BABCOCK & BROWN

can be obtained free of charge by any person who requests it
during the Offer Period, by contacting the BBSN InfoLine
on 1800 818 562.
5.3 Consolidated income statement and
consolidated balance sheet
The financial information below comprises:
• the summary actual consolidated income statement of
Babcock & Brown for the period from 6 October 2004
to 31 December 2004. These are the actual statutory
results for 2004 as Babcock & Brown was incorporated on
2 April 2004, and only traded with effect from 6 October
2004, the date of listing on ASX;
• the summary historical pro-forma consolidated income
statement of Babcock & Brown for the 12 months ended
31 December 2004;
• the summary actual consolidated income statement of
Babcock & Brown for the six months ended 30 June
2005;
• the actual consolidated balance sheet of Babcock & Brown
as at 30 June 2005; and
• the pro-forma consolidated balance sheet of Babcock &
Brown as at 30 June 2005 reflecting the expected impact of
the Offer assuming the Offer was completed as at 30 June
2005 and $250 million of BBSN were issued.
Consolidated income statement
AGAAP AGAAP AIFRS
6 Oct 04 12 months 6 months
to ended ended
31 Dec 04 31 Dec 04 30 Jun 05
$’000 Actual 1 Pro-forma 2 Actual 3
Revenues from continuing operations 562,305 667,186 509,765
Expenses from continuing operations, amortisation and restructure costs
excluding finance costs and bonus expense (414,071) (334,900) (214,830)
Finance costs 4 (15,346) (63,905) (48,753)
Share of net profits of associates 9,831 18,870 27,725
Bonus expense (including amortisation of share options and bonus deferred rights) (98,474) (148,245) (126,743)
Profit from continuing operations before income tax expense 44,245 139,006 147,164
Income tax expense (18,821) (29,305)
Net profit 25,424 117,859
Minority interest excluding BBIPL (8,282) (7,705)
Net profit attributable to the Babcock & Brown Group, including BBIPL 17,142 110,154
BBIPL minority interest (4,890) (31,927)
Net profit attributable to members of Babcock & Brown 12,252 78,227
Notes: 1. The financial information for this period is based on the following exchange rates per A$ – US$0.7366; €0.5922; £0.4020; ¥79.5880,
being the average rates applying in the period.
2. The pro-forma result for the 12 months ended 31 December 2004 is only provided to the level of operating profit before tax.
The principal assumptions on which the pro-forma result has been calculated are: that the restructure of the Group immediately prior
to IPO occurred with effect from 1 January 2004, that those entities transferred into and out of the Group prior to the restructure
were transferred in and out with effect from 1 January 2004 on the same basis as actually occurred, that the IPO proceeds were
received at 1 January 2004, that the actual compensation arrangements during the period were reversed and bonus compensation was
paid consistent with principles set out in Note 3 of Appendix A of the IPO Prospectus, that the functional currency was Australian
dollars and that the accounts were compiled under AGAAP not USGAAP. The assumptions are consistent with those made in
preparing the pro-forma results for the years ended 31 December 2001, 2002 and 2003 which were included in Appendix A of the IPO
Prospectus, and are set out in more detail in Notes 2, 3 and 4 of Appendix A of the IPO Prospectus. As the Group was not a taxpayer for
the whole of the 12 months ended 31 December 2004 no pro-forma tax expense has been calculated. No minority interest is calculated
as the Group was restructured from a US partnership during the period.
3. The financial information for this period is based on the following exchange rates per A$ – US$0.7750; €0.5978; £0.4106; ¥81.6566,
being the average rates applying in the period.
4. Includes finance costs attributable to non-recourse debt as well as the Existing Corporate Facility. Finance costs attributable
to the Existing Corporate Facility during the six month period ended 30 June 2005 were $4.6 million.
BABCOCK & BROWN SUBORDINATED NOTES 43