20

30

40

50

60

FY07 FY08 FY09

Tonn

age

haul

ed (M

tpa)

Bulk Minerals Other Grain

• Mixed volume performance with strong grain traffic, a rise in general WA freight, stable minerals traffic and lower interstate intermodal traffic, reflecting a strong harvest season but lower economic demand conditions throughout the year.

• EBITDA of $103.6m, 10% up on prior year performance and above expectations largely as a result of the traffic of high value grain cargo.

• Overall tonnage of 54.4Mtpa, up 3.0% over the prior year.

• Stay in business maintenance capex was $30.7m against a prior year of $34.1m. Analysis underway around optimum maintenance capex levels going forward.

• During February 2009 BBI increased its interest in WestNet Rail to approximately 96%.

Performance

• Further growth in minerals and general freight volumes. Current outlook for the 2009 grain crop is strong which bodes well in terms of transported volumes.

• Expected return to growth of intermodal traffic as underlying economic conditions improve.

• Continuation of discussions with Mid-West iron ore producers for step-change capacity increases to allow increased volumes into the Port of Geraldton.

Outlook

WestNet Rail

Source: WestNet Rail management.

WNR - EBITDA*

$93.7 $103.6

0

40

80

120

FY08 FY09

AU

D m

illio

n

*100% WNR EBITDA before minority interestsSource: WestNet Rail management.

35

• FY09 saw the European economies slide into recession. This negatively impacted a number of key product streams throughout the Euroports portfolio of 20+ European terminals. Despite this, overall volumes in FY09 were only 12% down on prior year.

• Container volumes rose 5.2% to 693,000 TEU reflecting the niche nature of Euroports’ container business, focusing on barge container traffic rather than deep-sea traffic which has seen reductions of over 20% through the economic cycle.

• Non-containerised volumes, in the form of heavy dry bulk, specialised dry bulk, liquid bulk and specialist general cargo, were down 13.7% to approximately 52Mt. Much of this reduction was due to an absence of fertiliser usage over the European summer and a poor Northern European sugar harvest in CY08.

• EBITDA was €68m, which is below expectations due to the severity of the economic recession and the severe negative impact of a contraction in trade financing which heavily curtailed trade in Q3 and Q4.

Performance

Euroports

Euroports - Non-container Volume

0

10

20

30

40

50

60

70

FY06 FY07 FY08 FY09

Non

-con

tain

er V

olum

e (M

tpa)

January to June

July to December

Source: Euroports management

Source: Euroports management

• Steady volume growth out of the recession resulting in an improved volume of heavy bulk and industrial specialised bulk. Continued growth in container volumes reflecting the strong positioning of the Euroports barge terminals. Improved agricultural related volumes with a return of trade financing.

• Management emphasis will be on further bolstering of corporate oversight and centralised portfolio management in key commercial and operational areas and realising operational efficiency improvements and synergies.

• Controlled non-expansionary capex, as required spend on cranes in Italy is balanced by a contraction in spending around the portfolio.

Outlook

Euroports - Container Volume

0

100

200

300

400

500

600

700

FY06 FY07 FY08 FY09

Con

tain

er V

olum

e (T

EU '0

00)

January to June

July to December

36

• In FY09 PDP experienced a further reduction in river traffic on the Tees centrally as a result of the severity of the UK recession. This reduction was experienced across the board with lower volumes ofliquids, dry bulk, containers and general cargo.

• Overall container volumes dropped to 523,000 TEU on the back of a 26% reduction in lo-lo volumes and a 14% reduction in ro-ro traffic. In August 2009 the first containers were handled through PDP forthe new Tesco distribution centre which has been completed on schedule. This, along with further port centric marketing programs is resulting in very strong container growth in the first few months of FY10.

• Non-containerised conservancy traffic on the Tees dropped to 35.0 Mt, a reduction of 11% on prior year. This was largely due to the uncertainty around the future of the Corus TCP industry and the shut down of a number of chemical plants on the Tees.

Performance

PD PortsPD Ports - Non-container Volume

0

10

20

30

40

50

FY07 FY08 FY09

Non

-con

tain

er V

olum

e (M

tpa)

Other Bulk oil

• Management’s current focus is on cost cutting with major reductions planned in headcount and expenses throughout the operational profile in the group.

• Strong container growth in H1 FY10 on the back of port centric initiatives by management and continued expansion of distributions centres.

• Working closely with new customers to attract new business to the Tees such as a new biomass power station at Tees and industrial development at Hartlepool relating to the offshore wind farm industry.

Outlook

Source: PD Ports management.

Source: PD Ports management.

PD Ports - Container Volume

0

100

200

300

400

500

600

700

FY07 FY08 FY09

Con

tain

er V

olum

e (T

EU '0

00)

Teesport HCT

37

Powerco

*Powerco NZ Operations (100% basis)

• On 26 February BBI announced that it had completed the sale of a 58% stake in Powerco to QIC. The Tasmanian business was kept by BBI.

• Powerco’s New Zealand operations have performed well with underlying revenue and EBITDA (on a 100% basis for the full year) both being higher due to increased electricity volumes and customer contributions with new connections.

• These increases were offset by lower gas revenue associated with the impact of the New Zealand Commerce Commission’s gas regulatory decision made during the year.

• Both Powerco’s gas and electricity network reliability performed on target.

• The increase in total electricity connections was lower than last year, mainly due to a number of ‘wash-ups’ within the national registry.

• The decline in NZ gas connections over the past three years is a result of significant increases in gas retailers’ fixed daily charges which has resulted in low-use gas customers disconnecting from the network. This has been balanced, in terms of gas through-put, by the addition of a lower number of higher-use new connections, particularly in the Wellington region.

Performance Powerco NZ Operations* - EBITDA

$219.5 $221.6

0

50

100

150

200

250

FY08 FY09

NZD

mill

ion

38

Powerco - Electricity Throughput

0

1,000

2,000

3,000

4,000

5,000

FY07 FY08 FY09

Elec

tric

ity T

hrou

ghpu

t (G

Wh)

January to June

July to December

• Performance expectations are based on continued moderate growth,however the slowing NZ economy will continue to impact short / medium term growth rates.

• The Commerce Commission is required to set an initial Default Price Path (DPP) by 1 April 2010 to apply for the next five years. The DPP will take the form of a CPI-X mechanism with a single X-factor applied across the sector. A final decision on the DPP is expected by 1 December 2009.

• With the final Gas tariff re-set decision being reached last year, management now have the clarity to focus on targeted growth of the gas business.

• Powerco will continue to pursue opportunities to provide transmission interconnections to a number of new wind generation developmentswithin its footprint.

Outlook

Powerco

Source: Powerco management

Source: Powerco management

Powerco - Electricity Connections

0

50

100

150

200

250

300

350

30 Jun 07 30 Jun 08 30 Jun 09

Elec

tric

ity C

onne

ctio

ns ('

000)

39

• The EBITDA in local currency from continuing operations (ie Islands and UK businesses) has increased 22% from last year to £33.8m.

• In May 2009, BBI sold its IEG Portugal business to Fundo Explorer II. The net proceeds of this sale were applied to the reduction of debt at the IEG level.

• The island businesses have performed above last year due to a colder winter and the softening of the LPG procurement cost.

• The UK business increased gas and electricity connections by 10.5% to 378,954

• The UK Housing market is under severe strain which has impacted growth in the order book for both the gas and electricity “last mile”businesses, as developers focus on building out existing developments and delaying new green field investments

Performance

IEG

Source: IEG management.

IEG - Energy Throughput

0

250

500

750

FY07 FY08 FY09

Ener

gy T

hrou

ghpu

t (G

Wh)

January to June

July to December

40

• The UK Housing market remains severely depressed. Although connections of previously contracted sites continue, there has been a significant reduction in new developments. However, there are now some signs emerging in the UK that residential construction is beginning to improve.

• A stable performance is expected with the Island businesses.

Outlook

IEG

Source: IEG management.

IEG - Orders Secured

0

10

20

30

40

50

60

70

80

90

FY 2007 FY 2008 FY 2009

Ord

ers

Secu

red

Elec

t & G

as ('

000)

January to June

July to December

IEG - Contracted Connections

0

100

200

300

400

500

600

30 Jun 07 30 Jun 08 30 Jun 09

Ord

ers

Secu

red

Elec

t & G

as ('

000)

Connections Order Book (Current)

41

• Slightly higher EBITDA of US$15.9m against the pcp of US$13.9m driven by increased tariff rates from 1 July 2008, the commencement of a services contract with a third party owner of a similar HVDC cable, and the provision of dark fibre services to third parties

• LIPA 12-month rolling availability on 30th June 2009 was 99.06% comfortably ahead of target and contractual obligations (98%)

Performance

• Stable performance based on high availability of quality plant and long term capacity contract for service.

• Potential for minor increase in earnings through provision of further dark fibre services to third parties

Outlook

CSC

Source: CSC management.

CSC - Rolling Availability

0

20

40

60

80

100

FY2007 FY2008 FY2009

Rol

ling

avai

labi

lity

(%)

Rolling availability (%) Availability target 98%

CSC - EBITDA

$13.9$15.9

0

5

10

15

20

FY08 FY09

USD

mill

ion

42

• Full year contribution received from NGPL this year (prior year was four months)

• Demand for NGPL transportation and storage services have been strong, reflected in increased forward capacity bookings at favourable prices.

• Annual throughput has increased 12% to 2109 PJ (equivalent to more than Australia’s national annual demand)

• Operational performance has been solid

Performance

• Continued strong demand for transportation is expected due to the pipeline’s proximity to major low-cost production areas including the Barnett, Fayetteville and Haynesville Shales

• Continued strong demand for storage assets due to continued price volatility especially between seasons

Outlook

NGPLNGPL - Gas Throughput

0

400

800

1,200

1,600

2,000

2,400

FY07 FY08 FY09

Thro

ughp

ut (P

J)

January to June

July to December

Source: Kinder Morgan management

43

• Insert text here



• The EBITDA decreased from pcp to $17.8m (on a proportionally consolidated basis) mainly due to the slow down in the Western Australian economy. This has resulted in delays to a number of gas transmission, distribution and electricity capital expansion projects.

• The full separation from Alinta Asset Management was successfully achieved this year with the commissioning of new systems, transfer of staff, and novations of relevant contracts.

• Significant progress was made on lifting the HSE performance to industry best practice with an improvement of the LTIFR to 0.6

• The commissioning of the Neerabup Power Station lateral and gatestation has almost been completed

Performance• Whilst the WA economy is expected to be slow for some time, a

number of delayed projects from last are expected to commence this year providing opportunities for WestNet Energy.

Outlook

WestNet Energy

44

• The EBITDA decreased slightly from pcp to $67.8m (on a proportionally consolidated basis) mainly due to the volume reduction impact following the Varanus incident despite a colder than average winter

• The total annual throughput dropped 3.6% to 28.9PJs

• The total number of connections increased 3%, by 18,074 to 610,294


Performance

• Steady growth is expected although will be constrained by the slow down in WA economy

• Management focus this year will be on preparation for the regulatory submission for the next tariff re-set , due 1 July 2010

Outlook

WA Gas Networks

Source: WestNet Energy management

Source: WestNet Energy management

WAGN - Total Gas Connections

0

100

200

300

400

500

600

700

30 Jun 07 30 Jun 08 30 Jun 09

Tota

l Gas

Con

nect

ions

('00

0)

WAGN - Gas Throughput

0

5

10

15

20

25

30

35

FY07 FY08 FY09

Thro

ughp

ut (P

J)

January to June

July to December

45

• EBITDA increased from pcp by 13% to $27.5m (on a proportionally consolidated basis) mainly due to a cold Victorian winter and continued expansion of the network, slightly offset by an initial price reduction in the tariffs from 1 July 2008

• New connections increased 1% to 660,191.

• The Yarra Valley expansion is now complete with RAB increasing 4% .

• The South Gippsland expansion project is also progressing.

Performance

• Steady growth expected on the build out of the new expansions toYarra valley and South Gippsland.

Outlook

Multinet

Source: Multinet management

Source: Multinet management.

Multinet - Gas Connections

0

200

400

600

800

30 Jun 07 30 Jun 08 30 Jun 09

Con

nect

ions

('00

0)

Multinet - Gas Throughput

0

20

40

60

80

FY07 FY08 FY09

Thro

ughp

ut (P

J)

January to June

July to December

46

• Throughput was behind last year at 11.6PJs, due to the mothballing of the existing Bell Bay gas-fired power station last year. This had an immaterial impact on EBITDA due the high level of fixed price capacity revenue

• The EBITDA increased slightly from pcp (on a proportionally consolidated basis excluding a doubtful provision of $36.5m)

Performance

• The commissioning of the Tamar Valley Power Station will increase throughput from later this year

• Due to the significant increases in electricity prices in Tasmania over the last year (and is expected to continue for some time), demand for cogeneration is expected to increase in the coming years

Outlook

Tasmanian Gas Pipeline

Source: WNG management

TGP - Gas Throughput

0

5

10

15

20

FY07 FY08 FY09

Thro

ughp

ut (P

J)

January to June

July to December

47

• The EBITDA increased from pcp by 19% to $54.9m (on a proportionally consolidated basis) mainly due to the continued expansion of the pipeline

• DBP’s 5A expansion project was fully commissioned in November 2008.

• Varanus Island incident had minimal impact on DBP’s EBITDA


• The previously outsourced WestNet O&M staff were internalised toDBP (with no material cost impact)

Performance

• Stage 5B Expansion will add a further 113 TJ/day capacity to thepipeline and will be operational in the second half of calendar year of 2010.

• All the capacity is booked out for at least 10 years ahead

• This project is being managed by BBI-owned WestNet Energy

Outlook

DBNGP

Source: DBP management

DBNGP - Full Haul Throughput

0

50

100

150

200

250

12 months to 30 Jun 07 12 months to 30 Jun 08 12 months to 30 Jun 09

Gas

Thr

ough

put (

PJ)

DBNGP - Full Haul Capacity

0

200

400

600

800

1 month to 30 Jun 07 1 month to 30 Jun 08 1 month to Jun 09

Full

Hau

l Cap

acity

(Ave

rage

TJ

/ day

)

2009 Full Year Resultss3-us-west-2.amazonaws.com/brr-streamguys/files/BBI/BBI...provided by BBI. Neither this presentation nor any of its contents may be reproduced or used for any

Documents