Lead Manager

SECTION 5
FINANCIAL INFORMATION
5.3.1.3 Pro-forma statement of financial position
In any acquisition, AGAAP requires that (i) all assets and liabilities be carried at fair value and (ii) the difference
between the fair value of the assets and liabilities acquired and the consideration paid be treated as goodwill.
In the Babcock & Brown Restructure, for accounting purposes, the owners of the Group prior to the IPO are
deemed to subscribe for Shares in Babcock & Brown at the IPO price and this amount is treated as the deemed
consideration.The difference between this deemed consideration and the fair value of the underlying assets and
liabilities as at 31 December 2003 is reflected as the pro-forma goodwill amount.The pro-forma statement of
financial position has therefore been derived from the statement of financial position of BBH at 31 December
2003 adjusted to reflect:
• The transactions required to give effect to the restructured Babcock & Brown Group (see Section 8.3)
including the recognition of:
– all assets and liabilities at fair value at 31 December 2003
– deferred tax balances consistent with the new structure, and
– goodwill inherent in the Group
• The payment of dividends and distributions to the pre-IPO owners as part of the Restructure amounting to
approximately $128 million
• The raising of approximately $18 million from existing Executive Stakeholders immediately prior to
the IPO
• The raising of $550 million of new capital as part of the IPO
• The repayment of debt amounting to approximately $120 million from the proceeds of the IPO and
$20 million from existing cash resources
• Transaction costs associated with the IPO and capital raising estimated at $27 million
• The reflection of an outside equity interest representing the interests of the existing US Executive
Stakeholders held through BBIPL (see Section 2.5)
Further details of these pro-forma adjustments are set out in note 4 of Appendix A.
As at 31 December ($000)
2003A
Assets
Cash and short-term trading securities 570,733
Fees receivable from financing transactions 47,202
Other receivables 64,468
Notes receivable 164,430
Investments in financial assets 58,651
Investments accounted for using the equity method 161,776
Transportation equipment 503,498
Real estate 388,671
Semiconductor equipment 4,720
Plant, property and equipment 19,539
Assets under development 65,565
Other assets 28,968
Deferred tax assets 68,591
Intangible assets 725,733
Total assets 2,872,545
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