FUTURE GENERATION AUSTRALIA LIMITED — AGM Information 2011

Nov 7, 2011

Total pages: 49

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Hastings Funds Management Limited ABN 27 058 693 388 AFSL No. 238309 Australian Infrastructure Fund Limited ABN 97 063 935 553

Level 16, 90 Collins Street Melbourne VIC 3000 Australia T +61 3 8650 3600 F +61 3 8650 3701 www.hfm.com.au Melbourne, London, San Antonio, Sydney

ASX Announcement

Australian Infrastructure Fund (AIX)

8 November 2011

2011 Annual General Meeting and General Meeting

In accordance with Listing Rule 3.13.3, attached is the prepared presentation and address to be given by Australian Infrastructure Fund Limited’s Chairman and Chief Executive Officer at the Annual General Meeting of Australian Infrastructure Fund Limited and concurrent General Meeting of Australian Infrastructure Fund Trust to be held today at 2.30pm.

For further enquiries, please contact:

Jeff Pollock Chief Executive Officer Australian Infrastructure Fund Tel: +61 3 8650 3600 Fax: +61 3 8650 3701 Email: investor_relations@hfm.com.au Website: www.hfm.com.au/aix

Simon Ondaatje Head of Investor Relations Hastings Funds Management Tel: +61 3 8650 3600 Fax: +61 3 8650 3701 Email: investor_relations@hfm.com.au Website: www.hfm.com.au/aix

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Jane Frawley Company Secretary Australian Infrastructure Fund

Unless otherwise stated, the information contained in this document is for informational purposes only. It does not constitute an offer of securities and should not be relied upon as financial advice. The information has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person or entity. Before making an investment decision you should consider, with or without the assistance of a financial adviser, whether any investments are appropriate in light of your particular investment needs, objectives and financial circumstances. Neither Hastings, nor any of its related parties including Westpac Banking Corporation ABN 33 007 457 141, guarantees the repayment of capital or performance of any of the entities referred to in this document and past performance is no guarantee of future performance. Hastings, as the Manager or Trustee of various funds, is entitled to receive management and performance fees.

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Australian Infrastructure Fund
2011 Annual General Meeting
08 November 2011
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Photo: Perth Airport

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Australian Infrastructure Fund

Disclaimer

This presentation has been prepared by Hastings Funds Management Limited ABN 27 058 693 388 (HFML), holder of Australian Financial Services Licence number 238309, as responsible entity of the Australian Infrastructure Fund Trust (Trust or AIFT) and as manager of Australian Infrastructure Fund Limited (Company or AIFL). Together, the Company and the Trust comprise the Australian Infrastructure Fund (AIX). HFML is a subsidiary of Westpac Banking Corporation ABN 33 007 457 141 (Westpac).

The information contained in this presentation is for informational purposes only and does not constitute an offer to issue or arrange to issue, financial products. The information contained in this presentation is not financial product advice. This presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person. Before making an investment decision, you should read the publicly available information carefully and consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances. Past performance is no guarantee of future performance.

Neither HFML, Westpac nor any other member of the Westpac Group gives any guarantee or assurance as to the performance of AIX or the repayment of capital. Investments in AIX are not investments, deposits or other liabilities of HFML, Westpac or other members of the Westpac Group. Members of the Westpac Group may invest in or lend or provide other services to AIX and may be paid fees and expenses in relation to HFML‟s role as responsible entity or manager.

All data in this presentation has been calculated using the most accurate sources available, however any rates or totals manually calculated may differ from those shown due to rounding. Asset results for the year ended 30 June 2011 reflect the most current available at the time of publication and may be unaudited, and therefore subject to further adjustment following the publication of this report. Figures may also differ from those previously disclosed due to adjustments made following period end.

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Agenda

1. Chairman‟s Address

2. Chief Executive Officer‟s Report

3. Formal Business of the Meeting

Australian Infrastructure Fund

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Photo: Perth Airport

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Australian Infrastructure Fund

1. Chairman’s address – Mr. Paul Espie

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Photo: Darwin Airport

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Australian Infrastructure Fund

AIX portfolio highlights

• AIX portfolio performed strongly in a challenging environment

• Australian airport groups recorded both passenger (pax) and earnings growth

• Sustained growth reflected in the underlying value of portfolio assets

• Independent valuation of over $1.75 billion as at 30 June 2011

APAC¹ Perth Airport 25.7% 29.8%

• An increase of 10% on the prior year

• Distributions continue to be funded from operating cash flows

• Primary focus remains on AIX‟s Australian airport assets

• Portfolio composition by value:

  • 94.4% airports

  • 83.2% Australian airports

• Valuable organic growth opportunities exist at our Australian airport assets

Queensland Other Airports² 5.6% 15.4% European Airports[4] 11.2% Sydney Airport 6.6% NT Airports³ 5.6%

• (1) APAC comprises Melbourne Airport and 90% of Launceston Airport.

• (2) Queensland Airports comprises Gold Coast, Townsville and Mount Isa Airports.

• (3) NT Airports comprises Darwin, Alice Springs and Tennant Creek Airports.

• (4) European airports comprise Athens, Dusseldorf and Hamburg Airports and are held together with Sydney Airport via Hochtief Airport Capital (HTAC).

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Australian Infrastructure Fund

Passenger growth and demonstrated resilience

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9.8%
9.3%
8.9%
8.0%
7.6% 7.6%
6.8%
6.3%
Dec 10 - Jan 11 5.8%
QLD flood events
February 2011 June 2011
Cyclone Yasi, QLD Record cancellations
Cyclone Carlos,NT - Chilean ash cloud
Christchurch - Christchurch aftershock
earthquake
July 2011
March 2011 Tiger suspension
Japanese
earthquake
Fukushima disaster
1.2%
0.5%
0.3%
0.0% (0.3%) (0.9%)
Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11
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Note: Growth rates presented in this chart represent the increase in total passengers on the pcp for the AIX portfolio when weighted by AIX’s interest.

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Australian Infrastructure Fund

Key AIX airports long-term track record of growth

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11.5
Revenue EBITDA Passengers
10.7
239.2
10.0
9.5
210.7
8.6
7.9
179.6 2006/2011 CAGR
162.6
157.2
145.0 Pax: 7.8%
135.6
125.1
114.9 Rev: 13.8%
106.7
97.2
81.6 EBITDA: 14.0%
2006 2007 2008 2009 2010 2011
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Note: Key AIX airports comprise Perth Airport, APAC (Melbourne and Launceston Airports), QAL and NT Airports. All figures above are in millions.

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Australian Infrastructure Fund

History of growth and resilience

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160
GFC
140
120 9/11 terrorist attacks Sars
Ansett collapse
100 Queensland floods
Japanand NZ earthquakes
Chilean ash cloud
80
Recession
Gulf War
60
40
20
0
Revenue Pax (Millions)
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Note: Revenue Pax numbers detailed above relate to all Australian airports, not just airports within AIX’s portfolio Source: Bureau of Infrastructure, Transport and Regional Economics (BITRE)

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Vii
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Australian Infrastructure Fund

Opportunities for further growth

Organic

• Passenger growth continues to provide opportunities for further investment in our current airport assets

• A number of major expansion projects are in progress or have completed

• Further projects are planned

Property Development

• Several property developments took place at Melbourne and Perth Airport during FY11, with a growing list of quality tenants across AIX airports (e.g. Rio Tinto, Toll Group, Coles and Woolworths)

• With significant landbanks across the portfolio, opportunities exist to realise further value at AIX airports

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Photo: Melbourne Airport

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Australian Infrastructure Fund

AIX security price outperformed the market

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125 Australian Infrastructure Fund
30-Jun-2011
AIX 12.9%
S&P/ASX 200 Industrials
ASX200 Ind 3.6%
120
115
AIX 12.4%
110
105
100
ASX200 Ind -1.4%
95
90
85
Jun-10 Aug-10 Oct-10 Dec-10 Feb-11 Apr-11 Jun-11 Aug-11 Oct-11
Indexed to 30 June 2010
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Note: Based on close price as at 04 November 2011

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Australian Infrastructure Fund

Strategic commentary

• Primary focus on Australian airport assets

• Growth through organic expansion

• Increased interest in port assets

• Debt refinancing and operating contract negotiations completed at Geelong

• Strong volume and earnings growth at Geelong and Portland

• In active negotiations for potential sale of port assets

• Active dialogue with fellow HTAC co-investors and HOCHTIEF

• HOCHTIEF currently conducting sales process of HOCHTIEF Airports (HTA)

• Potential to realise additional value for AIX securityholders

• Active management of all assets

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Photo: Darwin Airport

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Australian Infrastructure Fund

Aviation regulatory environment - Productivity Commission review

• Productivity Commission review of Price Regulation of Airport Services effectively commenced in January 2011

• Airports and Hastings took an active part in the review

• Detailed submissions made supporting current „lighthanded‟ regime

• Airport and Hastings executives met with commissioners

• Productivity Commission issued its draft report on 22 August 2011

• Found firmly in favour of current „light-handed‟ regime

• ACCC granted ability to ask airports to “show cause” why they should not be reviewed under a Part VIIA price inquiry

• Airlines already have ability to request Part VIIA price inquiries, granting ACCC new power unlikely to have significant impact

• Productivity Commission has sought responses to draft recommendations before submitting final report to Australian Government (expected December 2011)

• Airports and Hastings continue to actively participate

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Photo: Perth Airport

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Australian Infrastructure Fund

Outlook

• Australian airport growth slowed in the second half of FY11 due to external shocks

• Likely to be subdued in the first half of FY12 – growth at Perth remains strong

• Confidence remains in long term growth and underlying value

• Confidence in the value of AIX‟s high quality European airport assets remains

• Economic conditions are difficult in Greece but German airports have returned to growth

• AIX portfolio is well placed going forward

• Diversified core airport portfolio

• Continued long term growth expected

• Further opportunities to invest in accretive organic growth projects

• Objective remains to improve security price to reflect underlying value of AIX‟s unique portfolio of quality assets

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Photo: Perth Airport

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Australian Infrastructure Fund

2. Chief Executive Officer’s report – Jeff Pollock

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Photo: Gold Coast Airport

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Australian Infrastructure Fund

AIX performance – key highlights

• All AIX Australian airport groups recorded both passenger (pax) and earnings growth

• Sustained growth • Demonstrated resilience in the face of a number of external shocks • Continued growth is supported with further investment

• • Sustainable capital structures in place, with a number of assets successfully re-financed in FY2011

• Active • Actively manage interest rate risk

• management • Strong distribution coverage maintained

• • Diversified core airport portfolio provides natural hedge

• • Outperformance of AIX security price against ASX 200 during FY11,

• Underlying value however underlying value remains discounted by market

• Diversified core airport portfolio provides natural hedge

• • Outperformance of AIX security price against ASX 200 during FY11, however underlying value remains discounted by market

• Property development opportunities provide upside to value

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Australian Infrastructure Fund

Key AIX airports[*] – passenger, revenue and earnings growth

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Growth FY11 against FY10:

Passengers

Revenue

EBITDA
23.8%
22.1%
17.6%
9.1% 9.9% 9.3% 9.4%
8.4% 8.3%
7.5%
4.8%
3.7%
APAC¹
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Queensland Airports³

NT Airports²

Perth Airport

* Key AIX airports comprise Perth Airport, APAC (Melbourne and Launceston Airports), QAL and NT Airports. Figures above are based on FY11 audited accounts and may differ slightly from the annual results presentation, which was based on FY11 unaudited management accounts.

• (1) APAC comprises Melbourne Airport and 90% of Launceston Airport.

• (2) NT Airports comprises Darwin, Alice Springs and Tennant Creek Airports.

• (3) Queensland Airports comprises Gold Coast, Townsville and Mount Isa Airports

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Australian Infrastructure Fund

Strong passenger growth over the long-term

5-year compound annual growth rates

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7.5%
5.4%
2.5%
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Australian GDP

Australian airports ¹

AIX's Australian airports ²

• 1Information sourced from BITRE

• 2 Passenger growth weighted by AIX’s interest. AIX’s Australian airports comprise Perth, APAC (Melbourne and Launceston Airports), QAL, NT and Sydney.

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Australian Infrastructure Fund

Continued growth supports further investment in AIX assets

Perth Airport

NT Airports

APAC

• 2011 - $28m new internal access road and security fencing

• 2012 - $22m T3 Phase 1 upgrade

• 2012 - New $127m terminal (Terminal WA) & circa $68m international terminal arrivals expansion

• 2013 - Further major circa $260m international terminal expansion, including domestic pier

• 2011 - Darwin Airport invested $4.5m in expanding the long term car park

• 2012 - An overlay is planned for the main apron at Alice Springs Airport at a cost of $8.5m

• 2014 - Darwin Airport is currently undertaking design work for a $33.5m terminal expansion, part of the $100m of aeronautical investment planned over the next ten years

• 2011 - Completed additional outbound facilities at Melbourne Airport‟s international terminal and new lounge and retail facilities

• 2012 - $45m runway resurfacing and lighting project completed at Melbourne Airport

• 2012 - Final stage of T2 international terminal expansion at Melbourne Airport

• 2012 – Construction of drive on-ramp and planning for forecourt redevelopment to reduce road congestion

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Australian Infrastructure Fund

Prudent gearing supports funding of growth opportunities

Asset		Net Debt/EV (1)	Senior ICR (2)
Perth Airport		33.1%	2.5 x
APAC		33.0%	3.6 x
Queensland Airports^		44.5%	2.2 x
NT Airports		39.3%	3.3 x
HTAC_(3)_		40.5%	3.2 x
Port of Portland		27.7%	3.8 x
Port of Geelong_(4)_		45.9%	2.0 x
Asset weighted average		36.8%	2.9 x
Fund weighted average		35.0%

Figures above (excl HTAC and Geelong) based on FY11 audited financials

• (1) Enterprise Value (EV) equals Net Debt (net external debt) plus independent valuations as at 30 June 2011.

• (2) Senior ICR reflects EBITDA for the year to 30 June 2011 divided by interest expense on external debt, net of interest received.

• (3) Net Debt/EV and Senior ICR for HTAC have been estimated by HFML based on information from HTAC and public sources.

• (4) Port of Geelong normalised EBITDA excludes effect of non-cash unrealised gain or loss on interest rate hedge.

• Prudent and sustainable levels of gearing

  • Healthy coverage ratios

  • Actively managed hedging policies in place

• History of successful asset refinancing

  • Melbourne Airport completed a $1.25bn refinancing program and issued $600m in the US private placement market in FY11

  • Since year end, NT Airports and Perth Airport have successfully completed their debt re-financing, raising additional facilities to fund expansion plans

  • Negotiations progressing on nearterm re-financing requirements at QAL

  • Fund level facility extended and upsized (from $30m to $100m); remains undrawn

• ^ Refinancing negotiations underway

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Australian Infrastructure Fund

European airports performance

• Economic environment in Greece continues to affect Athens airport performance

• Athens recorded an 8.3% fall in passenger numbers for the twelve months to 30 June 2011

• German airports returned to strong growth in passenger numbers over the same period

• Dusseldorf up 9.8%

• Hamburg up 7.8%

• Performance has improved at Athens in the June to September quarter

• 1.8% fall in passenger numbers

• German airports continue to record passenger growth over the same period

• Dusseldorf up 4.3%

• Hamburg up 2.3%

• German airports appear to confirm historical precedent of airports reverting to growth trends after periods of low or negative

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Photos: Dusseldorf and Hamburg airports

growth

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Australian Infrastructure Fund

Seaport performance

• AIX‟s investments in the Port of Portland and the Port of Geelong represent 5.3 % of the AIX portfolio by value

• Port of Portland

• Throughput up 33.7% on the pcp

• • Revenue up 43.5% on the pcp

• EBITDA up 65.0% on the pcp

• Port of Geelong

• Throughput up 16.6% on the pcp

• • Earnings up 27.7% on the pcp

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Photos: Port of Geelong

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Australian Infrastructure Fund

Summary profit and loss

	Change	FY11 ($’000)	FY10 ($’000)	• • • • •
Dividend/distribution/ interest/other income	(2%)	70,414	72,051
Gains on investments	19%	168,048	141,215
Total revenue	12%	238,462	213,266
Operating expenses	17%	(15,164)	(12,912)
Operating profit	11%	223,298	200,354
Finance costs	(47%)	(974)	(1,831)
Profit before tax		222,324	198,523
Income tax (expense) / benefit	38%	(10,003)	(7,270)
Net profit after tax	11%	212,321	191,253

Operating income broadly in line with pcp Gains on investments for the financial year, driven by increases in valuations for Perth Airport, APAC (largely comprising Melbourne Airport) and NT Airports

Operating expenses increased largely due to higher management fees which increased with market capitalisation (security price increase of 12.9% in FY11) AIX‟s fund level debt facility remained undrawn throughout FY2011 with a reduction in finance expenses due to upfront costs incurred in FY10 only (refinance completed in October 2009)

Uplift in income tax expense is a direct effect of gains on AIX‟s investments

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Australian Infrastructure Fund

Gross cashflow received from assets

Asset FY11 ($m) FY10 ($m)	Asset FY11 ($m) FY10 ($m)	Asset FY11 ($m) FY10 ($m)
Perth Airport	22.0(1)	19.1
APAC	16.7	15.2
QAL	25.2	9.5
NT Airports	8.1(2)	4.1
HTAC	14.4	6.0
Port of Portland	3.5	1.5
Port of Geelong	0.5	1.1
Statewide Roads	1.7	5.2
Gross cash flow	92.1	61.7

• Cash flow from assets increased significantly, partly due to increase in cash received from HTAC following repayment of debt facility in 2010

• QAL received $11.3m dividend relating to FY10 in FY11 (timing difference)

  • Dividend and loan note interest of $13.9m relating to FY11 was also received in FY11

• NT Airports received $1.3m distribution relating to FY10 in FY11 (timing difference)

• Increase in distribution from Port of Portland reflects strong growth in volumes and earnings

• Reduction in distribution from Statewide Roads was expected following end of toll road concession in February 2010

• (1) Excludes $18.7m in net proceeds received following redemption of Perth Airport convertible notes in March 2011, treated as a repayment of principal.

• (2) Includes $5.1m return of capital.

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Australian Infrastructure Fund

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Distributions funded from operating cash
7.9 7.5
11.9
14.4
- 5.1
6.8 -
13.9
16.7
64.3 62.1
22.0
7.0
$m
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Carry fwd Perth APAC QAL¹ NT HTAC Other² Change in Mgmt Other Available Dist'n from FY10 Airport Airports¹ receivables³ remun expenses dist'n declared

(1) Excludes $11.3m dividend from QAL and $1.3m distribution from NT Airports relating to FY10 and received in FY11. (2) Other includes Port of Portland, Port of Geelong, Statewide Roads and bank interest of $2.1 million.

(3) Change in receivables mainly comprises decreases in accrued interest and accrued distributions from HTAC and Port of Portland, respectively.

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Australian Infrastructure Fund

Underlying value growth over the long-term

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Perth Airport APAC Queensland Airports NT Airports HTAC Other $1,760
$1,618
5-year CAGR 16.1%
$1,370
$1,271
$956
$835
2006 2007 2008 2009 2010 2011
Asset values ($ millions)
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Australian Infrastructure Fund

Summary and outlook

• Portfolio performed strongly in FY11, with Perth Airport particularly strong

• Growth slowed in the second half of FY11 with a number of external shocks

• Economic conditions difficult in Greece but German airports returned to growth

• Growth likely to remain subdued in the first half of FY12

• Perth Airport likely to be the exception

• Confidence remains in long term growth and in the underlying value of AIX‟s assets

• Airport assets have historically proven resilient to economic and other external shocks

• We will continue to support accretive organic growth opportunities and to investigate further value enhancing opportunities for AIX security holders

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Photo: Perth Airport

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Australian Infrastructure Fund

Questions and comments

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Photo: Darwin Airport

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Australian Infrastructure Fund

3. Formal business of the meeting

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Photo: Perth Airport

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Australian Infrastructure Fund

Agenda Item 1

To receive and consider the Financial Report and the Reports of the Directors and the Auditor for the financial year ended 30 June 2011

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Australian Infrastructure Fund

Agenda Item 2

Robert Tsenin retires by rotation in accordance with the Company Constitution and, being eligible, offers himself for re-election as a Director

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Australian Infrastructure Fund

Agenda Item 3

Mike Hutchinson retires by rotation in accordance with the Company Constitution and, being eligible, offers himself for re-election as a Director

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Australian Infrastructure Fund

Agenda Item 4

To adopt the Remuneration Report for the financial year ended 30 June 2011

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Australian Infrastructure Fund
2011 Annual General Meeting
08 November 2011
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Photo: Perth Airport

2011 AIX AGM SCRIPT – Tuesday 8 November at 2.30 P.M.

[SLIDE 1] AIX AGM TITLE PAGE

[SLIDE 2] DISCLAIMER

[SLIDE 3] AGENDA

[SLIDE 4] CHAIRMAN’S ADDRESS - WELCOME (PAUL ESPIE)

Good afternoon Ladies and Gentlemen, my name is Paul Espie. It is my pleasure to welcome you to the fifteenth Annual General Meeting of the Australian Infrastructure Fund.

I am the Chairman of Australian Infrastructure Fund Limited and will be the Chairman for today’s meeting.

As this is also a General Meeting of the Australian Infrastructure Fund Trust, the Hastings Board has agreed, per our custom, for me to Chair that General Meeting.

During the proceedings you will have the opportunity to ask questions of Directors. The Chairman of Hastings Funds Management Limited (Hastings), Mr. Alan Cameron, and other Hastings Directors are also with us.

Firstly, I shall outline today’s agenda and make some remarks, to be followed by a presentation from our Chief Executive Officer, Jeff Pollock.

The formal part of the meeting will follow the agenda sent to you last month.

Now, to introduce you to my colleagues here today commencing on my right with:

• the Company Secretary, Jane Frawley;

• our Chief Executive Officer, Jeff Pollock;

and my fellow directors:

• Jim Evans;

• John Harvey, who is also Chairman of the Audit Committee;

• Robert Humphris;

• Mike Hutchinson; and

• Robert Tsenin.

Many of you would be aware that Steve Boulton retired as Hastings Chief Executive Officer in March this year and, as a consequence, stepped down from the AIFL Board.

Our auditor, Jim Power, of PricewaterhouseCoopers is also with us today, Jim please stand. Jim will be available to answer any queries you may have when we consider the Financial Statements.

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I have been advised that a quorum is present and now formally open the Annual General Meeting.

The Company Secretary has advised me that over 1200 valid proxies have been received for today’s meeting representing approximately 329 million securities in relation to which votes may be cast at the meeting.

[SLIDE 5] AIX PORTFOLIO HIGHLIGHTS

The Australian Infrastructure Fund’s portfolio of transport infrastructure assets has again delivered a strong performance for the year ended 30 June 2011 in a challenging global economic environment.

Passenger numbers for the AIX airport portfolio, weighted by our interest, grew by six percent on the previous year. The Australian airports performed particularly well, with all the AIX Australian airport groups achieving positive passenger and earnings growth: Perth and Melbourne airports being the stand out performers, recording growth of 9.4 percent and 7.8 percent respectively. Sustained growth in recent years is reflected in the value of the airport assets.

At year end, the value of the AIX portfolio, as independently assessed by KPMG, stood at over $1.75 billion, an increase of 10 percent on the previous year; whilst distributions continue to be funded from strong operating cash flows from the assets in which AIX invests.

As at 30 June 2011, Australian airports represented 83.2 percent of the AIX portfolio by value, and European airports 11.2 percent. AIX’s primary focus continues to be airports, and in particular, the Australian airport assets: they have a history of strong growth and we expect this to continue over the long term, providing further opportunity to invest in value-adding capital projects.

[SLIDE 6] PASSENGER GROWTH AND DEMONSTRATED RESILIENCE

This slide illustrates the increase in total passengers for the AIX portfolio, weighted by AIX’s interest in each asset, for each month since July 2010 as compared to the corresponding month in the prior year.

As can be seen, we experienced strong passenger growth, particularly in the first 7 months of the financial year.

International traffic through the Australian airports was particularly strong, with outbound passenger numbers buoyed by Australia’s relatively strong economy and exchange rate, encouraging Australians to travel abroad.

There were several external shocks in the second half of the financial year, including natural disasters in Queensland, New Zealand and Japan and record cancellations due to the Chilean ash cloud, all of which contributed to a more subdued second half.

Domestic passenger numbers were affected in the first quarter of the 2012 financial year as we recovered from these events and also by the suspension of Tiger Airways and the Qantas

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industrial dispute. International passenger numbers still remained relatively strong, however, and the portfolio still achieved overall growth in passenger numbers for the period. This growth was subdued and, with the exception of Perth Airport which continues to experience strong growth, we expect these trends to continue in the near term.

The nature of our portfolio and the diversified character of the individual airports is, we believe, a particular strength in the current environment. At Perth Airport we are part of a growing city and a strong regional economy, benefiting from the expanding resources sector; at Melbourne Airport we are part of a vibrant Australian gateway city, with a strong business sector, and a favoured tourist destination; Gold Coast Airport is primarily a tourist destination, served by low cost carriers; and Darwin Airport will benefit from the expanding Northern Territory economy, particularly in the resources sector, with its proximity to Asia. The strong Australian dollar has also benefitted Australian airports, as I’ve mentioned, with many Australians travelling overseas. In recent months the strong growth at Perth Airport has compensated for a subdued performance at our other Australian airports.

[SLIDE 7] KEY AIX AIRPORTS LONG-TERM TRACK RECORD OF GROWTH

A strong Australian economy, efficient management and timely investment at each of the key Australian airport assets has resulted in strong passenger growth over a sustained period. As illustrated on this slide, the strong passenger growth experienced over the last five years has been reflected in strong revenue and earnings growth, and an increase in the underlying value of AIX’s assets. Looking at these airports as a group, passenger numbers have grown at a compound annual growth rate of almost 8 percent since 2006, with revenue and earnings growing at around 14 percent over the same period. Over the economic cycle, including through the GFC, the key AIX airports have continued to deliver good results. They are well positioned to continue to perform through current uncertain global economic conditions.

[SLIDE 8] HISTORY OF GROWTH AND RESILIENCE

This slide charts the passenger growth trend at Australian airports since 1986 and illustrates sustained growth at Australian airports over this time, with returns to long term growth trends after significant economic and other external events.

[SLIDE 9] OPPORTUNITIES FOR FURTHER GROWTH

AIX has and will continue to invest in organic growth at its assets: this provides a solid foundation for continued revenue and earnings growth.

At the Australian airports, several expansion projects were completed or are in progress to capitalise on growth in passenger numbers and ensure capacity for projected growth. These include:

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• The $120 million terminal redevelopment at Gold Coast Airport, which has now completed its first full year of operation: the new facilities have been well received by airlines and passengers alike.

• NT Airports now plan to invest more than $100 million in aviation facilities over the next ten years, including a $33.5 million terminal expansion at Darwin for which detailed planning is underway following agreement with airlines.

• The $330 million international terminal expansion at Melbourne Airport, which is progressing on schedule for completion in December 2011, supporting Melbourne Airport’s international passenger growth and its plans to attract additional international carriers and passengers.

• The planned $500 million three-year redevelopment of Perth Airport terminal and related facilities, featuring several expansion projects designed to boost Perth Airport’s capacity, improve its functionality and optimise the long-term value of the asset. A further $360 million could also be invested over the next three years in airfield and other works and in property development opportunities at Perth Airport.

The major redevelopment of Perth Airport is already underway. Construction has commenced on the new Terminal WA domestic terminal which is expected to be completed in 18 months. Tenders are expected to be called prior to Christmas for the first works in the $270 million redevelopment of the International Terminal, with construction expected to commence in the first quarter of calendar year 2012 and complete in 2014. Major airfield works valued at $75 million have also commenced, including new taxiways and aircraft parking areas.

The Western Australian Government has concluded the important first scoping/design phase of its Gateway WA project which will see in excess of $750 million invested in upgrading the arterial roads in the vicinity of Perth Airport. The WA Government has advised its target is to commence construction of these road works in 2013. The Federal Government has committed in excess of $400 million to the Gateway WA project, subject to its proposed resource rent tax being passed by Parliament. Perth Airport is working closely with Main Roads WA to ensure the Gateway WA project compliments Perth Airport’s current and future needs.

In the meantime, Perth Airport has increased its car parking capacity by 49 percent in the past two years delivering 5,705 new car parking bays.

The expansion projects at Gold Coast, NT and Perth are underpinned by long term aeronautical pricing agreements with airline customers. Melbourne Airport is currently in negotiations on its aeronautical pricing arrangements beyond June 2012.

These expansion projects will be funded by a combination of debt and equity contributions from AIX and other airport shareholders. During the year, Melbourne Airport successfully completed a planned $1.25 billion debt refinancing project and issued US$600 million in the US Private

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Placement market. Since the year end NT Airports and Perth Airport have both announced the successful completion of their refinancing and debt raising programs. Jeff will take us through these milestones in his address.

[SLIDE 10] AIX SECURITY PRICE OUTPERFORMED THE MARKET

The AIX security price performed strongly during the year, closing at $1.92 on 30 June 2011, up 12.9 percent from its closing price of $1.70 on 30 June 2010 and outperforming the S&P/ASX 200 Industrials Index, which increased 3.6 percent over the same period. Since the year end the AIX security price has fluctuated as the market has fluctuated, closing on Friday night at $1.91, almost flat since the year end. The S&P/ASX 200 Industrials Index decreased 4.9 percent over the same period.

The outperformance of AIX’s securities has been driven by the performance of the assets in the portfolio and the recognition in the market of the unique quality of airport assets: their resilience and the diversified characteristics of each asset, a particular strength in the current environment.

[SLIDE 11] STRATEGIC COMMENTARY

Despite the strong security price performance your Board and Hastings as fund manager are acutely aware that the security is still trading at a significant discount to its net asset value, as derived by independent assessment of the individual assets in the portfolio. These valuations attribute a net asset value per AIX security as at 30 June 2011 of $2.85 compared to the AIX closing price of $1.92 on the same day. We remain committed to closing this gap.

In addition to the investment in organic growth at AIX’s assets and day-to-day active asset management, we have actively pursued the concentration of the portfolio to its core Australian airports.

We have achieved a number of milestones with our Port assets in the past year including completion of the debt refinancing program and the renegotiation of the operating contract at the Port of Geelong and achieving strong volumes and earnings growth at both Geelong and the Port of Portland. Having achieved this, we are now in active negotiations over the potential sale of these assets.

You will be aware that Hochtief AG is currently conducting a sales process in relation to its Hochtief Airports business (HTA), which is also the manager of HTAC, the vehicle through which AIX holds its investments in Athens, Dusseldorf, Hamburg and Sydney airports. We are currently in active dialogue with our HTAC co-investors and Hochtief investigating potential value enhancing outcomes for these parties, including realisation of additional value from this investment for AIX securityholders.

During the year we have received queries from investors inter alia about the future of the external management of the Fund.

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The Fund was established as externally managed from the outset. Hastings has served it well over time, on competitive terms. In particular it has avoided the excesses of transaction fees and related party transaction history that tainted some other externally managed funds. It has also responded well to the requirements of the independent Board of AIFL.

We have thus acquired and developed a portfolio of assets, which in our opinion, is now worth considerably more at fair value than the market capitalisation of AIX.

As both the listed market and the infrastructure market continue to evolve and mature, it is appropriate for your Boards to continually review the Fund's strategy, including its management structure and to consider any option that will deliver value to securityholders.

As well as actively pursuing a strategy of realizing greater value for our security holders from our non-core assets, which may include divesting these assets for appropriate value, the Board and the Independent Directors of HFML (the responsible entity of AIFT) are reviewing other potential strategies, including whether a restructure to internalise the management of the Fund could be in the best interests of securityholders, and on what basis. There are a number of issues to be assessed, including how best to address the complexities in the provisions of the shareholder agreements affecting the Fund’s investments.

A decision to internalise or remain as an externally managed fund can only be made once the many complex issues have been considered. You can be assured that any decision will be made with the best interests of security holders as paramount.

The Board will update securityholders on any material developments as soon as it is appropriate to do so.

[SLIDE 12] AVIATION REGULATORY ENVIRONMENT - PRODUCTIVITY COMMISSION REVIEW

As AIX continues to invest, it will monitor and seek to influence the regulatory environment in which its assets operate, including the current Productivity Commission Review of Price Regulation of Airport Services.

The Australian airports in which AIX is invested have taken an active part in this review, which effectively commenced in January 2011. Each of the airports made submissions in support of the current ‘light-handed’ price monitoring regime, with some improvements suggested. Airport representatives also met with the Commissioners. Hastings, on behalf of AIX and other funds it manages, has liaised closely with the various airport management teams and made a detailed submission from an owner’s perspective. Hastings executives also met with the Commissioners.

The Productivity Commission released its draft report on 22 August. On balance, the draft report found clearly in favour of the current ‘light-handed’ regulatory regime.

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In October 2011 the ACCC made a further submission to the Productivity Commission advocating a move away from the current ‘light-handed’ regime. This is based on a view expressed by the ACCC that some airports may have exercised market power. What the ACCC is effectively advocating is the introduction of a ‘heavy-handed’ regulatory regime without any appropriate analysis to determine whether such regulation is necessary. This ignores the high cost of regulation where it is not needed or of introducing the wrong regulatory structure to a dynamic industry sector which is working to public benefit. Such action will act as a brake on much needed investment.

The ACCC appears to have ignored the Productivity Commission’s findings, which noted that aeronautical charges do not indicate misuse of market power, quality outcomes are generally satisfactory, and airport profits and charges look reasonable compared with outcomes at airports overseas.

AIX is supportive of the Productivity Commission’s draft findings.

The Productivity Commission has sought responses to its draft recommendations before submitting its final report to the Australian Government, which is expected to occur in December 2011. Airports and Hastings have continued to actively participate in this process and in recent months have presented at public hearings and have made supplementary submissions to the Commission.

[SLIDE 13] OUTLOOK

Looking forward, the AIX portfolio is well placed, with the diversified nature of the Australian airports being a particular strength in the continuing uncertain global economic environment.

Overall passenger growth slowed in the second half of the financial year, due in part to external one off shocks and, as anticipated, domestic growth remains relatively subdued, except at Perth which continues to benefit from the strong resources sector. We expect continued growth in the number of international passengers moving through our Australian airports, although this growth is likely to be less than the high numbers experienced in the 2011 financial year. The grounding of Tiger in July contributed to a subdued first quarter in the current financial year and while the Qantas dispute did have an effect, industrial action to date is not expected to be significant in terms of the annual revenues at the AIX Australian airports. Qantas does account for a significant proportion of the travelling public at most of these airports and, while we cannot be certain, we can only hope that the new law (Fair Work Australia) will allow a move towards a resolution without further disruptions to Qantas flights.

In the medium to long term, we expect continued growth in the Australian airport portfolio, as has historically been the case.

In Europe economic conditions remain difficult. We expect passenger traffic through Athens Airport, which makes up 3.4 percent of the AIX portfolio by value, to continue to reflect the tough

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economic conditions in Greece over the year ahead. Our German airports however experienced strong growth in the twelve months to 30 June 2011 after the low growth experienced in the corresponding period to 30 June 2010. As mentioned earlier, periods of depressed growth in passenger numbers are typically followed by a return to longer term growth trends, and we remain confident of the value of these high-quality airport assets. Jeff will talk about the performance of the European airports in more detail in his address.

AIX will continue to encourage its asset managers to focus on deriving the maximum value from the organic growth opportunities that exist at their assets. In the absence of compelling and value accretive acquisition opportunities, with our securities undervalued as they are presently, it is unlikely that AIX will add to its portfolio of assets in the near term.

The Manager and your Boards will continue to work towards improving the value of the AIX security price against the independently assessed net asset value of the Fund and the true potential of the portfolio. We continue to work to highlight the underlying value of this unique portfolio of quality assets and ‘close the gap’ between that value and that of our listed securities.

[SLIDE 14] CHIEF EXECUTIVE OFFICER’S REPORT - INTRODUCTION

Good afternoon ladies and gentlemen.

As Paul mentioned earlier, the AIX portfolio of assets performed strongly in the 2011 financial year and has demonstrated its resilience in a continuing uncertain economic environment. 135 million passengers passed through the airports represented in the AIX portfolio during the year, an increase of five percent on the prior year.

When weighted by AIX’s ownership interest in these airports, passenger numbers grew by six percent.

[SLIDE 15] AIX PERFORMANCE - KEY HIGHLIGHTS

The AIX portfolio continues to produce sustained growth, with all Australian airport investments delivering passenger and earnings growth in 2011. As mentioned earlier, this was achieved in a period characterised by an uncertain global economic environment and affected by a number of significant external shocks, including the natural disasters in Australia and abroad. The inherent resilience of the assets in the portfolio, particularly the Australian airports, is complemented by experienced management teams at the assets and the active approach undertaken by AIX’s boards of directors and its management team. The management teams at our assets are to be complemented for delivering a number of successful outcomes, including completion of capital projects at a number of the assets; reaching important aeronautical pricing agreements with our airline customers at Perth Airport and Darwin Airport, which will underpin future investment at these airports; continued route development in partnership with our customers, in particular at Melbourne Airport; and delivering a high quality product while processing record numbers of passengers through these facilities.

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Conservative gearing continues to be a focus, with a number of assets successfully completing debt re-financings since the start of the 2011 financial year, on materially better terms than those last negotiated during the GFC, as well as negotiating additional facilities to fund expansion where required. In addition, AIX re-financed and up-sized its fund level stand-by facility from $30 million to $100 million. This facility remains undrawn but provides AIX with the capability to readily support organic growth at our assets, if required.

Strong cash generation at the asset level combined with conservative gearing has enabled AIX to continue to pay stable cash covered distributions while growing the underlying value of the portfolio.

[SLIDE 16] KEY AIX AIRPORTS – PASSENGER, REVENUE AND EARNINGS GROWTH

As at 30 June 2011, Australian airports represented 83.2 percent of the AIX portfolio by value, performing strongly in the 2011 financial year. Perth Airport and Melbourne Airport were again stand out performers in the 2011 financial year and reinforced their status as strategically important infrastructure assets for Australia, and for the AIX portfolio.

All four Australian airport groups recorded growth in passenger numbers, revenue and earnings in the 2011 financial year, as is demonstrated on the slide behind me.

Perth Airport recorded passenger growth of 9.4 percent for the year, representing a compound annual growth rate of 9.9 percent over the past five years. Passenger growth at Perth Airport continued to reflect its strategic importance to the strong Western Australian resource based economy and the continuing penetration of low cost carriers into the market, particularly the international market. The strong Australian dollar and the relative strength of the Australian economy further stimulated Australian outbound travel resulting in an increase in international passenger numbers at Perth of 9.1 percent. Perth Airport's revenue and earnings also benefitted from its prior investment in developing its property assets, many of which are now generating significant revenues.

Melbourne Airport experienced passenger growth of 7.8 percent for the year, giving a compound annual growth rate of 5.7 percent over the past five years. Melbourne is a major Australian city with its growing population and industry driving increases in airport traffic. Melbourne Airport also benefitted from continuing low cost carrier penetration, business demand and strong international passenger growth aided by new Asian routes and supported by the strong Australian dollar. International passenger numbers grew by 13.5 percent at Melbourne Airport.

Queensland Airports Limited or "QAL", which owns Gold Coast, Townsville and Mount Isa airports, experienced strong growth in the first half of the financial year but was significantly affected by the external shocks referred to earlier in the second half of the year. However, QAL still recorded passenger growth of 4.8 percent for the year, giving a compound annual growth rate of 8.1 percent over the past five years. QAL's revenue and earnings continue to benefit from its investment in the

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Gold Coast terminal refurbishment, with the terminal completing its first full year of operations during the 2011 financial year.

Passenger numbers for NT Airports, which owns and operates Darwin International Airport as well as Alice Springs and Tennant Creek airports, increased by 3.7 percent for the year. Darwin International Airport passenger numbers grew by 6.9 percent but this growth was partially offset by a decline in passenger numbers of 6.4 percent through Alice Springs Airport, reflecting weak tourist demand at Alice. Darwin International Airport’s importance as a vital link between Australia and Asia was again illustrated, with international passenger numbers growing by 19.4 percent.

[SLIDE 17] STRONG PASSENGER GROWTH OVER THE LONG-TERM

The Australian airports, when weighted by AIX’s interests, have experienced a compound annual passenger growth rate over the past five years of 7.5 percent, outperforming the compound annual growth rates of all Australian airports combined (5.4 percent), as well as GDP (2.5 percent) over the same time period, which we believe, demonstrates the strategic and diversified benefits of the individual airports that make up the AIX portfolio.

[SLIDE 18] CONTINUED GROWTH SUPPORTS FURTHER INVESTMENT IN AIX ASSETS

A number of expansion projects are underway to capitalise on the growth being experienced at AIX’s Australian airports and to cater for future capacity requirements.

In October 2010, AIX announced that Darwin International Airport’s new aviation pricing agreement with Qantas Group would allow it to confidently invest more than $100 million in aviation facilities over the next ten years, including a $33.5 million terminal expansion for which detailed planning is underway. The pricing agreement and subsequent development plans represent a significant milestone in the ongoing evolution of Darwin International Airport into a leading international gateway.

In November 2010, AIX welcomed the release of Perth Airport’s $500 million three year terminal redevelopment plan, which forms part of its broader long term growth plans and evolved from its Vision for the Future released in 2008. The planned redevelopment will comprise:

• the expansion of the international terminal, including a shared domestic/international pier to cater for larger twin aisled aircraft;

• the construction of a new terminal, Terminal WA, to cater for the increasing demand for intrastate services; and

• the expansion of airfield aprons, taxiways and aircraft parking areas; and improved retail facilities, roads and car parking.

Perth Airport has entered into a seven year pricing agreement with the Qantas Group. This agreement, together with similar agreements reached with other airlines representing

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approximately 83% of passenger movements at Perth Airport, will help underpin the planned development.

A further $360 million dollars could also be invested over the next three years in other value enhancing aeronautical expansion projects and property development opportunities at Perth Airport.

The $330 million international terminal expansion at Melbourne Airport is progressing on schedule and within budget. Following completion of the new passenger concourse in December 2009 and the provision of additional outbound passenger security and screening facilities in March 2010 (including additional customs desks and x-ray stations), new passenger lounge and retail facilities were unveiled in November 2010 offering more café, lounge and specialty retail opportunities. Further retail outlets will be unveiled prior to completion. Melbourne Airport also recently completed a $45 million Runway Overlay project which involved the resurfacing of both runways and upgrading the runway lighting system.

AIX has and will continue to support investment in sensible and value enhancing organic growth opportunities at the airports in which we are invested.

[SLIDE 19] PRUDENT GEARING SUPPORTS FUNDING OF GROWTH OPPORTUNITIES

The assets in the AIX portfolio have maintained prudent levels of debt with healthy coverage ratios and have actively managed interest rate risk by implementing appropriate hedging strategies. The assets have a track record of successfully refinancing debt facilities as needed, including during the Global Financial Crisis (GFC). As a result, the assets were in a strong position to fund their significant expansion plans and successfully refinance existing debt facilities.

In the past year, Melbourne Airport successfully completed a refinancing program, which commenced in August 2010 with $1.25 billion in bank debt and bonds, and was completed in June 2011 with the successful issue of US$600 million in the US Private Placement market.

In November 2011, NT Airports announced that it had successfully completed its debt renewal program, refinancing expiring debt of $225 million at improved rates and on improved terms and conditions and agreeing new capital expenditure facilities totaling $125 million. These new facilities will allow NT Airports to finance its aeronautical expansion plans, underpinned by its aeronautical pricing agreement, and provide flexibility to invest in other value adding capital projects, including car parking and retail facilities.

Perth Airport refinanced and drew down $120 million of existing facilities during the year, with the proceeds used to fully redeem convertible notes and the remainder applied towards funding capital requirements. The convertible note redemption occurred on 24 March 2011, with AIX, as a holder of these notes, receiving its $18.4 million share of the principal repayment.

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On 02 November, Perth Airport announced the successful completion of a major $1.23 billion senior debt financing, including the re-finance of its existing debt facilities at improved rates and on improved terms and conditions, as well as agreeing new capital expenditure facilities to fund its aeronautical expansion plans, which are underpinned by its long term aeronautical pricing agreement, as well as its non-aeronautical and property expansion plans. Perth Airport intends to seek up to an additional $175 million in equity commitments from Perth Airport shareholders. Current equity commitments totaling $53 million would be cancelled, resulting in a net commitment of up to $122 million. AIX’s pro-rata share of this net new equity commitment would be $36 million, which can be funded from currently available sources.

During the year the Port of Geelong also successfully refinanced its expiring debt, supported by a small equity contribution from its shareholders and QAL is currently in positive discussions with banks to refinance debt facilities prior to their April 2012 maturity.

[SLIDE 20] EUROPEAN AIRPORTS PERFORMANCE

The European airports continued to be affected by the complex economic conditions in Europe. Greece faces a difficult economic environment and this was reflected in the performance of Athens Airport, which recorded an 8.3 percent fall in passenger numbers for the twelve months ended 30 June 2011. The German airports in the portfolio, however, provided strong growth with Dusseldorf and Hamburg recording growth in passenger numbers of 9.8 percent and 7.8 percent respectively for the twelve months ended 30 June 2011.

Since the year end, Athens Airport's performance has improved and although it recorded a fall in passenger numbers in the June to September 2011 period, as compared to the same period last year, this fall was only 1.8 percent. The German airports continue to record passenger growth, with Dusseldorf and Hamburg both achieving growth of 4.3 percent and 2.3 percent respectively in the September quarter.

The German airports appear to confirm the historical precedent of airports strongly reverting to growth trends after periods of low or negative growth.

[SLIDE 21] SEAPORT PERFORMANCE

In addition to the strong performance of the airport assets in the 2011 financial year, the seaports also recorded improved performance. AIX’s investments in the Port of Portland and the Port of Geelong represent 5.3 percent of the AIX portfolio by value.

Throughput at the Port of Portland was up 33.7 percent on the previous year, with easing drought conditions resulting in strong grain and fertiliser volumes. Woodchip volumes were marginally above prior year and, in November 2010, the Gunns hardwood chip facility was commissioned and received its first delivery of woodchips. The improved volumes through the Port resulted in an increase in revenue of 43.5 percent compared to the prior year and an increase in Earnings Before Interest, Depreciation and Amortisation (EBITDA) of 65.0 percent.

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Volumes at the Port of Geelong grew by 16.6 percent on the prior financial year. Earnings generated by the Port of Geelong Unit Trust (the entity through which AIX holds its investment) increased by 27.7 percent on the prior financial year. The strong performance was driven by increased fertiliser volumes, with tonnage almost twice that of the prior year, as a result of high levels of rainfall in south east Australia and the re-opening of Incitec Pivot’s superphosphate plant in Geelong.

[SLIDE 22] SUMMARY PROFIT AND LOSS

I will now turn briefly to AIX’s financial performance for the 2011 financial year.

Revenue from ordinary activities increased 11.8 percent on the prior year from $213.3 million to $238.5 million, largely driven by unrealised gains in the independent valuation of the assets in the portfolio.

Net gains in the value of unlisted securities for the year were $168.0 million, compared to $141.2 million in the prior year. The value of the assets in the portfolio is determined by discounting the projected future cash flows of the assets, with assumptions made about the future operations and development of each asset.

Revenue from ordinary activities excluding gains/losses was $70.4 million for the year, largely in line with the $72.1 million achieved in the prior year.

[SLIDE 23] GROSS CASHFLOW RECEIVED FROM ASSETS

The assets comprising the AIX portfolio contributed $92.1 million in cash flows to the fund during the year compared to $61.7 million in the prior year, an increase of 49.3 percent on the prior year. The cash was in the form of distributions, dividends, interest on shareholder loans and capital returns.

The significant increase in cash received from assets was partly due to an increase in cash received from HOCHTIEF AirPort Capital (HTAC), the vehicle through which AIX owns its interests in Dusseldorf, Hamburg, Athens and Sydney airports. HTAC contributed $14.4 million to AIX cash flows in the year to 30 June 2011 compared with $6.0 million in the prior year, when HTAC utilised returns received from underlying investments to repay in full its debt facilities, rather than pay a distribution.

Additional amounts were also received from Perth Airport, QAL and NT Airports compared to the prior year reflecting distribution growth from these assets.

An increased distribution was received from APAC, the owner of Melbourne Airport, reflecting a small increase in AIX’s ownership interest.

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[SLIDE 24] DISTRIBUTIONS FUNDED FROM OPERATING CASH

Distributions to AIX securityholders continue to be aligned to cash flows. The slide behind me illustrates cash received from the assets in our portfolio during the year, adjusted for changes in cash receivables to ensure we do not double count; as well as fund level expenses and amounts paid in distributions to AIX securityholders.

As you can see the amount of net cash derived from operating cash flows, being in effect cash distributions received from our assets less fund level expenses, fully covers the distribution paid by AIX to our securityholders. AIX does not fund distributions from borrowings.

[SLIDE 25] UNDERLYING VALUE GROWTH OVER THE LONG-TERM

Sustained revenue and earnings growth since 2006, together with prudent gearing policies, sound and active management, timely investment, appropriate acquisitions and appropriate distribution policies, have resulted in continued growth in the underlying value of the assets in AIX’s portfolio, as is illustrated on the slide behind me.

[SLIDE 26] SUMMARY AND OUTLOOK

The AIX portfolio performed strongly in the 2011 financial year. Perth Airport in particular benefited from the strength of the Australian economy generally and in particular the mining and resources sector. The strong Australian dollar also provided stimulus for outbound international passenger growth at Perth, Melbourne and Darwin airports.

Gold Coast Airport has experienced a tough operating environment in the last nine months resulting from the natural disasters that have struck the region as well as the markets it serves. It is likely that passenger numbers through Gold Coast Airport will remain subdued in the short term. Airports however have historically bounced back relatively quickly from event driven shocks and we are confident of a return to strong growth at this high-quality asset.

The European economic environment continues to be a difficult one in which to operate. The Greek government has austerity measures in place and has worked with other nations to avert sovereign debt default, however the risk remains. Whilst we do not expect significant near-term growth at Athens Airport, the German airports have recovered and are generating strong passenger numbers.

Airport redevelopment projects to cater for growth are progressing well or are planned with funding substantially in place and we continue to pursue a number of strategic initiatives aimed at increasing value for AIX securityholders.

We are pleased with the performance of the portfolio in the 2011 financial year and remain confident in the long term growth potential and value of our assets.

Thank you once again for your continued support of AIX. I’ll now hand you back to the Chairman.

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[SLIDE 27] QUESTIONS AND COMMENTS

Before we move to the formal business of the meeting, I would like to provide the opportunity for you to ask questions of the Board or make any comments.

If you have a question or wish to make a comment, would you please proceed to the microphone. It would be appreciated if you could ask not more than two questions at a time, and then allow others to ask a question. Would you please also give your name and show your voting card when asking your question.

Are there any questions or comments?

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