ASX RELEASE WA ASSETS – ANALYST BRIEFING Further Enquiries

ASX RELEASE 15 July 2008 WA ASSETS – ANALYST BRIEFING Please see the attached analyst presentation and fact sheet released in conjunction with an analyst briefing and asset tour of BBI’s Western Australian businesses today. ENDS Further Enquiries Jeff Kendrew Chief Executive Officer Babcock & Brown Infrastructure +61 2 9229 1800

Helen Liossis Investor Relations Manager Babcock & Brown Infrastructure +61 2 9229 1800

ABOUT BABCOCK & BROWN INFRASTRUCTURE Babcock & Brown Infrastructure (ASX: BBI) is a specialist infrastructure entity which provides investors access to a diversified portfolio of quality infrastructure assets. BBI’s investment strategy focuses on acquiring, managing and operating quality infrastructure assets in Australia and internationally. BBI’s current portfolio is diversified across two asset classes:

Asset Class FY07 BBI EBITDA* Contribution to FY07 BBI EBITDA*

Transport $299.4m 53% Energy Transmission and Distribution $266.7m 47% TOTAL $566.1m 100% *Excluding BBI corporate overheads

BBI is managed by Babcock & Brown Infrastructure Management Pty Limited (BBIM), a subsidiary of Babcock & Brown Limited (ASX: BNB), a global investment and advisory firm with longstanding capabilities in structured finance and the creation, syndication and management of asset and cash flow-based investments, particularly infrastructure investments.

BBI is listed on the Australian Stock Exchange and has a market capitalisation of approximately A$2 billion.

For further information please visit our website: www.bbinfrastructure.com

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http://www.bbinfrastructure.com/

Babcock & Brown Infrastructure Strength in Diversity

WA Assets – Analyst Briefing 15 July 2008

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DISCLAIMER

To the maximum extent permitted by law, none of Babcock & Brown Infrastructure Limited, Babcock & Brown Investor Services Limited as responsible entity of the Babcock & Brown Infrastructure Trust, Babcock & Brown Infrastructure Management Pty Limited, nor any of their related entities (collectively “BBI”) nor their respective directors or officers or any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including without limitation, any liability arising from fault or negligence on the part of BBI or their respective directors or officers or any other person. The information contained in this presentation is not intended to constitute legal, tax or accounting advice or opinion. No representation or warranty, express or implied, is made as to the accuracy, completeness, fairness, correctness or thoroughness of the information contained in the presentation. The recipient should consult with its own legal, tax or accounting advisers as to the accuracy and application of the information contained in the presentation and should conduct its own due diligence and other enquiries in relation to such information.

The information in this presentation has not been independently verified by BBI. Actual results may vary from the information in this presentation and any variation may be material. BBI disclaims any responsibility for any errors or omissions in such information, including the financial calculations, projections and forecasts set out in the presentation. No representation or warranty, express or implied, is made by or on behalf of BBI that any projection, forecast, calculation, forward-looking statement, assumption or estimate contained in this presentation should or will be achieved.

This presentation is not an offer or invitation for subscription or purchase of or a recommendation of securities. In providing this presentation, BBI has not considered the objectives, financial position or needs of the recipient. The recipient should obtain and rely on its own professional advice from its tax, legal, accounting and other professional advisers in respect of the recipient’s objectives, financial position or needs.

This presentation does not carry any right of publication. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by BBI. Neither this presentation nor any of its contents may be reproduced or used for any other purpose whatsoever without the prior written consent of BBI.

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AGENDA

1. WA Assets Structure

2. WestNet Infrastructure Group

3. WestNet Rail

4. Australian ET&D Businesses (includes DBNGP, AGN & WestNet Energy)

5. Varanus Island Impact

6. Ex-Alinta Business Integration

7. Summary

8. Appendices

Presenters: Jeff Kendrew – CEO BBIJohn Cleland – CEO WestNet Infrastructure Group & Acting COO Transport - AustraliaChris Badger – Acting General Manager, WestNet EnergyPaul Larsen – General Manager, WestNet Rail

For further information please contact:Helen Liossis – Investor Relations Manager+61 2 9229 [email protected]

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WestNet Infrastructure

Group

WestNet Rail WestNet Energy AlintaGas Networks DBP Group

Operating Service

Agreements

WESTERN AUSTRALIA MANAGEMENT STRUCTURE

76% 100% 74.1% 18.3%*

* Interest in DBNGP as at 31 December 2007 and will increase to 20% following agreed capital contributions.

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WESTNET INFRASTRUCTURE GROUP - EXPERIENCED MANAGEMENT TEAM

John Cleland - CEO WestNet Infrastructure Group & Acting COO Transport – AustraliaJohn Cleland was appointed Chief Executive Officer of WestNet Rail in June 2006, concurrent with the purchase of a controlling interest in the business by Babcock & Brown Infrastructure. Prior to that, John spent three and a half years as General Manager Finance of Australian Railroad Group, on secondment from Wesfarmers Limited. During eleven years with Wesfarmers Limited, John also spent time in the corporate Business Development division, with Wesfarmers Transport in Perth and Indonesia and with Wesfarmers Landmark. John has a Bachelor of Economics and a Diploma in Financial Management from the University of New England, is member of the Institute of Chartered Accountants in Australia, a fellow of the Financial Services Institute of Australasia and a member of the Australian Institute of Company Directors (AICD).

Paul Larsen - GM WestNet RailPaul Larsen has recently been appointed General Manager of WestNet Rail and has management responsibility for all operational aspects of the business of the 5,100km of rail infrastructure throughout the southern half of Western Australia. Mr Larsen has been with WestNet Rail since February 2003. He commenced as Commercial Manager and has also held the role of General Manager Commercial and Operations. Prior to commencing with WestNet Rail, Mr Larsen was a Project Manager with ERG Ltd on various offshore projects; Commercial Manager with Toll Logistics; and held accounting and finance roles with Tubemakers/Onesteel. Mr Larsen holds a Bachelor of Business, is a Certified Practicing Accountant and is a member of the Australian Institute of Company Directors (AICD).

Chris Badger - Acting GM WestNet EnergyChris Badger was appointed Acting GM of WestNet Energy in July 2008. He has previously led the Alinta Asset Management South team overseeing gas and electricity operations in Victoria, South Australia and Tasmania as part of the Alinta-AGL integration. Prior to that, Chris was Director, New Business for EON AG’s Central Networks (the UK’s second largest distribution business) & Energy Services business (the UK’s largest energy services business). Previously Chris also held a number of senior roles with Powergen Plc in both the UK and Australasia. Chris has also previously worked with Yallorn Energy¹. Chris holds a Bachelor of Electrical/Mechanical Engineering from Monash University, has completed the Senior Executive Development Programme at the London Business School & Leadership programmes at both Warwick Business School UK & Stanford Business School USA. He is a Member of the Australian Institute of Company Directors (AICD) and a Corporate Member of the Institute of Engineers, Australia.

¹

Formerly The State Energy Commission of Victoria

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WESTNET RAIL – ASSET DESCRIPTION

WestNet Rail (WNR)

Description• BBI currently owns 76% of WestNet Rail (WNR) and

has extended the call option on the remaining 24% up to December 2008

• WNR is a rail infrastructure owner and below rail access provider in Western Australia (WA)

• WNR operates approximately 5,100 kilometres standard, narrow and dual gauge network in the south-west of WA

• Monopoly asset regulated by the WA Economic Regulation Authority (ERA). Regulation is based on revenue floors and ceilings for line segments

• The ERA increased the rate of return that WNR is allowed to earn from 7.1% to 9.77% from 1 July 2008 (real, pre-tax)

• Major resource sector customers - strong blue chip customer base

Volume mix for 12 months ended Dec 07

19.2%

10.0%

40.1%

15.4%

15.3%

Iron OreGrain Alumina / Bauxite / CausticGeneral FreightOther

7

WESTNET RAIL - NETWORK MAP

8

WESTNET RAIL – GROWTH AND REVENUE ASSURANCE

WestNet Rail Current customers include:

Growth Opportunities• Resources “boom” fuelling demand growth in

the resource based WA economy• Significant growth potential from existing

customers (e.g. bauxite, alumina and iron ore) and potential major iron ore development opportunities in the Mid West region of WA

– working with mining companies to increase haulage of haematite iron ore from 3Mtpa to a target 12Mtpa

– Potential for proposed magnetite projects (10 to 20mtpa) to come on rail

– Potential to link other proposed major haematite projects to WestNet Rail’s network

Revenue Assurance• Long term contracts and ongoing strength of

WA economy

Alcoa

Minara Resources

Iluka Resources

APEC Woodchip

Griffin Coal

Midwest

General Freight

BHP Nickel

Western Power

Public Transport Authority

Cockburn Cement

Mt Gibson

Portman Ltd

Worsley Alumina

Pacific National

SCT Logistics

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CASE STUDY: MOUNT GIBSON EXTENSION HILL PROJECT

• WestNet Rail will invest approximately $90 million to expand the capacity of the Perenjori to Geraldton line to support 3 million tonnes per annum (Mtpa) of iron ore from Mount Gibson Iron Ore’s Extension Hill project. WestNet Rail has negotiated minimum (take or pay) volume commitments over the 7 year contracted period

• Upgrade construction work will commence in the second half of the 2008 calendar year with continued upgrade investment work undertaken in the rail infrastructure until 2010. This project will be funded from WestNet Rail’s existing committed and available facilities.

• Rail operations are anticipated to commence in the second quarter of the 2009 calendar year. The iron ore volumes from the Extension Hill project represents a step change increase in iron ore volumes hauled across the WestNet Rail network, effectively increasing Iron ore tonnage on the network by in excess of 30%.

• WestNet Rail is well placed to capitalise on the further potential growth in the Mid West region from companies such as Gindalbie Metals and MidWest Corporation

A case study A Significant growth Opportunity

10

Western Australian Winter Crop Production

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08

Years

Mt

WESTNET RAIL - GRAIN UPDATE

Source: ABARE February Crop Report

** Source: http://www.abareconomics.com/interactive/08ac_june/htm/wheat.htm

• The Western Australia grain industry currently produces 10-15 million tonne of grain per annum. WestNet Rail captures about 65% of this on its rail network.

• Grain haulage accounted for approximately 18% of WestNet Rail’s FY06/07 revenue• Grain makes up 10% of WNR’s total volume and total 10% of total WNR EBITDA• A poor 2007 grain harvest impacted the FY08 result • The impact of the poor 2007 harvest will impact the first half of the 2008/09 financial year• Expectations are for an average to above average harvest for 2008, due to a substantial increase in planting area

and average rainfall year to date• Benefits of average to above average harvest in 2008 will be felt in second half of 2008/09 and

first half of 2009/10

***

*

http://www.abareconomics.com/interactive/08ac_june/htm/wheat.htm

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WESTNET RAIL – KEY FACTSDescription WestNet Rail is a rail infrastructure owner and access provider that is headquartered in Perth. It

employs approximately 235 people, with the majority located throughout the regional south-west of Western Australia. A further 130 to 150 people are directly engaged in the maintenance of the rail network under a long term outsourced maintenance agreement with the John Holland Construction & Engineering Pty Limited.

Asset Class Transport Infrastructure

Location Western Australia

Acquired June 2006

BBI % ownership Currently 76% and has extended the call option on the remaining 24% up to December 2008

Regulatory Environment

Line segment regulation based on revenue ceilings; Gross Replacement Value, a regulated WACC and efficient annual overhead and operating costs

Customer Base Access agreements with strong blue chip customers (including long term access agreement with Queensland Rail)

Asset Age & Condition

Varies across line segments. Maintenance and renewal obligations are mandated by the lease with the WA Government and are being complied with

Utilisation Varies across line segments. Ample spare capacity on lighter gauge lines, and ability to increase capacity to meet demand

Key Drivers WA economy (GSP) Global economic activity and commodity demand. Mine expansion activities of current users, and addition of new users

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ASSET OVERVIEW – AUSTRALIAN ET&D

Description• A portfolio comprising interests in a number of

energy transmission and distribution assets and operations and maintenance businesses

• Located in Western Australia, Victoria and Tasmania

– 100% ownership of Tasmanian Gas Pipeline– 74.1% ownership if AlintaGas Networks (AGN)– 20.1% ownership in Multinet Gas– ~20% ownership in the Dampier to Bunbury

Natural Gas Pipeline (DBNGP)– WestNet Energy which services the AGN,

DBNGP and third party contracts*– Significant portfolio of assets with manageable

operating and regulatory risks• Strategically positioned essential service

provider with significant size in WA

Australian Energy Transmission & Distribution Australia

* 51% shareholding in the legal entity Alinta Asset Management Pty Ltd (AAM). 100% economic interest in the WestNet Energy division of AAM.

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WESTNET ENERGY – DESCRIPTION

Western Australia

Description• A market-leading operation and maintenance

business that provides effective and efficient asset management, project management, and operations and maintenance services to asset owners in the infrastructure sector in WA

• Current clients include AGN and DBP with additional maintenance service contracts with third parties

• With over 550 employees and strategic partnership arrangements with key suppliers WNE is a sizeable and scaleable business and is expected to benefit from the fast growing Western Australian economy. Potential growth areas include: projects such as the DBNGP expansions (Stages 5A, 5B & 5C) & other external works, particularly for resource & power generation projects

WestNet Energy

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WESTNET ENERGY – KEY FACTS

Description Full service energy infrastructure services provider including operations and maintenance, engineering and design and procurement, and project and contractor management

Asset Class Segment

Energy Transmission and Distribution

Location Western Australia, Australia

Acquired August 2007

BBI % ownership 51% shareholding in the legal entity Alinta Asset Management Pty Ltd (AAM).100% economic interest in the WestNet Energy division of AAM


Not covered by a regulatory regime, however, as an Asset Manager, WestNet Energy operates within all regulatory frameworks imposing obligations on assets managed (gas distribution, gas transmission and electricity T&D)

Customer Base Earnings underpinned by the Operating Services Agreements with AGN and DBP, and a limited number of third party project management, construction and operations and maintenance contracts.

Revenue Assurance Long term Operating Services Agreements

Key Drivers Ongoing contracts with existing customers and participating in new large scale electricity and gas transmission project management opportunities

15

ALINTAGAS NETWORKS – ASSET DESCRIPTION

Western AustraliaDescription• AlintaGas Networks (AGN) is the largest distributor of

natural gas in Western Australia.

• With over 12,000 km of distribution pipe, AGN delivers approximately 31.5 petajoules of gas per annum to over 600,000 (mainly residential) end users across three separate networks:

– Mid-West and South-West Gas Distribution System, feeding Geraldton & the greater metropolitan area of Perth;

– Kalgoorlie Distribution Network, which services customers in Kalgoorlie-Boulder from gas transported by the Goldfields Gas Transmission Pipeline; and

– Albany Distribution Network, which distributes LPG to Albany from a LPG plant.

• AGN’s growth is to a large extent linked to upside of the commodity cycle and population growth in Western Australia demonstrated by a buoyant housing market, strong demand for gas from the commercial and industrial sector.

AlintaGas Networks

16

ALINTAGAS NETWORKS – KEY FACTS

Description Natural gas distribution networks

Asset Class Segment




BBI % ownership 74.1%


Tariff and access arrangements are regulated by the Western Australian Economic Regulation Authority. The current access arrangement will be reset on 1 January 2010, under the new Gas Law and Rules on a building-block basis expected to be broadly consistent with the previous reset. Work is progressing well towards the submission of a new proposed Access Arrangement by 31 March 2009.

Customer Base Revenue received from retailers who supply gas to customers over the network. Alinta Sales Pty Limited is the largest retailer using the network.

Utilisation Gas market in metropolitan Western Australia is relatively mature with penetration rates of approximately 80%. Connections are currently growing strongly due to buoyant housing construction in Western Australia.

Key Drivers Residential gas demand is weather dependent and growth in new connections is linked to new housing construction. Commercial & industrial growth is linked to the Western Australian economy.

17

DBNGP – ASSET DESCRIPTION

Western Australia

Description*• DBNGP is Western Australia’s principal gas transmission

pipeline • The pipeline is approximately 1,600km long and extends

from Dampier to Bunbury in Western Australia with a further 258km of laterals to customer locations

• The DBNGP is the only natural gas pipeline connecting the Carnarvon and Browse Basins on Western Australia’s North- West shelf with industrial, commercial and residential customers in Perth and the surrounding regions

• Strong growth in the WA mining sector is expected to drive gas demand growth (principally by the industrial and power generation sectors), with expansion plans for the alumina refineries

• On 11 April DBP announced the substantial completion of Stage 5A which duplicates 50% of the DBP mainline through 570km of parallel pipe (loops).**

• On 11 April, Stage 5B which duplicates a further 440km, was also announced

Dampier to Bunbury Natural Gas Pipeline

* Source: DBP Website

** Stage 5A increases firm full haul capacity by approximately 100 TJ / day and effectively duplicates 50 per cent of the DBNGP mainline.

18

DBNGP – KEY FACTS

Description Natural Gas Pipeline

Asset Class Segment




BBI % ownership Approximately 20%


A covered pipeline under the National Third Party Access Code. Current access arrangement approved by Western Australian Economic Regulation Authority runs until 31 December 2010. All revenue contracts operate outside the regulatory regime at tariffs higher than the reference tariffs until 2015. From 2016 contract tariffs, but not terms and conditions, will be determined under the regulatory regime.

Customer Base Contracts with blue chip counterparties in the gas retail, industrial, minerals processing and power generation sectors.

Utilisation Pipeline’s firm full haul capacity is fully contracted until at least 2019.

Key Drivers Demand for natural gas. Economic growth in Western Australia.

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VARANUS ISLAND INCIDENT UPDATE

• The explosion initially cut Western Australia’s gas supplies by 30%

• This equates to 350TJ/day of supply that has been lost to the WA market

• There is some increase in Woodside volumes , reducing the impact

• 200TJ/day resumption scheduled for August

• Full resumption scheduled for December

• Impact on volumes through the Alinta Gas Networks largely offset by capacity charges in customer contracts and inability to curtail residential consumers

• Impact on volumes through the DBNGP largely offset by capacity charges in shipper agreements and reduced fuel gas consumption

• WestNet Rail: some loss of volume due to resource company shutdowns

In the 2008 year , the impact will be less than 0.5% of BBI’s EBITDA

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EX-ALINTA ASSET INTEGRATION IS PROGRESSING WELL

Synergies• Largely captured in creating a single corporate resource to support WestNet Rail and WestNet

Energy

• Systems integration in progress and will facilitate further synergies once completed

Staff• Minimal staff turnover since acquisition

• WestNet Infrastructure Group has been set up for one shared service across the group

Procedures• Consistent compliance policies are being established across all entities

• OH&S procedures are being aligned

IT Systems • Transition and integration taking longer than originally anticipated but are now on track

The next stage of the integration process will focus on operational synergies

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• WestNet Infrastructure Group is pursuing the opportunity to provide both rail services and energy transmission services to mining companies

• WestNet Rail’s growth opportunities will contribute a step change in EBITDA in the next five years

• WestNet Rail’s FY08 capex is tracking slightly above forecast

• The Australian ET&D (ex-Alinta asset) integration is progressing well

• The Varanus Island incident will have a minimal impact on WestNet Rail, DBNGP and AGN

• Regulatory environment is relatively stable

• Maintenance Capex is expected to be largely as forecast for all WA operations

SUMMARY

BBI’s Capital Management Review will investigate options for funding growth capex

Appendix

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WESTNET RAIL – INCOME STATEMENT

(AUD million) FY06 FY07 FY08

Actual1 month

Actual6 months

Actual6 months

Actual12 months

Actual6 months

Forecast12 months

30/06/06 31/12/06 30/06/07 30/06/07 31/12/07 30/06/08

Total Revenue 14.0 95.5 94.9 190.4 92.5 197.3

EBITDA 6.8 52.9 51.1 104.0 41.9 107.2

Depreciation Expense (2.5) (16.1) (19.2) (35.3) (17.6) (35.4)

Interest Expense (3.8) (23.8) (23.6) (47.4) (18.0) (38.1)

* Note: the numbers reported above represent 100% of WestNet Rail’s business

Commentary on the above numbers is available in the BBI Investor Pack

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WESTNET RAIL – CASH AVAILABLE FOR DISTRIBUTION

Reconciliation of EBITDA to Distributable Cash


Actual1 month

Actual6 months

Actual6 months

Actual12 months

Actual6 months

Forecast12 months

30/06/06 31/12/06 30/06/07 30/06/07 31/12/07 30/06/08

EBITDA 6.8 52.9 51.1 104.0 41.9 107.2

Financing cash flows (3.4) (11.2) (21.9) (33.1) (20.5) (37.5)

Maintenance capital expenditure (2.6) (9.9) (26.1) (36.0) (19.9) (36.3)

Tax paid 0.0 (0.1) 0.1 0.0 0.0 0.0

Cash reserves released and disposal of trading assets 0.0 0.0 5.1 5.1 12.2 9.5

Cash available attributable to minority interest (0.4) (15.5) (4.1) (19.6) (6.7) 0.0

Cash Flow Available for Distribution (CFAD) 0.4 16.2 4.2 20.4 7.0 42.9

* Note: the numbers reported above represent 100% of WestNet Rail’s business


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AUSTRALIAN ET&D – INCOME STATEMENT


Summary Income Information (Statutory Method)


Actual6 months

Actual6 months

Actual12 months

Actual6 months

Actual6 months

Actual12 months

Actual4 months

Forecast12 months

31/12/05 30/06/06 30/06/06 31/12/06 30/06/07 30/06/07 31/12/07 30/06/08

Total Revenue N/A N/A N/A N/A N/A N/A 97.3 291.8

EBITDA N/A N/A N/A N/A N/A N/A 41.0 149.1

Depreciation Expense N/A N/A N/A N/A N/A N/A (22.9) (53.6)

Interest Expense N/A N/A N/A N/A N/A N/A (45.3) (120.9)

26

AUSTRALIAN ET&D – INCOME STATEMENT


Summary Income Information (Proportionally Consolidated Method)


Actual6 months

Actual6 months

Actual12 months

Actual6 months

Actual6 months

Actual12 months

Actual6 months

31/12/05 30/06/06 30/06/06 31/12/06 30/06/07 30/06/07 31/12/07

Total Revenue N/A N/A N/A N/A N/A N/A 198.8

EBITDA N/A N/A N/A N/A N/A N/A 94.5

Depreciation Expense N/A N/A N/A N/A N/A N/A (35.0)

Interest Expense N/A N/A N/A N/A N/A N/A (65.5)

27

AUSTRALIAN ET&D – CASH AVAILABLE FOR DISTRIBUTION

Reconciliation of EBITDA to Distributable Cash (Statutory)


Actual6 months

Actual6 months

Actual12 months

Actual6 months

Actual6 months

Actual6 months

Actual6 months

31/12/05 30/06/06 30/06/06 31/12/06 30/06/07 30/06/07 31/12/07

EBITDA (Statutory) N/A N/A N/A N/A N/A 41.0

Financing cash flows N/A N/A N/A N/A N/A (42.6)

Maintenance capital expenditure N/A N/A N/A N/A N/A (2.4)

Tax paid N/A N/A N/A N/A N/A (2.8)

Cash flow attributable to / available for distribution applicable to minority interests (a) N/A N/A N/A N/A N/A 1.4(a)

Other (Inc BBI’s share of CFAD for July and August) (b) N/A N/A N/A N/A N/A 24.1(b)

Cash flow available for distribution (CFAD) N/A N/A N/A N/A N/A N/A 18.7

(a) This represents adjustments made to exclude the minority interests proportionate 25.9% interest in CFAD from the investment in AGN (i.e. as 100% of AGN’s EBITDA, financing cash flows, maintenance capex and tax paid etc is included in the above figures), adds dividends received from BBI’s investments in DBNGP and MGN and deducts the equity accounted amount of net profit after tax associated with these minority interest investments (i.e. in DBNGP and MGN) that has been included in EBITDA above

(b) This represents BBI’s proportionate share of the CFAD from the Australian ET&D business in July and August

28

AUSTRALIAN ET&D – CASH AVAILABLE FOR DISTRIBUTION

Reconciliation of EBITDA to Distributable Cash (Proportional)


Actual6 months

Actual6 months

Actual12 months

Actual6 months

Actual6 months

Actual12 months

Actual6 months

31/12/05 30/06/06 30/06/06 31/12/06 30/06/07 30/06/07 31/12/07

EBITDA (Proportional) N/A N/A N/A N/A N/A N/A 94.5

Financing cash flows N/A N/A N/A N/A N/A N/A (60.8)

Maintenance capital expenditure N/A N/A N/A N/A N/A N/A (7.6)

Tax paid N/A N/A N/A N/A N/A N/A (4.8)

Other (a) N/A N/A N/A N/A N/A N/A (2.6)(a)

Cash flow available for distribution (CFAD) N/A N/A N/A N/A N/A N/A 18.7

(a) This represents adjustments made to reconcile the difference between BBI’s proportionate share of CFAD’s (i.e. EBITDA less financing costs, maintenance capex, tax paid etc) and the dividends received from BBI’s investments where BBI has a minority interest (i.e. DBNGP and MGN) in these minority interest investments

29

WESTNET RAIL – REGULATION

Form of regulation• An Access Code covers the freight rail network • Ceiling set for three years on a CPI – X path, WACC updated annually

• Unit charges are set through a negotiate/arbitrate model • WACC methodology is reviewed every five years

• Unit charges are not regulated, but the Access Code contains pricing

principles

• A revenue floor is set to prevent cross- subsidisation and is a minimum

charge based on incremental costs

• ERA determines a revenue ceiling, which acts as a cap to revenues on a

line-by-line basis, based on WACC applied to capital costs, plus operating

costs and overheads

• Negotiations for access can, and mostly do, occur outside of the regime

Timeline

WACC reset:

increased from 7.1%

to 9.77%

Costing Principles, Train

Management Guidelines & Train

Path Policy reviewed and

approved

Access Code review

Next Floor and

Ceiling Review

2005DEC 2006

JUN 2007

1 JUL 2008

JUN 2010

WACC methodology

review

Floor & Ceiling

determination + 14%

uplift

JUL 2013

Next WACC

methodology review

30

WESTNET RAIL – REGULATION (CONT’D)

Next Floor and Ceiling Review (June 2010)

• Expect X factor to reduce – below rail industry

mature, no substantial innovations that can lead to

real cost reductions

• Asset value likely to be rolled forward

• Model to calculate ceiling will be published by ERA in advance of the reset

Current Floor & Ceiling Determination (June 2007)

• 14% uplift obtained

• Obtained 70% of uplift requested

• CPI – X; X = 25% of CPI

• WACC increase at 1 July 2008 from 7.1% to 9.77% (real, pre-tax)

• WACC applied to Gross Modern Equivalent

Asset Value of $6 billion

Other features• Excellent relationship with ERA

•High frequency of overlapping WACC and ceiling reviews creates some uncertainty

• No disputes and no adverse outcomes anticipated

31

Timeline

DBNGP – REGULATION

Form of regulation• Covered pipeline under the National Third Party

Access code

• Current Access Arrangement approved by ERA runs until 31 December 2010

• Reference Tariffs set under the Building Block Approach• Pipeline is fully contracted until at least 2016 and

will then return to regulated tariffs

New Access

Arrangement in place

(but regulated tariffs do

not apply) Current Access

Arrangement took

effect

ERA commences pre-

consultation on new Access

Arrangement

Submit proposed new

Access Arrangement

1 JAN 2007

30 JUN 2009

1 APR 2010

1JAN 2011

Return to regulated tariffs

Post 2016

32

DBNGP – REGULATION (CONT’D)

Current Settings (from 1 January 2006)

• P0 : 0%

• Reference Tariff escalation at CPI

• WACC: Real, pre-tax 7.24%

• RAB: $1,621.97 million as at 1 January 2006

• Incentive mechanism carryover for 2011- 2015

2011 Access Arrangement Reset

• RAB roll-forward• Inclusion of expansion capex for

- Stage 4 - $430M (+100 TJ/day)- Stage 5A - $660M (+100TJ/day)- Stage 5B - $690M (+113 TJ/day)

• Expansions are likely to meet the New Facilities Investment requirements of the National Gas Law

• OPEX- Increased operating costs due to

expansion- Material and labour cost escalations in

WA

33

ALINTAGAS NETWORKS – REGULATION

Form of regulation

• Covered pipelines under the National Third Party Access

Code

• Next reset under the new Gas Law and Rules

• Current Access Arrangement approved by ERA runs until

31 December 2009

• Tariff Basket Price Cap, under the Building Block Approach

Timeline

Submit Proposed new

Access Arrangement

Current Access

Arrangement took effect

ERA commences pre-

consultation on new

Access Arrangement

New Access Arrangement

applies

1 JAN 2006

30 JUN 2008

31 MAR 2009

1 JAN 2010

34

ALINTAGAS NETWORKS – REGULATION (CONT’D)

Current Settings (from 1 January 2006)

• P0 = 0% CPI – X; X = 2.24%

• WACC Real, pre-tax 6.78%

• RAB $684.1 million as at 1 January 2006

• OPEX: obtained around 95% of amount requested

• CAPEX: obtained virtually all of amount

requested

2010 Access Arrangement Reset

• First reset under new Gas Law and Rules

• ERA to determine whether WNE is a service provider under the new law – may require a joint access arrangement

• RAB roll-forward, no revaluation• High CAPEX – new connections and

augmentation• OPEX:

– Material and labour cost escalations in WA

– Escalating cost of UAFG– No underspend against targets

WACC:– Expect uplift from Risk Free Rate and

Debt Margin – Some downside risk to Equity Beta

Description

• BBIcurrentlyowns76%ofWestNetRail(WNR)andhas

extendedthecalloptionontheremaining24%upto

December2008.

• WNRisarailinfrastructureownerandbelowrailaccess

providerinWesternAustralia(WA).

• Operatescirca5,100kmoftrackandrelatedstructures.

• MonopolyassetregulatedbytheWAEconomic

RegulationAuthority(ERA).Regulationbasedon

revenuefloorsandceilingsforlinesegments.

• Majorresourcesectorcustomers–strongbluechip

customerbase.

Fact Sheet

Pinjarra

Bunbury

Fremantle

Picton

Albany

Esperance

MerredinNortham

Koolyanobbing Kalgoorlie

Leonora

Dongara

Midland

Geraldton

www.bbinfrastructure.com

WestNet Rail

Asset overview

• Aportfoliocomprisinginterestsinanumberofenergy

transmissionanddistributionassetsandoperationsand

maintenancebusinesses.

• LocatedinWesternAustralia,VictoriaandTasmania:

– 100%ownershipofTasmanianGasPipeline;

– 74.1%ownershipofAlintaGasNetworks(AGN);

– Approximately20%ownershipofMultinetGas;

– 18.3%ownershipintheDampiertoBunburyNatural

GasPipeline(DBNGP);and

– WestNetEnergywhichservicestheAGN,DBNGPand

otherthirdpartycontracts.*

• Significantportfolioofassetswithmanageable

operatingandregulatoryrisks.

• Strategicallypositionedessentialserviceprovider.

* 51%shareholdinginthelegalentityAlintaAssetManagementPtyLtd(AAM).100%economicinterestintheWestNetEnergydivisionofAAM.

Fact Sheet

NSW

QLD

VIC

TAS

ACT

WA

SA

NT


Australian ET&D

Description

• TheWestNetEnergy(WNE)businessisamarket-

leadingoperationandmaintenancebusinessproviding

effectiveandefficientassetmanagement,project

management,andoperationsandmaintenanceservices

toassetownersintheenergyinfrastructuresectorin

WesternAustralia.

• Itslong-termclientsincludeAlintaGasNetworksand

DampierBunburyPipelinewithadditionalmaintenance

servicecontractswiththirdparties.

• Withapproximately550employeesandstrategic

partnershiparrangementswithkeysuppliers,WNEis

asizeableandscaleablebusiness.Expectedbenefits

fromthefastgrowingWesternAustralianeconomy

andpotentialgrowthprojectssuchastheDBNGP

expansions(Stages5A,5Band5C)andotherexternal

works,particularlyforresourceandpowergeneration

projects.

Fact Sheet


WestNet Energy

WESTERNAUSTRALIA

Description

• AlintaGasNetworks(AGN)isthelargestdistributorof

naturalgasinWesternAustralia.

• Withover12,000kmofdistributionpipe,AGNdelivers

approximately31.5petajoulesofgasperannumtoover

600,000(mainlyresidential)endusersacrossthree

separatenetworks:

– MidWestandSouthWestGasDistributionSystem,

feedingthegreatermetropolitanareaofPerth;

– KalgoorlieDistributionNetwork,whichservices

customersinKalgoorlie-Boulderfromgastransported

bytheGoldfieldsGasTransmissionPipeline;and

– AlbanyDistributionNetwork,whichdistributesLPGto

AlbanyfromanLPGplant.

• AGN’sgrowthis,toalargeextent,linkedtoupsideof

thecommoditycycleandpopulationgrowthinWestern

Australia,demonstratedbyabuoyanthousingmarket,

strongdemandforgasfromthecommercialand

industrialsector.

Fact Sheet

WESTERNAUSTRALIA


AlintaGas Networks

Fact Sheet

Description

• TheDampiertoBunburyNaturalGasPipeline

(DBNGP)isWesternAustralia’sprincipalgas

transmissionpipeline.

• Thepipelineisapproximately1,600kmlongand

extendsfromDampiertoBunburyinWesternAustralia

withafurther258kmoflateralstocustomerlocations.

• TheDBNGPistheonlynaturalgaspipeline

connectingtheCarnarvonandBrowsebasinson

WesternAustralia’sNorth-WestShelfwithindustrial,

commercialandresidentialcustomersinPerthandthe

surroundingregions.

• StronggrowthintheWAminingsectorisexpectedto

drivegasdemandgrowth(principallybytheindustrial

andpowergenerationsectors),alongwithexpansion

plansforthealuminarefineries.

• On11April2008DampierBunburyPipeline(DBP)

announcedthesubstantialcompletionofStage5A

whichduplicates50%oftheDBPmainlinethrough

570kmofparallelpipe(loops).*

• On11April2008Stage5Bwasalsoannouncedwithan

anticipatedcapitalcostintheorderofA$700million.

* Stage5Aincreasesfirmfullhaulcapacitybyapproximately100TJ/daytoitsexistingcapacity.

WESTERNAUSTRALIA

Perth


DBNGP

Documents

ASX RELEASE WA ASSETS – ANALYST BRIEFING Further Enquiries