Lead Manager

BABCOCK & BROWN PROSPECTUS
Our review of the Detailed Pro-Forma Historical Financial Information was conducted in accordance with the
Australian Auditing and Assurance Standard AUS 902 “Review of Financial Reports”.We made such inquiries
and performed such procedures as we, in our professional judgement, considered reasonable in the circumstances
including:
• a review of the adjustments used to translate the financial statements of BBH from applicable Accounting
Standards in the United States to AGAAP;
• analytical procedures on the pro-forma financial performance of Babcock & Brown for the relevant
historical period;
• a review of relevant audit work papers and other accounting records and other documents;
• a review of the reasonableness of the Pro-Forma Adjustments as a basis for compiling the Detailed Pro-
Forma Historical Financial Information;
• a comparison of consistency in application of the recognition and measurement principles in Accounting
Standards and other mandatory professional reporting requirements in Australia, and the accounting policies
adopted by Babcock & Brown disclosed in note 1 of the notes to the Detailed Pro-Forma Historical
Financial Information;
• enquiry of Directors, management and others; and
• a review of the adjustments used to translate the pro-forma financial information prepared under AGAAP to
Australian IFRS.
These procedures do not provide all the evidence that would be required in an audit, thus the level of assurance
provided is less than given in an audit.We have not performed an audit and, accordingly, we do not express an
audit opinion.
Review Statement
Based on our review, which is not an audit, nothing has come to our attention which causes us to believe that
the Detailed Pro-Forma Historical Financial Information does not present fairly:
(a) (i)
the pro-forma consolidated statements of financial performance of Babcock & Brown for the years
ended 31 December 2001, 2002 and 2003 and the pro-forma consolidated statements of cash flows for
the years ended 31 December 2002 and 2003; and
(ii) the pro-forma consolidated statement of financial position of Babcock & Brown at 31 December 2003;
in accordance with the Pro-Forma Adjustments, the recognition and measurement principles (but not all of the
disclosure requirements) prescribed in Accounting Standards and other mandatory professional reporting
requirements in Australia, and the accounting policies adopted by Babcock & Brown as disclosed in note 1 of the
notes to the Detailed Pro-Forma Historical Financial Information;
(b) (i)
the pro-forma consolidated statement of financial performance of Babcock & Brown for the year ended
31 December 2003; and
(ii) the pro-forma consolidated statement of financial position of Babcock & Brown at 31 December 2003;
in accordance with the Pro-Forma Adjustments and the recognition and measurement principles (but not all of
the disclosure requirements) of Australian IFRS.
Subsequent Events
Apart from the matters dealt with in this Report and elsewhere in this Prospectus, and having regard to the scope
of our Report, to the best of our knowledge and belief no material transactions or events outside of the ordinary
business of Babcock & Brown subsequent to 31 December 2003 have come to our attention that would require
comment on, or adjustment to, the information referred to in our Report or that would cause such information
to be misleading or deceptive.
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