FUTURE GENERATION AUSTRALIA LIMITED — Capital/Financing Update 2007

Nov 8, 2007

Total pages: 14

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ASX Announcement

Australian Infrastructure Fund (AIX)

9 November 2007

Acquisition of additional stakes in APAC, Perth and Northern Territory Airports

Hastings Funds Management Limited (Hastings), on behalf of its managed funds, is pleased to announce the acquisition today of BAA International Holdings from BAA Limited for A$775 million.

BAA International Holdings owns BAA’s interests in Australian airports, being a 19.8 percent interest in APAC (which holds Melbourne and Launceston Airports), 15 percent interest in Perth Airport, 15 percent interest in the convertible notes on issue at Perth Airport, and 10 percent interest in the Northern Territory Airports (which holds Darwin, Alice Springs and Tennant Creek airports).

The acquisition has been made by a company which is owned by three funds managed by Hastings - AIX, the unlisted Utilities Trust of Australia and The Infrastructure Fund. The Hastings managed funds will initially invest approximately A$285 million.

It is important to note that following the acquisition, all existing shareholders in APAC, Perth Airport and Northern Territory Airports will be offered the opportunity to acquire their pro-rata share of the stakes being sold by BAA.

AIX has initially invested $146.3 million in the acquisition (including transaction costs). Following any sell-down to minority shareholders in Perth Airport and Northern Territory Airports of their pro-rata stakes, the minimum investment for AIX will be $125.9 million (including transaction costs) for additional stakes of 2.0 percent in APAC, 4.4 percent in Perth Airport, 2.8 percent in Northern Territory Airports as well as 15.0 percent of the Perth Airport convertible notes.

Chief Operating Officer, Peter McGregor said, “We are delighted to have the opportunity to increase our stakes in APAC, Perth Airport and Northern Territory Airports. These businesses have been key contributors to the growth of AIX over many years, and we believe we have acquired the additional stakes on attractive terms. Given the positive outlook for aeronautical growth in Australia and the significant development pipelines in each of these businesses, we see this acquisition as an important step in continuing to grow AIX and deliver value to securityholders.”

AIX will initially fund the acquisition through the drawdown of existing senior debt facilities and available cash reserves. In respect of the refinancing of this debt and subject to market conditions, AIX does not anticipate issuing additional stapled securities. A further announcement about the refinancing is expected to be made in the near term.

Attached is an investor presentation.

AIX will host a conference call at 11.30am today. Interested parties should call 1800 097 137. Confirmation code is 8362626.

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 - Acquisition Announcement_ Final.doc

For further enquiries, please contact:

Peter McGregor

Chief Operating Officer

Australian Infrastructure Fund Tel: +61 3 9654 4477 Fax: +61 3 9650 6555 Email: investor_relations@hfm.com.au Website: www.hfm.com.au

Simon Ondaatje Head of Investor Relations

Hastings Funds Management Tel: +61 3 9654 4477 Fax: +61 3 9650 6555 Email: investor_relations@hfm.com.au Website: www.hfm.com.au

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Claire Filson Company Secretary Australian Infrastructure Fund

Australian Infrastructure Fund Acquisition of Stakes in APAC, Perth & NT Airports

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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 (Fund or AIFT) and as manager of Australian Infrastructure Fund Limited (Company or AIFL). Together, the Company and the Fund comprise the Australian Infrastructure Fund (AIX). 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. Any projections contained in this document may be based partly or wholly on hypothetical assumptions, that is, assumptions about future events and management actions which are not necessarily expected to take place. There are usually differences between projections and actual results. Events and circumstances may not occur as projected. Differences may be material. 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 the Australian Infrastructure Fund or the repayment of capital. Investments in the Australian Infrastructure Fund 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 the Australian Infrastructure Fund and may be paid fees, including expenses in relation to this Offer and fees in relation to Hastings’ role as responsible entity.

All data in tables throughout this presentation have been calculated using the most accurate sources available. Most data within this presentation has been subject to rounding and as such any rates or totals manually calculated may differ from those provided.

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Australian Infrastructure Fund

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Contents

• Acquisition Overview

• Rationale for Acquisition

• Portfolio Composition

• Funding

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Australian Infrastructure Fund

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Acquisition 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

• Following the acquisition, all existing shareholders in APAC, Perth Airport and NT Airports will be offered the opportunity to acquire their pro-rata share of the stakes being sold by BAA

• Initial acquisition price for AIX’s share is A$146.3m including costs. Following any sell-down to minority shareholders in Perth Airport and NT Airports of their prorata stakes, the minimum investment for AIX will be $125.9 million (including transaction costs)

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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 and NT Airports acquire their pro-rata stakes

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Australian Infrastructure Fund

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Rationale for Acquisition

• High quality assets

• Strong cash flow generation

• Detailed understanding of the assets and imbedded opportunities

• Track record of delivering consistent returns to

  • AIX

• Significant growth potential

• Positive outlook for aeronautical growth/passenger movements

• Substantial development pipeline to underpin future growth

• Attractive acquisition price

• Premium to AIX book value, but acquired on multiples below recent sector comparables

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Australian Infrastructure Fund

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Historical IRR to AIX
2007 financial year Since acquisition by AIX (p.a.)
37.9%
30.4%
28.5%
26.9%
22.4%
19.8%
Perth APAC NT
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Australian Infrastructure Fund

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Catalysts for Growth – Passenger Movements

• Tiger Airways

• Commencing November, based in Melbourne

• Fleet upgrades

• Substantial new aircraft orders by Qantas, Jetstar and Virgin (domestic & international)

• Bilaterals/Landing Rights

• Emirates/Etihad/Qatar - additional flights

• • Potential for further liberalisation

• New Generation Aircraft

• Airbus A380 deliveries commenced

• Boeing 787 deliveries expected in 2008/09

• Evolution of LCCs

• Shift towards long-haul operations

• • Tiger, AirAsia X, Viva Macau, etc.

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Australian Infrastructure Fund

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Catalysts for Growth – Development program

Melbourne

• $330m international terminal expansion planned over five years

• Five new gates/aerobridges

• 25,000m[2] additional floorspace

Perth

• $275m capex program

• • Includes $100m for property activities

• • Terminal consolidation options under consideration

Darwin

• Continued build-out of retail/business park

• • Over 70 hectares of available development land

• • $100m home and lifestyle centre development

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Australian Infrastructure Fund

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EV/EBITDA Multiples - FY2007 (actual) Reflects implied acquisition prices, including costs

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15.2x
14.8x
12.3x
APAC Perth NT Airports
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Australian Infrastructure Fund

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Portfolio Composition

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

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Asset portfolio weighting as at 30 June 2007 [[(1)]] Asset portfolio weighting post acquisition [(2)(3)]
Other Assets Other Assets
9.5% 8.4%
NT
NT Perth
4.9% Perth
4.8% 24.4%
27.0%
QAL
14.9%
QAL
16.9%
APAC
20.6% HTAC APAC
21.0% 23.8%
HTAC
23.8%
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Asset portfolio weighting as at 30 June 2007 [[(1)]]
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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 & NT Airports

• (3) Newly acquired stakes valued at cost

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Australian Infrastructure Fund

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Funding

• Acquisition to be funded through drawdown of existing AIX senior debt facility ($130m) and cash reserves (approx. $16m)

• • In respect of the refinancing of this debt and subject to market conditions, AIX does not anticipate issuing additional stapled securities. A further announcement in relation to the refinancing is expected to be made in the near term

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