July 15, 2019

Perspectives on

Infrastructure Investing

Board of Administration Offsite

JULY 2019

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Gatwick is a World Class Airport

▪ 9th largest airport in Europe, number one low cost carrier (“LCC”) airport in

the world and UK’s second largest gateway after Heathrow

▪ 236 destinations – more than any other UK airport

▪ 284k ATMs; 46 million passengers (Dec-18); 50 airlines

▪ 98.5% of traffic is Origin and Destination; 76% is international short haul

▪ Excellent transport links to London

▪ Freehold asset, light-handed regulation

No. 1 Global LCC Airport

Source: Centre for Aviation (CAPA)

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33 31 31 30 29 29

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(2018 Passengers, m)

In Top 10 Airports in Europe

Ranking of LCC Airports

(international weekly LCC seats)

1 London Gatwick 555,177

2 Kuala Lumpur 549,000

3 Singapore Changi 526,812

4 London Stansted 508,472

5 Seoul Incheon 490,535

6 Barcelona El Prat 486,002

7 Dubai 410,102

8 Bangkok Don Mueang 393,081

TRADE SECRET AND STRICTLY CONFIDENTIAL

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Resilient Core Infrastructure Asset

Despite the negative passenger growth, Gatwick managed to grow EBITDA every year throughout the GFC, as a result of tight cost control and maintaining non-aero yields

▪ Resilient downside performance and multiple levers to manage performance

More than 95% of passengers are Origin and Destination

Diverse mix of high quality airlines (lowest single airline exposure in the London system)

Diversified route mix (no single destination accounts for more than 10% of traffic)

Bilateral aero contracts have built in protection and mitigation in the event of weaker volumes

▪ The impact of the Global Financial Crisis (“GFC”) on Gatwick’s passenger volumes was less than 5% (peak to trough) when adjusting for open skies and

the closure of UK airspace due to the ash cloud

£148 £164 £169

£189

£221

26

28

30

32

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£0

£50

£100

£150

£200

£250

2007/08 2008/09 2009/10 2010/11 2011/12

EBITDA (£m) Pax (m)

60

70

80

90

100

110

120

2007 2008 2009 2010 2011 2012 2013 2014

Heathrow Gatwick Stansted Luton

(Passengers, m)

Gatwick EBITDA Performance Throughout GFCGFC Impact on Passenger Traffic(1)

(EBITDA, £m)

Note: (1) Gatwick and Heathrow adjusted for EU-US Open Skies effect.

(Passengers, m)

TRADE SECRET AND STRICTLY CONFIDENTIAL

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Gatwick Under GIP’s Ownership

Robust Original

Investment Thesis

– Scarcity economics – limited capacity in the South East UK

– Freehold asset

– Productivity and efficiency improvements could be made

– Potential for more light-handed regulation

Significant Operational

Value Add

– Modernised and expanded airport facilities

– Improved passenger experience

– c.1/3 of traffic growth through market share expansion

– Increased peak runway movements from 50 ATM/h to 55 ATM/h

– Best in class security through Gen II implementation

– Transformed check-in process with world’s largest self-service area

GIP delivered on its investments thesis, with significant operational value add achieved across all parts of the business

De-Risking

– Transitioned away from RAB regulation to light touch “contracts &

commitments” regime

– 90% of volumes covered by bilateral long term contracts

– Long term portable debt (weighted average bond maturity ~18yrs)

– Strong investment grade (BBB+)

TRADE SECRET AND STRICTLY CONFIDENTIAL

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Gatwick’s Exceptional Track-Record

Normalised EBITDA and EBITDA Margin Trajectory

EBITDA

Margin

Note: EBITDA pre non-recurring items, R2 costs and provisions

+12%

CAGR

169

202221

235

277

320

347

378

417

Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18

37% 44% 44% 45% 48% 52% 53% 54% 56%

EBITDA Margin

EBITDA

(£m)

PORT OF MELBOURNECALPERS BOARD OFFSITE

15 July 2019

PORT OF MELBOURNE – AUSTRALIA’S LARGEST CONTAINER PORT

An essential key gateway for Australia handling over 34% of Australia’s container trave volumes

2

TRANSPARENT REGULATORY REGIME

CPI price path for ~20 years and shadow building block

AN INTEGRAL PART OF THE VICTORIAN ECONOMY

ENGAGEMENT WITH A LARGE NUMBER OF CUSTOMERS

~72 tenants, ~42 shipping lines

SIGNIFICANT FOOTPRINT

505ha of port land, 100,000ha of port waters, 35 berths

LARGELY CAPTIVE VOLUMES

Victoria, Tasmania, southern New South Wales, southeastern South Australia

POINT OF DESTINATION

Visited by >3,200 ships each year

DIVERSIFIED TRADES

~2.9m twenty foot equivalent units per year, average ~1,000 motor vehicles per day, dry bulk,

liquid bulk and break bulk

>100 full time employees directly employed by PoM

Contributes to ~15.9k jobs and >A$4bn to the Victorian economy

PORT OF MELBOURNE – LANDLORD PORT MODEL

A business model prominent in Australia and consistent with a core risk profile, with PoM supported by a clear and transparent regulatory regime

3

Leasing of Space & Facilities – Non-prescribedMonthly rent paid under long term leases

Wharfage Fees – PrescribedCharges per unit of quantity, weight or volume

Berth Hire Fees – PrescribedTypically a time-based fee per ship

Channel Fees – PrescribedPer ship visit on gross tonnes

Revenue sources for Port of Melbourne

• Regulatory Framework with prescribed tariffs for use of port facilities and assets, overseen by independent regulator (Essential Services Commission) – principles designed to deliver efficient cost recovery

• PoM also leases out spaces and facilities, which are not regulated but subject to periodic review

Landlord Port Model

• Ownership or control of the port land and essential port civil infrastructure (eg. wharves and shipping channels), as well as generally utility connections, roads, bridges and rail infrastructure in the port precinct