Babcock & Brown

Infrastructure - Outlook
• On 2 June 2006 BNB was selected as preferred tenderer to acquire the South Australian
power generator NRG Flinders with a total capacity of 760MW. This transaction is expected
to close by the end of the month. BNB has announced its intention to consolidate its equity
holdings in its current non wind power generation assets to establish a Babcock & Brown
branded power generation business.
• BNB has reached financial close on 29 PPP or similar projects in the UK, in which we retain
a management interest with a gross value of approximately £860 million. We expect to
establish a fund based in Europe to hold both our UK and Australian projects over which we
retain management rights and a financial interest.
• The Enersis energy portfolio performed ahead of expectations for 1H 2006. Work is continuing
to restructure and develop the portfolio readying it for future sale, in particular the wind and
hydro assets.
• To allow BNB to take advantage of the many opportunities in the US and European
infrastructure sectors the division may seek to raise additional pools of capital through the
creation of wholesale or listed funds in those regions.
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