Lead Manager

BABCOCK & BROWN PROSPECTUS
PRO-FORMA STATEMENT OF FINANCIAL PERFORMANCE
Year ended 31 December ($000) 2001A 2002A 2003A
$:US$ exchange rate 0.5176 0.5440 0.6529
Revenue from external parties 1,912,981 1,563,539 1,494,286
Income from equity accounted investments 614 2,700 11,198
Less: cost of sales (1,284,625) (957,192) (872,961)
Less: direct transaction costs (172,366) (139,393) (190,865)
Less: outside equity interests excluding BBIPL (1,368) (7,993) (8,731)
Net Revenue 1 455,236 461,661 432,927
Corporate interest revenue 9,292 7,355 6,465
Other (1,762) 796 1,188
Corporate interest expense (13,171) (9,430) (7,792)
Operating costs 1 (165,850) (196,912) (179,751)
Profit from ordinary activities before bonus expense,
income tax expense attributable to members and BBIPL
Outside Equity Interest 1 283,745 263,470 253,036
BBIPL outside equity interest 2 (85,124) (79,041) (75,911)
Profit from ordinary activities before bonus expense and
income tax expense attributable to members 198,621 184,429 177,125
1. Reconciliation of gross revenue
Revenue from external parties 1,912,981 1,563,539 1,494,286
Interest revenue 9,292 7,355 6,465
Other (1,762) 796 1,188
Total per AGAAP Financial Information 1,920,511 1,571,690 1,501,938
2. Reconciliation of expenses from ordinary activities excluding
borrowing costs and bonuses
Costs of sales 1,284,625 957,192 872,961
Direct transaction costs (excl. interest expense) 134,700 107,615 154,205
Operating costs (excl. interest expense) 165,850 196,912 179,751
Total per AGAAP Financial Information 1,585,175 1,261,719 1,206,917
3. Reconciliation of borrowing costs
Interest expense included in direct transaction costs 37,666 31,778 36,660
Corporate interest expense 13,171 9,430 7,792
Total per AGAAP Financial Information 50,837 41,208 44,452
NOTES
1.The difference between Net Revenue, operating costs and profit from ordinary activities before bonus expense and income tax expense attributable to members
and BBIPL outside equity interest set out above and the equivalent amounts in the Restated Financial Information in Section 5.2.2, relates solely to the
translation of underlying US$ numbers at the average rate for the period (as set out above) rather than the constant US$:$ exchange rate of $0.7220 used in the
preparation of the Restated Financial Information.
2.As noted in Section 2.5, the interests of the pre-IPO US Executive Stakeholders will be held directly in BBIPL under the new structure. Under AGAAP in the
consolidated financial statements of Babcock & Brown, these interests will be treated as an outside equity interest.
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