FUTURE GENERATION AUSTRALIA LIMITED — Interim / Quarterly Report 2012

Feb 20, 2012

Total pages: 40

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Hastings Funds Level 16, 90 Collins Street Management Limited Melbourne VIC 3000 Australia ABN 27 058 693 388 T +61 3 8650 3600 AFSL No. 238309 F +61 3 8650 3701 Australian Infrastructure www.hfm.com.au Fund Limited Melbourne, London, San Antonio, Sydney ABN 97 063 935 553

ASX Announcement

Australian Infrastructure Fund (AIX)

21 February 2011

Results Presentation and Strategy Update for the half year ended 31 December 2011

Attached is a presentation of results for the half year ended 31 December 2011.

An Analyst call will be held this morning to present the results:

Time: 11.30AM (AEDT) Telephone: 1800 030 272 (Australia Wide) Participants code: 392062#

A webcast of the presentation will be available at www.hfm.com.au/aix

Strategy update

As announced on 20 February 2012, AIX has executed an unconditional sales agreement for the divestment of its interests in the Port of Geelong, under which AIX will realise a value consistent with that independently assessed by KPMG as at 31 December 2011.

AIX is proceeding with the strategy it reaffirmed at its Annual General Meeting on 8 November 2011 ( 2011 AGM), which is to realise value for securityholders, by selling its non-core assets. AIX is continuing with negotiations on the divestment of its other non-core assets, which will be subject to the realisation of appropriate value.

AIX is now also assessing the viability of further strategies for realising greater value for AIX securityholders and has engaged Credit Suisse and Citi to pursue that objective. The results of this assessment are anticipated before the end of March with further advice to securityholders thereafter. This includes whether restructuring the management of AIX would be in the best interests of securityholders and if so, on what basis. These discussions are continuing.

For further enquiries, please contact:

For further enquiries, please contact:
Paul Espie	Alan Cameron
Chairman AIFL	Chairman HFML
Australian Infrastructure Fund	Hastings	Funds Management
Tel: +61 3 8650 3600	Tel:	+61 3 8650 3600
Fax: +61 3 8650 3701	Fax:	+61 3 8650 3701
Email: investor_relations@hfm.com.au	Email:	investor_relations@hfm.com.au
Website: www.hfm.com.au/aix	Website:	www.hfm.com.au/aix

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 2012 Half Year Results Presentation 21 February 2012

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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 half year ended 31 December 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. Overview

2. Performance

3. Quality

4. Value

5. Results

6. Outlook

7. Appendix 1. Asset results

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Section 1 Overview

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AIX portfolio snapshot

Portfolio composition by value and AIX ownership interests in each asset as at 31 December 2011

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Perth Airport 29.7% 51.8%
Perth Airport APAC [1] 24.9%
31.2%
APAC¹ 12.4% 7.6%
Queensland Airports² 49.1% 36.7%
NT Airports³ 28.2%
Other 5.6% Queensland HTAC ⁴ 40.0% 10.0%
Airports [2] 15.8%
NT Airports [3] 5.7%
Port of Portland 50.0% 50.0%
Sydney Airport European
6.6% Airports [4 ] 10.1%
Port of Geelong ⁵ 35.0%
1. APAC comprises Melbourne Airport and 90% of Launceston Airport.
2. Queensland Airports comprises Gold Coast, Townsville and Mount Isa Airports.
AIX Other HFM External
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1. NT Airports comprises Darwin, Alice Springs and Tennant Creek Airports.

2. European airports comprise a 5.34% interest in Athens Airport, a 4.00% interest in Dusseldorf Airport and a 5.69% interest in Hamburg Airport, and are held together with a 2.60% interest in Sydney Airport via Hochtief Airport Capital (HTAC).

3. On Monday 20 February, AIX announced the execution of an unconditional sale agreement for the divestment of its 35.0% interest in the Port of Geelong, which is expected to complete on 29 February 2012.

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Highlights

• Key AIX Australian airport groups all recorded revenue and earnings growth for the half year

Performance

• Australian airports demonstrated continued resilience in a challenging operating environment

• • Diversification within AIX portfolio considered a strength in current environment

• Successful refinancing and shareholder support for assets within AIX portfolio - Demonstrates confidence in quality assets

• Quality Long term sustainable capital structure remains in place • Key AIX Australian airport assets are well placed for long term growth - Major capital projects funded and under way

• AIX provides access to strategic Australian airport assets

  • Confidence in long-term value of these closely-held assets

• Value AIX security price outperformed ASX 200 Industrials Index in six months to 31 December 2011

• Strategic options continue to be explored with a view to maximising value

  • Port of Geelong sale agreement executed

  • Negotiations continue in relation to other non-core assets

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Section 2 Performance

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Monthly passenger growth rates

Passenger numbers remain solid when compared to exceptional growth in the prior corresponding period

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Dec 10 -
Jan 11
QLD flood
events
9.8% February
9.1% 9.3% 2011
Cyclone June 2011
8.3%
Yasi, QLD Record cancellations
7.6% 7.6% Cyclone - Chilean ash cloud
Carlos, NT - Christchurch aftershock
6.8%
Christchurch
6.3%
earthquake
5.8%
March 2011 July 2011 onwards
Japan Tiger suspension and
earthquake reduced services
and tsunami
Fukushima October 2011
disaster Qantas grounding
1.2% 1.3%
0.3%
0.2%
0.0% 0.0%
-0.3%
-0.9% -1.1%
----- End of picture text -----

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 Oct-11 Nov-11 Dec-11

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NOTE: Growth rates presented in this chart represent the increase in total passengers on pcp for the AIX portfolio when weighted by AIX’s interest

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Long term Australian revenue passenger growth

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Historical trend of growth and resilience
Queensland floods
Japan and NZ earthquakes
Chilean ash cloud
Global
Financial
Crisis
SARS
9/11 terrorist attacks
Ansett collapse
Recession
Gulf War
1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Millions
Revenue pax
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Source: BITRE

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Key drivers of passenger volume

• Perth Capital city airport and fly-in fly-out (FIFO) base

• Airport Strong growth for half year in domestic and international pax

  • Expanding WA mining activity is driving domestic pax numbers

    • Intrastate pax ~36% of domestic volume

  • Strong international volumes

    • Continued strength of AUD

    • Proximity to Asian leisure destinations

• Melbourne Key Australian gateway for business sector and tourism

• Airport

  • Flat result overall with international growth offsetting subdued domestic performance

    • Reduced domestic seat capacity due in part to Tiger suspension / operating restrictions

    • International pax benefited from strong AUD

    • Additional international seat capacity supported inbound growth, particularly from China

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Photo: Perth Airport

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Key drivers of passenger volume

• Gold Leisure destination with purpose-built low cost carrier terminal

• Coast

• Domestic pax declined due to:

• Airport

  • Reduced domestic seat capacity due in part to Tiger suspension / restrictions

  • Continued strength in AUD encouraging offshore travel as a substitute for domestic holiday destinations

• International pax also subdued following the disruptions in Japan and New Zealand, as well as redirection of capacity by AirAsia X

• Darwin Capital city airport and base for Australian Defence Force, supported by Government, business and

• Airport tourism

• Domestic pax declined due to:

  • Exposure to domestic tourism market

  • General economic conditions

• Strong international volumes supported by strong AUD, as well as proximity to Asia with competitive fares on additional capacity, particularly to Bali

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Photo: Darwin Airport

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Asset highlights

Perth Airport

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12.9%
9.5% 9.4%
8.7%
Seats Passengers Revenue EBITDA
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• Strong pax growth driven by resource-based WA economy; high Australian dollar (AUD) stimulated outbound international travel to Asian leisure destinations

• Earnings growth driven by pax growth, supported by new aero pricing agreement, expanded car parking and lease rental reviews

• EBITDA margin affected by increased employee expenses and timing differences on both maintenance expenditure and recovery of Government mandated security costs

APAC

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3.5%
1.2%
-1.9%
-3.7%
Seats Passengers Revenue EBITDA
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• Pax decline largely due to reduced domestic seat capacity

• International pax grew strongly, with outbound travel supported by strong AUD and new international seat capacity driving growth from China

• Aeronautical revenue grew with shift towards international pax, supported by improved retail offering in T2

• EBITDA margin compressed due to increased staff and maintenance expenses in line with recent capex projects (e.g. T2 opening) and future growth plans

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Asset highlights

Queensland Airports

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3.4%
2.7%
-4.4%
-6.1%
Seats Passengers Revenue EBITDA
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• Pax declined largely due to reduced capacity, with strong AUD adversely affecting demand for local tourism

• Partially offset by strong pax growth at Mount Isa Airport, driven by mining activity

• Revenue growth was achieved through rent reviews and solid performance in duty free and food & beverage despite general softness in other retail

• Previous investment in car parking at Gold Coast also provided a source of growth, with 950 additional spaces available since August 2010

NT Airports

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10.5%
5.6% 7.5%
-3.2%
Seats Passengers Revenue EBITDA
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• Decline in domestic pax due to challenging operating environment including strong AUD affecting popularity of Darwin and Alice Springs as tourist destinations, as well as withdrawal of Tiger Airways from Alice Springs market

• Conversely, international pax grew with strong AUD encouraging offshore travel to leisure destinations, particularly with increased capacity to Bali

• Revenue driven by FY12 aero pricing step-up and additional property lease revenue

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Section 3 Quality

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Quality Australian airport assets

• A number of airports (and fund) successfully refinanced during the half year

• Achieved increased facility sizes with competitive terms, conditions and pricing

• Spread across a range of tenors, reducing refinancing risk

• Broad support across a range of banks

• Opportunities to invest in value-adding capital projects supported by shareholders

• Pricing agreements necessary to underpin aeronautical development plans are in place or being negotiated

• Solid foundation for future earnings growth

• Key assets in AIX portfolio are positioned for growth

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Photo: Perth Airport

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Key assets positioned for growth

Perth Airport

• Successfully completed a $1.23bn debt financing in November 2011

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• Refinanced existing debt and provided funding for growth capex

• Further equity of $122m committed by shareholders (AIX share $36m)

• Pricing agreement reached with airlines representing 83% of pax movements

• Funding of capital expenditure through to 2015 now substantially secured

APAC (Melbourne and Launceston Airports)

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• Successfully raised US$600m in US private placement with financial close in September 2011

• APAC remains rated A- by Standard & Poors and A3 by Moody’s

• Negotiations already under way to renew aeronautical pricing agreement

Queensland Airports

• Successfully completed a $532m debt financing in December 2011

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• Refinanced existing debt and provided funding for growth capex

• Likely equity contribution of $15m to be made over three years (AIX share $7.4m)

• Provides capacity for further expansion and upgrade works

NT Airports

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• Successfully secured $350m in new bank facilities in November 2011

• New facilities replace $225m existing debt and provide new $125m capex facility

• Long term aero pricing arrangements agreed in October 2010

Growth - major expansion underway

• Terminal WA , International terminal expansion and new domestic pier

• Expanded aircraft parking and taxiways

• Further investments in roads and car parking for improved airport access

Growth – major capex completed

• $330m T2 redevelopment completed

• $45m runway overlay completed

• $18m forecourt redevelopment, stage 1 completed in December 2011

Growth – further projects planned

• Gold Coast terminal refurbishment completed in January 2010

• Virgin Lounge now under construction

• Capex plans for Townsville, including terminal upgrade, being developed

Growth - major expansion underway

• $100m spend planned over next 10 years

• Detailed design under way for $33.5m terminal redevelopment with completion expected in late 2013

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Debt maturity profile

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Weighted average
maturity > 4.5 years
400
350
300
250
200
150
100
50
0
2012 2013 2014 2015 2016 2017 2018 2019 2020+
Financial year
Perth Airport APAC QAL NT Airports Sydney Airport Port of Portland Port of Geelong
AIX proportionate debt ($m)
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Note: Excludes HTAC amortising debt not required to be refinanced. Sydney Airport amounts estimated by HFML from SCACH 2010 Annual Report / other public sources

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Sustainable asset capital structure

Asset	Net Debt/EV(1)	Senior ICR(2)
Perth Airport	33.9%	2.5x
APAC	33.9%	3.3x
Queensland Airports	42.6%	2.1x
NT Airports	36.6%	3.9x
HTAC(3)	38.1%	3.3x
Port of Portland	28.2%	4.3x
Port of Geelong(4)	44.2%	2.7x
Asset weighted average	36.3%	3.0x
Fund weighted average	35.4%

• Quality assets with sustainable capital structures - History of successful asset refinancing

  • Prudent levels of gearing

  • Healthy coverage ratios

• Low interest rate risk

  • Hedging policies in place

  • Actively managed at asset level

• Fund level $100m stand by facility in place

  • Two year facility entered into in August 2011

• 1) Enterprise Value (EV) equals Net Debt (net external debt) plus independent valuations as at 31 December 2011.

• 2) Senior ICR reflects EBITDA for the half year to 31 December 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.

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Section 4 Value

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Share price performance

AIX has outperformed its benchmark for the half year to 31 December 2011

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31 December 2011
AIX ASX 200 Industrials Index AIX 0.5%
ASX 200 Industrials Index (7.4%)
110
6.8%
105
100
95
(4.5%)
90
85
80
30-Jun-11 31-Jul-11 31-Aug-11 30-Sep-11 31-Oct-11 30-Nov-11 31-Dec-11 31-Jan-12
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Source: Bloomberg Note: Chart data as at close of trade on Monday 20 February.

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Strategic commentary

• Strong security price performance however still trading at significant discount to independently determined net asset value (NAV)

• Remain committed to “closing the gap” through:

• Investing in organic growth

  • Actively supporting Australian airport development activities, e.g. Perth Airport

• Concentration of portfolio to “core” Australian airport assets

  • An unconditional sale agreement under which AIX will divest its 35% interest in the Port of Geelong has been executed

  • Active negotiations continue in relation to other non-core assets

  • Dialogue with fellow HTAC co-investors and HOCHTIEF continues

• Assessing viability of further strategic options

  • Engagement of Credit Suisse and Citi to pursue objective of realising greater value for securityholders

  • Results of strategic assessment anticipated before the end of March, including whether restructuring management of AIX is in the best interests of securityholders and if so, on what basis

  • Discussions are continuing and any decisions will be made in the best interests of security holders

$2.92

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NAV ¹

$2.05

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AIX security price ²

• Actively managing assets

• (1) NAV is calculated as balance sheet net assets divided by the number of securities on issue and does not account for the future value of corporate costs, including management fees. (2) AIX security price as at close of trade on Monday 20 February 2012.

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Section 5 Results

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Summary profit and loss

		Dec 2011	Dec 2010
		half year	half year
	Change	($’000)	($’000)
Dividend/distribution/interest/	(2%)	29,439	29,990
other income
Gains on investments	(27%)	48,560	66,835
Total revenue	(19%)	77,999	96,825
Operating expenses	25%	(9,065)	(7,268)
Operating profit	(23%)	68,934	89,557
Finance costs	64%	(802)	(488)
Profit before tax	(24%)	68,132	89,069
Income tax (expense) / benefit	(184%)	703	(838)
Net profit after tax	(22%)	68,835	88,231

• Operating income broadly in line with the pcp.

• Gains on investments are below those achieved in pcp primarily due to strong uplift in valuation for APAC (largely comprising Melbourne Airport) and NT Airports in the pcp

• Increase in operating expenses relates to one-off strategic advisory and other costs

• Higher finance costs relative to pcp are a result of increased undrawn commitment fees following the upsize in AIX’s fund level debt facility from $30m to $100m in August 2011

• Income tax benefit is predominantly due to a decrease in unrealised gains compared to the pcp

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Summary cashflow

	Change	Dec 2011 half year ($’000)	Dec 2010 half year ($’000)
Cashflow from assets	(23%)	30,738	39,749
Operating expenses		(8,912)(1)	(7,162)
Tax paid		(363)	(838)
Net finance costs received / (paid)		(79)	800
Operating cashflow	(34%)	21,384	32,549
Investments		(14,868)	(8,029)
Debt (repaid) / drawn		-	-
Capital raising proceeds		-	(28)
Distributions paid		(31,037)	(31,037)
Net change in cash		(24,521)	(6,545)
Opening balance		79,237	61,990
Closing balance(2)		54,868	55,444

• Cashflow from assets decreased due to timing difference

  • $11.3m dividend received from QAL in the Dec10 half year related to year ended 30 June 2010

  • Normalising for this, cashflow from assets increased 8.0%

• Increase in operating expenses relates to one-off strategic advisory and other costs

• Increase in investments due to payment of $14.9m equity commitment to Perth Airport to support organic growth

• Dividends, distributions and other cash received from assets are declared by the asset boards. As in prior years, the receipt of cash from assets is skewed to the second half

• 1) Net of $5k of other income not received from assets.

• 2) Includes effect of foreign exchange rate movements on cash and cash equivalents (1H11: Nil; 1H12: +$0.152m).

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Gross cashflow received from assets

	Dec 2011	Dec 2010
	half year	half year
Asset	($m)	($m)
Perth Airport	10.3	10.5
APAC	8.8	8.3
QAL	1.1	12.2
NT Airports	4.0	4.4
HTAC	3.8	2.3
Port of Portland	1.3	1.5
Port of Geelong	0.5	0.5
Other	1.0	0.0
Gross cash flow	30.7	39.7

• Cash flow from assets decreased relative to pcp due to a timing difference, with AIX receiving an $11.3m dividend from QAL in the December 2010 half year which related to the June 2010 financial year

• Normalising for this results in gross cash flow from assets increasing 8.0% on pcp

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AIX proportionate earnings

		Dec 2011	Dec 2010
		half year	half year
	Change	($m)	($m)
Revenue(1)	8.1%	141.3	130.8
EBITDA(1)	7.0%	93.4	87.3
Net interest paid(2)	(0.7%)	(29.7)	(29.9)
Income tax paid(3)	25.7%	(10.5)	(8.4)
Maintenance capex(4)	(10.5%)	(10.0)	(11.1)
AIX (ex HTAC) prop earnings	14.1%	43.3	37.9
HTAC distributions		3.8	2.3
AIX proportionate earnings	17.2%	47.1	40.2

• Solid growth in revenue and EBITDA reflects earnings performance of AIX portfolio, particularly Australian airport groups

• Net interest paid was broadly flat with some increases due to debt drawdowns for capex funding, offset by timing differences

• Income tax paid increased relative to pcp due to timing differences on tax refunds at QAL

• Maintenance capex decreased overall, with increase at Perth Airport due to taxiway overlays being offset by decrease at QAL resulting from runway overlays at all three QAL airports in pcp

• (1) Revenues and EBITDA normalised to exclude non-recurring items.

• (2) Net interest paid sourced from management accounts cashflows, excluding refinancing costs.

• (3) Tax paid sourced from management account cashflows.

• (4) Maintenance capex based on management estimates, except where unavailable (APAC), depreciation used as a proxy.

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Section 6 Outlook

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Outlook

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• Competitive landscape is dynamic

• Outside resources sector, economic environment is challenging

• Short-term domestic pax numbers may remain subdued but confidence remains in long-term growth

• Focusing on longer-term fundamentals, AIX portfolio well placed going forward

• Diversification across core airport portfolio a particular strength in current environment

• Continued investment in organic growth provides solid foundation for future earnings growth

• Work continues towards market recognition of underlying quality and inherent value of AIX assets

Photo: Gold Coast Airport

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Appendix Asset Results

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Perth Airport

	Change	Dec 2011 half year	Dec 2010 half year
Revenue(1)($m)	12.9%	163.6	144.9
EBITDA(1)($m)	9.4%	102.5	93.7
EBITDA margin		62.7%	64.7%
Domestic pax (m)	9.5%	4.5	4.1
International pax (m)	6.6%	1.8	1.6
Total pax (m)	8.7%	6.3	5.8
Domestic seat capacity (m)	11.5%	6.0	5.4
International seat capacity (m)	4.4%	2.3	2.2
Total seat capacity (m)	9.5%	8.3	7.6

• Strong pax growth maintained with domestic pax driven by mining activity supported by capacity increases

• Intrastate pax were up 14% and interstate traffic up 7%

• International pax growth driven by outbound to Asia, particularly Bali, Thailand, Malaysia and Singapore, with international leisure routes remaining popular in strong AUD environment

• Strong revenue growth continued as a result of pax growth, supported by new aero pricing agreement, expanded car parking and lease rental reviews

• EBITDA margin affected by increased employee expenses and timing differences on both maintenance expenditure and recovery of Government mandated security costs

• Successfully completed $1.23b of debt financing with nine banks providing facilities split between 4,6 and 7 year tenors

• Shareholders committed to further equity of $122m (AIX share $36m)

30

1) Sourced from unaudited management accounts. Amounts exclude investment property revaluations

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APAC (Melbourne and Launceston Airports)

	Change	Dec 2011 half year	Dec 2010 half year
Revenue(1)($m)	3.5%	293.9	284.1
EBITDA(1)($m)	1.2%	219.9	217.2
EBITDA margin		74.8%	76.4 %
Domestic pax (m)	(4.8%)	11.4	11.9
International pax (m)	9.1%	3.4	3.1
Total pax (m)(2)	(1.9%)	14.8	15.1
Domestic seat capacity (m)	(6.9%)	13.6	14.6
International seat capacity (m)	7.1%	4.7	4.4
Total seat capacity (m)	(3.7%)	18.3	19.0

• Flat result overall with international growth offsetting subdued domestic performance

• Reduced domestic seat capacity due in part to Tiger suspension / operating restrictions

• International pax benefited from strong AUD

• Additional international seat capacity supported inbound growth, particularly from China

• Earnings growth achieved due to shift towards international pax and improved retail offering in T2

• Successfully raised US$600m in private placement, with financial close in September 2011

• T2 upgrade project now complete, including improved retail and food & beverage outlets

• Stage 1 of terminal forecourt redevelopment is complete, with Stage 2 planning under way

• $45m runway overlay completed Oct 2011, including improvements to runway lighting

1) Sourced from unaudited management accounts.

31

2) Total includes international transits (not shown separately).

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Queensland Airports Limited (Gold Coast, Townsville & Mount Isa)

	Change	Dec 2011 half year	Dec 2010 half year
Revenue(1)($m)	2.7%	59.7	58.2
EBITDA(1)($m)	3.4%	38.1	36.8
EBITDA margin		63.7%	63.3%
Domestic pax (m)	(4.0%)	3.3	3.4
International pax (m)	(6.8%)	0.4	0.4
Total pax (m)(2)	(4.4%)	3.7	3.9
Domestic seat capacity (m)	(6.2%)	4.3	4.6
International seat capacity (m)	(5.7%)	0.5	0.6
Total seat capacity (m)	(6.1%)	4.9	5.2

• Domestic pax declined due to:

  • Reduced domestic seat capacity due in part to Tiger suspension / restrictions

  • Continued strength in AUD encouraging offshore travel as a substitute for domestic holiday destinations

• International pax also subdued following the disruptions in Japan and New Zealand, as well as redirection of capacity by AirAsia X

• Revenue growth achieved despite passenger reduction, with increased income from duty free and food & beverage

• Car parking revenue was up following expansion in August 2010, while rental reviews increased property income

• Recent announcement by new low cost carrrier Scoot Airlines for five weekly flights from Singapore

• Management of Longreach Airport is expected to be assumed by QAL in April, with acquisition of the lease expected to commence mid 2012 following the completion of capital works

• 1) Sourced from unaudited management accounts. 2) Total includes transits (not shown separately).

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Northern Territory Airports (Darwin, Alice Springs & Tennant Creek)

	Change	Dec 2011 half year	Dec 2010 half year
Revenue( 1)($m)	5.6%	41.8	39.6
EBITDA(1)($m)	7.5%	28.3	26.3
EBITDA margin		67.7%	66.4%
Domestic pax (m)	(2.1%)	1.2	1.3
International pax (m)	26.8%	0.2	0.2
Total pax (m)(2)	(3.2%)	1.5	1.6
Domestic seat capacity (m)	2.2%	1.8	1.8
International seat capacity (m)	59.2%	0.5	0.3
Total seat capacity (m)	10.5%	2.3	2.1

• Domestic pax fell due to:

• Exposure to domestic tourism market

• General economic conditions

• Withdrawal of Tiger Airways from Alice Springs

• Strong international volumes supported by strong AUD, as well as proximity to Asia with competitive fares on additional capacity, particularly to Bali

• Revenue driven by FY12 aero pricing step-up and additional property lease revenue

• EBITDA margin benefited from reduced consulting, advertising and maintenance work relative to pcp

• Airport Lodge Stage 3 completed in June 2011, providing new premium hotel-style accommodation on airport land

• Achieved practical completion and handover of AFP Office Building for fit out in September 2011, with occupation by AFP in March 2012

1) Sourced from unaudited management accounts. 2) Total includes transits (not shown separately).

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HOCHTIEF AirPort Capital – Sydney Airport

Change Year to 31 Dec 2011 Year to 31 Dec 2010	Change Year to 31 Dec 2011 Year to 31 Dec 2010	Change Year to 31 Dec 2011 Year to 31 Dec 2010	Change Year to 31 Dec 2011 Year to 31 Dec 2010
Domestic pax (m) (1.0%) 23.9 24.2
International pax (m) 3.0% 11.6 11.3
Total pax (m)(1)	0.2%	35.6	35.6

	Change	Dec 2011 half year	Dec 2010 half year
Domestic pax (m)	(3.1%)	12.2	12.6
International pax (m)	2.4%	6.0	5.9
Total pax (m)(1)	(1.4%)	18.2	18.5

• Total passenger traffic in 2011 essentially flat for the year, up 0.2%, with moderate international growth offsetting a modest decline in domestic traffic

• Sydney Airport secured over A$1bn in new bank and bond facilities in 2011, which will be used to fund capital expenditure and refinance existing facilities, including the SKIES that were redeemed in January 2012. Consequently there are no refinancing requirements until October 2013

• A number of new services and additional servicing commitments will support passenger growth in 2012, particularly as a result of growing capacity in Asian markets

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1) Total includes domestic-on-carriage (not shown separately).

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HOCHTIEF AirPort Capital – German airports

Dusseldorf Airport	Change	Year to 31 Dec 2011	Year to 31 Dec 2010
Domestic pax (m)	4.4%	4.6	4.4
International pax (m)	7.9%	15.7	14.6
Total pax (m)	7.1%	20.3	19.0

Dusseldorf Airport

• Strong passenger growth of 7.1% was experienced in 2011, with growth substantially outperforming the average for German airports of 4.8%

• Growth was supported by a solid local economy, though the exceptional performance in the first half benefited from the effects of the Icelandic volcanic ash cloud affecting pcp

Hamburg Airport	Change	Year to 31 Dec 2011	Year to 31 Dec 2010
Domestic pax (m)	1.0%	5.6	5.6
International pax (m)	7.3%	7.9	7.4
Total pax (m)	4.6%	13.6	13.0

Hamburg Airport

• Hamburg similarly experienced solid passenger growth in 2011, primarily driven by international passengers

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HOCHTIEF AirPort Capital – Athens Airport

	Change	Year to 31 Dec 2011	Year to 31 Dec 2010
Domestic pax (m)	(11.9%)	4.9	5.6
International pax (m)	(3.1%)	9.5	9.9
Total pax (m)	(6.3%)	14.4	15.4

• Passenger growth continued to be effected by the weak Greek economy

• The Greek economy is expected to remain in recession throughout 2012 as the Government continues to implement austerity measures and structural changes to improve the country’s fiscal position

• The Greek Government has expressed its intention to explore the option of extending AIA concession period and investigate sell-down options, however discussions are proceeding at a slow pace

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Port of Portland

	Change	Dec 2011 half year	Dec 2010 half year
Revenue(1)($m)	16.3%	17.9	15.4
EBITDA(1)($m)	19.7%	11.9	9.9
EBITDA margin		66.3%	64.5%
Tonnes (‘000)	40.7%	2,514	1,787

• Grain performed strongly with easing drought conditions

• Woodchip volumes were significantly up on pcp due to full six months of operation, with Gunns facility commissioned in November 2010

• Significant increase in mineral sands volumes was driven by strong global demand

• Revenue and earnings growth was driven by higher volumes – lower value commodities demonstrated highest volume growth

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1) Sourced from unaudited management accounts

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Port of Geelong

	Change	Dec 2011 half year	Dec 2010 half year
Revenue(1) (2)($m)	39.3%	8.0	5.7
EBITDA(1) (3)($m)	39.0%	7.7	5.6
EBITDA margin		96.9%	97.1%
Tonnes (‘000)	2.1%	4.7	4.6

• Woodchip volumes were 67% of contracted levels however revenues are protected by annualised take-or-pay arrangements in place

  • Timing of take-or-pay arrangements reflected in revenue and EBITDA for this half year

• Reduction in fertiliser volumes offset by increased petroleum volumes

• An unconditional sale agreement under which AIX will divest its 35% interest in the Port of Geelong has been executed

• 1) Sourced from unaudited management accounts.

• 2) Trust revenue comprises fee income received by Ports Pty Limited (the vehicle through which AIX holds its interest in Geelong), net of fees paid to the operator of Port of Geelong, normalised to exclude the effect of non-cash unrealised gains/losses on interest rate hedging and interest income.

• 3) Trust EBITDA comprises the EBITDA of Ports Pty Limited, normalised to exclude the effect of non-cash unrealised gains / losses on interest rate hedging.

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Metro Transport Sydney

	Change	Dec 2011 half year	Dec 2010 half year
Revenue(1)($m)	11.1%	8.7	7.9
EBITDA(1)($m)	133.4%	1.0	0.4
EBITDA margin		N/A	N/A
Passengers (‘000)	12.5%	3.3	2.9

• Monorail pax and revenue declined on the pcp due to:

• ongoing global economic uncertainty and strong AUD negatively affecting both domestic and international tourism in Sydney

• Strong light rail passenger and revenue growth following successful incorporation of MTS into the MyZone ticketing arrangement in June 2011

• Strong advertising revenue continues to be generated across the entire network and is significantly above the pcp

• Work continues with Transport NSW on the potential Inner West Extension

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1) Sourced from unaudited management accounts