Macquarie International Infrastructure Fund Limited SGX Quarterly ...

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Unaudited Financial Results=For the quarter ended 30 September 2007Current financial assets/liabilities held at their fair valueStand alone current financial assets held at their fair value moved from an asset position of $1.7 million as at 31December 2006 to a liability position of $4.5 million as at 30 September 2007. This balance reflects the fair value ofthe foreign currency forward contracts that MIIF has entered into to hedge the forecast distributions that it expects toreceive from its investments for a period of at least 12 months looking forward. The decrease in the value of theseforeign currency forward contracts reflects the general weakening of the Singapore dollar against some of thecurrencies to which MIIF is exposed, primarily the Australian Dollar, Canadian Dollar, Euro and Sterling Pound forthe period to 30 September 2007.The difference between the group and stand alone balance relates to the fair value of the interest rate swaps thatTanQuid has entered into to hedge its exposure to floating interest rates that arises as a result of the floating rateborrowings that it is party to.Property, plant and equipment and intangible assetsProperty, plant and equipment of $384.3 million relate to the tank storage facilities in Germany and other property,plant and equipment owned by TanQuid. The TanQuid balance sheet also contains intangible assets consisting ofsoftware packages. The decrease in property, plant and equipment is due to the application of the depreciationcharge for the quarter.Non-current financial assets held at their fair valueStand alone non-current financial assets held at their fair value increased from $1,334.8 million as at 31 December2006 to $1,804.8 million as at 30 September 2007. This balance reflects the fair value of all MIIF investments as at30 September 2007. The increase was due to a number of factors including:• Overall increase in the value of MIIF’s investments;• Additional investment by MIIF into Arqiva in response to Arqiva’s acquisition of National Grid Wireless;• Additional investment in MEIF; and• Investment in TBC.This increase was offset by the divestment of MIIF’s interests in MIC, MCG and DUET.The following table sets out a reconciliation of the value of MIIF’s investments from 31 December 2006 to 30September 2007:ListedsecuritiesCompanyBalance at31 Dec 06$’000Additionalinvestment /(divestment)$’000Distributionreceivedfrominvestments$’000Foreignexchangeeffects$’000Revaluationto30 Sep 07$’000CompanyBalance at30 Sep 07$’000MAp 154,539 - (5,989) 15,777 39,256 203,583MCG 143,213 (147,241) (5,123) 11,884 (2,733) -DUET 61,956 (85,151) (2,856) 6,031 20,020 -MIC 32,605 (37,402) (1,058) (229) 6,084 -392,313 (269,794) (15,026) 33,463 62,627 203,583UnlistedsecuritiesArqiva 228,635 259,067 (16,237) 7,892 69,374 548,731MEIF 219,071 42,600 (8,516) 13,199 66,173 332,527Canadian AgedCare147,989 - (13,463) 19,177 (900) 152,803TanQuid 122,929 - (19,240) 7,017 72,576 183,282CXP 120,598 - (5,680) - 2,947 117,865TBC - 265,960 (105,033) (2,252) 894 159,569Brussels Airport 103,247 - (21,951) 4,692 20,342 106,330Others 60 41 - 3 - 104942,529 567,668 (190,120) 49,728 231,406 1,601,211Totalinvestments1,334,842 297,874 (205,146) 83,191 294,033 1,804,794Macquarie International Infrastructure Fund Limited Page 12
Unaudited Financial Results=For the quarter ended 30 September 2007Non-current financial assets held at their fair value (cont’d)MIIF fair values all of its investments in its stand alone accounts. The value of MIIF’s listed investments is based onthe bid price of each security on the last trading day of the quarter. The value of the unlisted investments is basedon a detailed discounted cash flow financial model that is developed to calculate the value that each asset couldpotentially be sold to a willing buyer under normal conditions.Group non-current financial assets held at their fair value have increased from $1,218.3 million as at 31 December2006 to $1,621.6 million as at 30 September 2007. This balance reflects the fair value of all of MIIF’s investments,except the fair value of MIIF’s investment into TanQuid, which is replaced with the assets and liabilities of theTanQuid business in the Group balance sheet.GoodwillGoodwill of $33.0 million relates to the acquisition of TanQuid and Petroplus and represents the excess of theamount paid over the fair value of the net identifiable assets as at the date of acquisition.Trade and other payablesStand alone trade and other payables increased from $3.5 million as at 31 December 2006 to $9.5 million at 30September 2007. This amount comprises of $4.6 million of management fees payable to MIIF’s manager, MIMAL,$4.6 million of payables to suppliers for expenses related to acquisition activities, and accrued expenses anddirectors’ fees totalling $0.3 million.Group trade and other payables mainly relate to trade and other creditors payable by TanQuid. The TanQuidliabilities account for $37.7 million of the reported balance at 30 September 2007, and represent liabilities for leaserentals and other minor trade creditors.BorrowingsStand alone company borrowings increased from $89.5 million as at 31 December 2006 to $210.3 million as at 30September 2007. This increase was due to the drawdowns from MIIF’s borrowing facilities to subscribe to Arqiva’srights issue to fund Arqiva’s acquisition of National Grid Wireless, additional investments in MEIF and theinvestment into TBC. This increase has been offset by repayments from funds from the divestments of MIC, MCGand DUET, and from excess cash from operations.In the quarter under review, Group borrowings increased from $379.6 million as at 31 December 2006 to $522.5million as at 30 September 2007. The movement was mainly due to the increase in borrowings within the standalone company. The remainder of the borrowings of $312.2 million relate to the borrowings of TanQuid.The following table illustrates the ageing of MIIF’s borrowings:Groupas at30 Sep 07$’000Groupas at31 Dec 06$’000Amount repayable in one year or less, or on demand 1,936 6,460Amount repayable after one year 520,524 373,104Total borrowings 522,460 379,564Amount secured 312,157 290,022Amount unsecured 210,303 89,542Total borrowings 522,460 379,564The borrowings disclosed above include borrowings of TanQuid which comprise of bank loans as well as financelease liabilities. These bank loans are secured through a combination of: 1) pledge agreements, 2) agreements totransfer title in the tangible assets of the business to the lender in the event of default, 3) granting of a charge overthe real property of the business to the lender and 4) assignment of the hedging arrangements from TanQuid backto the lender. These arrangements exist only with respect to the borrowings of TanQuid. These borrowings aresecured over the assets within the TanQuid business and are non-recourse to MIIF.Macquarie International Infrastructure Fund Limited Page 13
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