FUTURE GENERATION AUSTRALIA LIMITED — Capital/Financing Update 2007

Nov 11, 2007

Total pages: 41

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ASX Announcement

Australian Infrastructure Fund (AIX)

12 November 2007

$150 million Exchangeable Bond Issue

Australian Infrastructure Fund (“AIX”) has announced an issue of $150 million in exchangeable bonds (“Bonds”) to refinance its initial funding for the acquisition of additional stakes in APAC, Perth Airport and NT Airports from BAA. The Bonds will be issued by AIF Exchangeable Holdings Limited (ACN 128 331 108), a wholly owned subsidiary of the Australian Infrastructure Fund (ARSN 089 889 761) (“AIFT”), and will be guaranteed by AIFT and Australian Infrastructure Fund Limited.

The Bonds will have a five-year term, offer a cash coupon of 2% together with accretions to principal to reflect the yield to maturity, and will be exchangeable at the option of holders into AIX stapled securities. AIX has received in-principle agreement to list the Bonds on the Singapore Stock Exchange and they will be offered to institutional investors in Australia and internationally. Final pricing of the Bonds will be determined following a bookbuild process to be conducted by Deutsche Bank, sole Lead Manager for the issue.

Chief Operating Officer, Peter McGregor said, “The issue of exchangeable bonds meets two objectives for AIX. Firstly, it provides an attractive source of funding for this important acquisition and is expected to enhance returns for AIX securityholders. Secondly, it represents an important capital management initiative that will reduce AIX’s overall cost of capital and provide a more appropriate overall funding mix for the business.”

Attached is a copy of the presentation to potential Bond investors.

This statement does not constitute an offer of any securities for issue or sale. The securities offered will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the U.S., or to or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities laws.

For further enquiries, please contact:

Peter McGregor Simon Ondaatje Chief Operating Officer Head of Investor Relations Australian Infrastructure Fund Hastings Funds Management Tel: +61 3 9654 4477 Tel: +61 3 9654 4477 Fax: +61 3 9650 6555 Fax: +61 3 9650 6555 Email: investor_relations@hfm.com.au Email: investor_relations@hfm.com.au Website: www.hfm.com.au Website: www.hfm.com.au

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Claire Filson 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, 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.

www.hfm.com.au

M:\Marketing - Reporting\AIF\Announcements\Final ASX announcements for lodgement\AIF ASX Ann\2007\November\AIX - Exchangeable Bond Issue.doc

Australian Infrastructure Fund Issue of Exchangeable Bonds

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Australian Infrastructure Fund

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Disclaimer

This presentation has been prepared by Hastings Funds Management Limited, 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). Hastings is a subsidiary of Westpac Banking Corporation (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 Hastings, 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 Hastings, 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, including expenses in relation to this Offer and fees in relation to Hastings’ 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 provided due to rounding.

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Australian Infrastructure Fund

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Disclaimer (continued)

THIS DOCUMENT MAY NOT BE DISTRIBUTED IN THE UNITED STATES, CANADA, JAPAN OR INDIA OR TO ANY U.S. PERSON. PURCHASE DECISIONS SHOULD BE MADE ONLY ON THE BASIS OF THE FINAL OFFERING CIRCULAR. THERE WILL NOT BE AN AUSTRALIAN PROSPECTUS, PRODUCT DISCLOSURE STATEMENT OR OTHER DISCLOSURE DOCUMENT AND CERTAIN SELLING RESTRICTIONS APPLY. THE OFFERING CIRCULAR WILL NOT BE PROVIDED, AND EXCHANGEABLE BONDS WILL NOT BE ISSUED, TO ANY PERSON TO WHOM DISCLOSURE WOULD BE REQUIRED UNDER THE CORPORATIONS ACT 2001 OF AUSTRALIA.

This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities. Any purchase of or application for exchangeable bonds should only be made on the basis of the information contained in the final offering circular to be issued in connection with the offering (the “Offering Circular”).

The final binding terms and conditions of the exchangeable bonds will be set out in the trust deed constituting the exchangeable bonds (the “Trust Deed”) and, in addition, will be reproduced in the Offering Circular. Any investment decision with respect to any securities of the Issuer must be made on the basis of the information contained in the Offering Circular and not on the basis of this presentation.

None of this presentation, its contents or any copy of it may be taken, sent or transmitted into or transmitted within the U.S. or any of its territories or possessions or redistributed, directly or indirectly, within the U.S. (or to any employee or affiliate of a recipient located therein) or to any U.S. person within the meaning of Regulation S under the United States Securities Act of 1933, as amended (the “Securities Act”). The securities offered will not be registered under the Securities Act and may not be offered or sold within the U.S., or to or for the account or benefit of, U.S. persons as defined in Regulation S under the Securities Act, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state or local securities laws.

This presentation is not for distribution in the United Kingdom except in circumstances in which section 21(1) of the Financial Services and Markets Act 2000 (the “FSMA”) does not apply to issuer of the exchangeable bonds and in compliance with all applicable provisions of the FSMA with respect to anything done by in relation to the Bonds in, from or otherwise involving the United Kingdom.

The distribution of this presentation in other jurisdictions (including Australia and Singapore) may be restricted by law and persons into 3 whose possession this presentation comes should inform themselves about, and observe, any such restrictions.

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Australian Infrastructure Fund

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Contents

• Acquisition & Funding Overview

• Exchangeable Bond Overview

• Australian Infrastructure Fund Overview

• Portfolio Composition & Financial Performance

• Appendix – Individual Asset Summaries

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Australian Infrastructure Fund

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Acquisition & Funding Overview

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Australian Infrastructure Fund

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Acquisition & Funding Overview

• A company owned by Hastings managed entities has acquired BAA International, the holding company of BAA’s stakes in APAC, Perth Airport and NT Airports

• AIX has initially invested A$146.3 million including costs. APAC shareholders and minority shareholders in Perth Airport and NT Airports will be given the opportunity to acquire their pro-rata stakes following acquisition. Minimum investment by AIX post any sell-down will be A$125.9 million(1)

• (2)

• AIX is looking to raise A$150 million through an exchangeable bond issue. Proceeds will be used to refinance senior debt drawn to fund the acquisition of its share of BAA International

(1) Assuming all minority investors in Perth Airport and NT Airports acquire their pro-rata stakes

(2) Exchangeable bonds are senior, unsecured with an investor put at third anniversary

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Australian Infrastructure Fund

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Acquisition Overview

			Assets being	acquired	acquired
			Initial Allocated	Potential	Minimum	Ownership	Ownership
	Asset	Airports	Consideration	Sell-down	Consideration	interest pre-	interest post-
			(A$m)	(A$m)	(A$m)(1)	acquisition	acquisition(1)
	APAC	Melbourne Launceston	60.1	-	60.1	8.1%	10.1%
	ADG – Ord. Shares	Perth	64.8	(16.3)	48.5	24.9%	29.3%
	ADG – Conv. Notes	Perth	10.3	-	10.3	-	15.0%
		Darwin
	ADG - NT	Alice Springs	11.0	(4.0)	7.0	25.4%	28.2%
		Tennant Creek
	Total		146.3	(20.3)	125.9

(1) Assuming all minority investors in Perth Airport and NT Airports acquire their pro-rata stakes

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Australian Infrastructure Fund

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Rationale for Acquisition

• Increasing AIX’s interests in high quality assets

• Cash generative assets

• Attractive acquisition price relative to recent global airport acquisitions

• Assets are expected to continue to provide capital growth in addition to cash yield, as has historically been the case

• Detailed understanding of the assets and imbedded opportunities

• Several development opportunities underway or planned

• Melbourne, Perth and Darwin airports in particular are expected to benefit from the increasing number of airlines entering the Australian aviation market, and incumbent airlines increasing capacity into these airports

• Acquisition and associated funding structure will be immediately cashflow accretive

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Australian Infrastructure Fund

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Portfolio Composition

• Post acquisition, APAC, Perth Airport and NT Airports have a portfolio weighting of 23.8%, 27.0% and 4.9% respectively

Asset portfolio weighting as at 30 June 2007[(1)]

Asset portfolio weighting post acquisition[(2)(3)]

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Other Assets Other Assets
9.5% 8.4%
NT
NT Perth
4.9% Perth
4.8% 24.4%
27.0%
QAL
QAL 14.9%
16.9%
APAC
20.6% HTAC APAC
21.0% 23.8%
HTAC
23.8%
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• (1) Asset portfolio weighting based on independent valuation as at 30 June 2007

• (2) Assume sell-down to minority investors of pro-rata stakes in Perth Airport & NT Airports (3) Newly acquired stakes valued at cost

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Australian Infrastructure Fund

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Exchangeable Bond Overview

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Australian Infrastructure Fund

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Exchangeable Bond Overview

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Stapled Securityholders
Stapled Securities
Australian Infrastructure Australian Infrastructure
Fund Limited Fund Trust
Exchangeable
100% into Stapled
Securities at the
option of
Exchangeable
Issuer Bondholders
Guarantee
Exchangeable Bondholders
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Australian Infrastructure Fund

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Summary Terms of Exchangeable Bond Offering

Offer type	�	Exchangeable bonds – premium redemption structure
Issuer	�	AIF Exchangeable Holdings Limited (a wholly owned subsidiary SPV of AIX)
Guarantors	�	AIFL and Hastings Funds Management Limited as responsible entity for AIFT
Offer size	�	A$150 million
Ranking	�	Senior and unsecured
Final maturity date	�	2012 (5 years)
Put date	�	2010 (3 years)
Coupon	�	2.0% per annum, payable semi-annually in arrears
Yield to maturity	�	5.65% – 6.65%
Initial conversion premium	�	15.0% – 25.0%
Listing	�	Singapore Exchange Securities Trading Limited (SGX-ST)
Lead Manager & Sole Bookrunner	�	Deutsche Bank

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Australian Infrastructure Fund

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Balance Sheet Impact (A$’000s)

As at 30 June 2007	Consolidated balance sheet	Transaction adjustments	Pro forma consolidated balance sheet
Cash	74,041	(800)	73,241
Unlisted securities(1)	955,754	146,300	1,102,054
Other assets	14,554	-	14,554
Total assets	1,044,349	145,500	1,189,849
Interest bearing loans and borrowings	-	145,500(2)	145,500
Other liabilities	55,874	-	55,874
Total liabilities (exc
securityholder interests	55,874	145,500	201,374
classified as debt)
Net assets	988,475		988,475
Key ratios
Look through gearing (Net Debt / EV)(3)	32.8%		37.7%
Interest cover(4)	3.6 x		3.5 x

(1) Represents book value of underlying asset portfolio

(2) Represents $150 million exchangeable bond issue net of transaction costs

(3) Based on market capitalisation and net debt as at 30 June 2007

(4) EBITDA for 12 months to 30 June 2007 divided by corresponding senior interest expense net of interest received on cash balances

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Australian Infrastructure Fund

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Exchangeable Bond Offering Indicative Timetable (AEST)

Day	Time Event
12 November 2007	10.00am � Bookbuild opens
12 November 2007	12.30pm � AIX investor presentation (Australia / Asia)
12 November 2007	7.30pm � AIX investor presentation (Europe, including UK)
12 November 2007	9.00pm � Closing and settlement � Allocations communicated � Bookbuild closes (1)
13 November 2007
4 December 2007
5 December 2007	� Listing

(1) AIX and the Lead Manager reserve the right to close the book early and alter this timetable without notice

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Australian Infrastructure Fund

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Australian Infrastructure Fund Overview

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Australian Infrastructure Fund

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Australian Infrastructure Fund Profile

• Australian entity trading on ASX for over 10 years (listed March 1997 – ticker AIX AU)

• (1)

• Market capitalisation of A$1.21 billion

• (2)

• Total assets of A$1.04 billion

• Freefloat of 100 percent

• Approximately 16,000 stapled securityholders

• Managed by Hastings Funds Management – A$4.8 billion funds under management / established in 1994

• (1) As at 9 November 2007

• (2) As at 30 June 2007

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Australian Infrastructure Fund

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AIX Overview

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Manager RE & Manager
Australian Infrastructure Australian Infrastructure
Stapled Securities
Fund Limited Fund Trust
Seaports Airports Roads &
Rail
APAC
HTAC
QAL
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Australian Infrastructure Fund

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AIX Airport Portfolio

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Investments in
10 Australian Airports
Investments in
3 European Airports
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Australian Infrastructure Fund

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Hastings Funds Management

• •• Established in 1994Established in 1994 •• Subsidiary of Westpac Subsidiary of Westpac •• 81 Staff (38 on Investment Team)81 Staff (38 on Investment Team) •• Offices: Melbourne, London, New YorkOffices: Melbourne, London, New York

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(FUM ≈AUD 4.8b)
(FUM ≈AUD 3.5b) (FUM ≈AUD956m) (FUM ≈AUD221m) (FUM ≈AUD96m)
Infrastructure High yield securities Private equity Timber
Mandates AIX HDF HIF TIF UTA HHY HYF HIT Mandate HPEFI HPEFII HHIT
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• Key listed funds:

• AIX – Australian Infrastructure Fund

• HDF – Hastings Diversified Utilities Fund

• HHY – Hastings High Yield Fund

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Australian Infrastructure Fund

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Portfolio Composition & Financial Performance

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Australian Infrastructure Fund

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2007 - Strong Returns From Asset Portfolio

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|||||||
|---|---|---|---|---|---|
|IRR for|IRR|
|12 mths to|since|
|APAC|
|30-Jun-07|inception|Weighting|20.6%|
|Asset|(%)|[(1)]|(%)|[(1)]|%|
|Perth Airport|22.4|19.8|24.4|Queensland|
|Airports|
|HOCHTIEF AirPort Capital|3.1|10.4|23.8|Perth Airport|16.9%|
|APAC|[(2)]|30.4|26.9|20.6|24.4%|
|Queensland Airports|62.5|60.8|16.9|
|NT Airports|37.9|28.5|4.8|
|NT Airports|
|Port of Portland|19.8|29.8|4.9|4.8%|
|Port of Geelong|20.0|28.7|2.1|HOCHTIEF AirPort|
|Port of Portland|
|DP World Adelaide|30.0|134.1|0.0|Capital|4.9%|
|23.8%|
|Statewide Roads|22.1|10.2|2.2|
|Port of Geelong|
|Metro Transport Sydney|(53.8)|(30.6)|0.3|2.1%|
|Total Portfolio|23.7|19.5|100.0|Statewide Roads|
|Metro Transport|2.2%|
|Sydney|
|0.3%|

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• (1) The internal rate of return (IRR) for the year ended 30 June 2007 and since inception to 30 June 2007 reflects the percentage return on investment for each asset (annualised for since inception return), based on the gross return on assets including franking credits received by AIX.

• (2) APAC comprises Melbourne and Launceston Airports.

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Australian Infrastructure Fund

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2007 - Summary Profit & Loss

	Change from
	previous	Year to	Year to
	corresponding	30 June 2007	30 June 2006
	period	(A$'000)	(A$'000)(1)
Revenue from assets
Revenue from ordinary activities excl. unrealised gains/(losses)	Up 13%	55,798	49,296
Unrealised profit from investments(2)	Up 59%	130,055	82,017
Total revenue	Up 42%	185,853	131,313
Operating expenses	Up 5%	(13,514)	(12,920)
Operating profit before interest and tax	Up 46%	172,339	118,393
Finance costs(3)	Up 54%	(795)	(515)
Profit before tax	Up 46%	171,544	117,878
Income tax expense	Down 59%	(3,387)	(8,362)
Netprofit after tax	Up 54%	168,157	109,516

(1) Results for 2006 have been restated due to a reclassification from capital repayments to distribution income following year end.

(2) The unrealised gain was higher due to upward revaluations of assets in the portfolio. These amounts include foreign exchange gains/(losses). (3) Finance costs represent fees associated with the Multi Option Facility, which remained undrawn for the year to 30 June 2007.

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Australian Infrastructure Fund

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2007 - Summary Statement of Cash Flows

	Change from
	previous	Year to	Year to
	corresponding	30 June 2007	30 June 2006
	period	(A$'000)	(A$'000)(1)
Dividends/distributions received(2)	Up 49%	43,784	29,393
Interest received(2)	Up 1%	16,066	15,969
Operating expenses	Up 8%	(13,645)	(12,688)
Interest and other costs of finance	Down 10%	(643)	(718)
Income taxes		(97)	296
Net cash flows from operating activities	Up 41%	45,465	32,252
Shareholder loan and capital repayments(3)	Down 35%	14,994	23,236
Net cash flows from assets	Up 9%	60,459	55,488
Other cash flows from/(used in) investing/financing activities(4)	Up 8%	(43,909)	(40,652)
Net movement in cash		16,550	14,836
Cash at beginning of year		57,493	42,652
Cash at end ofyear(5)	Up 29%	74,041	57,493

(1) Results for 2006 have been restated due to a reclassification from capital repayments to distribution income following year end.

(2) Dividend, distributions and interest were up during the year due to increased payments of cash from assets in the portfolio.

• (3) Significant shareholder loan and capital repayments were received from Perth and Queensland Airports in 2007. The 2006 year included a material capital repayment from Queensland Airports.

• (4) Increase in other cashflows used in investing/financing activities was driven by higher distributions paid to AIX securityholders and further investment in Hamburg Airport (via HTAC).

(5) Includes A$2m decrease in 2007 and a A$5m increase in 2006 from foreign exchange rate movements.

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Australian Infrastructure Fund

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2007 - Cash Flow From Diverse Sources

Dividends, Returns of Total cash Franking Asset distributions capital/loan flow for credits Ownership and interest repayments period received Asset (%) ($'000) ($'000) ($'000) ($'000)	Dividends, Returns of Total cash Franking Asset distributions capital/loan flow for credits Ownership and interest repayments period received Asset (%) ($'000) ($'000) ($'000) ($'000)	Dividends, Returns of Total cash Franking Asset distributions capital/loan flow for credits Ownership and interest repayments period received Asset (%) ($'000) ($'000) ($'000) ($'000)	Dividends, Returns of Total cash Franking Asset distributions capital/loan flow for credits Ownership and interest repayments period received Asset (%) ($'000) ($'000) ($'000) ($'000)
Perth Airport 24.88 3,062 10,069 13,131 - HOCHTIEF AirPort Capital 40.02 17,611 - 17,611 - APAC(1) 8.13 8,352 - 8,352 3,580 Queensland Airports 49.07 8,861 4,906 13,767 2,799 NT Airports 25.40 2,883 - 2,883 1,236 Port of Portland 50.00 7,795 - 7,795 3,341 Port of Geelong 35.00 3,310 - 3,310 129 DP World Adelaide(2) - 2,424 - 2,424 379 Statewide Roads 6.25 2,598 - 2,598 1,113 Metro Transport Sydney 38.89 129 19 148 49 Bank Interest and Other n/a 2,825 - 2,825 n/a
Total 59,850	14,994	74,844	12,626

(1) APAC comprises Melbourne and Launceston Airports.

(2) DP World Adelaide was divested in February 2007.

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Australian Infrastructure Fund

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2007 - Distributions Fully Cash Backed

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A$m
80
9.3
70 15.0
4.3 0.6 4.9
60
-
14.5
50
40 16.1
30 62.8 57.9
20
29.1
10
2.5
0 - - -
Carry fwd Dividend Interest Distrib Loan/ Manager Other Op Interest/ Cash Distribution Carry fwd
from FY2006 Income Income Income Capital Fees Expenses Finance Available Declared to FY2008
Repaymts Costs
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Australian Infrastructure Fund

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Contacts

Contacts from Deutsche Bank in relation to the exchangeable bond offering are:

Guy Fergusson Director, Capital Markets Ph: +612 8258 1701

Rob Jahrling Syndicate Ph: +852 2203 8077

This presentation does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any securities. There will not be an Australian prospectus, product disclosure statement or other disclosure document for the exchangeable bonds and selling restrictions apply.

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Australian Infrastructure Fund

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Appendix – Individual Asset Summaries

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Australian Infrastructure Fund

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Australia Pacific Airports Corporation

• Owner of Melbourne and Launceston Airports

• AIX stake – 10.1% following the acquisition

• Strong domestic passenger growth (6 percent) coupled with solid international growth (3 percent) for the year

• Tiger Airways’ decision to base its Australian operations at Melbourne was a significant achievement

• Capacity constraints are expected to be alleviated with the arrival of new aircraft models in 2008 and new air service arrangements with United Arab Emirates carriers

• Chris Woodruff, formerly with BAA plc, has been appointed as the new CEO and Managing Director of Australia Pacific Airport Corporation

		Change from previous
		corresponding period	Year to 30 June 2007	Year to 30 June 2006
	AIX valuation (A$m)	Up 23%	197.4	161.1
	Passengers (m)	Up 5%	23.5	22.3
	Revenue (A$m)	Up 10%	384.4	348.5
	EBITDA (A$m)	Up 10%	269.8	245.6

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Australian Infrastructure Fund

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Perth Airport

• AIX stake – 29.3%(1) following the acquisition

• Strong passenger growth driven by buoyant WA economy, commencement of low-cost carrier services and additional capacity

• Reported record first quarter 2007/2008 with overall passenger numbers up 15.4 percent over pcp

• Strategic review of the terminal locations commenced to address capacity constraints

• Strong demand for property development continues

• Brad Geatches appointed new CEO in January 2007

		Change from previous corresponding period	Year to 30 June 2007	Year to 30 June 2006
	AIX valuation (A$m)	Up 16%	233.4	202.0
	Passengers (m)	Up 13%	8.1	7.1
	Revenue (A$m)	Up 25%	182.3	145.9
	EBITDA (A$m)	Up 21%	104.7	86.4

(1) Assumes sell-down to minority investors of pro-rata stake

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Australian Infrastructure Fund

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NT Airports

• Owner of Alice Springs, Darwin and Tennant Creek Airports

• AIX stake – 28.2%(1) following the acquisition

• Tiger Airways announced a daily international service linking up with a daily Melbourne to Darwin service from December 2007 and another three Melbourne to Alice Springs flights per week

• Jetstar has also announced it plans to maintain a year-round daily Melbourne – Darwin service, providing a solid basis for future growth

• Construction of a major retail development for Bunnings was completed at Darwin Airport and further property development opportunities are being assessed

		Change from previous
		corresponding period	Year to 30 June 2007	Year to 30 June 2006
	AIX valuation (A$m)	Up 25%	46.0	36.8
	Passengers (m)	Up 15%	2.3	2.0
	Revenue (A$m)	Up 32%	50.7	38.4
	EBITDA (A$m)	Up 38%	32.7	23.7

(1) Assumes sell-down to minority investors of pro-rata stakes

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Australian Infrastructure Fund

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HOCHTIEF AirPort Capital - Athens

• AIX stake – 5.3%

• Traffic to and from the Middle East was boosted by additional capacity from United Arab Emirates carriers

• Launch of the Atlanta route by Delta and the growth of Air Transat in Canada contributed to the strength in the North American market

• Another key driver of growth was the performance of the 17 low cost airlines operating to and from Athens

• Further passenger growth experienced in the six months to 30 June 2007 (up 10.1 percent)

			Change from previous	Year to	Year to
			corresponding period	31 December 2006	31 December 2005
	AIX valuation (A$m)	(1)	Down 2%	227.6	232.2
	Passengers (m)		Up 6%	15.1	14.3
	Revenue (€m)		Up 8%	357.5	331.7
	EBITDA (€m)		Up 10%	232.7	210.9

(1) Valuation relates to AIX interest in HTAC and is as at 30 June 2007 and 30 June 2006

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HOCHTIEF AirPort Capital – Düsseldorf Airport

• AIX stake – 4.0%

• Demand for airport slots exceeds supply given capacity constraints imposed by regulatory limitations on aircraft movements

• Important factor for increasing passenger numbers was intercontinental traffic

• 23 hectares of land available for development, with “Airport City” concept progressing

		Change from previous	Year to	Year to
		corresponding period	31 December 2006	31 December 2005
	AIX valuation (A$m)(1)	Down 2%	227.6	232.2
	Passengers (m)	Up 7%	16.6	15.5
	Revenue (€m)	Up 7%	335.4	312.6
	EBITDA (€m)	Up 8%	133.5	124.1

(1) Valuation relates to AIX interest in HTAC and is as at 30 June 2007 and 30 June 2006

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HOCHTIEF AirPort Capital – Hamburg Airport

• AIX stake – 5.7%

• HTAC increased its interest in Hamburg Airport in December 2006 from 13.3 percent to 14.2 percent, effectively increasing AIX’s holding from 5.3 percent to 5.7 percent

• Strong traffic increases (passenger numbers up 12 percent) driven by strong intercontinental growth and increased average aircraft size

• Emirates launched a daily service to Dubai in March 2006, and to New York/JFK in October 2006

		Change from previous	Year to	Year to
		corresponding period	31 December 2006	31 December 2005
	AIX valuation (A$m)(1)	Down 2%	227.6	232.2
	Passengers (m)	Up 12%	12.0	10.7
	Revenue (€m)	Up 10%	233.3	211.2
	EBITDA (€m)	Up 22%	77.2	63.1

(1) Valuation relates to AIX interest in HTAC and is as at 30 June 2007 and 30 June 2006

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HOCHTIEF AirPort Capital – Sydney Airport

• AIX stake – 2.1%

• Performance benefited from the opening of new food and beverage and specialty retail offerings as part of the A$20 million T2 development

• Additional car parking capacity was added during the year, with approximately 3,000 more car park spaces to be constructed during 2008

		Change from previous corresponding period	Year to 30 June 2007	Year to 30 June 2006
	AIX valuation (A$m)(1)	Down 2%	227.6	232.2
	Passengers (m)	Up 7%	31.0	29.1
	Revenue (A$m)	Up 10%	724.6	659.3
	EBITDA (A$m)	Up 11%	585.8	525.6

(1) Valuation relates to AIX interest in HTAC and is as at 30 June 2007 and 30 June 2006

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Queensland Airports

• Gold Coast, Townsville and Mount Isa Airports

• AIX stake – 49.1%

• Solid growth at Gold Coast (5 percent) complemented by very strong growth at Townsville (11 percent) and Mount Isa (18 percent)

• Gold Coast Airport announced an agreement with Qantas to redevelop the terminal as a single, common user facility

• The Gold Coast runway was extended in May 2007 to cater for international flights

• Northern Australia Aerospace Centre of Excellence (NAACEX) aeronautical property development project launched at Townsville Airport in March 2007

		Change from previous
		corresponding period	Year to 30 June 2007	Year to 30 June 2006
	AIX valuation (A$m)	Up 47%	161.7	110.1
	Passengers (m)	Up 6%	5.3	5.0
	Revenue (A$m)	Up 13%	63.8	56.4
	EBITDA (A$m)	Up 17%	44.7	38.2

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Port of Geelong

• AIX stake – 35.0%

• Volume of goods imported and exported reached 10.3 million tonnes for the year, an increase of 5.2 percent

• The drier conditions materially impacted fertiliser throughput, however this was offset by increased liquid bulk product volume

• Shipments of higher margin dry bulk goods such as soy bean meal and cement clinker also contributed to the overall increase in revenue

		Change from previous corresponding period	Year to 30 June 2007	Year to 30 June 2006
	AIX valuation (A$m)	Up 12%	19.8	17.7
	Throughput (tonnes m)	Up 5%	10.3	9.8
	Port revenue (A$m)	Up 6%	22.7	21.4
	Trust EBITDA (A$m)(1)	Up 4%	8.2	7.9

(1) Trust EBITDA is fees received by the Port of Geelong Unit Trust net of port operator fees and the Trust’s own operating expenses

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Port of Portland

• AIX stake – 50.0%

• Reduced grain and fertiliser volumes resulted from drought conditions

• Mineral Sands Handling facility opening announced in December 2006, with long term contract for mineral sands from Iluka’s Hamilton separation plant

• Continuing feasibility work on the construction of new hardwood chip storage and loading facilities

• David Looker appointed as independent Chairman and Scott Paterson appointed as CEO in November 2006

		Change from previous
		corresponding period	Year to 30 June 2007	Year to 30 June 2006
	AIX valuation (A$m)	Down 4%	47.0	49.1
	Throughput (tonnes m)	Down 14%	3.0	3.5
	Revenue (A$m)	Up 6%	17.6	16.6
	EBITDA (A$m)	Up 9%	8.9	8.2

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Statewide Roads

• AIX stake – 6.2% ordinary, 100% preference

• Owns & operates M4 Tollroad in Sydney

• Total revenue increased to A$90.4 million while an ongoing asphalt resheeting project saw EBITDA decrease to A$65.8 million

• During the year Transurban Limited acquired Sydney Roads Group, the majority shareholder in Statewide Roads

• Following the takeover Transurban representatives were appointed to the Statewide Roads Board in May 2007

		Change from previous
		corresponding period	Year to 30 June 2007	Year to 30 June 2006
	AIX valuation (A$m)	Up 3%	20.7	20.1
	Average daily traffic (‘000s)	Up 2%	107.0	104.6
	Revenue (A$m)	Up 2%	90.4	89.0
	EBITDA (A$m)	Down 6%	65.8	69.7

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Metro Transport Sydney

•AIX stake – 38.9%

• The increase in revenue to A$15.8 million was largely due to stronger passenger growth on the Monorail, where revenues grew 13 percent. The rise has been attributed to a rise in the number of domestic tourists

• Passengers using Light Rail grew at a moderate pace, with revenues strengthening by 4 percent

		Change from previous
		corresponding period	Year to 30 June 2007	Year to 30 June 2006
	AIX valuation (A$m)	Down 54%	2.6	5.7
	Passengers (m)	Up 7%	6.3	5.9
	Revenue (A$m)	Up 9%	15.8	14.5
	EBITDA (A$m)	N/A	0.9	(0.7)

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Texas – State Highway 130 (Segments 5 and 6)

• AIX has acquired a call option to participate in the SH130 Tollroad Project (exercisable subject to key conditions including financial close)

• Exercise price of approximately US$46 million (plus costs), payable through development stage

• The Project

• 50 year concession to design, build, finance and operate, with operations expected to commence in 2012

• Segments 5 and 6 - the southern-most segments (40 miles) of the 90-mile State Highway 130 project

• The Opportunity

• Intended to relieve congestion in the San Antonio to Austin corridor, serving mainly as a bypass for long distance trips

• Leverage to increased land-based freight transportation resulting from the trade agreement between the US, Canada and Mexico (NAFTA)

• Ownership

• Cintra has a 65 percent share of SH130 5&6, whilst Hastings’ managed funds and Zachry American Infrastructure (ZAI) together hold the remaining 35 percent share

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