Macquarie infrastructure group Analyst package 2008

Transcription

1 Macquarie infrastructure group Analyst package 2008

2 Disclaimer This information package (the Package), which includes the accompanying spreadsheet, has been prepared by Macquarie Infrastructure Group (MIG) which comprises of two Australian trusts: Macquarie Infrastructure Trust (I) ARSN and Macquarie Infrastructure Trust (II) ARSN ; and Macquarie Infrastructure Group International Limited (MIGIL), a Bermudan mutual fund company ARBN Macquarie Infrastructure Investment Management Limited ACN (MIIML) is the responsible entity of MIT(I) and MIT(II). MIIML is a wholly owned subsidiary of Macquarie Group Limited ACN (MQG). Macquarie Capital Funds (Europe) Limited (MCFEL) registered number is the adviser to MIGIL. MCFEL is a wholly owned subsidiary of MQG. The Package has been prepared in good faith to assist analysts in the development of their own models. The Package does not purport to forecast the asset value, income or distributions of MIG, nor the value, income or distributions of any other entity. No representation or warranty, express or implied, is made by MIG or any part of MQG (Macquarie) as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this Package. Any assumptions or forecasts contained in the Package are intended as a guide to analysts only. They do not represent forecasts of Macquarie nor any other party and are not intended to be a representation that the assumptions will occur. The recipient should do their own research and form their own judgment in relation to any assumption, forecast or estimate contained in the Package and not rely on any information in the Package as being either absolute or the likely outcome. The Package does not purport to list the assumptions or risks which may influence the valuation of assets of MIG. Any discussion of tax treatment is provided without warranty and for information only. The recipient should seek professional advice in respect of any taxation assumptions required to analyse MIG. Macquarie does not guarantee information provided is up to date, and does not accept any obligation to update the Package or to inform the recipient that the package is no longer up to date should new information become available. The Package remains the property of MIG and may not be reproduced in part or whole without the express written permission of MIG. None of the entities noted in this presentation is an authorised deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of these entities do not represent deposits or other liabilities of Macquarie Bank Limited ABN (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of these entities. No part of the Package is an offer, invitation or recommendation for subscription or purchase of stapled securities. It does not take into account the investment objectives, financial situation and particular needs of the investor. Before making an investment in MIG, the investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances and consult an investment adviser if necessary. Information in this Package, including any forecast financial information, should not be considered as a recommendation in relation to holding purchasing or selling, securities or other instruments in MIG. Due care and attention has been used in the preparation of forecast information. However, actual results may vary from forecasts and any variation may be materially positive or negative. Forecasts, by their very nature, are subject to uncertainty and contingencies many of which are outside the control of MIG. Past performance is not a reliable indication of future performance. These materials do not constitute an offer of securities for sale in the United States, and the securities referred to in these materials have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an exemption from registration.

3 Contents Overview Macquarie Infrastructure Group Snapshot... 3 Asset Portfolio... 5 MIG Investment Strategy... 9 Valuation Policy Valuation of Toll Roads Group Structure MIG Reporting Distributions On-market Buy-back Securities on Issue Management Fees North America 407 ETR Chicago Skyway Indiana Toll Road Dulles Greenway South Bay Expressway Europe M6 Toll Autoroutes Paris-Rhin-Rhône th April/Vasco da Gama Bridges Warnow Tunnel Australia Westlink M Model Overview Structure of the Analyst Model Using the Analyst Model

4 Welcome to the 2008 MIG Analyst Package. This Package is designed to assist analysts and institutional/professional investors to understand MIG and its investments. The Package includes a set of background notes on MIG and on each toll road within the MIG portfolio as well as an Analyst Model that outlines a possible format for valuing MIG. The Analyst Model does not purport to forecast the asset value, income or distributions of MIG or any other entity. Any assumptions contained within the Package are intended to be a guide only and do not represent the forecasts of MIG or any entity in the Macquarie Group (collectively Macquarie) or any other entity. Macquarie does not represent that the forecasts will be achieved, the assumptions will occur or that the assumptions are reasonable, reliable or accurate. The recipient should do their own research and form their own view on any assumptions, forecasts or estimates contained within the Package. No part of the Package is to be construed as an invitation or recommendation to buy or sell any securities. No responsibility is accepted by Macquarie in respect of the accuracy of any statement or calculation within the Package. 2 Macquarie Infrastructure Group 2008 Analyst Package

5 Overview Macquarie Infrastructure Group Snapshot MIG was formed in July 1996 as the Infrastructure Trust of Australia and listed on the Australian Stock Exchange (ASX) on 16 December MIG is one of the largest developers and owners of toll roads in the world. Table 1.1: MIG snapshot Date Listed 16 December 1996 Market Capitalisation A$7.2 billion 1 Compound Annual Growth Since Listing 14.5% 2 Size Relative to ASX Top 40 1 Toll Roads in Portfolio 11 Number of Unitholders 46,000 1 Securities Held Outside Australia 46% 1 Balance Date 30 June 1. As at 1 May Based on all capital raised, distributions paid and valuation (market capitalisation) from December 1996 to May NORTH AMERICA MIG believes toll roads are an attractive asset class as they exhibit the following characteristics: Long-term growth potential The combination of traffi c growth and toll increases can produce solid revenue growth Traffi c growth often exceeds GDP MIG s toll growth is often at a minimum of infl ation, mainly CPI+ Long-term assets MIG s weighted average length of concessions remaining is 61 years 1 Legally enforceable concession agreements MIG invests in OECD and OECD-like countries with well developed legal systems High EBITDA margins which increase over time Operating costs are relatively small as a proportion of revenue Relatively low ongoing capital expenditure requirements 1. As at 31 December Predictable cash flows With relatively fi xed operating costs and known mechanisms for toll increases, cash fl ows can be predicted with some certainty Sustainable competitive advantages Development of competing infrastructure is a time consuming and costly process, hence new competitors face signifi cant barriers to entry Increasing marginal benefit of service Users growing real incomes tend to increase their value of time savings and hence, the attractiveness of using toll roads Option value Traffi c uplift from implementation/ growth of electronic tolling Potential for concession extensions Ability to increase road capacity EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 3

6 MIG is managed by the Macquarie Capital Funds division of Macquarie Group Limited, which, together with its associated entities worldwide, is a diversifi ed global provider of fi nancial and investment advisory services headquartered in Australia with over 12,400 employees in 25 countries as at 31 December Through its relationship with Macquarie, MIG benefi ts from experienced management and continuous deal opportunities: MIG has fi rst right of refusal to future Macquarie sourced toll road deals in OECD and OECD-like countries Macquarie is a global leader in advising on the acquisition, disposal and management of infrastructure assets the Infrastructure division of Macquarie Capital Advisors has over 500 infrastructure professionals who provide deal origination and execution services on a global basis the Macquarie Capital Funds division of Macquarie has over 590 infrastructure asset management professionals globally. 4 Macquarie Infrastructure Group 2008 Analyst Package

7 Overview Asset Portfolio MIG holds a direct interest in the majority of its toll road assets. In addition to its portfolio of toll road assets, MIG has a direct interest in Transtoll Australia Pty Limited. MIG s toll road portfolio is outlined in Table 1.2. Table 1.2: MIG s toll road portfolio Investment vehicle Underlying assets Asset location MIG s interest % of MIG portfolio International Inc 407 ETR Toronto, Canada 30.0% 37% Midland Expressway Limited Eiffarie SAS M6 Toll Birmingham, UK 100.0% 30% Autoroutes Paris-Rhin-Rhône (APRR) France 20.4% 2 11% Westlink Motorway Group Westlink M7 Sydney, Australia 47.5% 8% Toll Road Investors Dulles Greenway Virginia, US 50.0% 4% Partnership II LP Statewide Mobility Partners LLC Skyway Concession Company Holdings LLC South Bay Expressway LP Lusoponte Concessionária para a Travessia do Tejo SA Warnowquerung GmbH & Co, KG Indiana Toll Road Indiana, US 25.0% 3% Chicago Skyway Chicago, US 22.5% 3% South Bay Expressway 25th April Bridge Vasco da Gama Bridge Warnow Tunnel San Diego, US 50.0% 2% Lisbon, Portugal 30.6% 2% Rostock, Germany 70.0% Total 100% 1. Based on 31 December 2007 MIG valuations. 2. Effective interest in APRR. MIG holds a 25% interest in Eiffarie SAS. 0% NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 5

8 Overview Asset Portfolio (cont.) Figure 1.1: Location of asset portfolio UK M6 Toll FRANCE APRR GERMANY Warnow Tunnel CANADA 407 ETR UNITED STATES Dulles Greenway Chicago Skyway South Bay Expressway Indiana Toll Road PORTUGAL 25th April Bridge Vasco da Gama Bridge AUSTRALIA Westlink M7 Figure 1.2: MIG s asset portfolio 1 Indiana Toll Road 3% Dulles Greenway 4% Westlink M7 8% Chicago Skyway 3% Other 4% 407 ETR 37% APRR 11% M6 Toll 30% 1. Based on 31 December 2007 MIG valuations. 6 Macquarie Infrastructure Group 2008 Analyst Package

9 Portfolio Characteristics MIG s portfolio has the following features: majority of assets in early stages of their life cycle globally diversifi ed, with assets in North America, UK, Europe and Australia signifi cant remaining concession terms for many assets attractive mix of toll escalation paths and mechanisms. Table 1.3: MIG s toll road life cycle Construction Ramp Up Growth/Maturity Risks Construction time Ramp-up rate Impacts on traffi c Construction costs Initial traffi c Ramp-up rate Natural traffi c/revenue level MIG Assets Natural traffi c/revenue level 407 ETR APRR M6 Toll 25th April Bridge Westlink M7 Dulles Greenway Indiana Toll Road Chicago Skyway South Bay Expressway Vasco da Gama Bridge Warnow Tunnel Toll Road Life Cycle All toll road assets move progressively through a number of stages of development, collectively known as the toll road life cycle. Toll roads in the early stages of their life cycle have signifi cant capacity for forecast cash fl ows to de-risk. Forecast cash fl ows de-risk as they become less dependent on future growth being achieved. Lower risk cash fl ows are more highly valued by investors, resulting in lower return requirements and increases in asset valuations. As shown in Table 1.3, the majority of MIG s assets are currently in ramp-up and expected to benefi t from asset re-rating in future. NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 7

10 Figure 1.3: MIG s portfolio characteristics 1 North America 49% Geographic split Australia 8% Concession term remaining years 23% UK/Europe 43% >40 years 77% Young and developing portfolio Growth 11% Tolling mechanisms % of CPI 11% CPI 10% CPI+ 6% Market-based 73% Ramp-up 89% 1. Based on 31 December 2007 MIG valuations. 2. MIG's weighted average concession term is approximately 61 years. 8 Macquarie Infrastructure Group 2008 Analyst Package

11 Overview MIG Investment Strategy MIG s strategy is to invest in and develop quality assets that are accretive to the portfolio over the long term. Returns to security holders are expected to be in the form of both capital growth and distributions. Table 1.4: Equity risk premium Equity risk Stage in life cycle premium Construction 6 8% Ramp-up 3 6% Growth/maturity 2 3% Future opportunities for investment should: generate a forecast return that: is accretive to MIG s portfolio internal rate of return (IRR) determined by security price; and implies an equity risk premium at or above the level required to compensate for its asset and fi nancial risks (refer to Table 1.4) be consistent with the distribution policy of sustainability with increasing coverage of operating cash fl ows available for distribution offer potential for increasing value through active management of operations and capital structure be located in OECD or OECD-like countries offer sustainable competitive advantages in a traffi c corridor. In making an assessment of the required risk premium for an investment, MIG considers: stage in toll road life cycle robustness of traffi c and revenue forecast (e.g. quality of data available for forecasting and the nature and extent of future uncertainties) risk transfer in the concession agreement contractual structure and transfer of risk to other parties, such as construction contractors credit standing of counterparties operational complexity (e.g. tolling systems) project leverage fi nancing terms and conditions refi nancing opportunities equity market conditions country-specifi c risks future network developments NORTH AMERICA EUROPE AUSTRALIA assessment of equity partner(s) if applicable including terms of shareholders agreement other specifi c risks and ability to mitigate such risks. MODEL 2008 Analyst Package Macquarie Infrastructure Group 9

12 Overview MIG Investment Strategy (cont.) Realised Toll Road Investments MIG has invested in, and actively managed, toll road assets for over 11 years. During that period MIG has: reviewed more than 160 opportunities across over 20 countries invested in 31 toll roads in 9 countries realised interests in 20 toll roads (13 via Cintra), through both private and capital market processes MIG has achieved IRRs in excess of 20% on all divestments/demergers to date. This solid performance has been a function of: good initial acquisitions active management of investments strategic divestments/demergers. Details of previous divestments/ demergers are outlined in Table 1.5. Table 1.5: MIG asset divestments/demergers Divestment Date Holding period Value (A$m) IRR (%) Transurban Dec 03 7 years Cintra Oct 04 3 years 2, Yorkshire Link Dec 04 5 years Hills Motorway Mar years % of US assets Dec years 1, Demerger Sydney Roads Group Jul years 1, Total 5, Macquarie Infrastructure Group 2008 Analyst Package

13 Overview Valuation Policy MIG values its toll road investments using the Discounted Cash Flow (DCF) approach. This approach estimates the future cash fl ows expected to be generated by the asset and discounts them back to a present value. MIG revalues its investments every six months, with these valuations then used to calculate MIG s Net Asset Backing (NAB). The change in NAB shows the increase (or decrease) in the directors valuation of each MIG stapled security. A large number of variables are incorporated in the valuation models, including: revenue (mainly derived from traffi c and toll price forecasts) operating and capital expenditure for the asset macroeconomic factors such as infl ation, interest rates and foreign exchange rates the capital structure used to fi nance the asset the tax position of the asset. Forecasts for a number of variables are made by MIG in conjunction with various third party experts. Forecast equity cash fl ows are discounted using a rate derived by adding a risk premium to the prevailing risk-free interest rate for the country in which the asset is located. MIG uses the 10-year government bond rate, or its equivalent, as a proxy for the riskfree rate in the country in which the road is located. The risk premium for each asset is individually determined by MIG s Board and refl ects the uncertainty associated with each road s cash fl ows. The risk premiums used for the valuation of MIG s toll roads as at 31 December 2007 are listed in Table 1.6. NORTH AMERICA EUROPE Table 1.6: MIG asset risk premiums as at 31 December 2007 Asset Stage In toll road life cycle Risk premium 407 ETR Ramp-up 3.5% M6 Toll Ramp-up 4.5% APRR Growth 6.0% Westlink M7 Ramp-up 5.0% Dulles Greenway Ramp-up 7.0% Indiana Toll Road Ramp-up 6.0% Chicago Skyway Ramp up 5.5% South Bay Expressway Ramp-up 7.0% Vasco da Gama / 25th April Bridge Ramp-up/Growth 2.8% Warnow Tunnel Ramp-up 5.0% AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 11

14 Overview Valuation Policy (cont.) Non-Concessionaire Assets While MIG s mandate is to invest in toll road assets in OECD and OECD-like countries, it will also make investments in assets that are complementary to MIG s core business. As at 31 December 2007, MIG has one such investment in Transtoll Australia Pty Limited (Transtoll). Transtoll provides hardware and software solutions to the tolling industry. Transtoll s products include web-based violations enforcement processing, web-based account management systems and electronic maintenance and asset management systems. Table 1.7: MIG s Net Asset Backing The techniques used to value MIG s non-concession investments depend on the nature of the investments. The valuation of MIG s investment in Transtoll is based on the price at which a rights issue recently took place. In the absence of a transaction in Transtoll shares, Transtoll is valued based on an EBITDA multiple. The EBITDA multiple has been determined through benchmarking with companies in similar industry sectors listed on the ASX. Transtoll NAB reconciliation 31 December 2007 A$m Portfolio valuation (directors valuation) 10, Cash at balance date 1, Declared distribution at balance date (241.5) - Base fees payable at balance date (18.4) +/- Sundry debtors/creditors 10.7 = Value of MIG Equity 11,086.2 / No. of securities on issue (as at 31 December 2007) 2,415.3 = Net Asset Backing A$4.59 per security Table 1.8: Events significantly affecting MIG s NAB Six months to Primary drivers for significant movements in NAB 31 December 2000 Financial close reached for the acquisition of M6 Toll. There was a signifi cant revaluation of the asset post fi nancial close 31 December 2004 Distribution of Cintra IPO proceeds circa A$1.2 billion ($0.60/security) 24 July 2006 Demerger of mature Australian roads circa A$1.1 billion ($0.38/security) 12 Macquarie Infrastructure Group 2008 Analyst Package

15 represents less than 0.1% of MIG s asset portfolio by value as at 31 December Net Asset Backing Per Stapled Security MIG s NAB is calculated every six months based on updated investment valuations and noninvestment balances. The NAB at 31 December 2007 of $4.59 was calculated as outlined in Table 1.7. Historical NAB for MIG is shown in Figure 1.4. Figure 1.4: Historical Net Asset Backing Reported NAB (A$) Listing Adjustment for $0.60 Distribution of Cintra IPO Proceeds in December 2004 Adjustment for Demerger of ED, M4 and M5 Motorways via In-specie Distribution in July 2006 Dec-96 Adjusted NAB Jun-97 Dec-97 Jun-98 Dec-98 Jun-99 Dec-99 Jun Dec-00 Jun-01 Dec NORTH AMERICA Large changes in NAB per security occur when there are substantial movements in the valuation of MIG s net assets without a similar corresponding change in securities on issue (or vice versa). In three instances, events relating to a single asset have resulted in a large movement in MIG s NAB. These are outlined in Table 1.8. Figure 1.5: Historical security price performance vs MIG NAB EUROPE AUSTRALIA MODEL Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 A$ Dec 96 Jun 97 Dec 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 Jun 01 Dec 01 Jun 02 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 MIG Net Asset Backing MIG Security Price 2008 Analyst Package Macquarie Infrastructure Group 13

16 Overview Valuation of Toll Roads In general, the value of toll road investments is best determined by the DCF approach. This approach is preferred due to the relatively predictable nature of asset cash fl ows and the fi nite length of concessions. Toll road assets have the following cash fl ow characteristics: large initial capital cost revenue driven primarily by growth in traffi c and toll price low ongoing operating costs as a proportion of revenue high fi nancing costs as a proportion of revenue relatively low ongoing capital expenditure as a proportion of revenue. As with other industries, the future cash fl ows available to equityholders for toll road assets can be determined using a cash fl ow cascade as outlined in Table 1.9. Table 1.9: Cash flow cascade Revenue - Operating costs = Net operating cash fl ow (i.e. EBITDA) - Debt service obligations - Tax payments - Capital expenditure + Debt drawings = Cash fl ow available to equityholders The equity value of an investment is derived by discounting future cash fl ows to equity by an appropriate equity discount rate. The discount rate should refl ect the inherent risk in the investment and is generally calculated by adding a risk premium to the risk-free rate of the country in which the asset is located. The equity value of a toll road asset changes as it moves through the toll-road life cycle. When a toll road is in construction, there is greater uncertainty on future traffi c levels and thus a higher risk premium is used to value the investment. As the toll road proceeds through the life cycle of ramp-up, growth and then maturity, the uncertainty associated with future traffi c levels decreases and a lower risk premium is applied. This reduction in risk premium (known as the re-rating process), coupled with the benefi t of bringing forward future cash fl ows, results in a progressive increase in value as the toll road moves through its life cycle. As an illustration, the value created through the re-rating process for the M6 Toll is presented in Figure Macquarie Infrastructure Group 2008 Analyst Package

17 Accounting Concepts: Accounting Profit vs Free Cash Flow A key valuation driver of toll road assets is their ability to generate free cash fl ows. In contrast to traditional industrial companies, the concept of accounting profi t does not provide a meaningful proxy for free cash fl ow of toll road assets. The nature of toll road assets gives rise to the generation of free cash fl ows before accounting profi t as illustrated in Table The Profi t/(loss) measure in the Income Statement captures a number of non-cash items: Depreciation: The initial capital cost in most cases is debt funded and interest generally capitalises during the construction period. Once the road is open for traffi c, the net capitalised cost (both construction cost and capitalised interest) is depreciated across a specifi ed period of time. In the early years of operation, the large initial capital cost results in signifi cant depreciation charges to the Income Statement which do not have a corresponding cash fl ow impact. Capitalising debt interest: The Income Statement does not distinguish whether interest payments have been capitalised or paid in cash. Thus for assets with capitalising debt facilities, the portion of interest capitalised does not have a corresponding cash fl ow impact. Table 1.10: Example of accounting profit vs free cash flows Figure 1.6: Value created through re-rating the M6 Toll A$millions Cash flow cascade 3,250 3,000 2,750 2,500 2,250 2,000 1,750 1,500 1,250 1, % 7.00% 7.00% 6.50% 6.00% 6.00% 5.50% 5.50% 5.50% 5.00% 5.00% 5.00% 2008 Analyst Package Macquarie Infrastructure Group % Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Construction 407 International 2007 (C$m) M6 Toll Equity Value M6 Toll Risk Premium Income statement Revenue 519 Revenue 519 Expenses (111) Expenses (111) EBITDA 408 EBITDA 408 Other Expenses (2) Interest and Other Expenses (279) Net Interest Paid (201) Depreciation and Amortisation (69) Debt Principal Raised/(Repaid) 107 Tax Expense 0 Net Capital expenditure (90) Profit 60 Net change in Investments/ Reserves (72) Tax Paid 0 Movements in Working Capital (18) Net Cash flow Available 132 Opening Cash Balance 92 Net Cash fl ow Available 132 Cash Available for 224 Distribution Cash Distributed to Equity (120) Closing Cash Balance 104 A$972 million returned via refinancing in August 2006 Ramp-up Growth in value > 20% pa over 6 years NORTH AMERICA EUROPE AUSTRALIA MODEL

18 Overview Valuation of Toll Roads (cont.) Repayment of debt principal: These cash fl ows are not recognised in the Income Statement. Capital expenditure: Under accounting standards, these expenses are generally capitalised to the cost base and depreciated over a specifi ed period of time. For toll roads assets, capital expenditures are lumpy in nature and not evenly incurred during the concession period. As such funding is generally reserved in advance for such expenses. In analysing toll road assets, it is common practice to concentrate on Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) as a headline metric as it provides a meaningful proxy for cash fl ow generation. Debt Financing Unlike traditional industrial companies, toll road assets have the ability to support higher levels of debt fi nancing due to: predictable and growing nature of future cash fl ow streams minimal ongoing operating and capital expenses as a proportion of revenue. In general, toll road assets benefi t from being able to leverage traffi c growth into higher EBITDA growth. Growth in underlying traffi c coupled with growth in toll prices translate to higher revenue growth which, by keeping growth in costs to a minimum, result in even higher growth in EBITDA or operating cash fl ows. Growth in EBITDA for 407 ETR and the ability to leverage growth in traffi c to operating cash fl ows are presented in Figures 1.7 and 1.8 respectively. As toll road assets mature and generate increased free cash fl ow, they are able to support increasing levels of debt. In such instances appropriate use of additional debt is an effi cient means of fi nancing as: the cost of debt is generally lower than equity this enables surplus proceeds from refi nancings to be reinvested in capital improvements or returned to security holders. As toll road assets mature and derisk, the equity value of the asset increases (as illustrated through the M6 Toll in Figure 1.6). Therefore, the use of additional debt does not necessarily result in increased levels of gearing. The appropriate use of additional debt enhances equity value as it brings forward the timing of future equity distributions. Lenders to toll road projects generally use a Project Life Cover Ratio (PLCR) to assess the project s ability to support debt. The PLCR refl ects the number of times the current level of debt can be repaid within the term of the concession (the project life). 16 Macquarie Infrastructure Group 2008 Analyst Package

19 Since toll roads have a fi nite concession term, the use of additional debt must be analysed having regard to: maturity structure of debt tranches to diversify refi nancing risk ability to service principal and interest payments within the remaining concession term. Refi nancing is an integral part of actively managing toll road assets and can add substantial value to equity holders. For example, in C$million Figure 1.7: 407 ETR - increasing operating cash flow Operating Expenses EBITDA Total Revenue Figure 1.8: 407 ETR leveraging traffic growth into higher EBITDA growth 5% 14% August 2006 MIG refi nanced its investment in M6 Toll increasing gross debt levels from 620 million to 1.0 billion. Key terms of the transaction: refi nanced acquisition debt facilities with a 1.0 billion fi nancing package committed 30 million Capital Expenditure Facility nine-year facility with 30-year interest rate hedging rated BBB by Standard & Poor s. 16% Outcome for MIG: reduced credit margins and swap rates signifi cantly extended interest rate hedging 100% covered for 30-years capitalising swaps resulting in better matching of cash fl ows over the life of the concession increase in projected fi ve-year average distribution of 4 million fi ve-year average Debt Service Cash Cover ratio increased from 1.7x to 2.8x project life cover ratio reduced from 5.9x to 3.2x returned A$972 million via equity distribution to MIG. Sensitivity to Interest Rate Movements Sensitivity to interest rate movements is an important consideration when valuing toll roads investments. In the short term, hedging is generally used to reduce exposure to rising interest rates. MIG s investments are relatively insensitive to short-term changes in interest rates as a signifi cant proportion of the debt is hedged. Table 1.11 outlines current levels of hedging for MIG s key assets (by value), including policy initiatives in place to manage exposure to movements in interest rates. NORTH AMERICA EUROPE AUSTRALIA MODEL 2007 Traffic Growth (ADT) Revenue Growth EBITDA Growth 2008 Analyst Package Macquarie Infrastructure Group 17

20 Overview Valuation of Toll Roads (cont.) In the longer term, toll road investments have a natural hedge to rising interest rates as there is some correlation between interest rates and infl ation, i.e. they often move together. Rising interest rates increase the cost of capital (discount rate), decreasing the value of the investment. However, higher infl ation increases the valuation as toll road assets generally have infl ation-linked toll pricing mechanisms. Table 1.12 illustrates the natural hedge to rising nominal interest rates for MIG s two largest investments. Table 1.11: MIG assets hedging position Minimum required 1 Hedging % as at 31 December ETR 90% of all debt 2 100% M6 Toll 75% of all debt 100% APRR 75% of all debt 75% Westlink M7 85% of senior debt 100% Dulles Greenway 80% of all debt 2 100% Chicago Skyway 75% of senior debt 100% Indiana Toll Road 100% of senior debt for 20 years 98% 1. Minimum requirement stipulated by fi nancing documents. 2. No stated policy, refl ects view of Board and management. Table 1.12: Natural hedge to rising nominal interest rates 407 ETR A$m M6 Toll A$m Valuation at 31 December ,770 3,026 Interest rates +1% 1 (101) (12) Risk-free rate +1% 2 (769) (512) Infl ation +1% 3 1, Valuation 3,985 3,418 Valuation uplift Due to increase in debt servicing costs. 2. Due to increase in discount rate/cost of equity. 3. Due to increase in toll revenue as toll prices linked to infl ation. 18 Macquarie Infrastructure Group 2008 Analyst Package

21 Overview Group Structure MIG is a triple stapled security, consisting of a unit in Macquarie Infrastructure Trust (I) (MIT(I)), a unit in Macquarie Infrastructure Trust (II) (MIT(II)), and a share in Macquarie Infrastructure Group International Limited (MIGIL) as shown in Figure 1.9. Stapled securities are two or more instruments that are quoted and traded as if they are a single instrument. The responsible entity of MIT(I) and MIT(II) is Macquarie Infrastructure Investment Management Limited (MIIML) while MIGIL is advised by Macquarie Capital Funds (Europe) Limited (MCFEL). MIIML and MCFEL, together the Manager, are wholly owned subsidiaries of Macquarie Group Limited. Securities consisting of one or more investment vehicles managed by a third party are registered in Australia under the Managed Investments Act. MIG s structure has been developed to facilitate the distribution of income and other surplus cash fl ows to security holders in the most effi cient manner possible. Figure 1.9: MIG group structure Distribution of income and other free cash flow Debt Facilities MIG s interests in toll roads are held via holding companies, in separate project vehicle legal entities. The debt borrowed by these project vehicles is on a non-recourse basis. MIG only makes use of debt facilities for short-term bridge fi nancing. Taxation Distribution of dividends and other free cash flow MIT(I) is considered to be a fl ow through trust for the purposes of Division 6 of the Australian Income Tax Assessment Act MIIML, as responsible entity of MIT(I), will not be liable for income tax on the income of the Trust, provided that the income of MIT(I) is fully distributed to unitholders each year. Income distributed by MIT(I) to unitholders retains its character and therefore MIT(I) distributions may comprise different components (e.g. interest, dividend, capital gains, etc.). Distribution of dividends and other free cash flow NORTH AMERICA EUROPE AUSTRALIA MIT(I) (Australia) Stapled MIG Stapled Security MIT(II) (Australia) Stapled MIGIL (Bermuda) Assets Assets Assets MODEL 2008 Analyst Package Macquarie Infrastructure Group 19

22 Overview Group Structure (cont.) MIT(II) is a trading trust for the purposes of Division 6C of the Australian Income Tax Assessment Act MIT(II) may take controlling interests in the assets in which it invests, carry on a trading business itself or invest in a partnership or joint venture which carries on a trading business. A consequence of being a Division 6C trust is that MIT(II) is taxed as a company and is subject to tax at the corporate tax rate. This means that distributions from MIT(II) are akin to company dividends and may be franked. As of 1 July 2003, MIT(II) has been the head entity of a tax consolidated group. This means that MIT(II) will always be treated as a company even if it no longer meets the Division 6C tests. MIGIL (a Bermudian mutual fund company) is the ultimate holding company for MIG s European and Canadian assets. Bermuda does not impose a tax on the income or capital gains of Bermudian companies. Distributions from MIGIL will generally comprise dividends. PFIC Treatment Under certain circumstances, US tax legislation seeks to tax US investors when they invest in foreign entities which predominantly make passive investments (defi ned as Passive Foreign Investment Companies or PFICs). In general, a PFIC is any non- US corporation where 75% or more of its gross income for the year is passive income (interest, dividends, etc.) or where at least 50% of its average assets held during the year produce passive income. For stapled entities that trade as a single security (such as MIG), the legislation seeks to determine whether any of the stapled entities (i.e. MIT(I), MIT(II) and MIGIL) are PFICs. If an entity is deemed a PFIC, the US investor can be assessed on PFIC income without necessarily receiving distributions from the PFIC (i.e. taxable income without receiving cash). In determining whether entities are PFICs, a look through rule applies. Where entities have an interest of 25% or more, by value, of the stock of a subsidiary, the holding 20 Macquarie Infrastructure Group 2008 Analyst Package

23 entity is deemed to have earned and is deemed to own the relevant proportion of income and assets of the subsidiary. Stock of a less than 25% owned subsidiary is automatically treated as passive, and any income derived therefrom is passive income. As it relates to MIG, MIG has recently updated its analysis and believes that for the year ended 30 June 2007 that MIT(I) and MIGIL are not PFICs but that MIT(II) is a PFIC. The change in status for MIT(II) has arisen due to its sales of the Sydney toll roads (M4, M5 and Eastern Distributor) and 50% of its interests in US toll roads (Dulles Greenway, Chicago Skyway, Indiana Toll Road and South Bay Expressway). MIG will continue to monitor the situation. This analysis is subject to fi nal legal sign-off. MIG takes no responsibility for investors or others who act on the information above. MIG recommends that investors or others affected should seek their own professional advice. Investors who wish to confi rm the PFIC status of these entities at 30 June 2007 and beyond should contact MIG s investor relations department (see contact details). NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 21

24 Overview Group Structure (cont.) Figure 1.10: MIG s current structure MIT (I) Stapled 100% Western Sydney Orbital Funding Trust 100% LMI WSO Holding No.3 Pty Limited Western Sydney Orbital Holding Trust 100% 100% 40.0% Western Sydney Orbital Funding (Option) Trust 7.5% MIG - Western Sydney Orbital Holding Company Pty Ltd* 100% 47.5% 47.5% 47.5% 8.5% 39.0% FinCo (WSO Finance Pty Ltd) WestLink Motorway Partnership Nominee (WestLink Motorway Ltd) WSO Co (WSO Co Pty Ltd) Stapled MIG Investments Australia Pty Ltd* 100% 100% MIG Indiana Holdings LLC WestLink M7 Skyway 100% MIG Holdings (US) LLC 1% 49% Indiana Toll Road Partnership Indiana Toll Road 50% 49% Dulles Greenway Transtoll Chicago Skyway Partnership Statewide Mobility Partners LLC South Bay Expressway 45% 100% APRR 407 ETR Skyway Concession Company Holdings LLC ITR Concession Company Holdings LLC M6 Toll 100% 100% Warnow Tunnel Vasco de Gama & 25th April Bridges Skyway Concession Company LLC ITR Concession Company LLC 22 Macquarie Infrastructure Group 2008 Analyst Package

25 MIT (II) Stapled MIGIL 100% Macquarie Green Bermudian Holdings Ltd 100% Macquarie 50% Infrastructure US Pty Ltd* South Bay Expressway LP 100% 90% MIBL Finance Luxembourg SarL 10% MEI Macquarie Motorways Group Limited 100% NORTH AMERICA 100% MIT (II) Holdings 59.51% Pty Ltd* Transtoll Pty Ltd 100% Midland Expressway Ltd 100% Macquarie Infrastructure Australia Pty Ltd* 50.2% MAF Finance Sarl 100% Macquarie Infrastructure (UK) Ltd 30.61% Lusoponte Concessionaria para a Travessia do Tejo SA EUROPE 50% 50% % MIG Holdings 2 (US) LLC 50% Dulles Greenway Partnership 100% MIG Investments 3 (US) LLC 100% Shenandoah Greenway Corp (GP) 0.1% Toll Road Investors Partnership II LP Macquarie Autoroutes de France SAS 50% -1 Financière Eiffarie SAS 100% Eiffarie SAS 81.48% Autoroutes Paris- Rhin-Rhône Macquarie Infrastructure Toll Route SA 100% 100% 22.65% Macquarie Infrastructure Canada Inc 30% 407 International Inc Macquarie Infrastructure Luxembourg SA 77.35% 70% European Transport Investments (UK) Ltd 70% Warnowquerung GmbH & Co KG Warnowquerung Verwaltungsgesellschaft GmbH 100% AUSTRALIA MODEL * Members of Australian Tax Consolidated Group (Head Entity MIT(II)) 2008 Analyst Package Macquarie Infrastructure Group 23

26 Overview MIG Reporting MIG prepares two reports which cover the operational and fi nancial performance of MIG and its underlying assets. In addition to the statutory fi nancial accounts, MIG provides a quarterly Management Information Report to assist analysts and investors in understanding MIG s performance. Table 1.13: MIG s financial reporting MIG Financial Statements The fi nancial report for the year ended 30 June 2007 and the interim report for the half year ended 31 December 2007 are prepared under Australian Accounting Standards. Where MIG has a controlling interest in a toll road, the assets and liabilities of the concessionaire entity are consolidated into the accounts of MIG. These assets and liabilities include the road itself, the tolling concession (being the right to levy tolls) and non-recourse project level debt. MIG currently only consolidates Midland Expressway Limited (M6 Toll). Report Frequency Description Financial Statements Semi-annual Statutory accounts as required for an ASX-listed reporting entity Management Information Report Quarterly Presents MIG s key proportionally consolidated performance metrics and balance sheet items Also presents MIG s cash fl ows and investments at fair value without consolidating MIG s controlled assets 24 Macquarie Infrastructure Group 2008 Analyst Package

27 In accordance with Australian Accounting Standards (AASB139), all non-controlled MIG toll road investments are recorded in MIG s balance sheet at fair value. Fair value is the amount for which an asset could be exchanged between knowledgeable willing parties in an arm s length transaction. A halfyearly assessment of the fair value of each non-controlled entity is made by the MIG Board, and revaluation movements are recognised in MIG s Income Statement. Acquisition costs of all non-controlled MIG toll road investments are written off at the time of purchase. Management Information Report The Management Information Report outlines: MIG s proportionate earnings, being the aggregation of MIG s proportionate share of the fi nancial results of each road asset based on MIG s benefi cial ownership interest details of traffi c volumes across MIG s portfolio of investments a balance sheet and statement of cash fl ows that refl ects transactions between MIG and each investment, disregarding the accounting concept of consolidation for investments in which MIG has a controlling interest. In the balance sheet, which is used to derive MIG s Net Asset Backing, MIG s investments in its controlled and noncontrolled assets are refl ected at the MIG directors estimates of fair value. NORTH AMERICA EUROPE MODEL AUSTRALIA 2008 Analyst Package Macquarie Infrastructure Group 25

28 Overview Distributions MIG has confi rmed distribution guidance of 20.0 cents per stapled security for the 12 months to 30 June 2008 and provided preliminary guidance of 20 cents per stapled security for the 12 months to 30 June This distribution guidance is subject to there being no material changes in the underlying cash fl ow forecast assumptions of the MIG business, including changes in proposed refi nancings and the projected performance of the portfolio. Components of MIG Distributions The classifi cation of MIG s distributions depends on how these funds have been derived. The components of MIG s distributions can vary every fi nancial year and are disclosed in its annual Tax Statement Guide. Figure 1.11: MIG distributions 1,300 1,200 1,100 1, Jun 97 Dec 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 Jun 01 Dec 01 Jun 02 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 A$ million The key components may include: Franked Distributions: Where Australian income tax has been paid within the MIG structure imputation (franking) credits may be attached. These franking credits are available to domestic MIG investors. Fully franked distributions are not subject to Australian dividend withholding tax when paid to MIG s offshore investors. Capital Gains: Capital gains made by MIT(I) on the disposal of assets form part of MIT(I) s assessable income which will be distributed to security holders. As MIT(I) is a fl ow through trust, the capital gain generated on the sale maintains its character when the proceeds are distributed to investors. These capital gains will form part of security holders Normal Distribution Cintra distribution SRG in-specie distribution 26 Macquarie Infrastructure Group 2008 Analyst Package

29 assessable income, and the Capital Gains Tax (CGT) discount should be available for qualifying investors (broadly, individuals and superannuation entities). Tax Deferred: Tax deferred distributions do not form part of security holders assessable income for tax purposes. These distributions reduce the cost base of security holders investments for the purposes of Australian Capital Gains Tax calculations. In the event that these distributions reduce the cost base to zero, any excess will constitute capital gains. The CGT discount should be available for qualifying investors who have held their MIG securities for 12 months or more. Foreign Distributions: Distributions made by MIGIL are classifi ed as foreign distributions. These are not subject to Australian withholding tax when paid to MIG s offshore investors. MIG informs security holders of the actual components of its distributions in the annual Tax Statement Guide distributed in or around August each year. MIG recommends that all investors obtain their own tax advice in relation to the treatment of MIG distributions. Distribution Reinvestment Plan: MIG has traditionally offered investors the opportunity to reinvest distributions in additional MIG securities through a Distribution Reinvestment Plan (DRP). Only investors with a registered address in Australia or New Zealand are eligible to participate in the DRP. The security price for the MIG DRP is calculated as the average of the daily MIG Volume Weighted Average Prices (VWAPs) over the 10 trading day period ending no later than fi ve trading days before the distribution payment date, which is then adjusted for any applicable discount offered. Under its constituent documents, MIG is able to offer a price discount of up to 10% for stapled securities issued under the DRP. MIG currently offers no discount on stapled securities issued under the DRP. NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 27

30 Overview On-market Buy-back On 24 August 2006, MIG announced that the Australian Securities and Investments Commission (ASIC) had granted relief for MIG to undertake an on-market buy-back of up to A$500 million. This was the fi rst time this relief had been granted for an Australian listed trust. The buy-back was initiated because MIG assessed that it was the most effi cient way of distributing surplus cash and generating value for security holders. On 18 December 2006, following the successful completion of the sale of US assets to Macquarie Infrastructure Partners (MIP) and having received the required approvals from ASIC and MIG s security holders, MIG announced that the buy-back would be expanded by a further A$500 million to a total of up to A$1 billion. On 15 January 2008, MIG announced the successful completion of the onmarket buy-back having bought back 292,218,706 stapled securities for a total consideration of $999,999, The price paid by MIG for stapled securities under the buy-back ranged between $2.90 (23 November 2007) and $3.88 (27 February 2007), with an average price of $ Macquarie Infrastructure Group 2008 Analyst Package

31 Overview Securities on Issue A summary of the dates and issue prices of MIG s securities is set out below. Table 1.14: Summary of securities on issue Date Issue of securities No. of securities Price (A$) Cumulative Dec-96 Initial Public Offering 300,000,000 $ ,000,000 Dec-96 Issue to Manager 18,000, ,000,000 May-97 Private Placement 31,800,000 $ ,800,000 Aug-97 Dividend Reinvestment Plan (DRP) 7,823,883 $ ,623,883 Dec-97 1:3 Rights Issue 119,211,526 $ ,835,409 Feb-98 DRP 7,163,915 $ ,999,324 Aug-98 DRP 11,695,388 $ ,694,712 Feb-99 DRP 7,547,463 $ ,242,175 Mar-99 Private Placement 55,900,000 $ ,142,175 Aug-99 DRP 11,601,860 $ ,744,035 Oct-99 1:2 Rights Issue 285,346,519 $ ,090,554 Oct-99 Private Placement 12,804,420 $ ,894,974 Feb-00 DRP 11,445,059 $ ,340,033 Aug-00 DRP 10,050,933 $ ,390,966 Feb-01 DRP 8,891,810 $ ,282,776 Apr-01 Private Placement 58,000,000 $ ,282,776 May-01 Private Placement 6,640,001 $ ,922,777 Aug-01 DRP 5,408,875 $ ,331,652 Sep-01 Institutional Entitlement Offer 409,692,677 $ ,379,024,329 Oct-01 Institutional/Retail Entitlement Offer 188,572,589 $ ,567,596,918 Feb-02 DRP 3,960,861 $ ,571,557,779 Apr-02 Institutional Placement 61,540,000 $ ,633,097,779 Apr-02 Institutional Entitlement Offer 180,484,959 $ ,813,582,738 May-02 Retail Entitlement Offer 69,515,042 $ ,883,097,780 Aug-02 DRP 9,771,131 $2.84 1,892,868,911 Dec-02 Manager Performance Fee 2,047,402 $2.97 1,894,916,313 Feb-03 DRP 6,371,778 $3.30 1,901,288,091 Aug-03 DRP 4,954,868 $3.50 1,906,242,959 Aug-03 Manager Performance Fee 20,131,790 $3.57 1,926,374,749 Feb-04 DRP 4,153,503 $3.28 1,930,528,252 Aug-04 DRP 4,549,794 $3.39 1,935,078,046 Aug-04 Manager Performance Fee 1,862,630 $3.27 1,936,940,676 Feb-05 DRP 227,949,622 $3.47 2,164,890,298 Aug-05 DRP 17,594,493 $4.09 2,182,484,791 Sep-05 Institutional Placement 174,418,605 $3.87 2,356,903,396 Sep-05 Manager Performance Fee 21,861,756 $4.19 2,378,765,152 Oct-05 Security Purchase Plan 26,731,829 $3.87 2,405,496,981 Feb-06 DRP 40,035,853 $3.40 2,445,532,834 Feb-06 DRP 29,966,556 $3.48 2,475,499,390 Aug-06 DRP 55,504,517 $2.66 2,531,003,907 Nov 06 Conversion of ReCNs 2 165,048,894 $3.06 2,696,052,801 Oct 06 Jan 08 On-market buy-back 3 (292,218,706) $ ,403,834, Includes UK stamp duty paid by the MIG investor, in relation to shares in MEI. 2. MIG issued Reset Convertible Notes (ReCNs) to defer its equity contribution to the Westlink M7 project. The ReCNs were converted to MIG securities by ReCN holders in November 2006 at a price of $ per security. 3. On-market buy-back of up to A$1 billion commenced on 3 October 2006 and was completed on 14 January Weighted average price paid under the on-market buy-back. NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 29

32 Overview Management Fees Base Management Fees The base fee payable to the Manager is calculated on the following basis: 1.25% per annum of Net Investment Value (NIV) up to and including A$3.0 billion 1.00% per annum of NIV above A$3.0 billion and is payable quarterly in arrears. Following security holder approval at the October 2006 MIG Annual General Meeting, the independent directors of MIG have the discretion for base fees to be paid in cash or applied to subscribe for new MIG stapled securities. The issue price for new scrip is the VWAP over the 10 trading days prior to the quarter end when the base management fee becomes payable. Table 1.15: Base Management Fee calculation Key terms Definition/Explanation Calculation NIV Market Capitalisation Market Capitalisation + Debt + Commitments Cash Volume weighted average closing traded MIG stapled security price x average number of stapled securities on issue Calculated over last 10 trading days of each quarter ending 31 March, 30 June, 30 September and 31 December Debt Commitments Debt liabilities owed by any of the three stapled entities to external parties (excluding working capital liabilities) Contractual future equity/quasiequity investment commitments As at quarter end As at quarter end Table 1.16: MIG Return Key terms Definition/Explanation Calculation MIG Return ((Closing MIG Accumulation Index Opening MIG Accumulation Index) / Opening MIG Accumulation Index) * Opening MIG Market capitalisation MIG Accumulation Index ASAMIG (Bloomberg) Calculated by S&P in accordance with recognised accumulation indice conventions (see below) Closing MIG Accumulation Index Opening MIG Accumulation Index Opening MIG Market Capitalisation Average of the MIG Accumulation Index over the last 10 trading days of the current performance fee period Average of the MIG Accumulation Index over the last 10 trading days of the prior performance fee period MIG VWAP over the last 10 trading days of the prior performance fee period 30 Macquarie Infrastructure Group 2008 Analyst Package

33 Performance Fees Performance fees payable to the Manager are calculated on the following basis: the Manager is entitled to 15% of the amount by which the MIG Return exceeds the Benchmark Return, after recouping any prior period Defi cit calculated as: 15% x ((MIG Return Benchmark Return) Defi cit)) if ((MIG Return Benchmark Return) Defi cit)) is < zero, no performance fee is generated and the resulting Defi cit is carried forward calculated annually at 30 June. Calculation of MIG Accumulation Index Under its constituent documents, MIG s performance fees must be calculated in accordance with the MIG Accumulation Index published on Bloomberg (ASAMIG). This index is calculated in accordance with S&P s accumulation index methodology. In summary, ASAMIG calculates the accumulated return for an IPO investor that reinvests all distributions at the closing price on the relevant ex-distribution date. Distributions paid by MIG have been recognised as ordinary distributions for the purposes of calculating the accumulation index with the exception of the SRG in-specie distribution in July 2006 and the special distribution paid from Cintra proceeds in December The SRG in-specie distribution, valued at cents per MIG stapled security, was recognised as a capital return and was treated differently from ordinary distributions when calculating the MIG Accumulation Index. The relative size of the capital return has been calculated by reference to MIG s closing security price on the trading day prior to the ex-capital return date. Based on MIG s closing security price of $3.15 on 21 July 2006, the cps return equates to 12.17% ($ /$3.15) of MIG s capital. MIG securities are assessed to have only 87.83% of the capital value they did prior to the capital return. This should be refl ected in a $ decrease in the MIG security price. To refl ect that MIG investors have not suffered a diminution in value due to the capital return (e.g. $3.15 = $ $0.38 return), an adjustment factor must be applied to post-capital return security prices so that they Table 1.17: Benchmark Return Key terms Definition/Explanation Calculation Benchmark Return Benchmark Index Opening MIG Accumulation Index Closing MIG Accumulation Index Opening MIG Market Capitalisation ((Closing Benchmark Index Opening Benchmark Index)/Opening Benchmark Index) * Opening MIG Market Capitalisation ASX 300 Industrials Accumulation Index ASA47 (Bloomberg); XKIAI (IRESS) are comparable to pre-capital return security prices. This adjustment factor is applied by dividing postcapital return security prices by 87.83% (i.e. $3.15 = $2.77/87.83%). The 60 cent component of the December 2004 distribution that related to Cintra IPO proceeds was also recognised as a capital return and incorporated into the MIG Accumulation index in the same manner. Deficits If the Benchmark Return exceeds the MIG Return during a performance fee period, the difference is defi ned as a Defi cit. The Defi cit is carried forward at its dollar value into future performance fee calculations. The MIG Return must exceed the Benchmark Return by more than any carried-forward Defi cit before a new performance fee can be generated in subsequent years. Per the MIG constitutions, ASA47 is the index used in calculations Average of the Benchmark Index over the last 10 trading days of the prior performance fee period Average of the Benchmark Index over the last 10 trading days of the current performance fee period MIG VWAP over the last 10 trading days of the prior performance fee period NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 31

34 Overview Management Fees (cont.) Example Year 1: MIG Return: (Closing MIG Index / Opening MIG Index) x Opening Market Cap = (( ) / 100) x A$7.00 billion = A$700 million Benchmark Return: (Closing Benchmark Index / Opening Benchmark Index) x Opening Market Cap = (( ) / 100) x A$7.00 billion = A$1,400 million Calculation: A$700 million A$1,400 million = A$700 million Result: No performance fee generated, A$700 million defi cit carried forward Year 2: MIG Return: (( ) / 110) x A$7.50 billion = A$750 million Benchmark Return: (( ) / 120) x A$7.50 billion = A$375 million Calculation: ((A$750 million A$375 million) A$700 million) = A$325 million Result: No new performance fee, A$325 million defi cit carried forward Year 3: MIG Return: (( ) / 121) x A$8.00 billion = A$800 million Benchmark Return: (( ) / 126) x A$8.00 billion = Nil Calculation: ((A$800 million nil) A$375 million) = A$425 million Result: New performance fee = 15% x A$425 million = A$63.75 million 32 Macquarie Infrastructure Group 2008 Analyst Package

35 Instalments Performance fees earned by the Manager are payable in three equal instalments. The fi rst instalment is paid when the performance fee is generated. Payment of the second and third instalments is subject to meeting ongoing performance criteria. The second instalment is payable if the MIG Accumulation Index outperforms the Benchmark Accumulation Index over the twoyear period from the start of the Performance Fee Year to the end of the year after the Performance Fee Year. The Performance Fee Year is the year in which the performance fee is generated. Similarly, the third instalment is payable if the MIG Accumulation Index outperforms the Benchmark Accumulation Index over the three-year period from the start of the Performance Fee Year to the end of the second year after the Performance Fee Year. If the performance criteria are not satisfi ed for an instalment of a performance fee, the instalment is forfeited by the Manager and cannot be recouped at a later stage. The forfeiture of the second instalment of a performance fee does not affect the calculation to determine whether the third instalment is payable to the Manager. When a performance fee instalment becomes payable to the Manager, the Manager can elect to apply the proceeds to a subscription of new MIG securities, subject to approval by the independent directors of the Manager and the independent directors of MIGIL, acting in the best interests of MIG security holders. All performance fees generated since 2001 have been reinvested in MIG securities. The issue price for scrip Table 1.18: Benchmark return Performance Fee Year 2nd Instalment Payable? 3rd Instalment Payable? Opening MIG Market Cap $5 billion N/A N/A Opening MIG Accumulation Index Closing MIG Accumulation Index Opening Benchmark Accumulation Index Closing Benchmark Accumulation Index 100 N/A N/A N/A N/A Performance Fee Generated $150 million N/A N/A Instalment Calculation = (( ) / 100) (( ) / 100) = -6% Instalment Payable? (If calculation > 0) is the VWAP over the 10 trading days prior to the year end when the performance fee instalment becomes payable. Example Table 1.18 illustrates the calculations required to determine whether second and third instalments of a performance fee are payable to the Manager. = (( ) / 100) (( ) / 100) = 5% Yes No Yes Amount of Instalment $50 million NIL $50 million NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 33

36 Overview Management Fees (cont.) Historical Performance The MIG Accumulation Index has outperformed the Benchmark Accumulation Index since listing as demonstrated in Figure Figure 1.12: Historical performance 900% 800% 700% 600% 500% 400% 300% 200% 100% 0% Dec 96 Jun 97 Dec 97 Jun 98 Dec 98 Jun 99 Dec 99 Jun 00 Dec 00 Jun 01 Dec 01 Jun 02 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 MIG Accumulation Index ASX 300 Industrials Accumulation Index Historical performance fees generated and paid to the Manager are listed in Table Table 1.19: Historical performance fees Year to 30 June Performance fee generated for the period Instalments paid to Manager 1997 $17,818,449 1st, 2nd, 3rd $207,353,321 1st, 2nd, 3rd 2002 $18,262,309 1st, 2nd, 3rd 2003 $197,048, st, 3rd $77,731, st Only 1st and 3rd instalments paid to MIG amounting to $131,365, Only 1st instalment paid to MIG amounting to $25,910, Macquarie Infrastructure Group 2008 Analyst Package

37 North America 407 ETR Chicago Skyway Indiana Toll Road Dulles Greenway South Bay Expressway MODEL AUSTRALIA EUROPE NORTH AMERICA 2008 Analyst Package Macquarie Infrastructure Group 35

38 North America 407 ETR Asset Description 407 ETR is a 108 kilometre open access, all-electronic toll highway in Toronto, Canada. The asset was developed by the Ontario Government and opened to traffi c in It was 69 kilometres in length on opening. 407 International Inc (407 International) acquired 407 ETR Concession Company Limited (407 ETR) from the Ontario Government in mid-1999 for C$3.1 billion. The highway was lengthened with the West Extension opening on 30 July 2001, and the East Partial Extension opening on 30 August These extensions were funded by 407 International at a cost of approximately C$550 million. The highway currently varies between four and 10 lanes (two to fi ve lanes in each direction) and has the capacity to be expanded to up to 12 lanes in the future. Figure 2.1: 407 ETR ONTARIO HIGHWAY 407 Markham Concessionaire Ownership Structure 407 International owns the concession to operate 407 ETR. Prior to the Cintra IPO in October 2004, MIG held a 42.97% economic interest in 407 International (16.13% direct and 26.84% indirect). MIG completed an asset swap with Cintra prior to the IPO, where MIG exchanged an 11.99% interest in Cintra for an additional 13.87% direct stake in 407 International. This simplifi ed MIG s investment in 407 International to a 30.0% direct interest. Cintra and SNC-Lavalin (a Canadian engineering company) are the other shareholders in 407 International. Shareholders have pre-emptive rights should any other shareholder seek to sell their investment in the asset. Pickering 401 Proposed East Completion Oshawa Brampton Georgetown Toronto 401 Milton QEW Lake Ontario Oakville Burlington Hamilton NEW YORK STATE 36 Macquarie Infrastructure Group 2008 Analyst Package

39 407 ETR Financing Structure The debt of 407 International currently consists of a number of tranches of bonds, totalling approximately C$4.6 billion as at 31 January Under the terms of the lending documents, 407 International is able to increase its borrowings subject to satisfying specifi ed coverage ratios and Figure 2.2: 407 ETR ownership structure MIG 30% Cintra Table 2.1: Road configuration 53% 407 International Inc 407 ETR Concessionaire From To Distance (km) maintaining its current credit ratings. This gives 407 International fl exibility to increase debt levels as traffi c and tolls increase. Debt service and other reserves, totalling approximately C$370 million, are required under the current lending documents. The reserves are a function of fi xed amount requirements and forecasted operating projections. Current capacity (lanes in each direction) Maximum capacity (lanes in each direction QEW Highway Highway 403 Highway Highway 401 Highway Highway 427 Highway Highway 400 Highway Highway 404 McCowan Rd McCowan Rd Markham Rd Markham Rd Brock Rd Brock Rd Highway Total % SNC Road Configuration 407 ETR can be expanded from its current capacity to the maximum capacity outlined in Table ETR s current confi guration is approximately 714 lane kilometres, with a maximum expandable capacity of 1,022 lane kilometres. In September 2007, 407 ETR completed a two-year project to add 100 kilometres of new lanes between Highways 401 and 404. The expansions were constructed down the centre median of the road and opened in stages as construction progressed. The opening of these lanes has increased traffi c capacity through one of the busiest section of the road, assisting in relieving congestion on the surrounding network. Table 2.2 provides details of expansion to the 407 ETR since fi rst opening in NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 37

40 North America 407 ETR (cont.) Table 2.2: 407 ETR expansions Year Segment Dir From To Expansions/ Widening Ministry approval 1997 C2 EB/WB Hwy 410 Hwy km lane extension 13 Dec C7 EB/WB Hwy 404 McCowan Rd 7km lane extension 13 Feb C1 EB/WB Hwy 401 Hwy km lane extension 18 Sep E1 EB/WB McCowan-Markham Link 2km lane extension 24 Jun W3 EB/WB Hwy 403 Neyagawa 6km lane extension 17 Jun W2 EB/WB Neyagawa Bronte Rd 5km lane extension 29 Jun W2 EB/WB Bronte Rd Dundas 8km lane extension 18 Jul W1 EB/WB Dundas QEW 10km lane extension 30 Jul C1 EB/WB Britannia Rd Interchange opening 21 Aug E1 EB/WB McCowan Rd Interchange opening 21 Aug E1 EB/WB Kennedy Rd Interchange opening 29 Aug E1, E2 EB/WB Markham Rd Brock Rd 15km lane extension 30 Aug C7 WB Woodbine Ave Entrance ramp 10 May C4 E Mavis Rd Exit opening 29 Aug C7 E Woodbine Ave Exit opening 8 Nov C4 EB Hwy 427 Hwy lane to each direction 26 Jun C4 WB Hwy 400 Hwy lane to each direction 26 Jun C1 EB/WB Hwy 407 Hwy 403 Exit ramp 25 Nov C2 EB Hwy 401 Hwy lane to each direction 10 Nov C2 WB Hwy 410 Hwy lane to each direction 10 Nov E1 EB/WB Markham Bypass Interchange opening 17 Dec C4 EB Hwy 427 Hwy lane to each direction 31 Aug C4 WB Hwy 400 Hwy lane to each direction 31 Aug C5 EB Hwy 400 Yonge 1 lane to each direction 31 Aug C5 WB Yonge Hwy lane to each direction 30 Sep C6 EB Yonge Hwy lane to each direction 31 Aug C6 WB Hwy 404 Yonge 1 lane to each direction 20 Sep E1 EB McCowan-Markham Link 1 lane to each direction 16 Nov E1 WB McCowan-Markham Link 1 lane to each direction 16 Nov C3 EB Hwy 427 Hwy lane to each direction 3 Aug C3 WB Hwy 410 Hwy lane to each direction 3 Aug C2 EB Hwy 401 Hwy lane to each direction 6 Sep C2 WB Hwy 410 Hwy lane to each direction 17 Sep Macquarie Infrastructure Group 2008 Analyst Package

41 East Completion As part of traffi c planning for the greater Toronto network, an eastern extension of 407 ETR has been proposed (the East Completion). The East Completion is expected to stretch from the eastern end of 407 ETR to Highway 35/115, with two adjoining links connecting to Highway 401, running through Whitby and Courtice. On 17 January 2005, the Minister of Environment approved the Terms of Reference for the Environmental Assessment study for the project. Once constructed, it is expected that the East Completion will be a catalyst for traffi c growth on 407 ETR. Toll Revenue Tolls are charged based on distance travelled and additional fees are levied for account maintenance, overdue accounts and for each trip by users without a transponder (electronic vehicle tags). The toll system is fully electronic and barrierfree. Instead of having toll plazas, the highway has a pair of overhead gantries at each entry and exit point. The majority of 407 ETR toll transactions are completed using a transponder, approximately 79% of transactions as at 31 December 2007 with over 850,000 transponders in circulation. The remaining transactions are completed via video tolling. Toll revenue is collectable on a postpaid basis customers are billed after using the road and are then required to pay within 37 days of being billed. There is a substantial level of complexity in the asset s traffi c monitoring and billing systems. To bill a customer for a trip, 407 ETR requires evidence of the customer s entry and exit points. Despite the use of video tolling, a small proportion of user trips remain unbillable, primarily due to being unable to identify customers through the video tolling system. 407 International carries a signifi cant accounts receivable balance, refl ecting collectable billed amounts that remain outstanding. 407 ETR provides for doubtful accounts based principally on historical collection rates and management s expectation of success rates in plate denial. In addition to toll revenue, 407 International is able to charge account fees and interest on overdue accounts in accordance with the restrictions specifi ed in the Concession Agreement. To encourage further customers to use transponders, 407 ETR has continued to waive the C$10 Transponder Activation Fee. Plate Denial As a means of promoting toll account payment, 407 International can request the Registrar deny someone renewal of an existing licence plate or issuance of a new licence plate if they have any 407 ETR toll bills outstanding, in accordance with the Highway 407 Act (the Act). If a bill is outstanding for 35 days, a Notice of Failure to Pay will be sent to the customer. If payment has not been received 90 days later, the amounts owed will be referred to the Registrar. Upon referral to the Registrar, the customer will be sent a Notice of Plate Denial and the Registrar will place the customer in plate denial until all tolls, fees and interest referred to the Registrar have been paid in full. NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 39

42 North America 407 ETR (cont.) Tolling The project documents that regulate the tolling of 407 ETR allowed for a maximum toll (the Toll Threshold) for calendar year 1999 (the Initial Toll Threshold) equal to C$0.11/km for light vehicles, C$0.22/km for heavysingle-unit vehicles and C$0.33/ km for heavy-multi-unit vehicles (including administration fees). The Toll Threshold is indexed every year at infl ation. It is also permitted to increase in real terms by 1.5% in the fi rst year and thereafter by 2.0% per annum until it reaches a total cumulative real increase of 30.0%. When the 407 ETR Central, West Extension and East Partial Extension sections were commissioned and opened along their full length, a base traffi c fl ow (the Traffi c Threshold) was established based upon peak-hour traffi c over the 2002 year (the Base Year), for each of the 12 segments of the road. This Traffi c Threshold grows at a rate of between 1% and 3% per annum (to a maximum of 1,500 vehicles per lane per hour), depending upon the traffi c threshold level for that segment in the prior year. After Base Year, Tolls may be raised without limit under the Concession Agreement. However if observed peak-hour traffi c fl ows for any segment during the year are less than the indexed Traffi c Threshold, penalties are payable to the Province of Ontario. The penalties are equal to the lesser of two times the toll revenue charges for that segment over the Toll Threshold, or two times the toll revenue multiplied by the percentage shortfall in actual traffi c compared with the Traffi c Threshold. In addition, penalties will be payable to the Province if: average administration fees payable by transponder-equipped vehicles exceed C$60 per annum (in 1999 dollars) video surcharges exceed a threshold equal to C$1.00 per trip (in 1999 dollars), escalating by C$0.50 per annum to a maximum of C$3.00 (in 1999 dollars) toll charges and administration fees for single heavy units and multiple heavy units exceed two and three times, respectively, the toll charges and administration fees for light vehicles non-peak-hour toll charges are set at higher levels than peak rate toll charges. Under the Concession Agreement 407 International also has the obligation to widen segments of 407 ETR when traffi c volumes exceed a certain threshold. If more than one segment exceeds its threshold in a given year, only one has to be widened. The widening (by one lane in each direction) has to be completed over the subsequent two years. 407 International can 40 Macquarie Infrastructure Group 2008 Analyst Package

43 voluntarily choose to expand more than one segment. 407 International can also elect to expand segments by more than one lane or expand in advance of the threshold requirement being triggered. Sectional (or zone) tolling was introduced as part of the most recent toll increase on 1 February 2008, differentiating peak hour tolls between the Regular Zone between Highways, 401 and 404, and the Light Zone, being the remainder of the highway. Historical and current tolls for light vehicles are presented in Table 2.3 (in Canadian dollars). Historically, distance-based heavy single-unit and multi-unit vehicle tolls have been two times and three times the light vehicle equivalent. Dispute Settlement with the Ontario Government On 31 March 2006, 407 International and the Ontario Government reached settlement regarding all existing disputes between the parties. In particular, the Ontario Government dismissed its appeals regarding 407 ETR toll setting and base year calculations. Table 2.3: Toll history for light vehicles Tariff Canadian cents/km Peak Off-peak Night C$/Trip Video May Sep May Jan Jan Feb Feb Feb Feb Feb Feb (regular zone) (light zone) Peak Hours are weekdays between 6am and 10am and 3pm and 7pm. Off-Peak Hours are weekdays between 10am and 3pm as well as holidays and weekends. Night Hours are weekdays between 7pm and 6am. From 2002 Night Hours are classifi ed as Off-Peak Hours. Table 2.4: Summary of performance Year to 31 December Traffic Heavy Vehicle Reward Program On 1 July 2006, 407 International introduced a tiered savings program for heavy vehicles. The program reduces the video toll charge and provides toll rate reductions during night time, weekend and off-peak hours. ETR Rewards Program On 1 February 2007, 407 International introduced a four year, C$40 million rewards program for frequent users of the 407 ETR. The tiered program provides customers with free 407 kilometeres and savings on their fuel price at certain fuel providers. NORTH AMERICA EUROPE AUSTRALIA Vehicle Kilometres Travelled (m) 1, , , , , ADT 259, , , , ,169 Financial (C$m) Total Revenue Operating Expenses EBITDA EBITDA Margin (%) MODEL 2008 Analyst Package Macquarie Infrastructure Group 41

44 Table 2.5: Asset snapshot and key metrics All fi nancial amounts shown below are expressed in C$. Asset Location Length Size Toronto, Canada 108km 4 10 lanes (2 5 lanes/direction) Opened to Traffi c Central June 1997 West Extension July 2001 East Partial Extension August 2001 Concession Ownership MIG (30%); Cintra (53%); SNC-Lavalin (17%) Commencement Date 6 April 1999 Term 99 years, 3 November 2098 expiry Traffic and tolling Tolled Traffi c Tolling Methods Tolling Classes Toll Levels (as at 1 February 2008) Peak Periods Non-Peak Periods Toll Escalation Video Charges Account Fees Interest on Overdue Accounts Transponder penetration (%) Days Sales Outstanding Both directions Electronic tolling, on a per km basis 41 interchanges, 197 gantries Light vehicles (cars, vans) Heavy Single Unit (single unit trucks, buses) Heavy Multi-unit (trucks with 1-2 trailers) Vehicle Class Peak Rate Peak Rate Off-Peak Regular Light Zone Rate Zone (cents/ (cents/ (cents/ km) km) km) Light Heavy Single Unit Heavy Multi-unit Weekdays: 6am 10am and 3pm 7pm Weekdays: 10am 3pm and 7pm 6am All weekends and public holidays Market-based $3.60/trip for Light vehicles (in addition to tolls) $50.00/trip for Heavy vehicles (temporarily discounted to $15.00) (transponders are mandatory for heavy vehicles) Non-transponder accounts $2.55/month Transponder accounts $2.55/month transponder lease fee ($21.50 transponder lease fee if paid annually in advance) Commences 37 days after bill is issued 2%/month (26.82% pa compound) % % % % % days Capital expenditure assumptions (as at 31 Dec 2007 where year 1 = 2008) Years 1 4 Years 5 10 Years Years Years Years $259 million Average $49 million pa Average $54 million pa Average $52 million pa Average $52 million pa Average $66 million pa Senior debt 99-A1 $400 million fi xed, 6.05%, Bullet, current pay, maturing 27 July A2 $400 million fi xed, 6.47%, Bullet, current pay, maturing 27 July A3 $300 million fi xed, 6.75%, Amortiser, 5 year P&I holiday, maturing 27 July A4 $208.3 million Real Return Bond, 5.33%, 10 year P&I holiday, maturing 1 December A5 $208.3 million Real Return Bond, 5.33%, 10 year P&I holiday, maturing 1 December A6 $208.3 million Real Return Bond, 5.33%, 10 year P&I holiday, maturing 1 December A7 $208.3 million Real Return Bond, 5.33%, 10 year P&I holiday, maturing 1 December A2 $325 million Real Return Bond, 5.29% Amortiser, 5 year P&I holiday, maturing 1 Dec A2 $162.3 million, $13 million x change in CPI, 3.276%, maturing 27 July A3 $340 million fi xed, 5.96%, Bullet, current pay, maturing 3 December A2 $625 million Senior Medium Term Notes, fi xed 4.90% maturing 4 October A1 $250 million Senior Medium Term Notes, fi xed 4.50% maturing 25 January 2011 Junior bonds 00-B1 $165 million, fi xed, 7.00%, Bullet, current pay, maturing 26 Jul 2010, extendible to 26 Jul 2040 at 7.125% (bondholders option) Subordinated bonds 06-D1 $480 million, fl oating rate subordinated notes, 3 month Canadian Dollar Bankers Acceptances Rate (CDOR) %, maturing 26 February D1 $300 million, fi xed subordinated note, 5.00% maturing 31 January 2011 Reserves Debt Service Reserves Working Capital Reserve O&M/R&R Reserve Covenants Rate Covenant Distributions Additional Debt All Debt Rate Covenant Taxation Provincial Income As prescribed by Bond Indentures Must maintain a minimum $10 million cash balance 25% of next 12 months O&M costs 25% of next four years Renewal and Replacement costs 1.25x Senior DSCR 1.35x Senior DSCR 1.45x Senior DSCR 1.15x Senior and Junior DSCR 14% (deductible for Federal income tax purposes) Federal Income 21%, reducing to 15% by 2012 Federal Income Surtax 1.12% reducing to 0% by 2008 Provincial Capital 0.3%, with $7.5 million exemption, reducing to 0% by 2012 Federal Capital The 2006 federal budget reduced federal capital tax to 0% effective 1 January Macquarie Infrastructure Group 2008 Analyst Package

45 North America Chicago Skyway Asset Description The Chicago Skyway (Skyway) is a 12.5 kilometre, six lane mediandivided toll road south of Chicago that links the Indiana Toll Road (I-90), from the Illinois-Indiana state line, over the Calumet River into a junction with the Dan Ryan Expressway (I-94). The road contains 8.0 kilometres of elevated roadway pavement supported on embankment. The remaining 4.5 kilometres consists of various types of elevated bridge structures including overpasses, the Calumet River Bridge and viaduct sections. Figure 2.3: Chicago Skyway ownership structure MIG 22.5% MIP 22.5% Concessionaire Ownership Structure Skyway Concession Company LLC (SCC) owns the concession to operate the Skyway for 99 years from January This entity was established by the 55:45 Cintra- MIG consortium that successfully acquired the Skyway from the City of Chicago, for US$1.82 billion, with the consortium being announced as preferred bidder for the Skyway in October 2004, and reaching fi nancial close in January On 15 December 2006, MIG completed the divestment of 50% of its interests in its four US toll roads to Macquarie Infrastructure Partners (MIP) for a total consideration of US$825 million (A$1.05 billion). The sale price represented MIG s NAB value for each asset as at 30 June 2006, rolled forward to transaction close. The price paid for 22.5% of Skyway was US$178.1 million (A$226.1 million). Cintra 55% NORTH AMERICA EUROPE AUSTRALIA Skyway Concession Company Holdings LLC 100% Skyway Concession Company LLC Concessionaire MODEL Skyway 2008 Analyst Package Macquarie Infrastructure Group 43

46 North America Chicago Skyway (cont.) MIG currently owns a 22.5% interest in Skyway Concession Company Holdings LLC, (SCCH), which owns 100% of SCC. SCC is treated as a partnership for US tax purposes. The partners are assessed on the taxable profi ts/(losses) of the company. Skyway Refinancing On 16 August 2005, the concessionaire successfully completed a US$1.55 billion refi nancing. The refi nancing was used to repay US$1 billion in acquisition debt, fund reserves, transaction costs and distribute US$373 million back to equity holders. Under the refi nancing, two tranches of Rule 144A bonds, totalling $1.40 billion, were underwritten as set out below: Series A US$439 million Current Interest Bonds (CIBs) Series B US$961 million Capital Accretion Bonds (CABs). The borrowing entity in relation to these issues is SCC. Both tranches are monoline wrapped by Financial Security Assurance Inc. (FSA). A portion of the FSA premium was paid upfront with proceeds of the issue and the remainder is payable over the life of the bonds. The wrapped bonds carry ratings of Aaa by Moodys and AAA by S&P. Characteristics of the Series A Current Interest Bonds include: Floating Rate Notes at LIBOR % Mature in 2017, bullet payment at maturity Interest payable semi-annually in arrears Fully swapped interest until maturity All-in swap rate of 4.82% from years 1 9; 5.88% from years Characteristics of the Series B Capital Accretion Bonds include: Floating Rate Notes at LIBOR % Mature in 2026 with amortisation beginning in 2019 Along with the swap, repayment profi le structured as a series of zero coupon bonds Fully swapped interest until maturity Underlying swap rates range from 4.62% to 5.64% Swap creates a fi xed repayment profi le over the life of the bond. In addition to repaying the acquisition debt and funding a return of capital to equity, proceeds from the bond issues were used to fund multiple reserves. These reserves include: Operational Reserve US$4 million 44 Macquarie Infrastructure Group 2008 Analyst Package

47 Debt Service Reserve US$22 million Schedule 2 Works Reserve US$80 million Revenue Stabilisation Reserve US$10 million. In addition to the bond debt, subordinated debt in the amount of US$150 million was issued. The borrowing entity in relation to the subordinated debt is SCCH. The subordinated debt has the following characteristics: to MIG, above dividends and after the repayment of contributed capital, are likely to be subject to FIRPTA withholding tax of 35% 1. Road Configuration The Skyway is three lanes in each direction but converges to two lanes each way as it connects with the Indiana Toll Road (southern end) and the Dan Ryan Expressway (northern end via ramps). The toll plaza (up Figure 2.4: Road configuration to 19 lanes in total depending on confi guration) is located just north of the Calumet River and incorporates a U-turn facility. In addition to the Dan Ryan and Indiana Toll Road connections, there are seven other entry and exit points along the length of the Skyway, fi ve of which are north of the toll plaza. The Stony Island and Indiana Boulevard ramps are the busiest of these seven entry/exit points along the Skyway. NORTH AMERICA Final maturity in 2035 Lender entitled to a portion of distributions until interest and principal are paid in full (50% of distributions in years 1 6; 100% thereafter) Margins step up over time (2.50% in years 1 3; 2.75% in years 4 6; 3.00% thereafter) Dan Ryan Slate St St Lawrence Avenue 73rd Street Stony Island EUROPE Fully swapped interest over the anticipated life of the issue. 87th Street See Inset MIG Investment Structure Initially, MIT(I) had contributed US$160 million of capital (all of which was returned to MIT(I) at the refi nancing in August 2005) in MIG Holdings (US) LLC, with the balance of the equity funding provided by MIT(II) through MIG Investments Australia Pty Ltd. Under the US- Australia double tax agreement, dividends to MIG Investments Australia Pty Ltd are not subject to withholding tax. Further distributions Toll Plaza Toll Plaza U turns at McDonalds McDonalds 1. MIG has undertaken to clarify its position on FIRPTA. The outcome of its further investigations confi rms that FIRPTA withholding is more likely than not to be required. Anthony Street Indianapolis Blvd 92nd Street Indiana East-West Toll Road AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 45

48 North America Chicago Skyway (cont.) Table 2.6: Maximum tolling schedule Car toll (US$) Base heavy vehicle toll (US$) 1 1 Jan 2008 Greater of $3.00 or prior toll escalated by CPI from the date of the last toll increase Greater of $1.80 per axle or prior toll escalated by CPI from the date of the last toll increase 1 Jan 2011 As above, minimum $3.50 As above, minimum $2.40 per axle 1 Jan 2013 As above, minimum $4.00 As above, minimum $3.00 per axle 1 Jan 2015 As above, minimum $4.50 As above, minimum $3.60 per axle 1 Jan 2017 As above, minimum $5.00 As above, minimum $4.20 per axle 1 Jan 2018 and annually thereafter Prior toll increased by the greater of nominal GDP per capita, CPI or 2% 1 40% premium added during peak hours (4am 8pm) Prior toll increased by the greater of nominal GDP per capita, CPI or 2% Table 2.7: Toll schedule implemented on 1 January 2008 Toll class Peak travel period 4am to 8pm Off-Peak travel period 8pm to 4am 2 axles $3.00 $ axles $7.60 $ axles $10.10 $ axles $12.60 $ axles $15.20 $ axles or more $17.70 $12.60 Tolling The Concession Agreement specifi es the maximum toll schedule for the Skyway, as shown in Table 2.6. On 2 February 2005, tolls were increased from $2.00 to $2.50 for cars. Prior to this, the last car toll increase was in On 16 February 2005 a 40% levy was applied to heavy vehicle tolls between the hours of 4am and 8pm daily (calculated on a per vehicle basis). On 1 January 2008, toll rate changes were implemented for all vehicle classes on the Skyway and are detailed in Table 2.7. Capital Expenditure The Skyway has been subject to a substantial capital works program since The City of Chicago spent approximately US$260 million up to the end of 2004, with the concessionaire required to complete a further US$70 million of capital expenditure by 2008 (primarily in 2006 and 2007). The Skyway s capital works construction program for consisted of nine bridge upgrades, four miles of roadway repavement and the reconfi guration of toll plaza lanes to improve traffi c fl ow. 46 Macquarie Infrastructure Group 2008 Analyst Package

49 Skyway roadwork began in May 2006, leaving a 2+2 lane confi guration west of Exchange Avenue and a 2+1 confi guration at the Marquette Road Viaduct. A moveable barrier was used to switch the two-lane confi guration to the priority direction. These roadworks were completed on 25 September The surrounding network of both connecting and competing routes has also been subject to capital works (maintenance and lane expansion) over the period to These works included lane expansions on the Dan Ryan Expressway (March 2006 to October 2007) and the Kingery/Borman Expressway (March 2005 to August Electronic Toll Collection Skyway implemented Electronic Toll Collection (ETC) in June 2005 with the installation of systems capable of accepting transactions via I-PASS transponders. The pre-paid electronic I-PASS transponders are used throughout Illinois, with over 2.9 million transponders in circulation. On 26 September 2005 Skyway expanded its ETC system to be interoperable with E-Z Pass transponders. E-Z Pass Table 2.8: Summary of performance transponders are used extensively across the eastern United States with over 16 million in circulation. E-Z Pass transponders are accepted by 23 agencies across 12 states. The implementation of ETC has reduced the length of queuing at the toll plazas, in turn decreasing delays. Currently there are three ETC lanes (two dedicated ETC and one cash/etc) in each direction and ETC transactions account for approximately 41% of all transactions for 12 months to 31 December Year to 31 December Traffic (ADT) Cars 43,962 43,290 43,165 44,448 44,667 Trucks 3,770 4,797 5,257 5,945 4,736 Total 47,732 48,087 48,422 50,393 49,403 Financial (US$m) Toll Revenue Other Revenue Total Revenue Operating Expenses EBITDA EBITDA Margin (%) /2004 revenue as per City of Chicago fi nancial statements revenue refl ects collections since acquisition by MIG/Cintra in January NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 47

50 Table 2.9: Asset snapshot and key metrics All fi nancial amounts below are expressed in US$. Asset Location Chicago, Illinois, US Length 12.5km Size 6 lanes (3 lanes each direction) Opened to Traffi c 1959 Concession Ownership MIG (22.5%); MIP (22.5%); Cintra (55.0)% Commencement Date 24 January 2005 Term 99 years, 24 January 2104 expiry Traffic and tolling Tolled Traffi c Tolling Points Tolling Classes Tolling Levels Both directions 1 main toll plaza (up to 19 total plaza lanes depending on confi guration) Cars (2 axles) Heavy vehicles (3, 4, 5, 6, 7+ axles) $3.00 for cars; $1.80/axle for heavy vehicles; 40% premium added to heavy tolls during peak hours. Rounded up to nearest $0.10 (per vehicle basis) Last Toll Increase 1 January 2008 Tolling Methods ETC, Cash Toll Escalation Refer to Table 2.6 Traffi c Mix % cars, 10% heavy vehicles % cars, 11% heavy vehicles % cars, 12% heavy vehicles % cars, 10% heavy vehicles Capital Expenditure Assumptions (as at 31 December 2007, where year 1 = 2008) Years 1 4 Years 5 10 Years Years Years Years $74 million Average $1.2 million pa Average $7.0 million pa Average $21.4 million pa Average $13.3 million pa Average $7.4 million pa Debt Series A Current Interest Bonds Size $439 million FRN Maturity 30 June 2017 P&I Profi le Bullet, current pay interest Margin Interest rate full swapped All-in rate of 4.82% to 2014 and 5.88% thereafter Series B Capital Accretion Bonds Size $961 million FRN Maturity 30 June 2026 P&I Profi le Amortises from 2019 to 2026 Margin Capitalising interest payments, interest rate fully swapped Underlying swap rates rage from 4.62% to 5.64% Subordinated Debt Size $150 million Maturity 30 June 2035 P&I Profi le Capitalising interest payments at the option of issuer Cash Sweep: Year % of Distributions to Hold Co % % Margin Year Margin Distribution DSCR Covenant Taxation % % % 1-year look-back 1.60x 2-year look-forward 1.60x Cash fl ow sharing with subordinated debt State Income Tax 7.3% (Deductible Federal Income Tax) Federal Income Tax 35% Alternative Minimum Tax 20% FIRPTA 35% 48 Macquarie Infrastructure Group 2008 Analyst Package

51 North America Indiana Toll Road Asset Description The Indiana Toll Road (ITR) is a kilometre, limited access, divided highway in Indiana, US. The road spans northern Indiana, from its border with Ohio to the Illinois state line near Chicago, feeding directly into two toll roads at the state lines the Chicago Skyway in the west and the Ohio Turnpike in the east. For its westernmost 37 kilometres adjacent to the Illinois border, it runs through the urban region surrounding Gary, Indiana. The remainder of the road is effectively inter-urban, providing a principal link between Chicago and the east coast. Figure 2.5: Indiana Toll Road Concessionaire Ownership Structure On 23 January 2006, the 50:50 MIG- Cintra consortium, Statewide Mobility Partners LLC, was announced preferred bidder for the ITR concession with a purchase price of US$3.8 billion. ITR Concession Company LLC (ITRCC) entered into a concession agreement with the Indiana Finance Authority (IFA) to operate the ITR for 75 years from fi nancial close on 29 June In December 2006, MIG completed the divestment of 50% of its interests in its four US toll roads to Macquarie Infrastructure Partners (MIP) for a total consideration of US$825 million (A$1.05 billion). The sale price represented MIG s NAB value for each asset as at 30 June 2006, rolled forward to transaction close. The price paid for 25% of ITR was US$197.8 million (A$250.7 million). NORTH AMERICA EUROPE MODEL AUSTRALIA 2008 Analyst Package Macquarie Infrastructure Group 49

52 North America Indiana Toll Road (cont.) Figure 2.6: ITR ownership structure MIG 25% MIP 25% Statewide Mobility Partners LLC 100% ITR Concession Company Holdings LLC 100% ITR Concession Company LLC Cintra 50% Concessionaire Indiana Toll Road MIG has a 25% direct interest in Statewide Mobility Partners LLC, which in turn has a 100% interest in ITRCC. Statewide Mobility Partners LLC is treated as a partnership for US tax purposes. Financing Structure Three tranches of bank debt were used to fund the ITR acquisition: US$3.2 billion acquisition facility US$150 million liquidity facility to fund early period interest payments (undrawn at close) US$665 million capex facility to fund expected capital expenditures to June 2015 (undrawn at close). In addition to funding the purchase price and transaction costs, proceeds from the acquisition facility were used to pre-fund a US$100 million revenue stabilisation reserve (RSR). The RSR can be used to meet debt service obligations in instances where there are insuffi cient funds post drawing the liquidity facility. If the RSR is not required to fund debt service obligations, semi-annual distributions to equity in equal instalments are permitted over 3.5 years, subject to certain performance requirements. 50 Macquarie Infrastructure Group 2008 Analyst Package

53 Prior to fi nancial close, ITRCC entered into a series of swap positions to hedge the current and future interest rate exposure stemming from the bank debt obligations. Under the swap arrangement, interest rates have been effectively fi xed to a set schedule for 20 years, gradually stepping up from 3.15% in year one to 11.29% in year 20 (including swap margin). On average, 97% of forecasted project debt is hedged over the fi rst 20 years of the concession. Debt service obligations are borne by ITR Concession Company LLC and must be satisfi ed prior to making distributions to its members. MIG Investment Structure MIT(II), through MIG Investments Australia Pty Limited, has contributed a net US$374 million of capital through the subscription for Class A shares in MIG Indiana Holdings LLC. Under the US-Australia double tax agreement, dividends to MIG Investments Australia Pty Ltd are not subject to withholding tax. Further distributions to MIG, above dividends and after the repayment of contributed capital, are likely to be subject to FIRPTA withholding tax of 35% MIG has undertaken to clarify its position on FIRPTA. The outcome of its further investigations confi rms that FIRPTA withholding is more likely than not to be required. Road Configuration The ITR is primarily two lanes in each direction, with small sections of the barrier system expanded to three lanes in each direction. There are 19 interchanges along the length of the ITR. The ITR operates an ETC and cash closed barrier tolling system on the western end (between Milepost 1 and Milepost 23) and an ETC and cash ticket system on the eastern end (between Milepost 24 and Milepost 153), as shown in Figure 2.7. ETC was introduced to the barrier system in June 2007 and currently accounts for approxmately 40% of transactions on the barrier system. ETC implementation was completed on the ticket system in April 2008 ahead of schedule. There are six toll plazas in the barrier system with a total of 49 plaza lanes. There are 14 toll plazas on the ticket system with a total of 65 plaza lanes. The busiest toll plaza, Westpoint, is located at Milepost 1 just south of the Chicago Skyway. Westpoint has a total of 14 toll plaza lanes (four of which are tidal). The two mainline ticket system toll plazas, Portage (Milepost 24) and Eastpoint (Milepost 153), have a total of 12 and 10 lanes, respectively. Tolling Post the announcement of the MIG-Cintra consortium as preferred bidder for the ITR concession, the Government of Indiana (the State) committed to freeze passenger vehicle tolls until ETC was implemented along the full length of the ITR. To compensate the concessionaire for lost revenue, the IFA is obligated to make monthly make-whole payments to ITRCC. The amount of these payments is the difference between tolls actually collected from passenger vehicles during the toll freeze period ($0.03 per mile) and tolls that would have been collected from passenger vehicles had tolls been raised as originally set out in the Concession Agreement ($0.051 per mile). The IFA deposited US$60 million into an escrow account, controlled by ITRCC, to fund these monthly payments during the toll freeze period. NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 51

54 North America Indiana Toll Road (cont.) MP 24 ETC was implemented along the full length of ITR in April 2008 and thus prompted the end of the toll free period. However, following the toll freeze period and the subsequent increase in passenger vehicle toll rates, the State has agreed to provide a cash rebate program extending a discount to ETC passenger vehicle users until The concession agreement stipulates the maximum through-trip toll rates for a full length journey across the Indiana Toll Road, as shown in Table In applying these maximum permissible toll levels, the concession agreement specifi es that any increase in the toll level charged should be allocated to each segment of the road such that the highest per mile increase does not exceed three times the lowest per mile increase. Figure 2.7: ITR road configuration Capital Expenditure In the 1980s, the IFA initiated an aggressive improvement program in which seven new interchanges were constructed and opened between 1980 and Since 1995, more than US$80 million in road improvements have been completed and infrastructure capital expenditure has averaged US$22 million per year. The State maintained the condition of the road via a comprehensive improvement program. As set out in the Concession Agreement, ITRCC is obligated to comply with Mandatory Expansion Requirements. These include: implementing barrier-controlled Electronic Toll Collection within two years of fi nancial close of acquisition MP 157 MP 1 52 Macquarie Infrastructure Group 2008 Analyst Package

55 expanding to three lanes in each direction between Milepost 18.5 and Milepost by the end of 2007 (completed) expanding to three lanes in each direction between Milepost 14 and Milepost 15.5 by the end of 2008 expanding to three lanes in each direction between Milepost 10.6 and 14 and lowering the road elevation to accommodate the fl ight path of Gary Chicago International Airport, by the end of Table 2.10: Maximum tolling schedule (full length trip) Car Toll (US$) Five-axle toll 1 (US$) 1 April 2008 $8.00 ($4.70 before make-whole rebate) 2 $ April 2009 $8.00 $ July 2010 $8.00 toll increased by the greater of 8.2% or the percentage increase compounded annually of the CPI Index and nominal GDP per capita, whichever is greater, over each of the past four calendar years 1 July 2011 and annually thereafter Prior toll increased by the greater of 2% or the percentage increase of the CPI Index and nominal GDP per capita, whichever is greater, over the past calendar year ITRCC is currently in the process of implementing these Mandatory Expansion Requirements. In addition to ongoing bridge and road maintenance requirements, the concessionaire is required to expand segments of the road if they should fall below a predefi ned Level of Service (LOS). Each year the ITRCC is required to conduct a traffi c study to determine if the minimum LOS is being met. $32.00 toll increased by the greater of 8.2% or the percentage increase compounded annually of the CPI Index and nominal GDP per capita, whichever is greater, over each of the past four calendar years Prior toll increased by the greater of 2% or the percentage increase of the CPI Index and nominal GDP per capita, whichever is greater, over the past calendar year 1. Heavy vehicle tolls levied based on the combined number of axles on the vehicle. Five-axle vehicles are the most common type of heavy vehicle traveling the ITR. 2. The IFA is obligated to make monthly make-whole payments to ITR Concession Company LLC during the toll freeze period as if the through-trip car toll was 5.1 cents per mile. The toll freeze period will end the earlier of the implementation electronic tolling collection or two years after fi nancial close. Capital works (maintenance and expansion) are expected to be a substantial cash outfl ow over the life of the ITR concession. However, these works are expected to have a limited impact on overall traffi c. Electronic Toll Collection Under the Concession Agreement, the concessionaire was required to implement an ETC system across the ITR within two years of fi nancial close. ETC was introduced to the western end of the barrier system (between Milepost 1 and 23 toll plazas) on 25 June 2007 through the i-zoom system (compatible with EZ-Pass). ETC currently accounts for approximately 40% of toll collection on these barrier system toll plazas. Works commenced in September 2007 to implement ETC on the ticket system and were completed in April NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 53

56 North America Indiana Toll Road (cont.) Table 2.11: Summary of Performance US$m Pre-acqusition 12 months to 30 June months to 30 June 2005 Post-acquisition 6 months to 31 Dec months to 31 Dec 2007 Ticket (Average daily full-length equivalent trips) Cars n/a n/a 16,757 14,773 Heavy Vehicles n/a n/a 10,585 10,404 Total n/a n/a 27,343 25,176 Barrier (Average daily transactions) Cars n/a n/a 89,581 85,405 Heavy Vehicles n/a n/a 10,466 8,684 Total n/a n/a 100,047 94,089 Financial (US$m) Toll Revenue Concession Revenue Other Revenue Total Revenue Operating Expenses EBITDA EBITDA Margin (%) Per IFA fi nancial statements, includes adjustments. 2. Excluding Major Expenses, Repairs and Renovations Financials represent from June 2006 acquisition to 31 December Macquarie Infrastructure Group 2008 Analyst Package

57 Table 2.12: Asset snapshot and key metrics All fi nancial amounts below are expressed in US$. Asset Location Northern Indiana, US Length 252.7km Size 4 6 lanes (2 3 lanes/direction) Opened to Traffi c 1956 Concession Ownership MIG (25%); MIP (25%); Cintra (50%) Commencement Date 29 June 2006 Term 75 years, 29 June 2081 expiry Traffic and tolling Tolled Traffi c Tolling Points Tolling Classes Toll Levels (2008) Rounding Both directions Westpoint Mainline Barrier (14 lanes) Portage Mainline Ticket (12 lanes) Eastpoint Mainline Ticket (10 lanes) 5 Additional Interchange Barrier Plazas 12 Additional Interchange Ticket Plazas Cars (Commuter User Program) Cars (2 axles) Heavy vehicles (3, 4, 5, 6, 7+ axles) $4.70 per through-trip for cars (State makewhole to $8.00 per through-trip); $27.30 per through-trip for fi ve-axle vehicles Rounded to nearest $0.01 if collected using ETC; to the nearest $0.10 if not collected using ETC Last toll increase 1 April 2008 (heavy vehicles) Tolling Methods ETC/cash closed barrier system on western end; ETC/cash ticket system on eastern end Toll Escalation Refer to Table 2.10 Traffi c Mix % cars, 17% trucks % cars, 18% trucks 2006 ticket 59% cars, 41% trucks barrier 89% cars, 11% trucks 2007 ticket 59% cars, 41% trucks barrier 89% cars, 11% trucks Debt Acquisition Facility Liquidity Facility Capital Expenditure Facility Term P&I Profi le $3,248 million $150 million $665 million 9 years Interest only bullets Debt Margin Years % Swap Rates (Excluding Margin) Years % Years % Years % Year % Years % Years % Years % 11.14% Swaps Margin Years % Taxation State Income Tax Federal Income Tax 35% Alternative Minimum Tax 20% FIRPTA 35% 8.5% (Deductible for Federal Income Tax) Capital expenditure assumptions (as at 31 December 2007, where year 1 = 2008) Years 1 4 Years 5 10 Years Years Years Years $292.3 million Average $40.1 million pa Average $83.5 million pa Average $183.1 million pa Average $214.7 million pa Average $239.7 million pa 2008 Analyst Package Macquarie Infrastructure Group 55

58 North America Dulles Greenway Asset Description The Dulles Greenway (Greenway) is a 22 kilometre operating toll road located in northern Virginia, west of Washington D.C. It runs from Dulles International Airport through Loudoun County to Leesburg. Currently six lanes wide (at the Main Line Toll Plaza), the road has the potential to be expanded up to 12 lanes. Concessionaire Ownership Structure TRIP II, a limited partnership, owns the concession to operate the Greenway until 15 February In late August 2005, MIG entered into an agreement to invest US$533 million (A$711million) for an 86.7% economic interest in TRIP II and a 100% direct interest in the General Figure 2.8: Dulles Greenway Partner. The General Partner has day-to-day responsibility for the management and operation of the concession. The initial investment is comprised of two subordinated loans secured against 86.7% of the limited partner interests in TRIP II, as well as two long-dated call options to acquire these same 86.7% interests. These interests are currently held by the Shenandoah Group and AIE LLC. This investment reached fi nancial close on 9 September On 29 September 2005, MIG invested a further US$84.5 million to acquire the remaining 13.3% direct interest in TRIP II from Kellogg, Brown and Root (KBR). Following this acquisition, MIG had a 100% economic interest in the Greenway. 56 Macquarie Infrastructure Group 2008 Analyst Package

59 Figure 2.9: Investment structure MIG Call Options over remaining 86.6% equity interest in TRIP II MIP 50% 50% Shenandoah Greenway Shenandoah Corporation & AIE (General Partner) (Limited Partner) 13.3% 86.6% 0.1% TRIP (II) Concessionaire Dulles Greenway NORTH AMERICA In December 2006, MIG completed the divestment of 50% of its interests in its four US toll roads to Macquarie Infrastructure Partners (MIP) for a total consideration of US$825 million (A$1.05 billion). The sale price represented MIG s NAB value for each asset as at 30 June 2006, rolled forward to transaction close. The price paid for 50% of the Greenway was US$355 million (A$450 million). Table 2.13: Debt profile Series Financing Structure The existing debt profi le consists of fi ve tranches of senior debt, including two from a 1999 refi nancing and three from a 2005 refi nancing. The current details of the debt profi le are outlined in Table Balance at 31 Dec 2007 (US$m) Mix (%) Average yield 1 (%) Senior Current Interest Bonds Series 1999A Senior Zero Coupon Bonds Series 1999B Senior Accreting Interest Bonds Series 2005A Senior Accreting Interest Bonds Series 2005B Senior Callable Zero Coupon Bonds Series 2005C Total Reserve Accounts (including Improvement Reserve) 145 Total Net Debt Weighted average yield for remaining redemptions for series 1999B, 2005B and 2005C EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 57

60 North America Dulles Greenway (cont.) Road Configuration The Greenway opened to traffi c in September 1995, six months ahead of schedule. The tollway provides the only limited access route from Dulles International Airport to Leesburg in Loudoun County. At its eastern end, the Greenway connects with the Dulles Toll Road (DTR). The DTR, which opened in 1984, is also approximately 22 kilometres in length and extends from the Greenway terminus, intersects the Capital Beltway at Tysons Corner and ends at Interstate 66 in Falls Church. When combined with the DTR, the Greenway provides the only limited access route through the rapidly growing Dulles Corridor. The Greenway has seven toll plazas, including a main line toll plaza (with 18 lanes) and six tolled ramps. Interchange 2 at Battlefi eld Parkway/ Route 654 is untolled. Originally constructed as a four-lane limited access highway, the Greenway was expanded from four to six lanes between the Claiborne Parkway interchange at Exit 5 and the Main Line Toll Plaza (during ) and between the Claiborne Parkway interchange at Exit 5 and Leesburg (during 2006). The Dulles Greenway is designed to allow for future expansion, as the right of way is located on land that was acquired by TRIP II fee simple or through an easement agreement with the local airports authority. A typical section of the Greenway is 250-feet wide, providing future lane widening potential. It also includes a minimum 40-foot median designed to accommodate potential future mass transit development. 58 Macquarie Infrastructure Group 2008 Analyst Package

61 5 Figure 2.10: Greenway road configuration US-50 RTE 772 DULLES GREENWAY RTE 659 RTE 641 RTE 606 RTE 625 Rte 7 RTE 607 Main Line Toll Plaza RTE 28 RTE 646 DULLES TOLL ROAD In September 2007 the SCC issued a fi nal order in respect of the toll schedule application for the Greenway fi led in July The SCC order substantially approved the application on its terms. The new approved toll schedule, which includes congestion management pricing during the peak periods, is detailed in Table Additionally, effective 1 October 2007, the SCC approved changes to the toll rates for vehicles with three or more axles. These are as follows: three-axle vehicles will pay twice the two-axle rate four-six-axle vehicles will pay the three-axle rate plus an amount equal to 50% of the two-axle rate for each additional axle six or more axle vehicles will pay the six-axle rate. NORTH AMERICA EUROPE Washington Dulles International Airport Tolling The tolls on the Dulles Greenway are set, on application, by the Virginia State Corporations Commission (SCC) under the Virginia Highways Corporation Act (1988). This legislation allows applications for a change in toll ceiling to be lodged by the concessionaire, third parties, or the SCC itself. The most recent application was fi led by the concessionaire in July 2006 and was approved in September Section of the Virginia Highway Corporation Act (1988) stipulates that toll rates must be set at a level that: is reasonable to the user in relation to the benefi t obtained will not materially discourage use of the roadway by the public will provide the operator with no more than a reasonable rate of return as determined by the SCC. Historical tolls are presented in Table AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 59

62 North America Dulles Greenway (cont.) Table 2.14: Toll history Date of toll change Car toll (US$) Weekday Weekend Car Truck toll (US$) Car toll (US$) Truck toll (US$) discount for ETC (US$) March July September April September Peak 1 Off-Peak 1 September Weekday Weekend January July Ramp Tolls (July 2007) Ramps 7 and Ramps 3, 4, 5 and Peak period refers to weekdays from 6am 9am and 4pm 7pm. Off-peak period refers to all other weekday hours, as well as weekends and public holidays. Peak and off-peak tolling was used from September 2004 to December All other toll schedules have been based on a weekday/weekend day differential. 2. For three-axle vehicles. For four, fi ve, six or more axle vehicles will pay the three-axle rate plus an amount equal to 50% of the two-axle rate for each additional axle up to the sixth axle. Table 2.15: Newly approved toll schedule From date Maximum 2-axle toll for all off-peak traffic Maximum congestion management toll (applicable only to weekday traffic in peak period and direction) 1 January 2009 $3.40 $ July 2010 $3.70 $ January 2012 $4.00 $4.80 Note: Weekday peak traffi c is defi ned as 6am 9am eastbound and 4pm 7pm westbound. 60 Macquarie Infrastructure Group 2008 Analyst Package

63 Capital Expenditure The Greenway has come to the end of a US$72 million capital improvement program. These works included construction of an additional lane in each direction for the westernmost seven miles of the road, the widening of the main line toll plaza from 14 to 18 lanes and the construction of two new interchanges (Interchange 2 at Battlefi eld Parkway/Route 654 and Interchange 3 at Shreve Mill Road/Route 653). An agreement with MWAA and TRIP II has been executed regarding the construction of a ramp from the Greenway to the Dulles Airport whereby TRIP II has passed its construction obligations through to MWAA. Construction is anticipated to start in the fi rst half of The capital works program has been primarily funded through the Greenway s Improvement Fund, which was funded with US$117 million as part of the 2005 refi nancing. Table 2.16: Summary of performance Year to 31 December Traffic (ADT) ADT 52,272 60,618 61,217 57,445 55,276 Financial (US$m) Toll Revenue Other Revenue Total Revenue Operating Expenses EBITDA EBITDA Margin (%) Operating Expenses include an additional US$1.4m in costs related to the refi nancing that occurred in March NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 61

64 Table 2.17: Asset snapshot and key metrics All fi nancial amounts below are expressed in US$. Asset Location Virginia, US Length 22km Size 6 lanes Opened to Traffi c September 1995 Concession Ownership MIG (50%); MIP (50%) Commencement Date 6 July 1990 Term 15 February 2056 expiry Traffic and tolling Tolled Traffi c Tolling Points Tolling Classes Toll Levels: Main Line Plaza and Ramps 7,8 1 Ramps 3, 4, 5, 6 Both directions 1 main line toll plaza 6 Interchanges Cars (2 axles) Heavy vehicles (3, 4, 5 or 6 or more axles) 2-axle vehicles: $3.00 weekday, $2.80 weekend 3 to 6-axle vehicles: twice 2-axle toll and 50% 2-axle toll for each axle > 3-axles > 6-axle vehicles: at 6-axle toll Credit card payment: 2-axle vehicles: $2.30 (weekday and weekend) 3 to 6-axle vehicles: twice 2-axle toll and 50% 2-axle toll for each axle > 3-axles > 6-axle vehicles: at 6-axle toll Senior debt 1999A 1999B 36-year current interest bond, semi-annual coupon, 7.14%, maturing 15 February 2035 Zero coupon bonds, 7.21%, mature over a range of dates from 2003 to A Accreting interest bonds, 5.43%, compounded semi-annually, legal maturity in 2045 with early redemption scheduled for between 2006 and B 2005C Covenants Equity Lock-up Ratio 1.25x Taxation Accreting interest bonds, compounded semiannually, 5.70%, legal maturity in 2043 with early redemption scheduled for between 2022 and 2035 Zero coupon bonds, 5.59%, with maturities between 2036 and 2056 State Income Tax 6% (Deductible for Federal income tax) Federal Income Tax 35% Alternative Minimum Tax 20% FIRPTA 35% ETC Payment 2-axle vehicles: $1.85 (weekday and weekend) 3 to 6-axle vehicles: twice 2-axle toll and 50% 2-axle toll for each axle > 3-axles > 6-axle vehicles: at 6-axle toll Last toll increase 2-axle vehicles: 1 July axle vehicles and above: 1 October 2007 Tolling Methods ETC, Cash, Credit Card Toll Escalation Refer to Tolling section, Tables 2.14 and Greenway motorists that travel through the Main Line Toll Plaza onto the DTR, or from the DTR onto the Greenway, are charged the DTR toll in addition to the Greenway toll. The toll levels shown above refl ect the Greenway toll only. The current DTR toll is $0.50. Capital expenditure assumptions (as at 31 December 2007, where year 1 = 2008) Years 1 3 ( ) Years 4 13 ( ) Years ( ) Years ( ) Years ( ) Years ( ) Total $29.3 million Average $19.6 million pa Average $3.8 million pa Average $1.9 million pa Average $26.3 million pa Average $4.3 million pa 62 Macquarie Infrastructure Group 2008 Analyst Package

65 North America South Bay Expressway Asset Description South Bay Expressway (SBX), formerly known as SR 125 South, is a 13.9 kilometre, four-lane toll road that runs north from adjacent to the Mexican border to just south of Route 54 in Bonita. The road opened to traffi c on 19 November 2007 and provides an alternative route east of the increasingly congested State Route 805 and Interstate 5 in the San Diego region of California. In conjunction with construction of SBX, two other sections of untolled, government-funded road have been constructed to link SBX into the wider San Diego road network. Concessionaire Ownership Structure The SBX concession was awarded by the State of California Department of Transportation (Caltrans) to South Bay Expressway Limited Figure 2.11: South Bay Expressway Partnership (SBXLP) in In September 2002 MIG acquired an 81.6% stake in SBXLP. In May 2003 MIG acquired the remaining 18.4% of SBXLP. SBX was MIG s fi rst investment in the United States. In December 2006, MIG completed the divestment of 50% of its interests in its four US toll roads to Macquarie Infrastructure Partners (MIP). MIP agreed to pay MIG US$48 million as well as contribute a further US$93 million to fund construction completion in order to acquire a 50% interest in SBX. The sale price was calculated based on MIG s 30 June 2006 valuation for SBX, rolled forward to transaction close at the valuation IRR and adjusted for equity contributions during the intervening period. The SBX shareholder structure at construction completion (after MIP has completed all necessary equity contributions) is shown in Figure SR125 8 NORTH AMERICA EUROPE AUSTRALIA San Diego 94 CALIFORNIA Pacific Ocean 75 5 Chula Vista SBX 905 MODEL MEXICO 2008 Analyst Package Macquarie Infrastructure Group 63

66 North America South Bay Expressway (cont.) Figure 2.12: South Bay Expressway ownership structure MIG MIP 50% 50% SBXLP Concessionaire South Bay Expressway MIG Financing Structure SBX construction has been fi nanced through a combination of senior debt, TIFIA debt and equity contributions. Further details on these funding sources are provided below. US$400 million senior debt facility The senior debt facility can be drawn up to US$400 million to fund construction completion but equity must be contributed to reduce the facility to a maximum of US$340 million at conversion (as defi ned in the Senior Debt Credit Agreement). Conversion is expected to occur in early Transportation Infrastructure Finance and Innovation Act (TIFIA) debt facility In 2003 SBX was selected by the US Department of Transportation (USDOT) for fi nancial support under the TIFIA program, which is designed to encourage investment in transportation infrastructure. SBX is the fi rst ever privatised toll road to receive a loan under the TIFIA program. The TIFIA facility has been drawn down to meet 33% of eligible TIFIA costs throughout construction and is now fully drawn. The term of the TIFIA debt facility is 38 years (including construction). The limit is US$140 million (excluding capitalised interest). The interest rate is fi xed at 4.46% per annum for the life of the facility. The interest rate has been calculated by adding fi ve basis points to the prevailing State and Local Government Securities (SLGS) rate at fi nancial close in The SLGS rate used has a similar maturity to the TIFIA debt facility. 64 Macquarie Infrastructure Group 2008 Analyst Package

67 It is USDOT policy that the facility should be repaid in order to promote the reallocation of this subsidised capital from mature projects to new transport lending opportunities. As a result, the TIFIA loan agreement requires the repayment of the facility through a cash sharing mechanism: Cash fl ow sharing commences after equity has received US$32 million in distributions. The sharing percentage starts at 25% of cash fl ow available to equity and increases by 5% each year until the facility is repaid 50% of any refi nancing proceeds in excess of the initial senior loans must be used to repay the TIFIA facility. Despite the attractive TIFIA interest rate, it is expected that SBX will refi nance this facility to avoid cash fl ow sharing. Equity contributions MIG executed an Equity Funding Agreement at fi nancial close in 2003 that requires a minimum of US$133.4 million of equity to be contributed to the project. As part of the sale to MIP in 2006, MIP now has responsibility for all remaining contributions required under this agreement. US$58 million of this amount is earmarked to fund reserve accounts and working capital on opening, with the balance used to meet construction costs and to pay down the senior debt facility at conversion. The concession limits the total real return on capital invested (debt and equity) to 18.5%. MIG s analysis suggests that this limit is not a constraint even under signifi cant upside scenarios. Forecast project IRR (ungeared, post tax) at fi nancial close was in the range of 11 12% and the forecast post-tax equity IRR at fi nancial close ranged from 15 20%. NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 65

68 North America South Bay Expressway (cont.) Road Configuration SBX is currently two lanes in each direction. The design of the toll road allows for it to be expanded to three lanes (southern section) or four lanes (northern section) in each direction to meet future increases in demand, as shown in Figure Tolls can be paid using cash or a FasTrak electronic transponder. Two untolled sections of road have been constructed at the northern end of SBX. The fi rst is the Connector, a 2.0-mile (3.2-kilometre), four-lane section that links the northern end of SBX (just north of the Mt Miguel Road interchange) with State Route 54. At the intersection between the connector and State Route 54, the Gap has been constructed - a freeway-to-freeway interchange, which has included the reconstruction and expansion of an existing section of State Route 54, as shown in Figure In recognition of the strong community support for the road, SBX offered free travel for every motorist from opening on 19 November 2007 until 2 December Motorists with a FasTrak electronic tolling account continued to drive free until midnight 13 January From 14 January 2008, all traffi c is tolled in both directions. The main toll plaza is located just south of the proposed Lonestar Road interchange. Entering northbound traffi c and exiting southbound traffi c is tolled at each of the fi ve interchanges along the route. Tolling The current toll rate for a full length trip along SBX for two-axle vehicles (autos, light trucks and motorcycles) is $3.50 for FasTrak and $3.75 for cash users. For other trips, toll rates vary depending upon the entry/exit points used. Vehicles with three or four-axles pay two times the two-axle toll rate and fi ve-axle and greater vehicles pay three times the two-axle toll rate. SBX is able to set marketbased toll rates throughout the concession period. 66 Macquarie Infrastructure Group 2008 Analyst Package

69 Figure 2.13: Road configuration Figure 2.14: Gap and Connector SAN MIGUAL RD 54 MT MIGUEL RD Initial Construction 4 lanes: SR-905 to SR-54 Ultimate Construction 6 lanes: SR-905 to Olympic Pkwy 8 lanes: Olympic Pkway to SR-54 Gap Connector SBX 125 Jamacha Rd BONITA EAST H ST OTAY LAKES ROAD Paradise Valley Rd 54 TELEGRAPH CANYON RD 805 OLYMPIC PARKWAY LA MEDIA RD CHULA VISTA 125 Future Rock Mountain Interchange Future Lone star Rd Interchange Interchanges Initial Construction Future Interchanges South Bay Freeway Silverwater Reservoir NORTH AMERICA 905 OTAY MESA BROWN FIELD OTAY MESA RD Future Lonestar Rd 905 Future Roads Future Highways Under Construction USA Mexico Sweetwater Rd EUROPE MODEL AUSTRALIA 2008 Analyst Package Macquarie Infrastructure Group 67

70 Table 2.18: Asset snapshot and key metrics All fi nancial amounts below are expressed in US$. Location Length Size San Diego, California, US 13.9km Opened to Traffi c 19 November 2007 Concession Ownership MIG (50%); MIP (50%) Currently 4 lanes (2 lanes/direction) on opening; but expandable to 6 lanes (southern section) or 8 lanes (northern section) based on traffi c requirements Commencement Date 3 December 2007 Term 35 year term, 2 December 2042 expiry Traffic and tolling Tolled Traffi c Tolling Points Tolling Classes Toll Levels (for a fulllength trip) Tolling Methods Both directions Main toll plaza Five sets of interchange ramps (tolling entering northbound traffi c and exiting southbound traffi c) Capacity for two future interchanges 2 axle vehicles (autos, light trucks and motorcycles), 3 4 axle vehicles, 5 axle vehicles 2 axle vehicles: $3.50 FasTrak/$3.75 cash 3 4 axle vehicles: 2x 2 axle rate 5 axle vehicles and greater: 3x 2 axle rate Cash, ETC Operating Expenses (as at 31 December 2007) Forecast Operating Expenses over Concession Average $9.2 million pa Capital expenditure assumptions (as at 31 December 2007) Average $5.4 million pa Average $10.7 million pa Average $2.8 million pa Average $0.5 million pa Construction senior debt Size P&I Profi le Senior term debt Size Maximum $340 million Commencement Conversion Term 15 years P&I Profi le Interest only until 31 December 2010, then cash sweeping commences Swaps US$320 million hedged to 31 Dec 2011, then unhedged Swaps Rate 3.82% Margin Year 1 7: 1.75% Year 8 15: 2.25% Repayment Refi nanced prior to cash sweep TIFIA debt Size Term Drawdowns P&I Profi le $154 million including capitalised interest as at 31 December years All-in Rate 4.46% Cash Sweep Repayment $400 million Capitalising Term Conversion (expected to occur in early 2008) Swaps 100% Swap Base Rate 3.82% Margin 1.625% Commitment Fee 0.50% on undrawn amounts Repayment Converts to Senior Term Debt Equity contribution to reduce balance to maximum $340 million at conversion To meet 33% of TIFIA-eligible costs until fully drawn Capitalise until end of the fi fth year of operations Interest only until end of the thirteenth year of operations As discussed above Refi nanced prior to cash sharing Taxation State Income Tax 8.84% (Deductible for Federal income tax) Federal Income Tax 35% FIRPTA 35% Alternative Minimum 20% Tax Possessory Interest Tax 1.10% 68 Macquarie Infrastructure Group 2008 Analyst Package

71 Europe M6 Toll Autoroutes Paris-Rhin-Rhône th April/ Vasco da Gama Bridges Warnow Tunnel MODEL AUSTRALIA EUROPE NORTH AMERICA 2008 Analyst Package Macquarie Infrastructure Group 69

72 Europe M6 Toll Asset Description The M6 Toll is a 42 kilometre six-lane toll road that bypasses a congested stretch of the M6 Motorway near Birmingham, in the United Kingdom. The M6 Toll fully opened to traffi c on 14 December 2003 and is the UK s fi rst and only privately-developed user-pays toll road. Figure 3.1: M6 Toll ownership structure Concessionaire Ownership Structure In October 1999, MIG purchased a portfolio of infrastructure investments from Norwegian conglomerate Kvaerner ASA, including a 50% interest in Midland Expressway Limited (MEL), the concessionaire for the M6 Toll. This transaction reached MIG MEI 100% 100% MMG Bank Debt Inter-entity Loan 100% MEL M6 TOLL Figure 3.2: M6 Toll Concessionaire 70 Macquarie Infrastructure Group 2008 Analyst Package

73 fi nancial close on 29 September 2000, with all regulatory approvals and fi nancing in place. At this time MIG also acquired an additional 25% of MEL, increasing its ownership to 75%, and an option over the remaining equity. In June 2005, MIG exercised this option and purchased the remaining 25% of MEL from a subsidiary of Autostrade SA, a large Italian motorway owner and operator. M6 Toll Financing Structure The current ownership and fi nancing structure of the M6 Toll is illustrated in Figure 3.1, following a refi nancing of the senior debt facility in August MIG s investment in the M6 Toll is structured via shareholder loans and direct equity interests in the project vehicles. Distributions from MEL are subject to taxation at the group level in the UK, before being repatriated to MIGIL. The external debt is held via Macquarie Motorways Group Limited (MMG). The key terms of the debt package are as follows: term loan facility of 1,000 million capex facility of 30 million the facilities have a nine-year term with bullet repayments, however a progressive cash sweep applies from year six onwards 30-year fi xed interest rate swap for 1,000 million of debt starting at 1.00% per annum in 2006 with a swap credit margin of 37bps (fi xed over entire term) increasing to 8.50% in 2025 then a plateau rate of 7.92% until 2036 rated BBB by Standard & Poor s. A proportion of the funds drawn on the term facility has been on-lent by MMG to MEL to repay MEL s existing external debt. MEL also has a land fund liability in the form of an indexed annuity payment to the UK Government (similar to a CPI Bond). This liability represents MEL s obligation to repay the Government for land acquisition costs incurred in developing the M6 Toll. The balance accrues interest at 6% per annum real, with new costs added up to The land fund is fully repaid at December NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 71

74 Europe M6 Toll (cont.) Figure 3.3: M6 Toll road configuration M6 A34 A460 Cannock A5 T7 T6 T8 A5 Proposed M54 Link Lichfield T5 A38 A38 A51 M54 A452 T4 A5 Tamworth M6 Walsall Sutton Coldfield T3 M42 A452 T2 A38 M5 M6 T1 A38(M) Birmingham M6 M42 Road Configuration The M6 Toll is three lanes in each direction, and has nine entry and exit points. There are two 10-lane main toll plazas (one for traffi c travelling in each direction) plus tolling points on four of the eight junctions. The southern end of the M6 Toll commences at the merge of the M42 and M6, two of the busiest motorways in the UK. The northern end of the M6 Toll merges with the M6 just south of Cannock, allowing motorists to avoid congestion on the M6 around Birmingham. Users are able to pay tolls using cash, credit card or an electronic tag. Tag penetration has stabilised at approximately 10%. The M6 Toll Concession also includes a Motorway Services Area (MSA), which is currently leased and operated by Roadchef. Tolling Under the M6 Toll Concession Agreement, MEL has the right to increase tolls at any time as long as toll reviews take place no more than twice a year. There are six categories of tolled vehicles, motorcycles, cars, cars and trailers, van or coach, HGV or coach and HGV with more than six-axles. 72 Macquarie Infrastructure Group 2008 Analyst Package

75 As an initiative to encourage patronage, MEL offered a discounted toll schedule for the fi rst 10 million vehicles. M6 Toll reached its 10-millionth customer in mid-august MEL announced that the discounted introductory rates would remain in place for cars and motorcycles at intermediate plazas. In addition, a 5% discount on tolls for electronic tag account holders commenced from June The current toll schedule from 1 January 2008 is presented in Table 3.1. Additional Works Concurrent with the refi nancing, MIG entered an agreement with the UK Government to invest up to 112 million into the West Midlands road network. Specifi cally, MIG has undertaken to: contribute up to 70 million (in 2006 pounds) towards the cost of construction of the M54-M6-M6 Toll Link Road (M54 Link Road) contribute up to 10 million (in 2006 pounds) towards enhancements to the M42 slip road access to the southern end of the M6 Toll operate and maintain the above two network enhancements for the duration of the concession period. The network enhancements will deliver improvements to the accessibility of the M6 Toll within the greater road network in the Midlands. The new M54 Link Road will provide direct access from the existing M54 motorway to M6 Toll. In addition, the improvements to the M42 slip road Table 3.2: Summary of performance 6 months to Dec 2004 Jun 2005 Dec 2005 will prevent congestion problems anticipated to occur over the medium term. In November 2007, a contract for M42 improvement works was signed and construction works commenced in January Discussions are ongoing with the Highways Agency to develop the M54 Link Road. Table 3.1: Toll schedule from 1 January 2008 Intermediate plazas Main plazas (T3, T4, T5, T6) Vehicle type Class Day toll ( ) 1 Night toll ( ) 1,2 Day toll ( ) 1 Night toll ( ) 1,2 Motorcycles Class I Cars Class II Cars with trailers Class III Vans Class IV HGVs Classes V and VI Tag account holders receive a 5% discount on tolls. 2. Night tolls effective from 11pm 6am. Jun 2006 Dec 2006 Jun 2007 Dec 2007 Traffic (ADT) Total 50,941 44,089 45,457 43,572 52,874 45,119 46,665 Financial ( m) Toll Revenue Other Revenue Total Revenue Operating Expenses EBITDA EBITDA Margin (%) NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 73

76 Table 3.3: Asset snapshot and key metrics All fi nancial amounts shown below are expressed in. Asset Location Length Size Opened to Traffi c Concession Birmingham, UK 42km Ownership MIG (100%) 6 lanes (3 lanes/direction) 14 December 2003 (full opening) Commencement Date 31 January 2001 Term 53 years, 31 January 2054 expiry Traffic and tolling Tolled Traffi c Both directions Tolling Points Main toll plazas (2 x 10 lanes) plus 4 junctions Tolling Classes Motorbikes, cars, car and trailers, van or coach, HGV or coach, HGV with more than six axles Last Toll Increase 1 January 2008 Toll Levels Refer to Table 3.1 Night Tolls Refer to Table 3.1. Apply daily from 11pm 6am Tolling Methods Cash, credit cards, ETC Toll Escalation Market based Toll increases limited to twice a year Current Traffi c Mix Motorcycles 0.24%, cars 92.00%, car and tailer 0.44%, van or coach 4.40%, HGV or coach 2.91% HGV with more than six axles 0.01%. Capital expenditure assumptions (as at 31 December 2007, where year 1 = 2008) Years 1 10 Years Years Years Years Average 9.1 million pa in normal expenditure and average 7.3 million pa expenditure for M54 Link Road and M42 slip road access Average 5.8 million pa Average 4.6 million pa Average 7.5 million pa Average 2.2 million pa Capex facility Size Term Repayment Margin and cash sweep Hedging overview Principal Term 30 million 9 years Bullet As for term facility 100% of term facility and capex facility 30 years Swap Margin 0.37% Swap Rates (not including margins) Cash Sweep To Service Swap Inter-entity loan Principal 1.00% from 2006 until December 2010 stepping up in 0.25% increments on a semi-annual basis to 8.50% in 2025, then immediately reducing to a fl at rate of 7.92% until 2036 Year 1 Year 2 Year 3 Year 4 Year million Interest Rate 9.00% MMG shareholder loan MEI Loan Principal 576 million MEI Loan Interest Rate 6.00% MIGIL Loan Principal 132 million MIGIL Loan Interest 12.00% Rate Taxation UK Income 28% VAT 17.5% 2 million 5 million 10 million 10 million 10 million Term facility Size 1,000 million Term 9 years Repayment Bullet Debt Service Reserve 1/6th of the next three years debt service (initially 12 million) Margin Year % Years % Years % Years % Credit margins above are for BBB rating and are subject to a rating dependent pricing grid Cash Sweep Years 1 5 0% Rating Year 6 40% Year 7 60% Year 8 80% Year 9 100% BBB (Standard & Poor s) 74 Macquarie Infrastructure Group 2008 Analyst Package

77 Europe Autoroutes Paris-Rhin- Rhône Asset Description Autoroutes Paris-Rhin-Rhône (APRR) is a toll road company listed on the Euronext which until 2006 was majority owned by the French State. APRR is the concessionaire of a motorway network located in the east of France. APRR consists of three separate concessions: APRR, Autoroutes Rhône Alps (AREA) and the Maurice Lemaire Tunnel (together APRR Group). Under the concession agreements, the APRR Group is entitled to construct and/or toll a total of 2,279 kilometres of motorways. Of the total concessioned network, 53 kilometres are still to be constructed and opened to traffi c in , and the 11 kilometres Maurice Lemaire Tunnel is due to reopen in With 2,215 kilometres of motorways in operation (1,821 kilometres APRR and 394 kilometres AREA), the APRR Group is the second largest motorway network in France, with 28% of the network, and fourth largest in Europe. NORTH AMERICA Figure 3.4: APRR Group Paris Melun Troyes Toul APRR AREA Bourges Cosne-sur-Loire Dijon Mulhouse EUROPE SWITZERLAND Oyoman Genève Clermont-Ferrand Lyon Valense Chambèry ITALY Abertville AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 75

78 Europe Autoroutes Paris-Rhin- Rhône (cont.) Concessionaire Ownership Structure In June 2005, the French State announced a process to sell its 70.2% interest in APRR. A consortium consisting of French contractor Eiffage, MIG and Macquarie European Infrastructure Fund (MEIF) (the Consortium) was announced preferred bidder for APRR in December In addition to the 70.2% interest acquired from the French State, the Consortium acquired a further 4.4% interest in APRR from Eiffage in February In March and April 2006 the Consortium extended its offer to the remaining shareholders via a standing offer. At the conclusion of the standing offer the Consortium had secured a further 6.8% interest giving it a total interest of 81.48% in APRR. The Consortium acquired the 81.48% of APRR through a company called Eiffarie. Eiffage has a 50% interest plus one share in Eiffarie and Macquarie Autoroutes de France (MAF) has a 50% interest minus one share in Eiffarie. MIG has a 50% interest plus one share of MAF and MEIF has a 50% interest minus one share in MAF. MIG s effective interest in APRR is 20.37%. MIG s Investment Structure MIG has invested million in APRR. This consists of million of equity (via MAF) and million of shareholder loans (via MAF Finance). The loans have an interest margin of 4.50% over Euribor. The loans are structurally subordinated where interest is only payable to the extent cash is available, otherwise capitalised. Management Contracts In 1994 the French State set up a system of multi-year contracts, called Contrats d Enterprise or management contracts, under which companies holding motorway concessions are committed to fi nancial objectives and toll rate conditions in addition to those specifi ed in the concession agreement. In practice the management contract sets forth the capital expenditure programs to be implemented as well as toll escalation rates for the term of the contract. It is possible for a capital expenditure program agreed within a specifi c management contract to take longer than the term of the contract. 76 Macquarie Infrastructure Group 2008 Analyst Package

79 Figure 3.5: APRR investment structure Financière Laborde (Eiffage Sub) Eiffage SA 50% - 1 share Equity plus Shareholder Loans in same proportion MEIF MAF MIG MAF Finance 50% + 1 share Equity plus Shareholder Loans in same proportion Shareholder Loans in same proportion as Eiffage equity Equity contribution 50% + 1 share 50% - 1 share Finanèiere Eiffarie 100% Shareholder Loans in same proportion as MAF equity NORTH AMERICA Eiffarie 81.48% For the APRR and AREA concessions, near term operations are governed by the management contract. This management contract took effect on 8 November 2004 and will expire in November Post November 2008, if a new management contract is not executed, then operations will continue to be governed by the current concession agreement. APRR/AREA signed their fi rst management contracts with the French State for the period From , APRR and AREA did not operate under a management contract. APRR Capital Expenditure 18.52% Under the current management contract APRR is required to undertake signifi cant capital works between 2007 and The capital works program is primarily focussed on maintenance and expansion of the existing network. It also includes construction of 53 kilometres of new motorways. The Growth portion or capital works relate primarily to widening existing roads and the construction Minorities of new roads. The Growth capital expenditure program has been agreed with the French State as part of the Management Contract and is, therefore, compensated by the respective extra increase in tolls. These investments will be predominantly funded using the revolving credit facility (see Financing Structure) in the short term and it is envisaged that longer term fi nancing will be put in place to fund medium term expenditure. EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 77

80 Europe Autoroutes Paris-Rhin- Rhône (cont.) Financing Structure The Consortium s bid was fi nanced via debt and equity at the Effarie level. As part of the acquisition the Consortium, through control of APRR, also assumed the existing debt at the APRR level. Eiffarie Debt The debt at Eiffarie consists of a seven-year 3,860 million term facility (as at June 2007). The interest margin on the facility is a function of asset leverage and ranges from 0.40% to 1.20%. This facility is partially repaid via a cash sweep. It is envisaged that this facility will be refi nanced before the commencement of the 100% cash sweep. APRR Debt APRR has approximately 5.5 billion of debt provided by Caisse Nationale des Autoroutes (CNA). Prior to privatisation of APRR, the French Government used the CNA as the fi nancing vehicle. The CNA raised funds by issuing government backed bonds and lent to the motorway companies on the same terms. APRR s outstanding CNA debt is predominantly fi xed rate and will be materially amortised by The European Investment Bank provided a further 100 million of debt in January 2007 to cover capital expenditure. In addition to this, the Consortium has arranged a 1.8 billion revolving credit facility and a 500 million sevenyear bank facility to refi nance 100% of the CNA maturities and a portion of capital works in the early years of operation. The 500 million bank facility was arranged in August 2007 on better terms than the existing debt it replaced. APRR has also put in place a 6 billion Medium Term Note program (EMTN) with a prospectus lodged on the Luxembourg Stock Exchange on 3 October This new source of fi nancing will serve to replace the CNA loans as they mature and contribute to the fi nancing of investment programs in the longer term. 78 Macquarie Infrastructure Group 2008 Analyst Package

81 Table 3.4: Tolling classes Category Height Number of axles Maximum weight Predominant vehicle type 1 =<2 metres 2 =<3.5 tons Cars 2 >2 metres <3 metres 2 =<3.5 tons Light Goods Vehicles 3 =>3 metres 2 =<3.5 tons Single-unit Heavy Vehicles 4 =>3 metres >2 >3.5 tons Multi-unit Heavy Vehicles 5 Motorcycles Taxation At present Eiffarie holds less than 95% of APRR and as a result cannot consolidate results for tax purposes. Therefore APRR is unable to offset its taxable profi ts with losses, arising primarily from interest expense at Eiffarie. However the losses in Eiffarie do not expire and can be used in future if Eiffarie is able to increase its interest in APRR above 95% and form a tax consolidated group. Dividends paid out of APRR are subject to the conventional accounting restrictions and can be paid from current period profi t, distributable reserves, retained earnings and share premium. Interest payments on shareholder loans are not subject to interest withholding tax. Dividends paid by MAF should not be subject to dividend withholding tax under the EU Parent Subsidiary Directive. Tolling APRR and AREA Concessions There are fi ve tolling categories on the APRR and AREA concessions, as outlined in Table 3.4. Tolls charged on the two networks are governed by the Management Contract. On 1 October 2007, motorway tariffs for Class 1 vehicles rose by an average of 0.92% on the APRR network and 0.75% on the AREA network. For Class 4 heavy goods vehicles, the average price increases were 1.93% on the APRR network and 2.55% on the AREA network. The current Management Contract for the two concessions expires in November 2008 and allows: APRR Class 1 tolls to be increased at 85% of CPI ex Tobacco plus 0.845% AREA Class 1 tolls to be increased at 80% of CPI ex Tobacco plus 0.11%. Post November 2008, there are two potential scenarios: if a new Contrat d Enterprise is agreed, tolls will be allowed to increase by a percentage of the increase in CPI ex Tobacco for both APRR and AREA if a new Contrat d Enterprise is not agreed, toll escalation is ruled by the decree no of 24 January 1995, and in accordance with the provisions of the motorway concession agreements. This decree stipulates that the minimum toll increase for the concessionaires is 70% of the increase in CPI ex Tobacco. NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 79

82 Europe Autoroutes Paris-Rhin- Rhône (cont.) Table 3.5: Tolling Schedules APRR Price per km for Class 1 as at 1 October 2007 Management contract euro cents (exc. VAT) Escalation of Class 1 Toll 85% CPI (ex Tobacco) % (Changes take effect on 1 October each year) Escalation of Class 2 Toll Escalation of Class 3 Toll Escalation of Class 4 Toll Escalation of Class 5 Toll Multiple of Class 1 toll Increasing linearly from 1.15x (in 2003) to 1.55x (in 2008) Multiple of Class 1 toll Increasing linearly from 2.33x (in 2003) to 2.45x (in 2008) Multiple of Class 1 toll Increasing linearly from 3.22x (in 2003) to 3.38x (in 2008) 0.6x Class 1 toll Concession contract Minimum annual price increase of 70% of CPI ex Tobacco (Changes take effect on 1 February each year) The next management contract must provide minimum annual price increase of 85% of CPI ex Tobacco AREA Price per km for Class 1 as at 1 October 2007 Management contract euro cents (exc. VAT) Escalation of Class 1 Toll 80% CPI (ex Tobacco) % (Changes take effect on 1 October each year) Escalation of Class 2 Toll Escalation of Class 3 Toll Escalation of Class 4 Toll Escalation of Class 5 Toll 1.55x Class 1 toll Multiple of Class 1 toll Increasing linearly from 2.04x (in 2003) to 2.14x (in 2008) Multiple of Class 1 toll Increasing linearly from 2.759x (in 2003) to 2.90x (in 2008) Multiple of Class 1 toll Decreasing linearly from 0.53x (in 2003) to 0.50x (in 2008) Concession contract Minimum annual price increase of 70% of CPI ex Tobacco (Changes take effect on 1 February each year) The next management contract must provide minimum annual price increase of 80% of CPI ex Tobacco 80 Macquarie Infrastructure Group 2008 Analyst Package

83 Toll price adjustments under both the Management Contract and Concession Agreement are implemented annually. The price adjustment is a function of the change in the CPI ex Tobacco since the anterior price adjustment. Table 3.5 outlines the toll escalation formula for other tolling categories. APRR has in place a toll discount program (CAPLIS) for Heavy Goods Vehicles (Class 3 and 4). The CAPLIS program currently offers a maximum discount of 15% and 16% on the APRR and AREA networks respectively. To comply with an EU directive, the CAPLIS discounts must be reduced to a maximum of 13% by 2008, with potential for further reductions in the discounts offered. Maurice Lemaire Tunnel The Maurice Lemaire tunnel has been closed to traffi c since April 2004 due to the implementation of an extensive investment plan in order to comply with new safety regulations issued by the French Government. The tunnel is expected to re-open by the end of In order to re-establish the fi nancial rebalance of the concession, the French State and APRR have signed a Financial Rebalancing Agreement (FRA) in As part of this agreement, the French State conceded APRR a 44-year extension of the Maurice Lemaire concession from 2022 to There are fi ve tolling categories (equivalent to that of APRR and AREA) on the Maurice Lemaire and toll prices are also governed by the FRA. After the tunnel resumes service, the toll prices as specifi ed by the FRA will be as detailed in Table 3.6. Table 3.8: Summary of performance 12 months to 31 December Traffic Vehicle Kilometres Travelled (m) 19,958 19,958 19,989 20,247 20,810 Financial ( m) Toll Revenue 1,468 1,468 1,525 1,624 1,753 Other Revenue Total Revenue 1,510 1,513 1,571 1,670 1,803 Operating Expenses (565) (572) (597) (602) (595) EBITDA ,068 1,208 EBITDA Margin (%) Presented in French GAAP 2. Presented in IFRS Table 3.6: Maurice Lemaire tolling schedule Tolling category Toll price (real Dec 2003, including VAT) Class Class Class Class Class Table 3.7: Traffic mix for Vehicle class % of total group traffic Class % Class 2 4.3% Class 3 2.2% Class % Class 5 0.3% traffi x mix data not reported by APRR at the time of publication NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 81

84 Table 3.9: Asset snapshot and key metrics All fi nancial amounts shown below are expressed in. Asset Location Length Concession France (East) APRR: 1,821km (33km remaining to be completed) AREA: 394km (1km remaining to be completed) Maurice Lemaire: 11km to reopen 2008 Ownership APRR: MIG (20.37%); MEIF (20.37%); Eiffage (40.74%); Minorities (18.52%) Eiffarie: MIG (25%); MEIF (25%); Eiffage (50%) Term Traffic and tolling Tolled Traffi c APRR and AREA: 31 Dec 2032 expiry Maurice Lemaire: 31 Dec 2068 expiry Both directions Tolling Classes Refer to Table 3.4 Last Toll increase 1 Oct 2007 APRR & AREA Toll Levels Refer to Table 3.5 Tolling Methods Cash, credit cards, ETC Toll Escalation Refer to Table 3.5 Toll Discount CAPLIS (HGV Discounts) at October 2007: APRR 15% AREA 16% The company also has some frequent user discounts for the subscribers of the Liber-T ETC system (only light vehicles) Debt CNA Debt Size 5,450 million (June 2007) Term Materially amortised by 2018 P&I Profi le Fixed amortization profi le Margin All-in rate starting at 6.01% in 2006, reducing to 5.32% by 2013 Revolving Credit Facility Size 1,800 million (June 2007) Term 7 years Margin Years 1 5: 0.35% Years 6 7: 0.45% Bank Debt Size 500 million (June 2007) Term 7 years Margin 0.25% Eiffarie (Bid Co) Debt Size 3,866 million (June 2007) P&I Profi le Interest only with partial amortisation via cash sweep Margin Year 1: 0.90% The remaining years are based on the below leverage (Net Debt/EBITDA) grid: Year > < % 0.80% 0.525% 0.45% 0.40% % 1.00% 0.75% 0.60% 0.50% The margin in a given six-month period is based on the Consolidated (Proportionate APRR and 100% of Eiffarie) Net Debt to EBITDA calculation at the end of the previous six-month period. Interest is paid every six-months Swaps 3,444 million of swaps at 3.58% from July 2006 to June 2013 Cash Sweep : 20% : 30% : 100% Taxation French Corporate Tax 34.43% VAT 19.6% 82 Macquarie Infrastructure Group 2008 Analyst Package

85 Europe 25th April/ Vasco da Gama Bridges Asset Description Lusoponte owns the concession for two tolled bridges that provide the only road crossings of the Tagus River in the Portuguese capital of Lisbon: the 25th April Bridge is sixkilometres in length, with a one kilometre six lane bridge built in 1966 the Vasco da Gama Bridge is 18 kilometres in length with a 12-kilometre six-lane bridge which opened ahead of schedule in March 1998, after being under construction since February The Vasco da Gama Bridge is 30 kilometres upstream from the 25th April Bridge. The Vasco da Gama Bridge was built to complete the circular Lisbon road network and to lighten traffi c on the 25th April Bridge. It provides an important link between the northern and southern parts of Portugal and is part of a new road corridor to Spain. Figure 3.6: 25th April/Vasco da Gama Bridges Concessionaire Ownership Structure In October 1999, MIG purchased a portfolio of infrastructure investments from Norwegian conglomerate Kvaerner ASA, including a 24.8% interest in Lusoponte. The portfolio also included 23% of the subordinated debt (shareholder loans) in Lusoponte. In November 2002, MIG acquired a further 5.66% interest in Lusoponte by exercising its pre-emptive rights when an existing shareholder sold their interest. The purchase price was approximately 16 million. A further 0.15% interest was acquired on the same terms in January 2003, taking MIG s share holding in Lusoponte to 30.6%. NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 83

86 Europe 25th April/ Vasco da Gama Bridges (cont.) The other shareholders in Lusoponte are the French construction company, Vinci (30.9%), a Spanish construction group, Somague (17.2%) and two Portuguese construction companies, Mota Engil (13.8%) and Teixeira Duarte (7.5%). Lusoponte issued contractor subordinated debt (shareholder loans) to partially fi nance construction of the Vasco da Gama Bridge. MIG previously owned 30% of this subordinated debt, which was fully paid down via operating cash fl ows by March Lusoponte Financing Structure Construction of the Vasco da Gama Bridge, at a cost of 897 million, was funded from the following sources: 298 million European Investment Bank (EIB) senior loan 319 million European Union Cohesion Fund grant 50 million of toll revenue from the 25th April Bridge 230 million from shareholders and Portuguese Government grants. Figure 3.7: Concessionaire ownership structure Of the total project cost, approximately 644 million was for construction, with the balance used for land expropriation costs, rehousing, environmental projects and for maintenance of the two bridges. In conjunction with the signing of the Global Financial Rebalance Agreement (GFRA) in July 2000 (see over the page), Lusoponte refi nanced its debt facilities. Lusoponte converted its original loans into a single 21-year euro-denominated EIB facility. The commercial bank guarantee for the EIB facility was extended from 15 to 19 years. An additional 19-year 120 million loan was also drawn to cover refi nancing costs and to settle residual construction claims. MIG Vinci Somague Mota Engil Teixeira Duarte 30.6% 30.9% 17.2% 13.8% 7.5% Shareholder Loans 30.0% Lusoponte Concessionária para a Travessia do Tejo SA Concessionaire 25th April and Vasco da Gama Bridges 84 Macquarie Infrastructure Group 2008 Analyst Package

87 Concession Agreement The original concession agreement allowed the Portuguese Government to unilaterally set tolls on the 25th April Bridge and pay compensation to Lusoponte for the difference between the original toll rates specifi ed in the concession agreement and the levied toll. The Portuguese Government exercised this right at the time the concession was tendered, with the toll on the 25th April Bridge set at 150 escudos ( 0.75) as against a contractually permitted 300 escudos ( 1.50). There was a further agreement negotiated after the concession was tendered, whereby Lusoponte offers motorists a frequent-user discount on the 25th April Bridge, and reclaims the lost revenue from the Government. Global Financial Rebalance Agreement The Portuguese Government and Lusoponte negotiated a Global Financial Rebalance Agreement (GFRA) in 2000, which reset the base toll rates and escalations specifi ed in the original concession agreement and settled various outstanding Vasco da Gama Bridge construction claims. The agreement was designed to be NPV neutral to the concessionaire. However, the revised arrangements provide upside to Lusoponte as it is able to benefi t from increased traffi c growth over the remaining concession term. In summary, the GFRA: formally settled the extensive list of claims and counter claims with the Government of Portugal relating to the construction of the Vasco da Gama Bridge and various post completion issues changed the toll rates for the 25th April Bridge to 1.00 for Class 1 vehicles and 4.85 for Class 4 vehicles (commencing 2001). specifi ed that subsequent toll increases on both Bridges be rounded up to the nearest 0.05 confi rmed that August is to remain a toll free month for the 25th April Bridge specifi ed that the Government of Portugal will pay 306 million (nominal) to Lusoponte through to 2019 according to an agreed schedule of semi-annual payments. These payments have been calculated based on the expected cash fl ows to be generated by Lusoponte (as agreed in 2000). Importantly, any subsequent changes in the Portuguese corporate tax rate will have an impact on these payments. The GFRA payment profi le has been based on an assumed 33% corporate tax rate. The subsequent decrease to 26.5% will not generate a windfall gain for Lusoponte, as the agreed FRA payments will be reduced to refl ect that Lusoponte is not subject to as high a corporate tax rate as previously assumed. A similar concept applies to frequent user discounts. The agreed GFRA payments assume that 25th April Bridge revenue will be 15% lower due to the discounts offered to frequent users. The agreed payments will be adjusted to refl ect the actual impact of the frequent user discounts Maintained the requirement for Lusoponte to be restored to a real investment IRR of 11.43% for any subsequent unilateral concession amendments made by the Portuguese Government Relieved Lusoponte of its obligation to fund the maintenance of the 25th April Bridge Extended the concession to March 2030, about eight years longer than previously projected based on traffi c volumes Enacted pre-agreed changes to Lusoponte s fi nancing agreements, removing some of the restrictions that were imposed by the concessionaire s senior lenders. NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 85

88 Europe 25th April/ Vasco da Gama Bridges (cont.) Road Configuration The 25th April Bridge is three lanes in each direction. The Bridge is only tolled in the northbound direction (into Lisbon) and does not charge tolls to users during August. The toll plaza is located on the southern bank of the Tagus River and has 16 toll lanes, seven of which are automatic (three proximity card and four electronic transponders). The Vasco da Gama Bridge is also three lanes in each direction and tolls year-round in the northbound direction (into Lisbon). The bridge has the capacity to increase to four lanes by changing lane markings. The toll plaza is on the southern bank of the Tagus River and has 12 lanes, four of which are automatic (one proximity card and three electronic transponders). Table 3.10: Tolling classes Tolling Traffi c is divided into four tolling categories based on number of axles and height of vehicles at the fi rst axle as presented in Table Lusoponte tolls are increased once a year at CPI (every January, rounded up to the nearest 0.05). Historical, current and approved Lusoponte tolls (inc. VAT) are outlined in Table Customers can pay tolls using cash, credit card, a Via Verde electronic transponder (Brisa-sponsored) or a Via Card proximity card (Lusopontesponsored). Motorcycles using a Via Verde transponder on the 25th April Bridge receive a 30% toll discount. Both Via Verde and Via Card users receive discounts based on patronage of the 25th April Bridge as outlined in Table Category Height at 1st axle Number of axles Predominant vehicle type 1 <1.1 metres =>2 Motorcycles/Cars 2 =>1.1 metres 2 Light Goods Vehicles 3 =>1.1 metres 3 Single-unit Heavy Vehicles 4 =>1.1 metres =>4 Multi-unit Heavy Vehicles Table 3.11: Toll discounts Crossing/month Via Verde discount Via Card discount % 10% % 70% >70 100% 100% 86 Macquarie Infrastructure Group 2008 Analyst Package

89 Table 3.12: Toll history Class 25th April Distributions Vasco da Gama 25th April Lusoponte is incorporated in Portugal. Any interest payments made to MIG (via its shareholder loans) are subject to tax in the UK, while any dividends will be taxexempt. Lusoponte s equity distributions are limited to retained profi ts, so that any distribution cannot result in negative retained earnings. The return of Lusoponte s Suprimentos equity (supplementary capital contributions) does not reduce the company s retained earnings and is limited to distributable equity (surplus capital plus retained earnings). Vasco da Gama 25th April Third Crossing Vasco da Gama 25th April Vasco da Gama Under its concession agreement, Lusoponte has the exclusive right, and obligation, to construct and operate any proposed Tagus River crossings downstream from the Vila Franca de Xira Bridge (approximately 25 kilometres upstream from the Vasco da Gama Bridge). The concessionaire is entitled to be restored to an 11.43% real return 25th April Vasco da Gama 25th April Vasco da Gama (based on the original base case model agreed at the signing of the GFRA) if the construction of another crossing negatively impacts its projected returns. Construction of a third crossing does not appear to be viable without a substantial contribution from the Portuguese Government. Table 3.13: Summary of performance Year to 31 December Traffic (ADT) 25th April both directions 150, , , , ,013 25th April northbound 77,278 77,953 78,990 78,132 78,415 Vasco da Gama both directions 64,325 67,495 65,509 64,848 65,814 Vasco da Gama northbound 30,925 32,346 31,476 31,301 31,799 Financial ( million) Revenue Operating Expenses EBITDA NORTH AMERICA EUROPE AUSTRALIA EBITDA Margin (%) MODEL 2008 Analyst Package Macquarie Infrastructure Group 87

90 Table 3.14: Asset snapshot and key metrics All fi nancial amounts shown below are expressed in. Asset Location Length Size Opened to Traffi c Concession Lisbon, Portugal 18km (13km of bridge structures and 5km linking bridges to the wider road network) 25th April 6 lanes (3 lanes/direction) Vasco da Gama 6 lanes (3 lanes/direction) 25th April 1966 Vasco da Gama Mar 1998 Ownership Vinci (30.9%); MIG (30.6%); Somague (17.2%); Mota Engil (13.8%); Teixeira Duarte (7.5%) Commencement Date 24 March 1995 Term 35 years, 31 March 2030 expiry Traffic and tolling Tolled Traffi c Northbound only (into Lisbon) 25th April does not toll traffi c during August Both Bridges 1 main toll plaza Tolling Points Tolling Classes 4 (refer to Table 3.10) Last Toll Increase 1 January 2008 (annually) Tolling Methods Cash, debit cards, proximity cards, ETC Toll Escalation CPI Toll Discount Available for proximity card and ETC users Current Traffi c Mix Class 25th April Vasco da Gama % 84.4% 2 9.0% 11.9% 3 0.2% 0.7% 4 1.2% 3.1% Senior debt Size million (as at 31 December 2007) Term 5 September 2019 P&I Profi le Amortising Margin 0.80% 0.85% to 5 March % 0.95% to 5 March % 1.10% to 5 September 2019 DSCR Threshold 1.4x Senior Lock-up 1.2x Debt service reserve Size Taxation Portuguese Corporate Tax Rate 6 months debt service (interest and principal) 26.5% VAT on Tolls 5% VAT on other items 21% Suprimentos contributed capital Size Repayment Profi le Equity Dividend Distributions Return 34.9 million Subject to positive Book Equity Value (sum of Share Capital, Suprimentos, Retained Earnings and Legal Reserve) Subject to positive retained earnings 11.43% real (related to concession obligations) Capital Expenditure Assumptions (as at 31 December 2007, where year 1 = 2008) Years 1-5 Years 5-15 Years Average 2.2 million pa Average 4.4 million pa Average 2.8 million pa EIB Facility Size million (as at Dec 2007) Term 5 Sep 2021 P&I Profi le Interest Rate Amortising Fixed at 9.31% to 5 Sep 2019; 9.41% thereafter Guaranteed Margin 0.80% 0.85% to 5 Mar 2006 Guaranteed DSCR Threshold 0.85% 0.90% to 5 Mar % 1.00% to 5 Sep x 88 Macquarie Infrastructure Group 2008 Analyst Package

91 Europe Warnow Tunnel Asset Description Warnow Tunnel is a four kilometre toll road located in the city of Rostock in north-eastern Germany. At the time of investment, Rostock was the largest of seven Baltic ports and the fourth largest German port. The Warnow Tunnel opened to traffi c in September The road includes a 0.8 kilometre tunnel under the Warnow River. This river divides the city, with most residential areas located on the western side Figure 3.8: Warnow Tunnel and most of the industrial areas on the eastern side, including a power station, bulk goods terminal and growing retail precinct. Alternative options to cross the river include: ferries, which take more than 15 minutes to complete the crossing a 19 kilometre journey via untolled roads through the Rostock central shopping precinct. This route can be subject to delays of up to two hours during peak periods. NORTH AMERICA WARNOW TUNNEL EUROPE MODEL AUSTRALIA 2008 Analyst Package Macquarie Infrastructure Group 89

92 Europe Warnow Tunnel (cont.) Concessionaire Ownership Structure Warnowquerung GmbH & Co. KG (WQG) owns the concession to operate Warnow Tunnel for 50 years from construction completion. A 20-year extension to the original 30-year concession was formally granted by the City of Rostock in February WQG is a limited partnership, with two limited partners, European Transport Investments (UK) Ltd (ETI) and Bouygues Travaux Publics SA (BTP). ETI has a 70% equity interest in WQG and BTP has a 30% interest. The limited partners are the economic benefi ciaries of the project. ETI is 100% owned by MEI Limited, while BTP is a subsidiary of the French construction group Bouygues. Bouygues was the construction contractor and is a fellow sponsor of the project. WQG is managed by the general partner, Warnowquerung Verwaltungsgesellschaft mbh (the Manager). The Manager has unlimited liability and has also been capitalised by ETI and BTP in the ratio of 70:30. Financing Structure Construction was completed in 42 months through a DM305 million (approximately million) fi xed-time fi xed-price contract with Bouygues. Both the dimensions of the tunnel and the construction techniques employed are similar to those used for the Sydney Harbour Tunnel. Figure 3.9: Concessionaire ownership structure MEI Limited 100% European Transport Investments (UK) Ltd Bouygues Travaux Publics SA 70% 30% Warnowquerung Verwaltungsgesellscaft GmbH General Partner 70% Warnowquerung 30% GmbH & Co. KG Concessionaire Warnow Tunnel 90 Macquarie Infrastructure Group 2008 Analyst Package

93 Funding for the project was provided from the following sources: million senior debt facility. This facility has a 25-year term, with a one year interest-only period following construction completion 29.3 million of German and European Union subsidies 40.8 million of equity contributions from MIG (70%) and Bouygues (30%). Equity was contributed progressively throughout construction of the project. Debt Restructure In December 2005, WQG and its banks agreed to restructure the loan to WQG. Under the terms of the restructuring agreement, the 147 million in senior loans together with the present value of interest rate swaps were converted into 3 tranches of debt: Tranche I 52.5 million Tranche II 41.1 million Tranche III 68.3 million. Tranche III was structured to be qualifi ed as legally subordinated debt and will only pay principal and interest to the extent that cash is available. Road Configuration The Warnow Tunnel has two lanes in each direction. The main toll plaza, located on the eastern side of the tunnel, has four lanes in each direction plus one tidal lane (nine in total). The tidal lane can switch directions to accommodate additional traffi c volumes during peak periods. Electronic toll collection is available in all nine lanes, although two lanes are dedicated to ETC. Tolling Tolls for all vehicle categories are set as a function of the base car toll. For the fi rst year of operations, the offpeak (non-summer) base car toll was set at For subsequent years of operations, tolls can be set using a formula where, if the forecast pre-tax equity IRR is between 17% and 25%, the tolls for the following year may rise by infl ation only. If the forecast pre-tax equity IRR is greater than 25%, toll levels must remain fi xed. If the forecast pre-tax equity IRR is less than 17%, tolls may increase by Table 3.15: Toll schedule more than the rate of infl ation. Based on current projections, the equity IRR for the investment is zero, so tolls can be escalated at a rate greater than infl ation if the concessionaire chooses to do so. The current toll schedule for Warnow Tunnel is presented in Table Current Performance Since opening, Warnow Tunnel traffi c has been signifi cantly below MIG s investment case. Due to this performance, MIG reduced the value of its investment in Warnow Tunnel to nil in December MIG s current valuation of its investment in Warnow Tunnel is A$3.0 million (as at 31 December 2007). MIG is currently pursuing a series of initiatives to improve the performance of the asset: active involvement in transportation planning for the area supporting activities that promote the area as a business development site and holiday destination. ETC (incl VAT) ( ) Cash (incl VAT) ( ) Category Vehicle type All year round Winter Summer 1 Passenger car, motorcycle Passenger car, minibus, small transporters 3 Truck (2-axle) Truck (>2-axle) Bus (>16 seats) NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 91

94 Table 3.16: Asset snapshot and key metrics All fi nancial amounts shown below are expressed in. Asset Location Rostock, Germany Length 4km Size 4 lanes (2 lanes/direction) Opened to Traffi c September 2003 Concession Ownership MIG (70%); Bouygues SA (30%) Term 50 years from construction completion, 15 September 2053 expiry Traffic and tolling Tolled Traffi c Tolling Methods Both directions 1 main plaza (9 lanes in total 4 lanes in each direction plus 1 tidal lane) Tolling Classes 5 (refer to Table 3.15) Toll Levels Refer to Table 3.15 Toll Escalation Refer to Tolling section Capital expenditure assumptions (as at 31 December 2007, where year 1 = 2008) Years 1 10 Years Years 21 End Average 0.25 million pa Average 1.11 million pa Average 1.28 million pa Debt (as at 31 December 2007) Tranche I 52 million Facility Term 31 Dec 2029 Margin 0.75% Tranche II 34 million Facility Term Sep 2053 (concession end) Margin 3.00% Tranche III 75 million (legally subordinated tranche) Facility Term Sep 2053 (concession end) Margin 1.50% Taxation Gewerbesteuer (GEWST) Tax Rate 15.05% Non-Deductible Interest 25% Application of Losses 60% of taxable income over a threshold of 1 million Taxation Korperschaftsteuer (KST) Tax Rate 15.83% Application of Losses 60% of taxable income over a threshold of 1 million Taxation Other VAT 19% 92 Macquarie Infrastructure Group 2008 Analyst Package

95 Australia Westlink M Analyst Package Macquarie Infrastructure Group 93

96 Australia Westlink M7 Asset Description Westlink M7 is a 40 kilometre toll road in the west of Sydney, Australia, which links the M2 Motorway at Baulkham Hills in the north, the M4 Motorway at Eastern Creek, and the M5 Motorway at Prestons in the south. It forms a major part of Sydney s 110 kilometre orbital network. The road is two lanes wide in each direction, and bypasses 48 sets of traffi c lights. Westlink M7 opened to traffi c on 16 December 2005 and is a fully electronic road with tolls charged on a per-kilometre basis. Tolls are capped for trips longer than 20 kilometres. Figure 4.1: Concessionaire ownership structure Concessionaire Ownership Structure Westlink Motorway Group (WMG) is a stapled entity comprised of a general law partnership, Westlink Motorway Partnership (WMP), and a limited liability company, WSO Co. Pty Limited (WSO Co.). WMG is owned by MIG (47.5%), Transurban (47.5%) and Leighton Contractors (5.0%). WSO Co. is the concessionaire of Westlink M7. WSO Co. is a trading company for the purposes of the Income Tax Assessment Act and 8.5% MIT (I) Partnership interest and SLNS 47.5% Westlink Motorway Partnership Stapled Sub lease MIT (II) Shares 39.0% WSO Co. Westlink Motorway Group Crown Lease/Property/Assets Westlink M7 Concessionaire Figure 4.2: Westlink M7 Blacktown M2 LANE COVE TUNNEL M7 Parramatta M4 Sydney GORE HILL FREEWAY SYDNEY HARBOUR BRIDGE/TUNNEL CROSS CITY TUNNEL Liverpool M5 Bankstown M5 East EASTERN DISTRIBUTOR 94 Macquarie Infrastructure Group 2008 Analyst Package

97 is taxed at the corporate rate. Dividends from WSO Co. are subject to the availability of accounting profi ts. The partners of WMP are assessed on their respective share of the taxable income or losses of the partnership. MIG Investment Structure MIG funded its equity contribution in three stages: A$392 million for an initial 40% interest at fi nancial close (14 February 2003) A$47 million for an additional 5% interest at road opening (16 December 2005) A$34 million for an additional 2.5% interest in September Westlink s equity funding is provided primarily in the form of Shareholder Loan Notes, with only a nominal amount of issued share capital. Shareholder Loan Notes accrue interest at a rate of 11.93%, but interest is only paid to the extent that there is cash available for distribution. If no cash is available for distribution, the interest is capitalised. Reset Convertible Notes MIG funded its A$392 million equity investment in Westlink M7 by issuing Reset Convertible Notes (ReCNs) to Ontario Teachers Pension Plan (OTPP). On 13 November 2006, OTPP exercised their right to convert all outstanding ReCNs into MIG stapled securities. On 15 November 2006 MIG issued 165,048,894 MIG stapled securities at $ per MIG stapled security to OTPP in accordance with the terms of the ReCNs Deed Poll. Westlink Motorway Group Financing Structure Westlink currently has a senior debt facility of A$1,250 million. Key terms of this facility are summarised below: interest only facility with a weighted average tenor of 4.8 years weighted average interest margin of 0.63% interest rate hedging in relation to 100% of the face value of the debt to 30 September 2008 and 85% to 31 December 2015 facility was upgraded from BBBto BBB by Fitch in December An inter-entity loan has been established between WMP and WSO Co. This facility accrues interest at 14.75% per annum and is repayable with any excess cash available within WSO Co. (after the payment of operating expenses and taxation obligations). WSO Co. leases WMP s land and property assets in order to operate Westlink M7. Under the terms of the lease, WSO Co. is required to make lease payments to WMP. To the extent that WSO Co. has insuffi cient cash fl ows to meet required lease payments, these payments will accrue and be payable in subsequent periods. Both the lease and the inter-entity loan facilitate the release of excess cash in WSO Co. to investors without the need for WSO Co. to have accounting profi ts, subject to any Corporations Law requirements being met. In December 2007, Westlink obtained lender approval for the early release of the ramp-up and other cash reserves accumulated following the strong performance of the motorway since opening. The release was six months ahead of schedule and resulted in a distribution of A$87.4 million being paid to Westlink shareholders, of which A$41.5 million was received by MIG. Westlink is expected to make regular quarterly distributions to shareholders going forward, subject to ongoing debt service coverage tests. NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 95

98 Australia Westlink M7 (cont.) Road Configuration Westlink M7 is two-lane dual carriageway with a wide central median available for the development of future public transport initiatives. The motorway links directly with the M2 Motorway, the M4 Motorway and the M5 Motorway. Westlink M7 has 44 toll gantries and 17 interchanges which provide for 148 possible trip combinations. Tolling Westlink M7 opened to traffi c on 16 December On opening, the road operated toll-free for the fi rst month from 16 December 2005 to 15 January There is only one vehicle tolling category for Westlink M7. Tolls are charged on a per kilometre basis (31.67 cents/km inclusive of GST as at 1 January 2008), with a maximum toll per trip (A$6.33 inclusive of GST, as at 1 January 2008). Westlink M7 is a fully electronic road. Commuters are able to use transponders and casual user (video tolling) products to pay tolls. WMG has outsourced key operational functions. General road operations and maintenance has been outsourced to Westlink Services, a joint venture between Leighton Contractors and Abigroup, for the life of the concession. Tolling and customer management services have been outsourced to Roam (a wholly owned subsidiary of Transurban) for a minimum of 15 years. Both of these contracts are fi xed price (plus indexation of costs) and provide for a reset to market price at regular intervals. Table 4.1: Summary of performance Traffic (ADT) Jun-06 Dec-06 Jun-07 Dec-07 Cars 76,623 82,655 87,080 94,663 Trucks 13,954 16,383 17,730 18,922 Total 90,577 99, , ,585 Average Trip Length (km) Average Daily Revenue Vehicle Kilometres 1,141,434 1,268,590 1,339,464 1,451,068 Travelled Financial (A$m) Toll Revenue 47,900 62,582 66,960 74,956 Operating Expenses (21,018) (14,436) (15,348) (19,209) EBITDA 26,883 48,146 51,612 55,747 EBITDA Margin 56.1% 76.9% 77.1% 74.4% Road was open for part year from 16 December 2005 to 30 June Tolling commenced on 16 January Macquarie Infrastructure Group 2008 Analyst Package

99 Figure 4.3: Westlink M7 road configuration MODEL AUSTRALIA EUROPE NORTH AMERICA 2008 Analyst Package Macquarie Infrastructure Group 97

100 Table 4.2: Asset Snapshot & Key Metrics All currency values are in Australian dollars unless otherwise stated. Asset Location Length Size Opening to Traffi c Sydney, Australia 40km 4 lanes (2 lanes / direction) 16 December 2005 (tolling commenced 16 January 2006) Senior debt (external) Tranche I $500 million Facility Term 21 December 2010 Margin 0.55% P&I Profi le Bullet Concession Current Ownership MIG (47.5%); Transurban (47.5%); Leighton Contractors (5.0%) Commencement Date 14 February 2003 Term 34 years, 14 February 2037 expiry Traffic and tolling Tolled Traffi c Tolling Points Tolling Classes Toll Levels (inc. GST) Toll Methods Toll Escalation Both directions 44 gantries 4 main line; 40 ramps 1 tolling category $0.3167/km (1 January 2008 dollars including GST) Total toll/trip capped at $6.33 (1 January 2008 dollars including GST) Electronic tolling transponders, casual user products CPI quarterly in arrears Capital expenditure assumptions (as at 31 December 2007) Average $0.14 million pa Average $1.22 million pa Average $3.01 million pa Tranche II $500 million Facility Term 21 December 2012 Margin 0.65% P&I Profi le Bullet Tranche II $250 million Facility Term 21 December 2015 Margin 0.75% P&I Profi le Bullet Reserves Debt Service Reserve 6 months interest expense Swaps % Swapped 100% of total debt until 30 September 2008; 85% 1 October 2008 to 31 December 2015 Swap Base Rate Period Dec 2007 Sep % Sep 2008 Dec % Sep 2012 Dec % Sub Lease Period Dec 2005 Sep 2010 Sep 2010 onwards Payment Frequency Inter-entity loan Outstanding balance at 30 June 2007 Interest Rate Payment Frequency Amount $100.5 million pa (average over the period) Grown at lower of 10% pa and revenue growth rates from September 2010 Quarterly (to the extent cash is available, otherwsie interest accrues) $437.2 million 14.75% pa Quarterly (to the extent cash is available) Taxation Corporate Tax Rate 30% Valuation of Franking Credits 50% of face value GST 10% Operating phase loan notes Size at opening $980 million Outstanding balance as at $1,183 million 30 June 2007 Interest Rate 11.9% (payable from available cash otherwise interest capitalised) Credit rating Fitch BBB 98 Macquarie Infrastructure Group 2008 Analyst Package

101 Model Overview Structure of the Analyst Model Using the Analyst Model Analyst Package Macquarie Infrastructure Group 99

102 Model Overview Structure of the Analyst Model The Analyst Model has been prepared using Microsoft Excel. The model currently contains 18 worksheets, including 10 asset worksheets, as outlined in the diagram below. The purpose and contents of these worksheets are described briefl y in Figure 5.1 below. Fund Summary This worksheet provides an overview of MIG at the corporate level. The sheet also provides a summary of the key MIG level cash fl ows and valuation metrics. Figure 5.1: Analyst Model structure Asset Summary This worksheet provides an overview of each asset in MIG s portfolio. The sheet provides a summary of the key asset valuation metrics together with graphical illustrations of operating performance. Assets Each of the 10 asset worksheets has unique characteristics, however, where possible, the worksheets follow the generic format outlined below: Economics Asset Asset Asset Data Sheet MIG Cash Flow Asset Summary Fund Summary Table 5.1: Summary section Section Cash Flow Cascade Key Valuation Metrics Key outputs Summary of the asset cash fl ows EBITDA multiple, term remaining, leverage, prospective yield, EBITDA growth 100 Macquarie Infrastructure Group 2008 Analyst Package

103 Table 5.2: Assumption section Section Cash Flow Cascade Key Valuation Metrics Investment Assumptions Economic Assumptions Economic Escalators Traffi c Assumptions Toll Assumptions Other Revenue Assumptions Operating Expense Assumptions Capital Expenditure Assumptions Financing Assumptions Reserve Assumptions Re-gearing Assumptions Taxation Assumptions Key assumptions Summary of the asset cash fl ows EBITDA multiple, term remaining, leverage, prospective yield, EBITDA growth Ownership percentage Concession term Macroeconomic variables as drawn from the Economics sheet Escalation indices based on economic assumptions Traffi c levels Traffi c growth Traffi c mix Current toll levels Toll escalation mechanism Supplementary revenue derived by concessions in addition to toll revenue Major operating expenditure categories Escalation of operating expenditure categories Major capital expenditure categories Specifi cs of current debt facilities including term, amortisation period, base rates, margins and swaps Specifi cs of refi nancing facilities (as appropriate) Specifi cs of required reserves, including Debt Service Reserves (DSR), capital expenditure reserves, ramp-up reserves as appropriate Re-gearing based on DSCRs Income and capital taxation rates NORTH AMERICA EUROPE AUSTRALIA MODEL 2008 Analyst Package Macquarie Infrastructure Group 101

104 Model Overview Structure of the Analyst Model (cont.) Table 5.3: Calculation section Section Operations Interest Revenue Capital Expenditure Debt Debt Service Coverage Ratio Reserves Taxation Cash Equity Valuation Key Metrics Key calculations Toll revenue Other revenue Operating expenses EBITDA EBITDA margin Interest earned on cash and reserve accounts Capital expenditure incurred (in nominal terms) Current facilities Refi nancing facilities Regearing facilities Refi nancing/re-gearing costs Cash fl ow available for debt service, including revenue, expense and tax cash fl ows as appropriate Debt service Required reserves Withdrawals/Deposits Taxable income Income tax Capital tax Franking account (as appropriate) MIG cannot provide tax advice to users. Users should seek independent advice in relation to any tax issues Summary of cash fl ows during period Cash available for distribution to equity Cash distributed to equity Equity contributions Distributions of contributed capital, inter-entity loans, inter-entity leases, construction loans, shareholder loans, dividends, share buy-backs Cash fl ows to equity Value attributed to franking, FIRPTA and other credits (as appropriate) Risk-free rate Risk premium EBITDA multiple, term remaining, leverage, prospective yield, EBITDA growth 102 Macquarie Infrastructure Group 2008 Analyst Package

105 MIG Cash Flow This worksheet outlines the cash distributions expected from MIG s assets as well as all MIG-level cash fl ows (including fees payable to the Manager). This worksheet allows the user to determine MIG s cash reserves at each balance date and the size of possible distributions to MIG security holders. Economics This worksheet contains all general macroeconomic assumptions used by the asset worksheets, including infl ation, interest rates, risk-free rates and foreign exchange rates. NORTH AMERICA MODEL AUSTRALIA EUROPE 2008 Analyst Package Macquarie Infrastructure Group 103

106 Model Overview Using the Analyst Model It is essential that users activate the Analysis ToolPak option within Microsoft Excel in order to operate the Model. Cells that are coloured with a light grey background in the Analyst Model are input cells. Users must enter appropriate values into all input cells in the Model. When assessing the inputs to be entered in the Model, it is imperative that users adhere to the conventions within the model: values currently entered in input cells are for illustrative purposes only. Users must assess the appropriateness of values for all input cells throughout the Model with the exception of growth assumptions, all amounts, regardless of whether they represent infl ows or outfl ows to the asset or entity, should be entered as positive values. The Model will convert the inputs as required inputs are to be entered in the units specifi ed. Unless otherwise stated, dollar values are in the home currency of the relevant asset or entity, in units of one thousand all dates are to be period ending unless otherwise specifi ed. Other assumptions within the Model are outlined in blue. These refl ect actual or accepted values for different variables. These should not be changed by the user. Certain historical information (primarily traffi c, revenue and operating expenses) has been included to increase the Model s useability. This information is outlined in red in rows where the user is required to provide forecasts for the relevant variable. 104 Macquarie Infrastructure Group 2008 Analyst Package

107 CORPORATE INFORMATION CONTACT INFORMATION Directory Macquarie Infrastructure Group No. 1 Martin Place Sydney NSW 2000 Telephone (Australia): Telephone (Int l): Facsimile: [email protected] Website: Responsible Entity for Macquarie Infrastructure Trust (I) and Macquarie Infrastructure Trust (II): Macquarie Infrastructure Investment Management Limited (MIML) ACN Secretaries of the Responsible Entity Christine Williams Dennis Leong Directors of Macquarie Infrastructure Group International Limited Rob Mulderig (Chairman) Jeffrey Conyers Dr Peter Dyer Mark Johnson Secretary of Macquarie Infrastructure Group International Limited Donna Phillips For further information on the MIG Analyst Package, please contact: Stuart Green Head of Investor Relations Tel: [email protected] Victoria Hunt Investor Relations Manager Tel: [email protected] Directors of the Responsible Entity Mark Johnson (Chairman) Paul McClintock Michael Carapiet David Mortimer, AO David Walsh John Roberts (alternate director to Mark Johnston and Michael Carapiet) Registry Computershare Investor Services Pty Limited GPO Box 2975, Melbourne VIC 3001 Telephone: or Facsimile: Website:

108