Lead Manager

BABCOCK & BROWN PROSPECTUS
It should be noted that the Forecast Net Revenue is diversified across a large number of transactions of many
types, in a number of countries and across many Business Units. In the opinion of the Directors, the portfolio
effect of this together with probability weightings applied to potential revenue provides a reasonable basis for
confidence that the Forecast Net Revenue will be achieved. However, even if Forecast Net Revenue is achieved,
it is possible that the source and nature of such revenue could vary from that forecast in this Prospectus.
Furthermore, investors should be aware that the timing of actual events and the magnitude of their impact might
differ from that assumed in preparing the AGAAP pro-forma Forecasts and that this may have a materially
positive or negative effect on Babcock & Brown’s future financial performance or financial position.
Therefore, the AGAAP pro-forma Forecasts should not be regarded as a representation or warranty with respect
to its accuracy or the accuracy of the best estimate assumptions or that the Group will achieve, or is likely to
achieve, any particular results. Investors are advised to review the AGAAP pro-forma Forecasts set out below in
conjunction with the key assumptions underlying the AGAAP pro-forma Forecasts in Section 5.3.2.2, the
Independent Accountants’ Report on the pro-forma Forecasts set out in Section 6, the sensitivity analysis set out
in Section 5.3.2.3, the risk factors set out in Section 7 and other information contained in this Prospectus.
5.3.2.1 Pro-forma summary of forecast financial performance
Year ended 31 December ($000) 8 2003A 2004F 2005F
$:US$ exchange rate 0.6529 0.7220 0.7000
Net Revenue
– Real Estate 70,994 83,527 119,462
– Infrastructure and Project Finance 93,283 104,111 158,956
– Operating Leasing 88,142 101,619 126,433
– Structured Finance 137,761 96,524 99,215
– Corporate Principal Investment and Funds Management 42,747 38,328 29,253
Net Revenue 1 2 432,927 424,109 533,319
Other revenue 1,188
Net corporate interest income/(expense) (1,328) 5,759 20,977
Operating costs
– Payroll and related (96,714) (90,272) (108,214)
– Facilities (29,300) (26,811) (24,879)
– Other (53,737) (42,762) (49,389)
Operating costs (179,751) (159,845) (182,482)
Operating profit before bonuses, restructuring costs and
goodwill amortisation 3 253,036 270,023 371,814
Bonus expense (pro-forma) 4 5 (127,509) (153,900)
Operating profit before restructuring costs and goodwill
amortisation 142,514 217,914
Restructure costs – business closure 6 (8,300)
Restructure costs – IPO corporate structure 7 (1,500)
Operating profit before tax and goodwill amortisation 10 11 132,714 217,914
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