Lead Manager

APPENDIX A PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS
8. EXPENSES
2003 2002 2001
$000 $000 $000
8(a) Expenses From Ordinary Activities Excluding Borrowing Costs and Bonuses
Cost of assets sold
– Transportation equipment 697,175 915,562 1,268,449
– Real estate 82,047 41,630 –
– Semiconductor equipment 18,276 – –
– Subsidiaries and associates 75,463 – 16,176
Salaries and employee costs 108,737 111,444 95,116
Professional fees 52,667 36,274 32,405
Depreciation and amortisation 41,258 38,641 38,176
Occupancy 26,604 25,442 23,747
Transaction fees 32,238 26,532 41,167
Travel 15,445 25,243 17,218
Other 57,007 40,951 52,721
Total Expenses From Ordinary Activities Excluding
Borrowing Costs and Bonuses 1,206,917 1,261,719 1,585,175
Salaries and employee costs exclude bonuses paid to employees because Babcock & Brown will be implementing
a new incentive compensation plan following its equity raising that differs from the plan used for the presented
periods.
Other expenses include asset management fees paid on aircraft, railcars and real estate and property, insurance,
communication and IT related charges.
2003 2002 2001
$000 $000 $000
8(b) Other Disclosure Information
Borrowing costs expense
Interest expense 43,732 40,888 50,677
Other borrowing costs 720 320 160
Total Borrowing Costs Expensed 44,452 41,208 50,837
Depreciation of transportation equipment 32,995 29,298 29,388
Property and equipment depreciation 5,071 6,326 7,285
Other depreciation and amortisation 3,192 3,017 1,503
Total Depreciation and Amortisation Expenses 41,258 38,641 38,176
Foreign exchange gain/(loss) – Realised (26) 339 1,973
Foreign exchange gain/(loss) – Unrealised 4,796 (1,094) (1,241)
Realised gain/(loss) on interest rate hedges – (3,224) –
Unrealised gain/(loss) on interest rate hedges 1,819 (1,194) –
Total realised and unrealised gain/(loss) on foreign exchange
and interest rate hedges 6,589 (5,173) 732
192