results are out early!!

BBI 2009 INTERIM RESULTS

DEMAND FOR ESSENTIAL INFRASTRUCTURE SERVICES REMAINS
STRONG - UNDERLYING EBITDA RISES 5 PER CENT

Summary

Babcock & Brown Infrastructure (ASX: BBI) today announced its interim financial
result for the six months ending 31st December 2008. Key highlights included:

• Statutory revenue (including continuing and discontinued operations1) up
35.6% on pcp2, to $1.397 billion
• Group EBITDA (from continuing and discontinued operations) up 32.6%
on pcp, to $433.6 million
• Proportional consolidated revenue and EBITDA in underlying currencies
in line with management expectations
• Underlying growth in EBITDA is up ~5% against the pcp (excludes the
impact of part period contributions from businesses and expansion
projects)

“Today’s EBITDA results announcement reflects the robustness of BBI’s
underlying asset cash flows,” BBI’s Managing Director, Jeff Kendrew said.

“In nearly all businesses and in both asset classes of the portfolio, BBI’s
operating businesses have performed solidly and to expectations for the period
ending December 2008. This was despite a severe housing slowdown in the UK,
a mixed result on European shipping volumes and the impact of the Varanus
Island incident in Western Australia.”

“Whilst the trading outlook, particularly in the UK and Europe is uncertain, this
result demonstrates how the diversified and predominantly regulated essential
infrastructure portfolio mitigates the downside risk,” he said.


1
During the “intervening period” between the announcement dates of the Powerco and Euroports asset sales
and completion of these asset sales (as is the case for this reporting period) the statutory accounts show the
financial performance of these two businesses (for the current and prior year) being reported in one single line
item in the statutory Income Statement as “loss from discontinued operations”. The accounting treatment has
been reported in the Appendix 4D and in the BBI Investor Pack.
2
Prior corresponding period, being 31 December 2007.

2

“The PD Ports and Euroports businesses have some volume-related exposure
linked to current economic conditions. We anticipate this exposure will be
tempered as these businesses handle an extremely wide variety of cargo,
primarily focused on bulk products such as grain, fertiliser, bulk oil, minerals,
sugar, and thermal coal used in power generation.”

“The Energy Transmission and Distribution business remains robust with the
main uncertainty around the future growth rate of IEG’s UK residential gas and
electricity connections business”, Mr Kendrew said.

“Yesterday’s 58% closing of the sale of Powerco New Zealand, coupled with the
announced 29.7% sale of our Euroports portfolio represents good progress on
our capital management program. The sales proceeds will be applied to
repayment of debt and allow us to meet other commitments within the
businesses.”

“The next date at which a BBI corporate debt facility is due to be refinanced is
February 2010. In the meantime, we expect essential infrastructure assets to
continue to perform well and we will continue with our capital management plan.”

Financial Performance

BBI’s portfolio has performed to expectations with statutory revenue and other
income from operations (including continuing and discontinuing) of $1.397 billion
representing an increase of $366.7 million or 35.6% from the pcp. EBITDA from
continuing and discontinuing operations was $433.6 million compared to $326.9
million in the pcp.

The increase in BBI’s reported revenue and EBITDA can be primarily attributed
to the recognition of a full period contribution from the acquisitions that were
undertaken in the 2008 financial year and expansion projects completed. On a
like for like basis there has been underlying growth in EBITDA of approximately
5% across the portfolio.

A net loss after tax of $245.8 million for the period has been recognised in the
current half year period. The primary contributor to this loss was a A$298.3
million (pre-tax) non cash mark to market (MTM) expense associated with BBI’s
interest rate swaps and foreign exchange hedges. These items have no impact
on BBI’s operating performance or operating cash flows.

Capital Management

In the current period, BBI has refinanced over A$700m of debt across the
portfolio and since 31 December has refinanced a further A$170 million of debt
and paid down over $300 million of debt from the proceeds of the Powerco sale
that was completed and announced yesterday.

For the six months ended 31 December 2008, BBI‘s proportionate consolidated
EBITDA to proportionally consolidated interest3 was 1.71 times cover and at the
BBI corporate coverage the corporate debt interest at 31 December 2008 was
almost 5 times.

3
Excludes BBI EPS


At 31 December 2008, BBI had complied with all covenants through its debt
facilities and that position is unchanged today.

Asset Sale Update

On 19 June 2008, BBI announced that it had initiated a Capital Management
Review. As part of this review, BBI announced that it was looking at co-
investment and partnering opportunities in some of its assets. This has resulted
in a 29.7% sale of its Euroports portfolio and the 58% sale of Powerco New
Zealand which was successfully completed yesterday. These sales will facilitate
repayment of debt and allow BBI to meet other commitments within the
businesses.

BBI confirms it is engaged in ongoing discussions for the sale of a further interest
in Euroports and for equity stakes in WestNet Rail and PD Ports.

BBI also confirms that as a result of an indicative bid process for an equity
interest in DBCT the company has decided to offer a formal due diligence
process to a short list of interested parties.

Attachments

Attached is a copy of BBI’s Appendix 4D Preliminary Final Report and Analyst
Presentation which provides further detail. BBI will also separately release an
updated Investor Information Pack in due course.

At 31 December 2008, BBI had complied with all covenants through its debt
facilities and that position is unchanged today.

Asset Sale Update

On 19 June 2008, BBI announced that it had initiated a Capital Management
Review. As part of this review, BBI announced that it was looking at co-
investment and partnering opportunities in some of its assets. This has resulted
in a 29.7% sale of its Euroports portfolio and the 58% sale of Powerco New
Zealand which was successfully completed yesterday. These sales will facilitate
repayment of debt and allow BBI to meet other commitments within the
businesses.

BBI confirms it is engaged in ongoing discussions for the sale of a further interest
in Euroports and for equity stakes in WestNet Rail and PD Ports.

BBI also confirms that as a result of an indicative bid process for an equity
interest in DBCT the company has decided to offer a formal due diligence
process to a short list of interested parties.