NSW Transport Infrastructure Summit

August 2013

Introduction to NSW Ports Owner of Port Botany and Port Kembla

Industry Funds

Management Pty Ltd

(“IFM”)

AustralianSuper Pty Ltd

(“AustralianSuper”)

Tawreed Investments

Limited (“Tawreed”)

The State Public Sector

Superannuation Fund

(“QSuper”)

NSW Ports is a consortium of leading institutional investors and represents more than

80% Australian superannuation funds. The NSW Ports consortium comprises:

1

Who we are

We are investors in Australia’s most important infrastructure

2

Western

Australia

Northern

Territory

Queensland

New South Wales

Victoria

South

Australia

Tasmania

NSW Ports is a long-term asset investor, with interests in a range of key infrastructure assets throughout Australia,

including:

Ten airports, three seaports, three toll roads, one transport interchange, 16 social infrastructure assets

The consortium has a strong track record in supporting the development of essential infrastructure assets

Perth Airport

Perth Law Courts

Northern Territory Airports

Port of Brisbane

Eastern Distributor

Brisbane Airport

Melbourne Airport Southern Cross Station

We have invested in NSW’s infrastructure since 1998

3

New South Wales

Wyuna Water

Axiom

M1, M4, M5, Sydney

Airport, Sydney

Desalination Plant,

NSW Rent Buy

NSW Ports members are also investors in critical NSW road infrastructure including the Eastern Distributor and

M5 South West motorway

We are delighted with the opportunity to invest in NSW’s most important seaports

Investment Description Location Year Acquired

M5 South West

Motorway Toll road Sydney 1998

M4 Motorway Toll road Sydney 1998

M1 Motorway /

Eastern Distributor Toll road Sydney 2000

Wyuna Water Water treatment Illawarra,

Woronora 2003

Axiom Education School buildings Sydney 2003

NSW Rent Buy Public sector

housing Sydney 2005

Sydney Airport Airport Sydney 2008

Sydney

Desalination Plant Water treatment Sydney 2012

Port Botany & Port

Kembla Ports Sydney, Illawarra 2013

Port Kembla

Port Botany

About IFM

4

IFM is a global investment manager and is

fully-owned by 30 Australian superannuation

funds.

We manage $46 billion across infrastructure,

debt, private equity and listed equities

IFM is Australia's largest investor in

infrastructure, and with over $14 billion in

infrastructure investments globally, is one of

the largest infrastructure investors in the

world

IFM has a strong 18 year track record

successfully managing infrastructure

through economic cycles

IFM Owners

Direct investors into Port Botany & Port Kembla

Port Botany

5

Port Botany – Significant new capacity added

6

Port Kembla

7

Port Kembla – Growth Opportunities

8

A compelling investment opportunity

9

• Serve as the gateway to Australia’s largest economy

• Population base provides strong ongoing demand for container imports

• Main port facilities serving NSW (except for coal exports at Newcastle)

• Combination of Botany and Kembla results in a diversified profile of import and export driven revenue from a range of trade types and commodities

High quality, essential economic assets

• Container wharfage (50% of total revenues) faces very limited competition from other ports

• Majority of property leases are long term (20+ years) with favourable terms

Revenue largely contracted or monopolistic in nature

• Low levels of operational risk – no stevedoring or dredging businesses

• High margins (75%+) with strong operational leverage due to fixed and relatively low cost base

Landlord business model with high margins

• Over $1 billion of major growth capital expenditure expected to be largely completed prior to Financial Close

Significant investment prior to privatisation – high cash

conversion expected

• Option to expand container facilities as Port Botany approaches capacity

• Close proximity to the high growth industrial areas in south west Sydney

Future expansion opportunities at Port Kembla

• IFM’s economic exposure to NSW was only 6.5% while NSW represents 1/3 of Australia’s population and 31.6% of GDP

• One of only three remaining major capital city port companies in Australia Strong portfolio fit

Our vision: To create an integrated, world class port management company

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NSW Ports wants to continue the great work we have evidenced from management and staff

through our diligence phase and first two months of ownership

• Promote safe, responsible and reliable operations

• Capitalise on the strengths of each facility Develop both ports to

their full potential

• Bring out the best from the combined organisation by having a highly engaged workforce

• Support management and staff to deliver effective outcomes

Responsible and efficient operation of

the organisation

• Maintain strong customer relationships

• Work with other stakeholders including government, stevedores, transportation logistics companies and local communities to solve off port issues

Build strong relationships with all

stakeholders

• Committed to managing and developing the ports in a safe, secure, efficient and environmentally responsible manner

• Be a good corporate citizen that employees and investors can be proud to be part of

Focus on sustainable growth

NSW Ports is positioned to support future growth

11

Management & Staff

Board of NSW Ports

Port Botany Port Kembla

• NSW’s primary container port

• Critical infrastructure for bulk liquids

trade

• The only LPG import facility in NSW

• Independent Chairperson

• Appointees with significant port and other infrastructure

experience

Collaborative sharing of best

practices between the two

ports

NSW Ports is well capitalised and aligned to support the development of both ports to their full potential

• Australia’s largest vehicle import

facility

• Primary bulk trade port in NSW

focusing on grain and coal

• Management team representing both facilities

• Active engagement with staff to enhance operations

Backed by committed and influential investors that will support the growth and development of both ports