MACQUARIE KOREA INFRASTRUCTURE FUND Full Year Results to 31 December January 2012

Transcription

1 MACQUARIE KOREA INFRASTRUCTURE FUND Full Year Results to 31 December January 2012

2 fjmloq^kq=klqf`b DISCLAIMER This presentation is not an offer or invitation for subscription or purchase of or a recommendation of securities. It does not take into account the investment objectives, financial situation and particular needs of the investor. Before making an investment in Macquarie Korea Infrastructure Fund ( MKIF ), 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. MKIF and Macquarie Shinhan Infrastructure Asset Management ( MSIAM ) are not authorised deposit-taking institutions for the purposes of the Banking Act 1959 (Commonwealth of Australia) and their obligations 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 MKIF/ MSIAM. Information, including forecast financial information, in this presentation should not be considered as a recommendation in relation to holding, purchasing or selling shares, securities or other instruments in MKIF. 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 MKIF. Past performance is not a reliable indication of future performance. This presentation is not an offer for sale of the securities of MKIF in the United States or in any jurisdiction where any offer, sale or solicitation in respect of such securities is not permitted. Securities may not be offered or sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended, or in any jurisdiction where such offer or sale is not permitted. MKIF does not intend to register any portion of any contemplated offering in the United States or to conduct a public offering of securities in the United States Not for distribution in the United States or in any jurisdiction where any offer, sale or solicitation in respect of the contemplated securities is not permitted. This document is only being distributed to and is only directed at (i) persons who are outside the United Kingdom or (ii) investment professionals falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order ) or (iii) high net worth entities, and other persons to whom it may lawfully be communicated, falling within Article 49(2)(a) to (d) of the Order (all such persons together being referred to as relevant persons ). Any securities will only be available to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire any securities will be engaged in only with, relevant persons. Any person who is not a relevant person should not act or rely on this document or any of its contents. FORWARD LOOKING STATEMENT This presentation contains forward-looking statements, in particular, under the heading Business Outlook. All forward-looking statements are our management s present expectations of future events and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. O

3 CONTENTS 1 Key Results Highlights 5 Capital management initiatives 9 Financial results 6 Busan New Port Phase Underlying asset performance 7 Debt profile 11 Newly opened assets 8 Outlook 12 2 Appendices Financial position statements 14 Profit and loss statements 15 Cashflow statements 16 Portfolio Long-term concession period 19 Operating performance by asset 20 Underlying asset performance 21 Distribution 22 P

4 Key Results

5 HIGHLIGHTS Solid financial and traffic results - Excluding one-offs, MKIF revenue and net income 1 increased by 6.9% and 8.7%, respectively compared with the previous corresponding period ( pcp ) - Underlying traffic volume and revenue 1 grew by 6.2% and 6.5%, respectively, on pcp - Weighted average daily traffic for the four newly opened assets 2 reached 77% 3 of the Concession Agreement Forecasts, representing 10.7% weighted average traffic growth in 2011 on pcp Delivered two value-creative transactions 3rd Tranche securitisation of the interest receivable on the subordinated loan provided to Cheonan-Nonsan Expressway, bringing forward trapped cash to MKIF KRW 500bn refinancing of MKIF-level debt, extending maturity at significantly lower cost Construction risk fully de-risked - The last greenfield investment in MKIF s portfolio, Busan New Port, Phase 2-3, successfully completed on time and on budget and commenced operation from 2 January Capital injection into the portfolio fully completed 4 Remains financially healthy with a conservative debt position - Proportional cash balance of KRW 374.0bn including MKIF cash of KRW 100.9bn - Continued de-gearing of asset level debt with average maturity of 8.6 years - No external debt refinancing required until May Proportionately consolidated gearing of 49% 5 with 60% 6 of interest obligations either fixed or hedged for next 12 months Declared distribution of KRW 330 per share for the Period 1. On a weighted average basis based on revenue size of each asset and the MKIF s equity interest in each concession company. 2. Yongin-Seoul Expressway, Seoul-Chuncheon Expressway, Seoul Subway Line 9 and Incheon Grand Bridge 3. During 2011, on a weighted average basis based on total commitment amount and average daily traffic 4. As of January Gearing = Proportionately consolidated MKIF Net Debt / (Proportionately consolidated MKIF Net Debt + MKIF market capital (3-month average)) 6. Hedging (Fixed or swapped to fixed) = Proportionately consolidated MKIF net debt adjusted for fixed or swapped debt / Proportionately consolidated MKIF net debt R

6 cfk^k`f^i=obpriqp= Audited, non-consolidated financial information % change (Unit: KRW mn) Revenue 162, ,275 Interest income 161, ,281 Gain on sale of investment ,888 2 Other income Expense 56,842 54,833 Management fee 24,152 22,891 Interest expense 23,701 25,620 Other expense 8,989 6,322 Net income 105, ,442 EPS (KRW) Normalised 3 Net income 104,962 96,554 Normalised EPS (KRW) % 1. One-off gain from 3rd tranche securitisation of interest receivables on the subordinated loan provided to Cheonan-Nonsan Expressway 2. One-off gains from three capital management transactions 3. Excluding one-off gains S

7 UNDERLYING ASSET PERFORMANCE TRAFFIC VOLUME GROWTH 1 6.2% TRAFFIC REVENUE GROWTH 1 6.5% PORTFOLIO AGE 2 6 years (Growth rate) 20% 15% 10% 5% NAHC 3 0% -5% 2011 TRAFFIC PERFORMANCE BYTL KRRC KBICL WIC CNEC SICL D4 MCB YSE SCE SUB9 IGB Incheon International Airport Expressway NAHC Baekyang Tunnel BYTL Gwangju Second Beltway, Section 3-1 KRRC Gwangju Second Beltway, Section 1 KBICL Woomyunsan Tunnel WIC Cheonan-Nonsan Expressway CNEC Soojungsan Tunnel SICL Deagu 4th Beltway East D4 Machang Bridge MCB Yongin-Seoul Expressway YSE Seoul-Chuncheon Expressway SCE Subway Line9 Section 1 SUB9 Incheon Grand Bridge IGB Traffic revenue growth Traffic Volume Growth 1. On a weighted average basis based on revenue size of each asset and the MKIF s equity interest in each concession company. 2. Operation period of each concession company on a weighted average basis based on respective commitment amount 3. The traffic decrease in NAHC is in line with the Concession Agreement forecast, reflecting the operational commencement of Airport Railroad (Stage 2: Kimpo Airport~Seoul Station) from December 2010 T

8 kbtiv=lmbkba=^ppbqp== % OF PORTFOLIO 29% % OF CA FORECAST TRAFFIC VOLUME 1 77% TRAFFIC VOLUME GROWTH 2 11% 2011 TRAFFIC PERFORMANCE QUARTERLY TREND OF TRAFFIC VOLUME Asset Yongin-Seoul Expressway (YSE) Traffic volume Operation growth on commencement pcp Traffic revenue growth on pcp % of CA forecast traffic volume 01-Jul % 16.8% 75.6% Vehicles/day 80,000 70,000 60,000 50,000 Initial boarding/day 250, , ,000 Seoul-Chuncheon Expressway (SCE) 15-Jul % 8.2% 80.3% 40,000 30, ,000 Seoul Subway Line 9, Section 1 (SM9) 24-Jul % 10.3% 94.9% 20,000 10,000 50,000 Incheon Grand Bridge (IGB) 19-Oct % 8.2% 67.8% Q Q1 Q2 Q3 Q Q1 Q2 Q3 Q4 - YSE (LHS) SCE (LHS) IGB (LHS) SM9 (RHS) 1. During 2011, on a weighted average basis based on total commitment amount and average daily traffic 2. Weighted average daily traffic during 2011 over 2010 U

9 `^mfq^i=j^k^dbjbkq=fkfqf^qfsbp Securitisation of subordinated debt interest receivable (3 rd tranche) Refinancing of MKIF-level debt CHEONAN-NONSAN EXPRESSWAY DESCRIPTION 3rd tranche securitisation of MKIF s interest receivable on the subordinated loans provided to Cheonan-Nonsan Expressway (part of 8 asset-backed securitised bond program between 2009~2015 with a combined face value of KRW 157.2bn 1 Total issuance amount of KRW 21.1bn issued at 6.40% KRW 250bn aggregate principal amount of unsecured bonds consisting of W60bn 5-year bond ( Tranche 1-1 ) at a fixed rate of 4.57% W190bn 7-year bond ( Tranche 1-2 ) at a fixed rate of 4.97% A new 5-year W250bn corporate credit facility Interest rate from CD+400bps (floating rate tranche) and 7.2% (fixed rate tranche) to CD+270bps (fixed tranche removed) Maturity extended to June 2016 TRANSACTION RATIONALE Releasing trapped cash Attractive pricing Lowering borrowing cost and extending maturity Access to new source of capital PRICING Demonstrates market s strong appetite for MKIF s assets Competitive pricing despite the unusual structure of callable (with lock-up period) zero-coupon ABS bonds Attractive pricing relative to the benchmark rates AA credit rating for MKIF (both bonds and credit facility) The weighted average cost of MKIF s total borrowing reduced by circa 215 bps 2 Weighted average maturity extended by +2.5yrs Exposure to floating interest rate reduced by more than half CASHFLOW Immediate net cash inflow of KRW 20.6bn Expected annual cash savings of W9bn over next 5yrs 1. Assuming the market rates of the AA- rated Korean corporate bonds as at 14 May Weighted average cost of debt for MKIF s total outstanding borrowing V

10 _rp^k=kbt=mloq=me^pb=ojp= Construction completed on time and on budget, commencing operation in January 2012 One of the five terminals operating within Busan New Port, a national priority port project intended to meet the growing shipping volume in Busan as Asia s leading shipping and logistic hub The key features include: - Asia s first vertical semi-automated container terminal with starting volume capacity of 1.8 million TEU Twenty-foot Equivalent Unit) - Four 50,000-ton berths covering over 1,400 meters with initially 8 STS (ship-to-shore) quay cranes, capable of berthing 4 large container vessels - Developed and constructed by Bouygues Travaux Publics and Hyundai Development - KMTC and CMA CGM as the long-term terminal sharing shipping lines - INTERGIS and KCTC as the joint operators MKIF is the largest shareholder with 30% equity interest Only non-mrg investment in MKIF s portoflio Project Company Relevant Authority Concession Term BNCT Co., Ltd. Ministry of Land, Transport and Maritime Affairs 29 years 3 months from completion of construction (24 December March 2041) Construction Period 48 months (Dec 2007 ~ Dec 2011) Operation commencement 2 January 2012 MKIF Investment % of MKIF Portfolio 14.7% Total of KRW 259.4bn - 30% Equity ( KRW 66.4bn) - 100% Sub debt ( KRW 193bn) Gaduk-do, Busan City NM

11 DEBT PROFILE As of 31 December 2011 CASH 1 KRW 374.0bn OUTSTANDING DEBT BALANCE 6 AMORTISING MATURITY years (KRW bn) Change Chart Period GEARING 3 49% 1,800 1,500 1, NET DEBT TO EBITDA 4 4.2x (Year) INTEREST RATE HEDGE 5 60% until end of Proportionately consolidated cash balance (including MKIF cash balance of KRW 100.9bn) 2. Weighted average amortising maturity of the underlying asset level external debt 3. Gearing = Proportionately consolidated MKIF Net Debt / (Proportionately consolidated MKIF Net Debt + MKIF market capital (3-month average)) 4. Proportionate average of operating assets including 4 newly opened assets 5. Hedging (Fixed or swapped to fixed) = Proportionately consolidated MKIF net debt adjusted for fixed or swapped debt / Proportionately consolidated MKIF net debt 6. Outstanding debt balance based on amortisation schedule of asset level external debt on a proportionate equity shareholding basis. Excludes MKIF level corporate loan balance NN

12 OUTLOOK Structured to deliver underlying growth - Concessions designed to provide growth in revenues at least during the MRG period - Remains a young portfolio with a weighted average operational age of only 6 years - Scheduled amortisation of asset-level debt expected to accelerate MKIF distribution growth in the medium-term Active capital management expected to continue during the year - Targeting additional cash generative transactions during the year to support stable distribution growth in the short-term - Review of additional investment opportunities in the newly opened assets, particularly in Yong-in Seoul Expressway and Seoul Metro 9 Focus on successful ramp-up of BNP Busan s container throughput volume remains strong at over 16 million TEU but the trend is highly subject to state of Korean and global economy - Two long-term terminal sharing partners expected to provide certain downside protection but actively pursuing third party marketing to fill excess capacity - As it is typical for a port terminal, management expect a slow-ramp up thus maintaining short-term operational and financial stability remains a management focus for the year NO

13 APPENDICES

14 FINANCIAL POSITION STATEMENTS Non-consolidated as at 31 December 2011 and 31 December 2010 (Unit: KRW mn) OMNN OMNM ^ëëéíë= fåîéëíéç=^ëëéíë NIUSVIUVO NIUQUIRUT `~ëü=c=çééçëáíë NMMIUVP NPVIPSR iç~åë= NINPTINVS NIMVUIUOP bèìáíó=ëéåìêáíáéë SPNIUMP SNMIPVV líüéêë ORSISOU ONSIPRQ fåíéêéëí=êéåéáî~ääé OQOIQON NVVINQR líüéê=êéåéáî~ääéë QIQRU PIUSM aéñéêêéç=åçëíëi=åéí VITQV NPIPQV qçí~ä=^ëëéíë OINOSIROM OIMSQIVQN iá~äáäáíáéë ^ÅÅçìåíë=m~ó~ÄäÉ N N j~å~öéãéåí=ñéé=é~ó~ääé SINQM RIVRU içåöjíéêã=çéäí NUPIVMT PSMIRRN _çåçë OQUIVTU J líüéê=äá~äáäáíáéë NIUNO OISRQ qçí~ä=iá~äáäáíáéë QQMIUPU PSVINSQ pü~êéüçäçéêëû bèìáíó pü~êé=`~éáí~ä NISTMIVUS NISTMIVUS oéí~áåéç=b~êåáåöë NQISVS OQITVN qçí~ä=pü~êéüçäçéêëû bèìáíó NISURISUO NISVRITTT qçí~ä=iá~äáäáíáéë=~åç=pü~êéüçäçéêëû bèìáíó OINOSIROM OIMSQIVQN CAPITAL INJECTION INTO MKIF INVESTMENTS Asset Item 2011 Busan New Port Equity 21,404 Sub Debt 52,951 Gwangju 2nd Beltway, 3-1 Senior Debt (7,335) Soojungsan Tunnel Senior Debt (7,195) Total 59,825 * Excludes Baekyang Tunnel loan amortisation of KRW 48 mil NQ

15 PROFIT AND LOSS STATEMENTS Non-consolidated 12 months to 31 December 2011 (Compared to 2010) (Unit: KRW mn) Revenue 162, ,275 Interest Income 161, ,281 Arrangement Fees Gain (Loss) on sale of investment ,888 2 Other income - 6 Expenses 56,842 54,833 Management fees 24,152 22,891 Custodian fees Administrator fees Interest expenses 23,701 25,620 Other expenses 8,447 5,736 Net Profits 105, , One-off gain from 3rd tranche securitisation of interest receivables on the subordinated loan provided to Cheonan-Nonsan Expressway 2. Includes one-off gains from (1) Divestment of the subordinated loan provided to Seosuwon-Osan-Pyungtaek Expressway (2) the 2nd Tranche securitisation of the interest receivables on the subordinated loan provided to Cheonan-Nonsan Expressway and (3) partial equity sale and capital restructuring of Machang Bridge NR

16 `^pecilt=pq^qbjbkqp Non-consolidated - 12 Months to 31 December 2011 (Compared to 2010) (Unit: KRW mn) Cashflows from operating activities: Cash inflows from operating activities 133, ,663 Sale of investment 20,550 46,834 Collection of other loans receivable 14,530 75,797 Interest and other income 98, ,032 Cash outflows from operating activities: (100,096) (176,825) Investments (74,355) (151,861) Fees and expenses (25,741) (24,964) Net cash provided by (used in) operating activities 33,034 50,838 Cashflows from financing activities: Repayment of long-term debt (250,000) (50,000) Drawdown from long-term debt 55,443 5,000 Proceeds from Bond 250,000 - Distributions paid (115,679) (106,067) Interest expense (6,552) - Borrowing related costs (3,592) (100) Bond issue cost (1,126) - Net cash provided by (used in) financing activities (71,506) (151,167) Net increase (decrease) in cash and deposits (38,472) (100,329) Cash and deposits at beginning of the period 139, ,694 Cash and deposits at end of the period 100, ,365 NS

17 mloqclifl N As of 31 December 2011 Seoul Subway Line 9, Section 1 Incheon Grand Bridge 9.3% 4.2% Seoul-Chuncheon Expressway 7.7% Portfolio Composition by Asset Busan New Port Phase 2-3 Subway 4.2% Yongin-Seoul Expressway 7.6% 14.7% Port 14.7% Beakyang Tunnel 0.2% Machang Bridge 6.4% 5.0% Gwangju 2 nd Beltway, Section 3-1 Gwangju 2 nd Beltway, Section % Toll-road 81.1% Incheon International Airport Expressway 6.6% Cheonan-Nonsan Expressway 15.3% Woomyunsan Tunnel 1.1% 6.2% Soojungsan Tunnel Daegu 4 th Beltway, East 5.1% Portfolio Composition by Phase and Type Senior debt 14.3% Mature 16.0% Equity 35.4% Ramp up 49.8% Growth 34.2% Sub debt 50.3% 1. Based on commitment amount NT

18 mloqclifl= As of 31 December 2011 MKIF COMMITMENT AND DEBT INTEREST RATE (KRW bn, %) Name Abbrv. Equity Ownership (%) Subordinated Debt Interest Rate Senior Debt Interest Rate Total Baekyang Tunnel BYTL Gwangju 2nd Beltway Section 1 KBICL Incheon International Airport Expressway NAHC Soojungsan Tunnel SICL Daegu 4th Beltway, East D Cheonan-Nonsan Expressway CNE Woomyunsan Tunnel WIC Gwangju 2nd Beltway Section 3-1 KRRC Machang Bridge MCB Yongin Seoul Expressway YSE Seoul-Chuncheon Expressway SCE Seoul Subway Line 9 Section 1 SUB Incheon Grand Bridge IGB Busan New Port Phase 2-3 BNP Total ,768.4 Percentage (%) 35.4% 50.3% 14.3% 100.0% 1. Includes KRW 3.2bn working capital facility NU

19 ilkdjqboj=`lk`bppflk=mbofla CONCESSION TERM VS. GOVERNMENT REVENUE SUPPORT PERIOD As of 31 December 2011 Relevant Authority (C) Central government (L) Local government Weighted Average Revenue Weighted Average Revenue Support 1,2 Concession Term 3 Present Support Concession Term Early Termination Support 1,4 (L)Baekyang Tunnel (L)Kwangju 2nd Beltway, Section 1 (C)Incheon International Airport Expressway (L)Soojungsan Tunnel (L)Daegu 4th Beltway, East (C)Cheonan Nonsan Expressway (L)Woomyunsan Tunnel (L)Kwangju 2nd Beltway, Section 3 (L)Machang Bridge (C)Yongin-Seoul Expressway (C)Seoul Chuncheon Expressway (L)Seoul Subway Line 9, Section 1 (C)Incheon Grand Bridge (C)Busan New Port Phase years 23years Revenue support and termination payment provisions vary for each concession 2. Revenue support until at least 2024 with weighted average support remaining of about 12 years (excluding Busan New Port Phase 2-3) 3. Concessions last at least until 2035 with weighted average life remaining of over 23 years 4. Concession companies have the right to receive payments if the relevant concession agreement is terminated prior to expiration of the concession term, including termination due to events attributable to the concession company or the government body or for events of force majeure NV

20 lmbo^qfkd=mbocloj^k`b=_v=^ppbq N 12 Months to 31 December 2011 Assets Operating Revenue 3 OPEX EBITDA Net Debt 4 EBITDA margin Net Debt to EBITDA Operating EBITDA OPEX EBITDA Net Debt Revenue 3 4 margin (Unit: KRW million) Net Debt to EBITDA Gwangju Second Beltway, Section 1 30,553 (4,431) 26,122 (1,584) 85% (0.1x) 28,870 (6,269) 22,601 (1,434) 78% (0.1x) Gwangju Second Beltway, Section ,131 (5,798) 11,333 (2,279) 66% (0.2x) 16,731 (4,140) 12,591 (6,798) 75% (0.5x) Soojungsan Tunnel 23,966 (3,740) 20,226 (16,219) 84% (0.8x) 23,637 (2,834) 20,802 (13,014) 88% (0.6x) Baekyang Tunnel 23,259 (3,722) 19, ,812 84% 7.3x 23,400 (4,077) 19, ,352 83% 7.8x Incheon International Airport Expressway 187,868 (19,060) 168, ,679 90% 1.4x 218,041 (21,352) 196, ,752 90% 1.5x Cheonan-Nonsan Expressway 180,093 (23,936) 156, ,402 87% 1.2x 165,517 (22,958) 142, ,966 86% 2.1x Woomyunsan Tunnel 21,015 (3,787) 17,228 86,162 82% 5.0x 21,595 (4,068) 17,527 90,884 81% 5.2x Daegu 4 th Beltway East 9,373 5 (6,155) 3,219 71,050 34% 22.1x 26,040 (3,746) 22,294 65,672 86% 2.9x Machang Bridge 23,178 (4,495) 18, ,412 81% 11.9x 21,495 (4,486) 17, ,352 79% 12.6x Yongin-Seoul Expressway 37,161 (9,673) 27, ,953 74% 12.8x 34,215 (9,403) 24, ,951 73% 14.0x Seoul-Chuncheon Expressway 106,608 (30,402) 76, ,035 71% 10.9x 87,203 (30,398) 56, ,593 65% 14.7x Seoul Subway Line 9 Section 1 93,308 (76,538) 16, ,397 18% 26.4x 70,180 (74,255) (4,075) 429,103 (6%) 105.3x Incheon Grand Bridge 59,743 (16,265) 43, ,276 73% 13.4x 51,729 (14,738) 36, ,909 72% 15.8x Proportionate average 6 353,444 (78,678) 274,765 1,147,439 78% 4.2x 349,916 (75,420) 274,497 1,222,963 78% 4.5x 1. FY 2011 results includes all 14 operating assets. FY2010 results announced in 29 January excluded assets opened in Management estimated, unaudited figures. Actual results may vary 3. Revenue compensation and other compensations from the relevant government authority are reflected on cash basis. 4. Excludes Shareholders loans 5. MRG portion of operating revenue of 2010 (KRW 20,430 mil) was not received 6. On a proportionate average basis based on MKIF s equity interest in each concession company OM

21 UNDERLYING ASSET PERFORMANCE TRAFFIC PERFORMANCE OVER 2011 AND 4Q 2011 FY2011 4Q 2011 Average daily traffic volume Average daily traffic revenue Average daily traffic volume Average daily traffic revenue Vehicles/day % change on YTD KRW thousand/day % change on YTD Vehicles/day % change on pcp KRW thousand/day % change on pcp Incheon International Airport Expressway 51,815 (3.1%) 325,454 (2.9%) 51,330 (1.3%) 326,253 (0.6%) Baekyang Tunnel 71, % 51, % 72,245 (0.3%) 52,243 (0.8%) Gwangju Second Beltway, Section , % 32, % 37, % 33, % Gwangju Second Beltway, Section 1 37, % 38, % 38, % 39, % Woomyunsan Tunnel 27, % 47, % 28, % 50, % Cheonan-Nonsan Expressway 41, % 320, % 42, % 333, % Soojungsan Tunnel 42, % 32, % 43, % 32,670 (0.4%) Deagu 4th Beltway East 20, % 20, % 20, % 20, % Machang Bridge 15, % 28, % 16, % 30, % Yongin-Seoul Expressway 63, % 101, % 68, % 109, % Seoul-Chuncheon Expressway 38, % 222, % 38, % 226, % Seoul Subway Line 9 Section1 194, % 137, % 208, % 147, % Incheon Grand Bridge 27, % 135, % 27, % 137, % Weighted average growth rate 1 6.2% 6.5% 5.1% 5.6% 1. On a weighted average basis based on revenue size of each asset and the MKIF s equity interest in each concession company. ON

22 afpqof_rqflk= DECLARATION/ PAYMENT Semi-annual: As end of June and December DISTRIBUTION FLOOR Higher of taxable income or 100% of distributable accounting income to maintain tax exempt status 2011 DISTRIBUTION KRW 330 per share 1 CASH YIELD Circa 6.6% 2 DISTRIBUTION HISTORY ( PER SHARE, POST-LISTING ) Stock distribution Second Half First Half Composed of (i) a dividend of KRW319 per share and (ii) a distribution in excess of profits of KRW11 per share (Deduction from the retained earnings). Total of KRW 330 per share will be accounted as distribution income in calculating dividend income tax and tax payable under Korean law 2. Based on the share price as of 31 December 2011 and 2011 distribution OO