MACQUARIE KOREA INFRASTRUCTURE FUND. General Presentation February 2010

Transcription

1 MACQUARIE KOREA INFRASTRUCTURE FUND General Presentation February 2010

2 CONTENTS 1 GENERAL UPDATE - FY 2009 Results overview 5 Key opened assets 8 Underlying asset performance 6 Capital management 9 Financial results 7 Outlook 10 2 BUSINESS OVERVIEW MKIF history 12 Government revenue support 18 Share information 13 Debt profile 19 Corporate structure 14 Capital restructuring opportunities 20 Portfolio 15 Distribution 21 Landmark assets 16 Conclusion 22 Long-term concession period 17 3 APPENDICES Balance sheet 24 Location map - newly opened assets 30 Cashflow statement 25 MRG summary 31 Profit and loss statement 26 Management fees 32 Capital management transactions in Macquarie worldwide investment 33 Portfolio 28 Macquarie Capital s advantage 34 Operating performance by asset 29 Macquarie capital funds snapshot 35 P

3 GENERAL UPDATE FY 2009

4 RESULTS OVERVIEW Another year of solid performance ACHIEVED SOLID FINANCIAL AND OPERATIONAL RESULTS Traffic volume 1 and revenue 1 growth of 3.0% and 4.8% respectively compared with the previous corresponding period ( pcp ) Normalised 2 revenue and EBITDA growth of 1.2% and 5.2% respectively on pcp Proportionate EBITDA margin of 86% 3 across the portfolio compared with 85% in 2008 DERISKING OF THE PORTFOLIO THROUGH SUCCESSFUL ASSET OPENINGS Four new assets 4 commenced operation in 2009 all on time and on budget 85% of the portfolio now under operation 5 Traffic performance of the new assets to date in line with management expectations FINANCIAL STRENGTH PRESERVED THROUGH PROACTIVE MANAGEMENT OF CAPITAL Refinancing risk minimised through extension of the corporate loan maturity to end of 2014 Successful recycling of non-core assets to help to fund commitments Distribution aligned with earnings in response to market conditions giving MKIF financial strength and flexibility HEALTHY BALANCE SHEET POSITION (as at 31 December 2009) Certainty of minimum performance on MRG (minimum revenue guarantee) backing on substantially all of MKIF s operating cash receipts Conservative debt profile and scheduled de-gearing of asset level debt Proportionately consolidated cash balance of KRW 461bn (including corporate level cash balance of KRW 240bn) 1. On a weighted average basis based on revenue size of each asset and the MKIF s equity interest in each concession company. Excludes all new assets which have commenced operation since July Adjusted to remove (i) capital loss of KRW3.6bn incurred in 2009 and (ii) capital gain of KRW79.4bn in Asset level EBITDA on a proportionate basis, excluding all new assets which have commenced operation in 2008 and Estimated, unaudited figure. 4. Excludes Seosuwon-Osan-Pyungtaek Expressway (SOPE) 5. Based on commitment amount R

5 rkaboivfkd=^ppbq=mbocloj^k`b== Improved operating performance TRAFFIC VOLUME GROWTH 1 TRAFFIC REVENUE GROWTH 1 EBITDA MARGIN 2 PORTFOLIO AGE 3 3.0% 4.8% 86% 4 years Average daily traffic volume Average daily traffic revenue Average daily traffic volume Average daily traffic revenue Vehicles/day % change on pcp KRW thousand/day % change on pcp Vehicles/day % change on pcp KRW thousand/day % change on pcp Incheon International Airport Expressway 62,165 (4.3%) 359,025 (4.3%) 64,956 (5.5%) 375,192 (2.4%) Baekyang Tunnel 66,523 (0.7%) 48,426 (1.2%) 66,989 (2.8%) 49, % Gwangju Second Beltway, Section , % 25, % 25, % 20, % Gwangju Second Beltway, Section 1 34,576 (3.3%) 34, % 35,743 (2.7%) 31,241 (3.1%) Woomyunsan Tunnel 23, % 40, % 21, % 36, % Cheonan-Nonsan Expressway 34, % 254, % 32,209 (0.6%) 232, % Soojungsan Tunnel 39,283 (0.2%) 29,482 (1.0%) 39,343 (2.2%) 29, % Deagu 4th Beltway East 18, % 18, % 18,359 (3.3%) 18,403 (3.2%) Machang Bridge 4 11, % 24, % 10,170 N/A 21,736 N/A Weighted average growth rate 3.0% 4.8% (1.6%) 1.5% 1. On a weighted average basis based on revenue size of each asset and the MKIF s equity interest in each concession company. Excludes all new assets which have commenced operation since July Estimated, unaudited figure. On a proportionate average basis based on MKIF s equity interest in each concession company. EBITDA margin=ebitda/operating Revenue where, revenue compensation and other compensations are reflected on cash basis. Excludes all new assets which have commenced operation in 2008 and Operation period of each concession company on a weighted average basis based on respective commitment amount 4. FY2008 figures annualised S

6 cfk^k`f^i=obpriqp= Delivery of steady growth Audited, non-consolidated financial information FY2009 FY2008 % change (Unit: KRW mn) Revenue 153, ,064 Interest & dividend income 157, ,870 Capital gain (loss) (3,575) 1 79, % Other income (loss) (265) 794 Expense 53,755 51,364 Management fee 23,382 27,836 Interest expense 22,961 16,235 Other expense 7,412 7,293 EBITDA 123, ,935 Net income 100, ,700 Normalised Revenue 157, , % Normalised Net Income 3 103, ,300 Normalised EPS 3, Normalised EBITDA 3 126, , % 1. Includes loss on securitisation (Tranche 1 and 2) of the deferred sub-debt interest on Cheonan-Nonsan Expressway 2. Includes gain on (i) securitisation of shareholders loan in Baekyang Tunnel of KRW24.5bn and (ii) divestment of the convertible bonds in New Daegu Busan Expressway of KRW54.9bn 3. Adjusted to remove (i) capital loss of KRW3.6bn incurred in 2009 and (ii) capital gain of KRW79.4bn in Based on the number of shares outstanding of mil shares. FY2008 EPS calculation adjusted to reflect share distribution in Feb 2009 T

7 kbtiv=lmbkba=^ppbqp== A successful transition into operation for the four new assets Represent 29% of the portfolio, all completed on time and on budget All subject to MRG arrangement Weighted average traffic volume vs. Concession Agreement forecasted volume of 67% to date 1 Traffic results to date in line with expectations but remain cautious to ensure timely payments of sub-debt interests Only 1 out of 14 assets in the portfolio now remains under construction Yongin-Seoul Expressway Seoul-Chuncheon Expressway Seoul Subway Line 9, Section 1 Incheon Grand Bridge Operation commencement Average daily traffic 2 (Vehicles/day) % of CA forecast traffic volume Average daily traffic revenue ( 000 krw) Revenue Guarantee Threshold 1 July July July October 09 38,933 30, , ,467 50% 68% 83% 73% 62, , , ,188 70% 80% / 70% / 60% 4 90% / 80% / 70% 4 80% % of MKIF portfolio 7.6% 7.6% 4.2% 9.2% Traffic pattern: Commuters and intercity travel Key growth drivers: a major residential developments underway Traffic pattern: Intercity travel (national expressway) Key growth drivers: Business and recreational/resort facility developments underway 1. On a weighted average basis based on total commitment amount. Average daily traffic from opening date to 31 December Average daily traffic from opening date to 31 December Average daily initial boarding from opening date to 31 December Initial boarding only (Excludes inter-change passengers) 4. Step down every five years Traffic pattern: Commuters Key growth drivers: Extension of the subway line (Section 2 and 3) to the southeast end of Seoul within next 3 years Traffic pattern: international airport user demand and Youngong Island tourists Key growth drivers: Developments of commercial area of New Songdo International District in Incheon City and housing developments in Yongjong Island U

8 CAPITAL MANAGEMENT Maintaining proactive and prudent approach to capital management RECYLING OF NON-CORE ASSETS Three transactions completed to help to fund commitments Generated total net cash proceeds to MKIF of KRW 250bn PRE-EMPTIVE DEBT MANAGEMENT KRW 500bn of corporate loan facility term extended until November 2014 Eliminated refinancing needs for next five years Proved market s continued confidence in MKIF s credit quality APPROPRIATE CAPITAL MANAGEMENT THROUGH DISTRIBUTION RE-ALIGNMENT 2H09 distribution level reduced to W160 per share, aligning to earnings level - Represents current trading yield of 6.5% 1 after the distribution reduction - To improve distribution coverage on operating cashflows while maintaining the tax-exempt status - Consistent with lower operating cash receipts from the invested assets due to scheduled amortisation of asset level debt - Distribution coverage on cashflow to improve substantially with convergence expected in next 4 to 5 years 1. Based on closing share price of KRW 4,900 on 31 December 2009 V

9 OUTLOOK Well positioned to sustain stable growth STRUCTURED TO DELIVER UNDERLYING GROWTH Concessions designed to provide embedded growth in revenues during MRG period Remains a young portfolio with weighted average age of only 4 years Amortisation of asset level debt expected to release increasing cashflows to MKIF in the medium term MAINTAIN CAUTIOUS BUT PROACTIVE STANCE ON CAPITAL MANAGEMENT Continue efforts on asset level refinancing to accelerate cash receipts from the invested assets Corporate loan repayment planned with surplus cash Ongoing distributions to closely track EPS in the near to medium term FOCUS ON OPERATING PERFORMANCE Traffic ramp-up of the newly opened assets Portfolio-wide efforts to control operating costs NEW ACQUISITIONS Review of pre-emptive positions to acquire equity stakes in newly opened assets NM

10 BUSINESS OVERVIEW

11 MKIF HISTORY Established in December 2002 Promulgated PPI Act A key component in Korean government s initiative to expand Infrastructure in Korea, introduced strong government supports to private participation in investment Asian economic crisis Identified the attractive opportunities available Active fund raising and deal participation Market Leader Late 90s Establishment Capital raising of KRW 1.26 tn until the listing Captured attractive asset portfolio underpinned by significant government revenue and capital protections Listing Capital raising of KRW bn through IPO Dual listed on KRX and LSE MANDATE To invest in infrastructure assets in Korea as defined under PPI Act 1 OBJECTIVE To create value through active capital/portfolio management and to provide stable distributions INVESTMENTS 14 assets, KRW 1.79tn (12 toll roads, 1 subway &1 port) ASSET MANAGER Macquarie Shinhan Infrastructure Asset Management Co., Ltd Private Participation in Infrastructure Act (PPI Act) defines infrastructure sectors including roads, railways, ports, energy, airport, communication, water resources, etc. 2. A joint venture company between Macquarie Group and Shinhan Financial Group. NO

12 SHARE INFORMATION Korea s only listed infrastructure fund SHAREHOLDER BASE As of 31 December 2009 EXCHANGE KRX KS / LSE MKIF.LI International investors 26.2% MARKET CAP 1 KRW 1.6 trillion (US$ 1.4 billion ) 62.1% Domestic institutions 11.7% DAILY VOLUME 2 367,916 shares (US$ 1.8 million) Domestic Retails TOP SHAREHOLDERS 3 1. Military Mutual Aid Association 11.8% FREE FLOAT 85% 2. Shinhan Financial Group 11.2% 3. Kumho Life Insurance 7.5% 4. Capital Research & Mgmt Company 6.0% 5. Korea Life Insurance 5.9% 6. Korea Government Employees Pension Services 5.4% 7. Lazard Asset Management 5.0% 8. Macquarie Group 4.4% 1. Based on the share price as of 31 December month average daily turnover 3. Source: Financial Supervisory Service NP

13 CORPORATE STRUCTURE Tax flow through vehicle As of 31 January 2010 Active manager of the invested companies through management participation Corporate tax exempted when MKIF distributes more than 90% of its annual net income Korean retail residents benefit from a lower distribution withholding tax 1 MKIF Invests in 14 Concession companies Receives: Interest income Dividend Invests in the form of: Equity Subordinated debt Senior debt Management Agreement Macquarie Shinhan Infrastructure Asset Management Co., Ltd. External fund manager JV between Macquarie & Shinhan Financial Group Managed under Macquarie s global policies and procedures OPERATING 13 assets Toll roads (12) Subway(1) CONSTRUCTION 1 asset Port(1) 1. Investments having a total par value of KRW 100mil or less are subject to withholding tax of 5.5%. Investments having a total par value over KRW100mil are subject to 15.4% (applicable until December 2010) NQ

14 mloqclifl N Young and well balanced, diversified portfolio As of 31 January 2010 Seoul Subway Line 9, Section 1 Incheon Grand Bridge 9.2% 7.6% 4.2% Seoul-Chuncheon Expressway Portfolio Composition by Asset 1 Busan New Port Phase % Subway 4.2% Yongin-Seoul Expressway 7.6% Port 14.5% Beakyang Tunnel 0.2% Gwangju 2 nd Beltway, Section % Toll-road 81.3% Incheon International Airport Expressway 6.2% 15.1% Soojungsan Tunnel 7.3% Daegu 4 th Beltway, East 5.0% Cheonan-Nonsan Expressway Portfolio Composition by Phase and Type Senior debt 15.8% Construction Mature 14.5% 15.8% Equity 35.9% Ramp up Growth 39.9% 29.8% Sub debt 48.3% Machang Bridge 5.6% 5.7% 1.1% Gwangju 2 nd Beltway, Section 3-1 Woomyunsan Tunnel 1. Based on commitment amount NR

15 LANDMARK ASSETS Presence in major metropolitan areas As of 31 January 2010 Source: Korea National Statistical Office (As at 31 December 2008) NS

16 ilkdjqboj=`lk`bppflk=mbofla Government support packages 1 underpin investment security CONCESSION TERM VS. GOVERNMENT REVENUE SUPPORT PERIOD As of 31 January 2010 Relevant Authority (C) Central government (L) Local government Weighted Average Revenue Weighted Average Revenue Support Duration 2 Concession Term 3 Present Early Termination Support Concession Term Support 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 25 years Revenue support and termination payment provisions vary for each concession 2. Revenue support until at least 2023 with weighted average support remaining of about 14 years (excluding Busan New Port Phase 2-3) 3. Concessions last at least until 2035 with weighted average life remaining of over 25 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 NT

17 GOVERNMENT REVENUE SUPPORT 1 Mechanism MINIMUM REVENUE SUPPORT MECHANISM Conceptual Diagram Revenue Actual Revenue MRG and Revenue support for 13 of MKIF s 14 assets 3 Relevant government authorities extract the excess portion Revenue Cap 1 Forecast Revenues 2 MRG 1 Real and inflation-linked revenue support MRG line tracking the forecast revenue line (typically 80~90% below forecast revenue) No history of Korea sovereign default Korea sovereign rating as of October 2008: S&P : A (Stable) Moody s : A2 (Stable) Government bodies compensate the shortfall Details for the government revenue support by each asset attached Slide MRG and revenue caps vary across assets 2. Forecast revenues set out in the Concession Agreement 3. In three of 14 MRG assets, no revenue guarantee applies if actual revenue are below 50 % of the toll revenue forecast NU

18 DEBT PROFILE Conservatively positioned to withstand volatility in the credit market AMORTISING MATURITY 1 8 years OUTSTANDING DEBT BALANCE 5 GEARING 2 49% NET DEBT TO EBITDA 3 2.7x (KRW bn) 1,800 1,500 1, INTEREST RATE HEDGE 4 59% until end of UNDRAWN CORPORATE LOAN FACILITY KRW 120bn OUTSTANDING COMMITMENT KRW 154bn 1. Weighted average amortising maturity of the underlying asset level external debt 2. Gearing = Proportionately consolidated MKIF Net Debt / (Proportionately consolidated MKIF Net Debt + MKIF market capital (3-month average)), where Proportionately consolidated MKIF Net Debt = Proportionate net debt from assets + Corporate net debt. Excludes shareholder loans 3. Proportionate average of operating assets. Excludes all new assets which have commenced operation in 2008 and Hedging (Fixed or swapped to fixed) = Proportionately consolidated MKIF net debt adjusted for fixed or swapped debt / Proportionately consolidated MKIF net debt 5. Outstanding debt balance based on amortisation schedule of asset level external debt on a proportionate equity shareholding basis. Excludes corporate loan facility NV

19 CAPITAL RESTRUCTURING OPPORTUNITIES Value creation from capital management activities Opportunities exist to optimise capital structure Asset level senior debt typically have amortising debt with restrictive cash reserve covenants Certain assets are subject to Benefit Sharing Plan where financial benefits from refinancing need to be shared with the relevant government authority Gearing Conceptual Diagram 59% 1 2 INCREASE GEARING 3 DELAY DEBT AMORTISATION 1 REFINANCING 1 REFINANCING Lower interest rate Improve debt covenants Release trapped cash 2 INCREASE GEARING Capacity to gear up further Bring forward available cash Year 3 DELAY DEBT AMORTISATION 1. Proportionately consolidated net gearing as at September 2009 OM

20 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 2009 DISTRIBUTION KRW 390 per share CASH YIELD Circa 7.9% 1 DISTRIBUTION HISTORY ( PER SHARE, POST-LISTING ) Stock distribution Second Half First Half Based on the average closing price in 2009 and 2009 total distribution ON

21 CONCLUSION Key value propositions REDUCED CAPITAL RISKS Minimum Revenue Guarantee (MRG) provided to13 out 14 underlying assets Currently, substantially all of operating cash receipts are MRG-backed Underlying revenues are fully inflation-adjusted EMBEDDED GROWTH POTENTIAL Real and inflation-linked natural underlying revenue growth Capital restructuring opportunities Re-rating of assets Growth through new investments HEALTHY FINANCIALS Sound balance sheet position Conservative gearing with solid debt profile Stability of operating cashflows supported by predictable cost basis MACQUARIE MANAGED FUND Global leader managing 110 infrastructure businesses in 25 countries Superior track record delivering over 7%(listed)/8%(unlisted) annual return since Management fees aligned with shareholders interests STRONG MARKET PRESENCE #1 infrastructure management and advisory platform with over 100 professionals Unrivalled brand recognition and track record in the infrastructure space in Korea 1. Annualised return based on all capital raised, distributions paid and valuations (market capitalisation for listed funds and net asset value for unlisted, including managed assets) for Macquarie Capital Funds since inception to 30 September 2009 (unlisted funds and managed assets as at 30 June 2009). OO

22 APPENDICES

23 BALANCE SHEET Audited, non-consolidated - as at 31 December 2009 (Unit: KRW mn) FY2009 FY2008 CAPITAL INJECTION INTO MKIF INVESTMENTS 1 Total Assets 2,154,296 2,099,832 Invested Assets 1,964,784 1,929,621 Cash and deposits 239, ,412 Loans 1,112,570 1,144,656 Equity securities 612, ,553 Others (receivables, prepayments, etc.) 189, ,211 Total Liabilities 463, ,004 Accounts payables 7 9,606 Management fee payable 5,814 5,975 Long-term debts 380, ,523 Other liabilities 77,986 2,900 Total Shareholders Equity 1,690,402 1,740,828 Asset Item FY2009 Soojungsan Tunnel Sub Debt (5,396) Equity 18,240 Incheon Grand Bridge Sub Debt 23,640 Senior Debt (113,063) Woomyunsan Tunnel Equity (19,152) Sub Debt 9,576 Yongin-Seoul Expressway Equity 3,500 Sub Debt 4,600 Busan New Port Equity 7,379 Sub Debt 25,704 Baekyang Tunnel Sub Debt (47) Seosuwon-Osan-Pyungtaek Sub Debt 22,900 Total (22,119) Total Liabilities and Shareholders Equity 2,154,296 2,099, Excluding transaction costs OQ

24 `^pecilt=pq^qbjbkq Audited, non-consolidated - 12 Months to 31 December 2009 (Unit: KRW mn) FY2009 FY2008 % Change Cashflows from operating activities: Cash inflows from operating activities 377, ,127 (2%) Sale of investment 183, ,319 Collection of other loans receivable 5,396 - Interest income and other 116, ,808 Advanced receipt 72,765 - Cash outflows from operating activities: (186,495) (355,673) (48%) Investments (146,571) (314,485) Fees and expenses (39,924) (41,188) Net cash provided by (used in) operating activities 190,928 30, % Cashflows from financing activities: Repayment of long-term debt (120,000) (100,000) Drawdown from long-term debt 137, ,000 Distributions paid (150,646) (145,571) Net cash provided by (used in) financing activities (133,646) 68,429 (295%) Net increase in cash and deposits 57,282 98,883 Cash and deposits at beginning of the period 182,412 83,529 Cash and deposits at end of the period 239, ,412 31% OR

25 PROFIT AND LOSS STATEMENT Audited, non-consolidated - 12 Months to 31 December 2009 (Unit: KRW mn) FY2009 FY2008 % change Revenue 153, ,064 (34.5%) Interest income 157, ,388 2% Arrangement fees 144 2,895 (95%) Dividend income Gain (Loss) on valuation of debt securities - (2,922) - Gain (Loss) on transactions (3,575) 1 79,400 2 (104.5%) Other Income (409) 821 (149.8%) Expense 53,755 51, % Management fee 23,382 27,836 (16%) Interest expense 22,961 16, % Other expenses 7,412 7, % Net Profit 100, ,700 (45%) 1. Includes loss on securitisation (Tranche 1-1 and 1-2) of the deferred sub-debt interest on Cheonan-Nonsan Expressway 2. Includes gain on (i) securitisation of shareholders loan in Baekyang Tunnel of KRW24.5bn and (ii) divestment of the convertible bond in New Daegu Busan Expressway of KRW54.9bn OS

26 CAPITAL MANAGEMENT TRANSACTIONS IN 2009 Validation of intrinsic value and recycle story SALE OF SENIOR LOAN SECURITISATION OF SUBORDINATED DEBT INTEREST RECEIVABLE SALE OF SUBORDINATED LOAN March 2009 May 2009 July 2009 Incheon Grand Bridge Cheonan-Nonsan Expressway Seosuwon-Osan- Pyungtaek Expressway DESCRIPTION Divestment of MKIF s senior loan commitment of KRW 188bn Net cash proceeds to MKIF of KRW 134.5bn, representing the amount which had been drawn up to the divestment date Securitisation of MKIF s interest receivable on the subordinated loans 8 tranches of ABS to be issued over next 7 years with a combined face value of KRW 157bn 1 First two tranches totaling KRW 30.1bn issued in May 2009 Divestment of MKIF s subordinated loan commitment of KRW 80bn (Final drawndown amount of KRW 77.3bn) TRANSACTION RATIONALE Recycling and exiting senior debt position Released trapped sub-debt interest to MKIF Attractive pricing Sale of a non-core asset PRICING Sold at book value in a very tight credit market Evidence of market s strong appetite for MKIF s assets AA credit rating for subordinated cashflow without credit support Competitive pricing in spite of unusual structure of callable (with lock-up period) zero-coupon ABS Sold at premium of KRW 8.4bn 2 CASHFLOW Immediate net cash inflow of KRW 134.5bn Relief from undrawn commitment of KRW 53.5bn Immediate net cash inflow of KRW 29.4bn Net cash inflow of KRW Assuming the market rates of the AA- rated Korean corporate bonds as at 14 May Resulting in KRW 8.4 billion of accounting income in 1Q 2010 OT

27 mloqclifl= Balanced, diversified portfolio As of 31 January 2010 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 SM Incheon Grand Bridge IGB Busan New Port Phase 2-3 BNP Total ,784.3 Percentage (%) Includes KRW 3.2bn working capital facility 2. Excludes MKIF s conditional commitment to acquire an additional 32% equity interest agreed with project sponsors OU

28 lmbo^qfkd=mbocloj^k`b=_v=^ppbq N 12 Months to 31 December 2009 (Unit: KRW million) 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 Net Debt to EBITDA Gwangju Second Beltway, Section 1 26,531 (4,781) 21,751 (603) 82% (0.0x) 23,105 (3,183) 19,292 (346) 83% (0.0x) Gwangju Second Beltway, Section ,778 (3,439) 12,338 (8,568) 78% (0.7x) 14,006 (3,157) 10,849 (2,465) 77% (0.2x) Soojungsan Tunnel 22,530 (2,622) 19,908 (9,667) 88% (0.5x) 15,808 (2,566) 13,242 (4,361) 84% (0.3x) Baekyang Tunnel 21,425 (3,568) 17, ,104 83% 8.9x 20,298 (4,469) 15, ,823 78% 10.4x Incheon International Airport Expressway 225,370 (17,548) 207, ,151 92% 2.0x 219,213 (21,417) 197, ,974 90% 2.7x Cheonan-Nonsan Expressway 147,709 (22,941) 124, ,170 84% 3.2x 131,345 (19,914) 111, ,234 85% 4.2x Woomyunsan Tunnel 21,307 (3,841) 17,466 96,772 82% 5.5x 21,553 (3,648) 5 17,905 74,948 83% 4.2x Daegu 4 th Beltway East 23,654 (3,082) 20,572 78,586 87% 3.8x 21,317 2,649 18,668 88,711 88% 4.8x Proportionate average 6 31,629 (4,443) 27,186 72,920 86% 2.7x 28,404 (4,236) 24,167 83,905 85% 3.5x 1. Excludes all new assets which have commenced operation in 2008 and Management estimated, unaudited figures. Actual results may vary 3. Revenue compensation and other compensations from the relevant government authority are reflected on cash basis. Payments are typically received within 6 to 18 months after the end of the year to which they relate. 4. Excludes Shareholders loans 5. Adjusted to exclude costs related to capital restructuring in 4Q On a proportionate average basis based on MKIF s equity interest in each concession company. OV

29 LOCATION MAP NEWLY OPENED ASSETS IN 2009 Presence in Seoul and other metropolitan areas Yongin-Seoul Expressway July Seoul-Chuncheon Expressway July Seoul Subway Line 9, Section 1 July Incheon Grand Bridge October PM

30 MINIMUM REVENUE GUARANTEE SUMMARY Asset Concession Term Concession Term Remaining Revenue Guarantee Duration Revenue Guarantee Duration Remaining Revenue Guarantee Threshold 1 Revenue Cap Threshold 1,2 As of 31 January 2010 Remarks Baekyang Tunnel % 110% Gwangju 2nd Beltway, Section % 115% Incheon International Airport Expressway % 110% Soojungsan Tunnel % 110% Partial revenue sharing in excess of 80% to 110% level Daegu 4th Expressway, East % 120.2% Operating asset Cheonan-Nonsan Expressway % 110% Woomyunsan Tunnel % 3 110% Gwangju 2nd Beltway, Section % 110% Partial revenue sharing in excess of 82% to 110% level All revenue sharing excess of 79% to 85% and excess 110%/ Partial revenue sharing excess of 90% to110% Machang Bridge % 120% Yongin-Seoul Expressway % 130% Seoul-Chuncheon Expressway %/70%/60% 120%/130%/140% Change by every five year Seoul Subway Line 9, Section %/80%/70% 110%/120%/130% Change by every five year Incheon Grand Bridge % 120% Busan New Port Phase N/A N/A Construction asset Weighted average % of annual concession agreement projected revenue 2. Relevant government authorities are entitled to receive the portion exceeding the Threshold 3. 79% up to 2023 and 78% from 2024 to In toll revenue below 90%, Busan City Government is obliged to compensate 91.5% of the shortfall amount 5. No revenue guarantee applies if actual revenue are below 50 % of the toll revenue forecast 6. Weighted by investment commitment PN

31 MANAGEMENT FEES Aligned with shareholder interests Manager s interests aligned with shareholders No performance no performance fees Underperformance carried forward Management fee calculated quarterly basis as: Base Fee 1.25% pa falling to 1.10% 1 of Net Investment Value (NIV) of MKIF; plus (+) 1.15% pa falling to 1.05% 1 per annum of Commitment 2 of MKIF Performance Fee 20% sharing in cumulative total returns 3 over 8% pa Net Investment Value for any quarter equals: The average market capitalisation of MKIF over all trading days in each calculation; plus (+) The amount of any external borrowings by MKIF; less (-) cash held by MKIF 1. For NIV +Commitment in excess of KRW 1.5 trillion 2. Commitments means all amounts that MKIF has firmly committed for future investment contributions. 3. Total return to shareholders reflects both distributions from MKIF to its shareholders and share price performance over each calculation. PO

32 MACQUARIE WORLDWIDE INVESTMENTS 110+ businesses and 350+ properties 1 UK M6 Toll Bristol Airport Wales & West Utilities Thames Water Combined Landfill Projects Envirogas Energy Power Resources Arqiva Airwave Red Bee Media Condor Group (ferry services) Moto (motorway services) National Car Parks East London Bus Group Steam Packet (ferry services) Wightlink (ferry services) Austria Herold (directories) Belgium Brussels Airport Denmark Copenhagen Airports De Gule Sider (directories) France Autoroutes Paris-Rhin- Rhône Trois Sources & Lomont Windfarms Compteurs Farnier (water metering) EPR France (wind farm) RES (wind farm) Pisto SAS (oil storage and distribution) Germany Warnow Tunnel Macquarie CountryWide Trust GWE (heat & power) Techem A.G (submetering) TanQuid (tank storage business) Real Estate Finland Fonecta (directories) Czech Republic Mediatel (directories) Slovakia Mediatel (directories) Sweden Netherlands EPR Sweden (wind farm) De Telefoonggids Arlanda Express (directories) Lokaldelen (directories) Gouden Gids (directories) Poland DCT Gdansk (container terminal) Macquarie CountryWide Trust pkt.pl (directories) South Africa N3 Toll Concessions Bakwena Platinum Corridor Trans African Concessions Neotel Kelvin Power Station Nigeria Lekki Concession Company Tanzania Kilimanjaro Airport Development Company Airports Spain Itevelesa (vehicle inspection) Asset Energia Solar Solpex Energia Solar United Arab Emirates Al Ain Industrial City Industrial City of Abu Dhabi ICAD Effluent Treatment Plant Communications Canada Edmonton Ring Road Highway 407 ETR A-25 Sea to Sky AltaLink Cardinal (power station) Whitecourt (biomass facility) Chapais (biomass facility) Erie Shores Wind Farm Hydro Power Business Halterm Limited (port) Fraser Surrey Docks Leisureworld New World Gaming Mexico Grupo Aeroportuario del Sureste de Mexico S.A. de C.V USA Dulles Greenway Indiana Toll Road Skyway South Bay Expressway AIR-serv (tyre inflation) Icon Parking Hanjin Container Terminals Harley Marine Services Petermann (school buses) Smarte Carte Penn Terminals Sentient (private aviation) Airport Parking Business Airport Services (fixed base operations) Puerto Rico Global Tower Partners Utilities Waste Industries American Consolidated Media Bulk Liquid Storage Terminal Business Express Energy Global Tower Partners Macquarie DDR Trust Macquarie CountryWide Trust Macquarie Leisure Trust Group Aquarion Company Puget Energy District Energy Duquesne Light Gas Production and Distribution Business China Changshu Xinghua Port MWREF Hua Nan Expressway Taiwan Taiwan Broadband Communications Miaoli Windpower Hanjin Pacific Corporation (Kaohsiung) Roads Transport & Related Services 1. As at 30 September Represents businesses and assets which Macquarie Capital Funds manages on behalf of investors with various direct percentage stakes held in each. South Korea Baekyang Tunnel Cheonan-Nonsan Expressway Incheon International Airport Expressway Gwangju 2 nd Beltway Section 1 Gwangju 2 nd Beltway Section 3-1 Machang Bridge Soojungsan Tunnel Daegu 4 th Beltway East Incheon Grand Bridge Seoul Chuncheon Expressway Woomyunsan Tunnel Yongin-Seoul Expressway Seosuwon-Osan-Pyungtaek Expressway West Sea Power/West Sea Water C&M (cable tv) Hanjin Pacific Corporation (ports) Busan New Port Phase 2-3 Seoul Subway Line 9, Section 1 Japan Macquarie Direct Property Fund Hanjin Pacific Corporation (Tokyo, Osaka) Japan Airport Terminals Australia Dampier to Bunbury Natural Gas Pipeline Multinet Gas Holdings United Energy Distribution AlintaGas Networks Broadcast Australia Sydney Airport Hobart International Airport Westlink M7 Retirement Villages Group Macquarie Southern Cross Media Regis Group (aged care) Macquarie CountryWide Trust Macquarie Leisure Trust Group MREEF Macquarie Direct Property Fund New Zealand Metlifecare Private Lifecare Retirement Care New Zealand Macquarie CountryWide Trust Macquarie Leisure Trust Group Other PP

33 MACQUARIE CAPITAL S ADVANTAGE Macquarie Capital s advantage is demonstrated by its track record and active approach to sourcing, investing in and managing businesses that provide essential services GLOBAL TEAM Approximately 2,000 executives dedicated to sourcing, analysing and executing opportunities 1 BUSINESS AND ASSET MANAGEMENT SPECIALISTS Driving improved operational performance across the businesses and ensuring the delivery of high quality services to over 100 million people around the globe daily STRONG ALIGNMENT OF INTERESTS Macquarie and staff investment of approximately A$3.5b 2 in Macquarie Capital managed funds Robust corporate governance framework ESTABLISHED TRACK RECORD A$50b 3 in equity under management across 47 funds/vehicles, ~110 businesses, ~350 properties in 25 countries 6% 4,5 unlisted and 5% 4 listed returns to investors from vehicles managed by Macquarie Capital Funds since inception 1. There is no assurance that any fund managed by MacCap Funds would receive any investment opportunities from other divisions of the Macquarie Group. 2. Includes ~A$1b of co-investments by Macquarie and staff into MAp, which internalised management effective from 15 October As at 30 September Listed funds market capitalisation plus fully underwritten or committed future capital raisings. Unlisted funds committed capital less any called capital returned to investors. Invested capital for other MacCap Funds managed businesses. For jointly managed funds the amount is representative of Macquarie s economic ownership of the JV manager. Adjustments have been made where Macquarie managed funds have invested in other Macquarie managed funds. 4. Annualised internal rate of return for MacCap Funds since inception based on all capital raised, distributions and valuations (market capitalisation for listed funds as at 30 September 2009 and the net asset value for most recent valuation date, for the majority of unlisted fund assets this will be at 30 June Calculated in AUD, with cash flows converted at fixed FX rates (based on date of listing for listed funds, first close date for unlisted funds and financial close date for managed businesses). Should unrealised performance fees/carried interest payable by unlisted funds/vehicles at the applicable calculation date be taken into account, the unlisted annualised return would have been 5%. Past performance is not indicative of future results. 5. Unlisted performance is weighted towards more recent investment activity, with the majority of unlisted EUM being raised & invested within the last 4 years. PQ

34 MACQUARIE CAPITAL FUNDS INFRASTRUCTURE OVERVIEW Sustainable growth delivering superior performance for investors 1996 September 2009 Funds/vehicles Unlisted No Listed No. 2 8 Businesses No Assets under management A$b Equity under management Unlisted A$b Listed A$b Returns to investors Unlisted % n/a 8% pa 3 Listed % n/a 7% pa 3 1. Based on proportionate enterprise value, calculated as proportionate net debt and equity value at most recent valuation date, 30 June 2009 for the majority of assets. 2. Listed funds market capitalisation plus fully underwritten or committed future capital raisings. Unlisted funds committed capital less any called capital returned to investors. Invested capital for other MacCap-managed businesses. For jointly managed funds, amount is representative of Macquarie s economic ownership of the JV manager. Adjustments have been made where MacCap-managed funds have invested in other MacCap-managed funds. 3. Annualised internal rate of return for MacCap Infrastructure Funds since inception based on all capital raised, distributions and valuations (market capitalisation for listed funds as at 30 September 2009 and net asset value at most recent valuation date 30 June 2009 for majority of unlisted fund assets). Calculated in AUD, with cash flows converted at fixed FX rates (based on date of listing for listed funds, first close date for unlisted funds and financial close date for managed businesses). Should unrealised performance fees/carried interest payable by unlisted infrastructure funds/vehicles at the applicable calculation date be taken into account, the unlisted annualised return would have been 7%. Unlisted performance is weighted towards more recent investment activity, with the majority of unlisted EUM being raised & invested within the last 4 years. Past performance is not indicative of future results. PR