ISSUER PROFILES

DEXUS PROPERTY GROUP

KEY CREDIT METRICS KEY DATA CREDIT RATING BBB+/Baa1 (S&P/MOODY’S) BOND PROTECTION FINANCIAL YEAR END 30 JUN GEARING COVENANT Y BLOOMBERG TICKER DXSAU LEVERAGE RATIO Y (TD/TTA, 0.55 & PRIORITY DEBT/TTA<0.3) ASX CODE DXS INTEREST COVER RATIO Y (2X) KEY FINANCIALS FY10 FY09 FY08 COUPON STEP-UP N MARKET CAPITALISATION (A$M) 3,700 3,500 4,000 TARGET GEARING <40% REVENUES (1) (A$M) 716.1 775.4 699.7 WEIGHTED AVERAGE DEBT MATURITY 3.2 YRS (AS AT 30 JUN 10) EBITDA (A$M) 515.3 569.3 528.5 WEIGHTED AVERAGE MATURITY OF 6.2 YRS (AS AT 30 JUN 10) NET PROFIT AFTER TAX (2) (A$M) 31.4 (1,455.1) 445.3 FIXED/HEDGED DEBT

DEBT/EBITDA (X) 4.4 4.5 5.8 WEIGHTED AVERAGE COST OF DEBT 6.6% (AS AT 30 JUN 10) NET DEBT/NET DEBT + EQUITY (3) 30.4 32.1 33.3 SHARE PRICE (FY END) (A$) 0.77 0.75 1.31 (1) Revenues from ordinary activities (2) Net profit after tax excluding minority interest FY09, as well as a A$160 million (3) Management reports gearing as net debt/total tangible assets (FY10 29.8%, FY09 MTN issue and an inaugural US$300 million 144a bond issue 31.2%, FY08 33.2%) in FY10, resulting in becoming the second A-REIT to issue into this market. About DEXUS Property Group Each of DEXUS’s financing documents contains financial EXUS Property Group (DEXUS) is one of covenants, including a maximum level of gearing and priority ’s leading property groups specialising in debt and a minimum EBITDA interest cover. world-class office, industrial and retail properties with total property funds under management of A$13.3 DEBT MATURITY PROFILE billion. In Australia DEXUS is the number one D 1,200 owner-manager of offices, number three in industrial properties and, on behalf of third-party clients, a leading 1,000 manager and developer of shopping centres. 800 906 600 613 Ownership 683 400

DEXUS is one of the largest property groups listed on the (A$M) VOLUME 191 200 391 355 105 Australian Securities Exchange. It has been listed since October 81 2004 with a ticker code of DXS. 0 50 Dec 10 Jun 11 Dec 11 Jun 12 Dec 12 Jun 13 Dec 13 Jun 14 FY15+ Liquidity position Capital markets Bank debt & Undrawn mortgage loans At 30 June 2010 DEXUS had surplus liquidity of A$1.2 billion consisting of undrawn committed facilities and cash. In SOURCE: DEXUS PROPERTY GROUP JUNE 30 2010 addition to managing liquidity through a range of debt facilities, DEXUS maintains a distribution reinvestment plan and a OUTSTANDING BONDS* ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE distribution payout ratio of 70%. AUD (DOMESTIC) (% OR BPS) DATE (BPS) 8 Feb 07 21.1 8 Feb 11 Fixed 6.75% 40.8/swap Debt funding 27 Jul 09 160 28 Jul 14 FRN 450/BBSW 450/BBSW At 30 June 2010 DEXUS had net debt of A$2.2 billion with a 21 Apr 10 180 21 Apr 17 Fixed 8.75% 270/swap weighted average maturity of 3.2 years. During the 2010 year USD (144A) DEXUS completed A$700 million of debt funding with a 28 Sep 09 300 15 Oct 14 Fixed 7.125% 444/swap * Excludes US private placements weighted average maturity of greater than five years. In April 2010 DEXUS repurchased just under A$180 FOR FURTHER INFORMATION PLEASE CONTACT: million of A$200 million in medium-term notes (MTNs) maturing in February 2011, and issued A$180 million in seven- Michael Christensen, Group Treasurer and Head of Strategic Planning +61 2 9017 1100 year notes, further lengthening its debt maturity profile. These [email protected] initiatives follow a total of A$1.1 billion in equity raised during www.dexus.com

22|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 FAIRFAX MEDIA

KEY DATA KEY CREDIT METRICS FINANCIAL YEAR END 27 JUN CREDIT RATING BB+ (S&P) BLOOMBERG TICKER FXJAU BOND PROTECTION ASX CODE FXJ GEARING COVENANT N

KEY FINANCIALS FY10 FY09 FY08 LEVERAGE RATIO Y (TD/CAP<0.6, PRIORITY INDEBTEDNESS NOT TO EXCEED 15% OF TOTAL ASSETS) MARKET CAPITALISATION (A$M) 3,104.6 2,869.4 4,434.5 INTEREST COVER RATIO N REVENUES (A$M) 2,484.6 2,599.13 2,900.76 CHANGE OF CONTROL Y EBITDA (A$M) 639.10 626.16 865.56 COUPON STEP-UP N NET PROFIT AFTER TAX (A$M) 278.70 (380.05) 386.88 WEIGHTED AVERAGE DEBT MATURITY 2.3 YRS (AS AT 27 JUN 10) DEBT/EBITDA (X) 2.20 3.75 3.41 WEIGHTED AVERAGE COST OF DEBT 8.0% P.A. (AS AT 27 JUN 10) NET DEBT/NET DEBT + EQUITY (%) 21.30 32.57 37.96 SHARE PRICE (FY END) (A$) 1.32 1.22 2.93 also has A$300 million of subordinated, deferrable, stapled preference securities, which have a perpetual term but can be About Fairfax Media redeemed or converted from April 2011. airfax Media is Australasia’s leading media company, with its headquarters in . In May 2007 Fairfax DRAWN COMMITTED DEBT FACILITIES BY FINANCIAL YEAR and Rural Press completed their merger, creating the largest integrated metropolitan, rural and regional, print 750

and online digital media company in Australasia. 709 F 500 In Australia mastheads include The Sydney Morning Herald,

The Age, The Australian Financial Review and The Sun-Herald.New 294

VOLUME (ASM) VOLUME 250 Zealand mastheads include The Dominion Post and The Press.In 183 119 117.8 70 52.3 addition, Fairfax Media publishes regional and community 0 5 newspapers, financial and consumer magazines, has radio FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 licenses in metro and regional Australia and several agricultural US private Eurobond issue AUD bank syndication publications in New Zealand and the US. placement III AUD domestic NZD facility US private The company has approximately 434 publications, 284 MTN placement II websites, 15 radio licenses and 24 printing centres in Australia, Chullora financing New Zealand and the US. *2011 & 2012 maturities covered by over A$1bn of cash and undrawn committed facilities and cash generated from business operations Ownership SOURCE: FAIRFAX MEDIA JUNE 27 2010 Fairfax Media is a public company listed on the Australian Securities Exchange since May 1992 as FXJ. OUTSTANDING BONDS* ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE AUD (DOMESTIC) DATE (BPS) Liquidity position 21 Jun 06 167.7 27 Jun 11 Fixed 6.865% 106/ACGB Undrawn bank facilities totalled about A$1 billion at 27 June EUR (EMTN) 2010, providing Fairfax Media with sufficient capacity to fund 7 Jun 07 350 15 Jun 12 Fixed 5.25% 80/OBL all debt maturities until calendar year 2012. * Excludes US private placements

Debt funding As at 27 June 2010 net debt totalled A$1,435 million, with a weighted average maturity of 2.3 years.

Fairfax Media’s debt capital base comprises primarily senior FOR FURTHER INFORMATION PLEASE CONTACT: unsecured debt and subordinated preference securities. The senior debt facilities comprise syndicated bank loans, US Dale Bridle, Group Treasurer +61 2 9282 3632 private placements, and Australian dollar and euro- [email protected] denominated public capital markets issuance. Fairfax Media www.fxj.com.au

23 ISSUER PROFILES

KEY CREDIT METRICS CREDIT RATING UNRATED BOND PROTECTION (CAPITAL NOTES)

GEARING COVENANT N LEVERAGE RATIO N INTEREST COVER RATIO N CHANGE OF CONTROL N COUPON STEP-UP N KEY DATA TARGET GEARING 40-50% (CURRENT GEARING: 27.3%) YEAR END 30 JUN WEIGHTED AVERAGE DEBT MATURITY 5 YRS (AS AT 30 JUN 10) BLOOMBERG TICKER FBU NZ WEIGHTED AVERAGE COST OF DEBT 7. 3% (93% OF BORROWINGS ARE AT FIXED RATES WITH AVG DURATION OF 4 YRS) (AS AT 30 JUN 10) NZX/ASX CODE FBU KEY FINANCIALS FY10 FY09 FY08 MARKET CAPITALISATION (NZ$M) 4,760 3,980 3,200 Fletcher Building borrows certain funds based on a negative REVENUES (NZ$M) 6,800 7,100 7,090 pledge arrangement which includes a cross guarantee from a EBITDA (NZ$M) 727 769 966 number of wholly-owned subsidiaries. It ensures that external NET PROFIT AFTER TAX (NZ$M) 272 (46) 467 senior indebtedness ranks equally in all respects and includes the DEBT/EBITDA (X) 1.52 1.75 1.91 NET DEBT/NET DEBT + EQUITY (%) 26.8 31.1 40.1 covenant that security can be given only in limited circumstances. SHARE PRICE (FY END) A$6.38/NZ$7.85 A$5.27/NZ$6.58 A$5.07/NZ$6.35 The company also borrows certain funds based on borrowing covenants that relate to gearing and interest cover. At 30 June About Fletcher Building 2010 the group was in compliance with all its covenants. letcher Building is a New Zealand-headquartered building materials manufacturer, distributor and contractor. The company is involved in the residential, DEBT MATURITY PROFILE commercial and infrastructure construction sectors. 300 Fletcher Building has five divisions – building products, 250 F 280 191 distribution, infrastructure, laminates and panels, and steel – that 200 190 161 deliver building products and construction materials and services. 150 102

Its businesses operate across Australasia, , , 100 103 86 and the rest of world, with around 16,000 employees. 67 50 40 VOLUME (NZ$M) VOLUME 0 Ownership -50 Fletcher Building is a public company, listed on both the New 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Zealand Exchange and Australian Securities Exchange as FBU Capital notes Other debt USPP since 2001. SOURCE: FLETCHER BUILDING JUNE 30 2010

Liquidity position OUTSTANDING BONDS At 30 June 2010 Fletcher Building had total available funding of ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON NZD (DOMESTIC) NZ$2,349 million, of which NZ$1,130 million was undrawn. CAPITAL NOTES Not applicable 68.3 15 Mar 11 Fixed, subordinated 7. 5 5 % Debt funding Not applicable 58.9 15 Mar 12 Fixed, subordinated 7.50% Debt facilities from banks account for 50% of total available Not applicable 75 15 Mar 13 Fixed, subordinated 8.90% funding, while 33% comes from the US private placement Not applicable 112 15 May 14 Fixed, subordinated 9.00% 39 8.50% market and 17% consists of capital notes. Debt requiring Not applicable 15 Mar 15 Fixed, subordinated Not applicable 17 15 May 16 Fixed, subordinated 9.00% refinancing within the next 12 months is low at around Not applicable 29.7 15 May 16 Fixed, subordinated 7.75 % NZ$116 million. This includes NZ$68 million of capital notes USD (USPP) subject to interest rate and term reset, NZ$18 million of 24 Oct 05 NZ$143 27 Oct 15 FRN Not disclosed expiring drawn facilities and NZ$30 million of undrawn 20 Sep 07 US$193.5 20 Sep 16 Fixed 6.23% facilities. The average maturity of the drawn debt of NZ$1,219 24 Oct 05 A$131.9 27 Oct 17 FRN Not disclosed million is over five years and the currency split is 52% AUD, 20 Sep 07 US$131.5 20 Sept 19 Fixed 6.43%

18% NZD, 235 USD, 5% EUR and 1 % GBP. FOR FURTHER INFORMATION PLEASE CONTACT: Approximately 93% of all borrowings have fixed interest Sara Double, Treasurer rates with an average duration of 4.4 years and at a rate of 7.5%. +64 4 525 9339 Inclusive of the floating rate borrowings, the average cost of debt [email protected] is 7.3%. All interest rates are inclusive of margins but not fees. www.fletcherbuilding.com

24|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 FONTERRA KEY CREDIT METRICS CREDIT RATING A+/AA- (S&P/FITCH) BOND PROTECTION GEARING COVENANT N LEVERAGE RATIO N INTEREST COVER RATIO N CHANGE OF CONTROL N COUPON STEP-UP N KEY DATA TARGET GEARING 50% YEAR END 31 JUL BLOOMBERG TICKER FCG NZ Debt funding NZX CODE NOT LISTED As of 31 July 2010 Fonterra had net interest-bearing debt of KEY FINANCIALS FY10 HY10 FY09# FY08 NZ$4.268 billion. The company used to run a commercial (12 MONTHS) (14 MONTHS) paper book of around NZ$1.5 billion. However, this now sits REVENUES (NZ$M) 16,73 7,740 16,030 19,510 at around NZ$300 million, and the difference has largely been NOT YET EBITDA* (NZ$M) AVAILABLE 420 1,420 1,140 funded via longer-term retail bond issuances. Fonterra borrows NET PROFIT AFTER TAX** (NZ$M) 669 NIL 599 244 a mixture of fixed and variable rate debt in a range of DEBT/EBITDA (X) NOT YET AVAILABLE 5.08 4.12 5.79 NET DEBT/NET DEBT + EQUITY (%)^ 43.6 53.3 52.7 57.4 currencies. It actively hedges its re-pricing profile using interest * Earnings before net finance costs, share of profit of equity accounted investees, impairment rate swaps in accordance with its treasury policy in order to of equity accounted investees, depreciation, amortisation and tax. manage the volatility of finance costs. Fonterra’s benchmark is ** Profit for the year attributable to shareholders of the parent. ^ Headline net debt to net debt plus equity is calculated prior to taking into account the to ensure 20-55% of interest payments are fixed, depending on effect of debt hedging. # FY09 net profit after tax has been restated as a result of the group changing its accounting the maturity of the debt. policy in respect of the tax effect of distributions to shareholders. In March 2010 Fonterra issued a NZ$150 million six-year unsecured fixed rate bond, the proceeds of which were used to About Fonterra partially replace a €300 million bond maturing in April 2010. ince Fonterra was formed in 2001 it has become the world’s largest dairy exporter and is responsible for OUTSTANDING BONDS

more than a third of international dairy trade. Dairy ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON generates approximately 21% of New Zealand’s total NZD (DOMESTIC) (% OR BPS) export revenues. Fonterra exports 95% of its New 21 April 04 50 21 Apr 11 Fixed 6.64% S 30 May 05 50 21 Apr 11 Fixed 6.64% Zealand-made dairy products to its customers in more than 300 140 countries around the world. The company’s milk tankers 27 May 08 27 Nov 12 FRN Base rate + 0.9725% 8 May 07 125 21 Apr 14 Fixed 6.86% collect around 14 billion litres of milk every year. In Australia 8 May 07 75 8 May 14 FRN 3-m BKBM-FRA + 0.35% Fonterra collects 21% of the country’s milk and operates 11 9 Oct 08 50 21 Apr 14 Fixed 6.86% manufacturing sites. Fonterra has partnerships with other 21 April 04 50 21 Apr 14 Fixed 6.86% leading global dairy companies in Scandinavia, the Americas, 30 May 05 53.3 22 Apr 14 Fixed 6.86% the US, South Africa, Germany and Holland. The company 30 May 05 46.7 22 Apr 14 Fixed 6.86% employs approximately 15,000 people. 9 Mar 09 800 11 Mar 15 Fixed 7.75 % 4 Mar 10 150 4 Mar 16 Fixed 6.83% Ownership 2000-2006 35 Perpetual FRN 1-yr govt stock rate + 1.70% As a cooperative, Fonterra is owned by more than 11,000 USD (USPP) 29 May 08 30 12 May 15 Fixed 5.36% farmer supplier shareholders in New Zealand, representing 5 Aug 03 165 5 Aug 15 Fixed 4.58% about 96% of all dairy farmers in the country. Fonterra is 29 May 08 277.5 12 May 18 Fixed 5.75% registered under the Companies Act 1993 and the Co-operative 29 May 08 42.50 12 May 20 Fixed 5.85% Companies Act 1996. It is also required to comply with the EMTN Dairy Industry Restructuring Act 2001. 30 Mar 04 ¥3,000 30 Mar 11 Fixed 1.0238% 11 Apr 06 £250 11 Apr 13 Fixed 4.875% Liquidity position 17 Feb 10 US$50 17 Feb 14 FRN 3-m USD Libor + 0.70% Fonterra’s liquidity policy requires that it has sufficient cash and 18 Jun 04 US$50 18 Jun 14 Fixed 5.55% 4 Dec 08 £225 4 Dec 23 Fixed 9.38% facilities available on demand to meet the greater of the 80-day requirement (to meet expected operational expenses for a period FOR FURTHER INFORMATION PLEASE CONTACT: of at least 80 days) and debt maturities due within the next 12 months. Group treasury manages liquidity by retaining cash and Stephan Deschamps, Treasurer +64 9 374 9344 marketable securities, the availability of funding from committed [email protected] credit facilities and the ability to close out market positions. www.fonterra.com

25 ISSUER PROFILES

GENESIS POWER

KEY DATA KEY CREDIT METRICS FINANCIAL YEAR END 30 JUN CREDIT RATING BBB+ (S&P) BLOOMBERG TICKER 11572Z NZ BOND PROTECTION

ASX CODE NOT LISTED GEARING COVENANT N KEY FINANCIALS FY10 FY09 FY08 LEVERAGE RATIO N

REVENUES (NZ$M) 1,895 1,960 2,440 INTEREST COVER RATIO N EBITDA (NZ$M) 249.0 202.4 300.7 CHANGE OF CONTROL N NET PROFIT AFTER TAX (NZ$M) 69 (135.7) 99.1 COUPON STEP-UP N DEBT/EBITDA (X) 2.46 3.60 2.20 BANK DEBT COVENANTS NET DEBT/NET DEBT + EQUITY (%) 28 31 28 GEARING 50% EBITDA/GROSS INTEREST 2.5X

About Genesis Power enesis Power (trading as Genesis Energy) is a New The remaining NZ$420 million is funded through a Zealand state-owned enterprise energy company. combination of retail bonds and medium-term notes. Genesis Energy generates power from a variety of Since 30 June 2010 Genesis Energy has also secured an sources, including thermal, wind and hydro additional NZ$575 million in bank facilities in anticipation of G generation. the expiration of NZ$400 million of syndicated bank debt in The company provides approximately 19% of New October 2011. The replacement of the NZ$400 million Zealand’s electricity from its thermal and renewable power syndicated bank debt facility was undertaken earlier than would stations, operating predominantly in the country’s North ordinarily be the case as Genesis Energy took advantage of Island. Genesis Energy is also an energy retailer supplying favourable debt market conditions. electricity, gas and liquefied petroleum gas (LPG) to more than 660,000 customers across the country. The company also owns 31% of the Kupe oil and gas field. DEBT MATURITY PROFILE TYPE NZ$M MATURITY FORMAT COUPON DATE Ownership Bank debt 400 5 Oct 11 Genesis Energy is a state-owned enterprise formed in 1998 Bank debt 50 29 Sep 12 when the Electricity Corporation of New Zealand split into Bank debt 50 29 Sep 13 three state-owned enterprises – the others being Meridian Bank debt 150 28 Jul 13 Energy (see p36) and Mighty River Power (see p37). Bank debt 225 28 Jul 14 Bank debt 200 28 Jul 15 Retail bonds A 120 15 Mar 14 Fixed 7.25% Liquidity position Retail bonds B 105 15 Mar 16 Fixed 7. 6 5 % A conservative liquidity position and moderate financial MTNs 75 15 Sep 16 Fixed Not disclosed flexibility have been provided through headroom in the MTNs 50 20 Feb 17 Fixed/FRN Not disclosed company’s debt facilities and an appropriately managed MTNs 70 23 Jun 20 Fixed Not disclosed near-term liability maturity profile. Genesis Energy’s liquidity risk management policies are conservative and include committed debt facilities that must be maintained at an amount that is the higher of NZ$50 million or 115% of projected peak over the next two years. The company is operating comfortably within its financial covenants.

Debt funding FOR FURTHER INFORMATION PLEASE CONTACT: Genesis Energy accesses a number of markets to provide debt Dan Dillane, Corporate Finance Manager funding for its business. Of the NZ$920 million of debt +64 9 580 4792 facilities in place at 30 June 2010, NZ$500 million is through [email protected] arrangements with individual banks or a banking syndicate. www.genesisenergy.co.nz

26|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 GOODMAN PROPERTY TRUST KEY CREDIT METRICS CREDIT RATING: GMT BBB (S&P) CREDIT RATING: GOODMAN+BONDS BBB+ (S&P) BOND PROTECTION

GEARING COVENANT 50% LEVERAGE RATIO Y (TOTAL BORROWINGS/VALUE OF SECURITY DEPOSITS) <=50%

INTEREST COVER RATIO N KEY DATA CHANGE OF CONTROL N YEAR END 31 MAR COUPON STEP-UP N BLOOMBERG TICKER GMT NZ TARGET GEARING 35-40% NZX CODE GMT WEIGHTED AVERAGE DEBT MATURITY 2.14 YRS (AS AT 30 SEP 10) KEY FINANCIALS FY10 FY09 FY08 WEIGHTED AVERAGE COST OF DEBT 7-8% (AS AT 30 SEP 10) MARKET CAPITALISATION (NZ$M) 858.7 676.3 1,108.8 REVENUES (NZ$M) 106.2 103.7 95.8 million of bank facilities. As of 31 March 2010 the trust had EBITDA (NZ$M) 99.4 96.4 89.5 NZ$222 million of bank debt expiring in 2011. There are no NET PROFIT AFTER TAX (NZ$M) (7.0) (74.1) 99.3 DEBT/EBITDA (X) 5.48 5.54 4.71 unfunded debt balances expiring prior to October 2011. NET DEBT/NET DEBT + EQUITY (%) 37.0 35.3 27.2 At 31 March 2010 Goodman had a gearing level of 37% and SHARE PRICE (FY END) (NZ$) 1.00 0.80 1.33 an average facility term of 2.24 years. At 30 September 2010 the facility term was 2.84 years – including bond maturities.

About Goodman Property Trust DEBT MATURITY PROFILE

oodman Property Trust (Goodman) owns, develops 300 and manages an industrial and commercial property 250 portfolio. Goodman NZ (GNZ) is the manager of 222

200 150 the trust. GNZ’s ultimate parent is . Goodman Group is the largest listed industrial real 150

100 84 45

G (NZ$M) VOLUME estate trust on the Australian Securities Exchange with a market capitalisation of approximately A$4.3 billion and funds under 0 66 management of approximately A$16.2 billion. Goodman 2010 2011 2012 2013 2014 2015 2016 2017 Group has operations in Australia, New Zealand, Asia, Europe Bank debt Bonds and the United Kingdom. SOURCE: GOODMAN PROPERTY TRUST MARCH 31 2010 OUTSTANDING BONDS Ownership ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON Goodman is listed on the New Zealand Exchange as GMT. It NZD (DOMESTIC) is one of New Zealand’s largest listed property trusts. 6 Nov 09 150 19 Jun 15 Fixed 7.75 % 8 Sep 10 45 8 Sep 17 Fixed 7.58% Liquidity position Goodman’s funding strategy is based around the ongoing OUTSTANDING BANK FACILITIES (GMT SHARE FOR JVs) diversification of capital sources with a focus on securing LENDER FACILITY (NZ$M) DRAWN (NZ$M) MATURITY income from its investment property portfolio. The trust Westpac 101.3 54.4 Oct 11 101.3 Oct 11 maintained a strong balance sheet position in FY09 and FY10 54.4 BNZ 101.3 54.4 Oct 11 through a series of prudent capital management initiatives – ANZ 26.3 27.6 Oct 11 including renegotiating the renewal of debt facilities, securing ANZ 75.0 26.7 Oct 13 an investment grade credit rating and the issue of retail bonds. Kiwibank 30.0 17.7 Oct 11 HDL facility A 37.5 26.6 Sep 13 Debt funding HDL facility B 75.0 53.3 Sep 15 Goodman had debt of NZ$547 million at 31 March 2010, VCCL facility A 13.5 13.5 Oct 11 including bank debt and NZ$150 million of corporate bonds. VCCL facility B 12.5 12.5 Feb 15 Sep 13 In June 2010 the trust acquired the remaining 50% share of HGL facility 31.0 31.0

Show Place Office Park in Christchurch. The debt secured on FOR FURTHER INFORMATION PLEASE CONTACT: the property was refinanced to September 2013. In September 2010 the trust issued a seven-year NZ$45 million wholesale John Dakin, Chief Executive Officer +64 9 375 6063 bond, to be used to refinance existing bank debt. In October [email protected] Goodman anounced the refinancing of a further NZ$200 www.goodman.com

27 ISSUER PROFILES

THE GPT GROUP KEY CREDIT METRICS CREDIT RATING A-/Baa1 (S&P/MOODY'S) BOND PROTECTION 1999 PROGRAMME 2010 PROGRAMME* GEARING COVENANT YY LEVERAGE RATIO N N INTEREST COVER RATIO N Y CHANGE OF CONTROL N Y COUPON STEP-UP N Y KEY DATA TARGET GEARING 25-35% (MANAGEMENT TARGET <=30%) FINANCIAL YEAR END 31 DEC WEIGHTED AVERAGE DEBT MATURITY 2.7 YRS (AS AT 30 JUN 10) BLOOMBERG TICKER GPTAU WEIGHTED AVERAGE COST OF DEBT 7.5% (AS AT 30 JUN 10) ASX CODE GPT * No issuance under programme KEY FINANCIALS HY10 FY09 FY08 MARKET CAPITALISATION (A$M) 5,214 5,613 4,110 notes and inflation-linked bonds. Key recent initiatives achieved REVENUES (A$M) 422.3 989.1 1.158.9 to strengthen GPT’s balance sheet include flattening the EBITDA (A$M) 268.1 560.1 729.1 maturity profile and extending tenor with longer-term debt NET PROFIT AFTER TAX (A$M) 145.2 (1,070.6)* (3,253.5)*

DEBT/EBITDA (X) 4.5 3.7 6.9 raisings (between five and seven years), and an upgrade of the NET DEBT/NET DEBT + EQUITY (%) 25.5 23.5 33.7 credit rating by Standard & Poor’s to A- from BBB+. SHARE PRICE (FY END) (A$) 2.81 0.61 0.92 In August 2010 GPT secured commitments for up to * The losses in FY09 and FY08 resulted from large fair value decrements which were non- A$600 million new bank lines commencing October 2010 and cash but required under AIFRS. Realised operating income (earnings after interest and tax) an extension of an existing A$200 million bank loan maturing for FY09 was A$375.8m and for FY08 was A$468.8m in September 2011. The proforma weighted average facility term to maturity is 3.3 years as at October 2010. About GPT Group There is a further A$1.5 billion of debt that matures in he GPT Group (GPT) is a property company with a October 2012. GPT has funding for all of 2010 and 2011 and focus on active ownership of high-quality Australian has made progress towards the 2012 loan expiry, which remains real estate in the retail, office and industrial sectors. the group’s key focus. GPT’s aim is to ensure that debt maturity Funds management and selective development is less than 20% of total debt at any point in time or a maximum T complement this focus. Total assets have grown to of A$1 billion per year or A$500 million in any calendar quarter. A$9.5 billion at 30 June 2010 from A$6 million in 1971. At 30 June 2010 retail assets comprised about 47% of the PROFORMA DEBT MATURITY PROFILE group’s asset base, office assets comprised 20%, while industrial 1.800 assets represented 9%. GPT’s equity-accounted interest in the 1.600 1.462 1.462 office and retail wholesale investment funds comprise 10% and 1.400

6% of total assets, respectively. 1.200 1.542

1.000 940 Ownership 800 600 433 434 415 GPT is a public company, listed on the Australian Securities (A$M) VOLUME 326

400 300 Exchange in April 1971 as GPT. It is one of the top 50 listed 200 85 85 companies on the exchange by market capitalisation. GPT is 0 40 internally managed with the responsible entity (GPT RE 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2029 Limited) a subsidiary of GPT Management Holdings Limited. Drawn Facility

SOURCE: GPT GROUP JUNE 2010 Liquidity position At 30 June 2010 GPT had A$2.1 billion of liquidity available in OUTSTANDING BONDS

cash and through committed but undrawn debt facilities. ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE Terms are agreed for up to a further A$600 million of funding. AUD (DOMESTIC) (% OR BPS) DATE (BPS) 19 Aug 03 12 22 Aug 13 FRN 78/BBSW 78/BBSW 19 Aug 03 200 22 Aug 13 Fixed 6.5% 78/swap Debt funding 10 Dec 99 85 10 Dec 29 CPI-linked 5.9% + CPI Not disclosed GPT intends to manage its gearing within the range of 25-35%.

As at 30 June 2010 gearing on a net basis was 25.5%. FOR FURTHER INFORMATION PLEASE CONTACT: Drawn debt as at 30 June 2010 was A$2.4 billion with an Anastasia Clarke, Group Treasurer average drawn debt to maturity of 2.7 years. This is sourced +61 2 8239 3555 from a variety of funding sources including bank debt facilities [email protected] from domestic and offshore banks, domestic medium-term www.gpt.com.au

28|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 HOLCIM

KEY CREDIT METRICS CREDIT RATING BBB/Baa2/BBB (S&P/MOODY’S/FITCH) BOND PROTECTION

GEARING COVENANT N LEVERAGE RATIO N KEY DATA (HOLCIM GROUP) INTEREST COVER RATIO N FINANCIAL YEAR END 31 DEC CHANGE OF CONTROL Y (PARTIAL) BLOOMBERG TICKER HOLNVX COUPON STEP-UP Y (PARTIAL) ASX CODE NOT LISTED IN AUSTRALIA TARGET GEARING 80-100% KEY FINANCIALS (HOLCIM GROUP) HY10 FY09 FY08 WEIGHTED AVERAGE DEBT MATURITY 4.4 YRS (AS AT 30 JUN 10) REVENUES (CHFM) 10,902 21,132 25,157 WEIGHTED AVERAGE COST OF DEBT 4.3% (AS AT 30 JUN 10) OPERATING EBITDA (CHFM) 2,343 4,630 5,333 NET PROFIT (CHFM) 611 1,958 2,226 Holcim has improved liquidity and decisively strengthened its DEBT/EBITDA (X) 3.66 3.95 3.50 balance sheet. The company places great importance on NET DEBT/NET DEBT + EQUITY (%) 38.65 38.56 45.57 maintaining its solid investment grade credit rating by complying with financial targets – such as funds from operations to net About Holcim financial debt (target >25%) or net financial debt to EBITDA ounded in Switzerland in 1912, Holcim is one of the (target <2.8x). At around CHF750 million, maturities in the world’s leading producers of cementitious materials and capital markets are limited over the next 12 months. aggregates. The group also supplies ready-mix concrete, Holcim Finance (Australia) is used as a finance vehicle for concrete products, asphalt and services. Holcim operates the group and its long-term transactions are guaranteed by the F in around 70 countries and employs some 80,000 people. parent company. Outstanding corporate bank lines and bonds It is more globally spread than any other building materials group, at the parent or financial sub-holding level are free from any with around 2,000 locations around the world. financial covenants, repeating material adverse change clauses Holcim’s business strategy is based on continuous growth in or rating triggers. In addition, these debt instruments feature both developed economies and emerging, high-growth markets, limited cross-default provisions, which typically exclude where around three-quarters of its operational cement capacity operating subsidiaries, therefore removing the risk that any – accounting for around half of the group’s net sales – is based. potential covenant breach by the group’s operating subsidiaries As an economy becomes more mature, vertical integration becomes increasingly important for Holcim. The company took HOLCIM GROUP DEBT MATURITY PROFILE the opportunity to move toward vertical integration in Australia 5,000 in 2009 through the successful acquisition of Cemex Australia – 4,000 now Holcim Australia – which has around 80 aggregates plants 4,093 and 1 billion tonnes of raw material reserves, around 250 ready- 3,000 2,721 2,302 2,094 mix concrete facilities and 16 plants producing concrete 1,996 2,000 products. 1,149 1,037 829 VOLUME (CHFM)* VOLUME 1,000 660 542

Ownership 277 0 Holcim is listed on the SIX Swiss Exchange. According to its last <1Y 2Y 3Y 4Y 5Y 6Y 7Y 8Y 9Y 10Y >10Y reporting on 15 August 2010, 18.2% of shares was held by Capital markets Loans Thomas Schmidheiny, 6.5% by Eurocement Holding AG and * Current financial liabilities adjusted for short-term drawings 5% by Capital Group Companies Inc. under long-term committed credit lines SOURCE: HOLCIM JUNE 30 2010

Liquidity position OUTSTANDING BONDS: HOLCIM FINANCE (AUSTRALIA)

At 30 June 2010 Holcim had CHF3.7 billion in cash and ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE marketable securities and CHF5 billion in undrawn committed AUD (DOMESTIC) DATE (BPS) credit lines. 7 Aug 09 500 7 Aug 12 Fixed 8.5% 335/swap

FOR FURTHER INFORMATION PLEASE CONTACT: Debt funding Holcim has reduced its bank borrowings in favour of capital Markus Unternährer, Corporate Financing and Treasury +41 58 858 8722 market financing: 62% of financial liabilities are financed through [email protected] capital markets and 38% through banks and other lenders. www.holcim.com

29 ISSUER PROFILES

INCITEC PIVOT

KEY DATA KEY CREDIT METRICS FINANCIAL YEAR END 30 SEP CREDIT RATING BBB/Baa3/BBB (S&P/MOODY’S/FITCH) BLOOMBERG TICKER IPLAU BOND PROTECTION ASX CODE IPL GEARING COVENANT N KEY FINANCIALS HY10 FY09 FY08 LEVERAGE RATIO N

MARKET CAPITALISATION (A$M) 5,638.5 4,563.5 6,171.4 INTEREST COVER RATIO N REVENUES (A$M) 1,236.4 3,418.9 2,918.2 CHANGE OF CONTROL Y BUT ONLY WHERE THE COMPANY ALSO FAILS TO MAINTAIN AN INVESTMENT GRADE CREDIT RATING EBITDA (A$M) 296.60 705.53 1,025.81 COUPON STEP-UP N NET PROFIT AFTER TAX (A$M) 132.1 (179.9) 604.6 TARGET GEARING <2.5X (DEBT TO EBITDA) DEBT/EBITDA (X) 1.90 1.97 1.98 WEIGHTED AVERAGE DEBT MATURITY 7 YRS (AS AT 31 MAR 10) NET DEBT/NET DEBT + EQUITY (%) 27.40 36.20 47.09 WEIGHTED AVERAGE COST OF DEBT 5.1% (AS AT 31 MAR 10) SHARE PRICE (FY END) (A$) 3.47 2.83 5.07

About ncitec Pivot is a leading global chemicals company with Incitec Pivot significantly extended the tenor of its debt nitrogen-based manufacturing at its core. The company is portfolio with the issue of a US$800 million 144a Reg S bond the number one supplier of fertilisers in Australia, a deal in December 2009. This deal complements the company’s market-leading supplier of explosives products and existing participation facilities (A$300 million) that mature in I services in North America – the largest industrial August 2013 and September 2014 and a A$1.1 billion explosives market in the world – and number two supplier of syndicated facility maturing in October 2011. explosives products and services in Australia. Incitec Pivot has operations throughout the US, Canada, OUTSTANDING BONDS Mexico, Australia, Turkey, Chile, Indonesia and Papua New ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE Guinea, with approximately 4,500 staff worldwide. Its USD (144A) DATE (BPS) headquarters are in Melbourne. 3 Dec 09 800 10 Dec 19 Fixed 6.00% 270/UST

Ownership Incitec Pivot was created via the merger between Pivot and Incitec Fertilizers in 2003. It has been listed on the Australian Securities Exchange since July 2003 as IPL and is one of the top 50 listed companies on the exchange.

Liquidity position In its 2010 half year-results presentation Incitec Pivot reported that it has a significant level of funding headroom with undrawn committed funding lines of over A$1.1 billion – including cash.

Debt funding The consolidated entity has foreign operations with non-Australian dollar functional currencies and therefore is

exposed to translation risk resulting from foreign exchange FOR FURTHER INFORMATION PLEASE CONTACT: movements. As a result, the consolidated entity has a Geoff McMurray, Treasury preference for debt denominated in US dollars. Incitec Pivot +61 3 8695 4553 anticipates it will have at least US$800 million of debt [email protected] borrowed directly in US dollars for the foreseeable future. www.incitecpivot.com.au

30|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 KEY CREDIT METRICS CREDIT RATING UNRATED BOND PROTECTION

GEARING COVENANT N LEVERAGE RATIO Y (BORROWED MONEY INDEBTEDNESS/ TANGIBLE ASSETS) <= 50% INTEREST COVER RATIO N

CHANGE OF CONTROL Y IF A PARTY ACQUIRES 90% OF INFRATIL KEY DATA COUPON STEP-UP Y (FOR PERPETUAL INFRASTRUCTURE BONDS ONLY; AT A LEVERAGE RATIO > 60%) YEAR END 31 MARCH TARGET GEARING METRICS CONSISTENT WITH A BBB BORROWER BLOOMBERG TICKER IFT NZ WEIGHTED AVERAGE DEBT MATURITY 5.8 YRS (AS AT 31 MAR 10) NZX CODE IFT WEIGHTED AVERAGE COST OF DEBT 7.1% (AS AT 31 MAR 10) ASX CODE IFZ

KEY FINANCIALS FY10 FY09 FY08 MARKET CAPITALISATION (NZ$M) 1,002 764 1,104 Debt funding REVENUES (NZ$M) 1,836 1,734 1.356 Infratil’s debt can be grouped in three categories. Subordinated EBITDA (NZ$M) 363.3 356.7 315.9 bonds are used to provide core debt and totalled NZ$749 NET PROFIT AFTER TAX (NZ$M) 95 (191) (1.7) million on 31 March 2010. Parent and 100% subsidiary bank NET DEBT (NZ$M) 830 1,212 1,146 DEBT/EBITDA (X) 2.3 3.4 3.6 debt is used for bridging purposes and this totalled NZ$82 NET DEBT/NET DEBT + EQUITY (%) * 32 49 40 million on 31 March 2010. Subsidiaries and joint ventures NET DEBT/NET DEBT + EQUITY (%) 46 61 51 (Wellington Airport, Perth Energy, , Greenstone) SHARE PRICE (FY END) (NZ$) ** 1.6 1.74 1.83 have capital structures to reflect their own credit circumstances * Including perpetual subordinated capital notes as equity and shareholder interests. As at 31 March 2010 their net debt ** Listed on ASX 26 August 2010 totalled NZ$950 million, comprising NZ$649 million of bonds About Infratil and a net NZ$301 million of bank borrowing. nfratil is an investor in energy, airports, public transport Infratil has a strategic goal of BBB-calibre metrics, and fuel distribution. It accepts demand-price risk – as recognising that this is a fluid concept given variable financial opposed to having businesses with regulated returns – and market liquidity. In 2010 and 2011 three companies in the prioritises high-growth infrastructure sectors which create group are expected to undertake domestic bond issues: I reinvestment opportunities. Infratil’s energy and fuel Greenstone Energy will issue six-year bonds to repay investments are in New Zealand (50.5% of TrustPower [see acquisition bank debt, TrustPower may undertake issuance p53] and 50% of Greenstone Energy – which was previously under its bond programme, and Infratil is likely to issue bonds Shell’s New Zealand downstream assets) and Australia (energy as a part of its offer to roll the bonds maturing in 2011. retailing and generation activities in Victoria, Queensland, South Australia and Western Australia). Infratil owns 66% of MATURITY PROFILE OF BORROWING FROM SUBORDINATED Wellington International Airport (see p56) and two small BONDS AND PARENT AND 100% SUBSIDIARY BANK DEBT NZ$M 2011 2012 2013 2014 2015 2020 LONGER airports in the UK. The company’s public transport operations BONDS 132 57 85 153 81 320 account for over 50% of that market in New Zealand. PARENT BANK * (58) Following the global financial crisis the company sold its LIMITED RECOURSE 140 low cash-yielding investments and redeployed the capital with * cash deposits the acquisition of Shell’s fuel operations in New Zealand and a number of internal projects, in particular the construction of OUTSTANDING BONDS ISSUE DATE FACE VALUE MATURITY COUPON peaker power stations in South Australia and Western Australia. (NZ$M) Dec 05 112 15 May 11 8.25% Ownership Dec 01 20 15 Nov 11 8.50% Infratil is a public company, listed on the New Zealand Aug 05 57 15 Nov 12 7.75 % Exchange as IFT and the Australian Securities Exchange as IFZ. Aug 03 85 15 Sep 13 8.50% Management owns around 10% and New Zealand retail Dec 04 153 15 Nov 15 8.50% Dec 05 81 investors hold 42%. 15 Feb 20 8.50% Nov 06 239 Perpetual 1Y + 1.5%

Liquidity position FOR FURTHER INFORMATION PLEASE CONTACT: As at 31 March 2010 Infratil and wholly-owned subsidiaries had NZ$632 million of committed bank facilities with net drawings Tim Brown +64 4 4732399 of NZ$82 million. In April 2010 NZ$210 million was drawn on [email protected] the facilities to acquire 50% of the Shell NZ fuel operations. www.infratil.com

31 ISSUER PROFILES

JOHN DEERE CAPITAL CORPORATION

KEY DATA KEY CREDIT METRICS FINANCIAL YEAR END 31 OCT CREDIT RATING A/A2 (S&P/MOODY’S) BLOOMBERG TICKER DE ASX CODE NOT LISTED IN AUSTRALIA KEY FINANCIALS HY10 FY09 FY08 and term debt dominated in US dollars, euros, Canadian dollars REVENUES (US$M) 826.6 1,756.2 1,967.4 and Australian dollars.. NET PROFIT (US$M) 133.4 221.9 437.1

Debt funding About John Deere Capital Corporation The company seeks to maintain diverse, sustainable funding fter being founded in 1837, John Deere has grown sources including term debt, asset-backed securitisation and CP. from a one-man blacksmith shop into a global JDCC is the largest credit operation of Deere & Company. In corporation employing more than 50,000 people in total, by 31 July 2010 the Deere & Company had US$21.0 more than 160 countries. The company has long billion of external debt funding, 84% of which was long-term A been the strongest agricultural equipment provider debt, 15% was asset-backed securities, and 1% of which was CP. in North America, with the leading market share for large JDCC’s operations have substantial unsecured debt tractors and combines. John Deere also has solid positions for maturities, but term receivables largely match debt maturities. agricultural equipment in Europe and Latin America. JDCC manages fixed and floating rate interest exposure John Deere Capital Corporation (JDCC) is the parent of through swaps and the issuance of fixed and floating rate John Deere Credit Limited (JDCL), the Australian credit entity MTNs. which began operations in Perth in 1947. JDCC generates revenue primarily by financing John Deere DEBT MATURITY PROFILE (GROUP) dealers’ sales and leases of new and used agriculture, turf, construction and forestry equipment. It also provides wholesale 6,000 financing to dealers of such equipment, supplies operating loans, 5,000 finances retail revolving charge accounts, and offers crop risk 4,000

mitigation products. 3,000

Ownership 2,000 VOLUME (US$M) VOLUME JDCC is a wholly owned captive-finance subsidiary of John 1,000 Deere. There is a support agreement between John Deere and 0 JDCC whereby John Deere agrees to continue to own at least FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 51% of the voting shares of JDCC, to uphold a fixed-charge USD CAD EUR coverage ratio at JDCC of no less than 1.05 to 1, and to SOURCE: JOHN DEERE GROUP JULY 31 2010 maintain JDCC’s net worth of at least US$50 million. JDCC is the guarantor of JDCL’s debt.

Liquidity position In its latest investor presentation, John Deere reported in August 2010 that it has a US$5.25 billion credit facility supporting commercial paper, which on 31 July 2010 comprised a US$3.75 billion five-year facility expiring in 2012 and a US$1.5 billion 37-month facility expiring in 2013. The company is supported by a committed bank group, the members of which have had continuous relationships with FOR FURTHER INFORMATION PLEASE CONTACT: John Deere for an average of 27 years. Stockholder Relations Department John Deere has multiple sources of liquidity as an issuer of +1 309 765 4539 commercial paper (CP), term asset-backed notes, retail notes, www.deere.com

32|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 KIWI INCOME PROPERTY TRUST

KEY CREDIT METRICS CREDIT RATING UNRATED BOND PROTECTION KEY DATA GEARING COVENANT Y (UNDER TRUST DEED AND BANK COVENANTS) LEVERAGE RATIO N YEAR END 31 MAR INTEREST COVER RATIO Y (2.25X) (UNDER BANK COVENANTS. BLOOMBERG TICKER KIP:NZ CALCULATED AS NET RENTAL INCOME NZX CODE KIP OVER BANK INTEREST EXPENSE) CHANGE OF CONTROL N KEY FINANCIALS FY10 FY09 FY08 COUPON STEP-UP N MARKET CAPITALISATION (NZ$M) 807.3 695.6 869.8 TARGET GEARING REVENUES (NZ$M) 188.6 183.8 172.5 <40% [TRUST DEED GEARING (BANK DEBT / TOTAL ASSETS) <45%; BANK COVENANT EBITDA (NZ$M) (1) 122.8 121.5 113.5 GEARING (BANK DEBT, INCLUDING INTEREST RATE DERIVATIVES / TOTAL ASSETS) ] NET PROFIT AFTER TAX (NZ$M) (12.3) (169.0) 123.0 WEIGHTED AVERAGE DEBT MATURITY 1.9 YRS (AS AT 31 MAR 10) DEBT/EBITDA (X) 6.78 6.39 6.28 WEIGHTED AVERAGE COST OF DEBT* 7.07% (AS AT 31 MAR 10) NET DEBT/NET DEBT + EQUITY (2) (%) 24.4 32.9 27.2 SHARE PRICE (FY END) (NZ$) 1.00 0.96 1.21 * Including margins & fees 1. Excludes non-operating income and expenses. 2. At 31 Mar 2010: calculated as bank debt less NZ$113.8m MCN proceeds, over total assets (excluding MCN proceeds on deposit). These initiatives, totalling NZ$223 million, enabled KIPT to reduce debt, diversify its sources of funding, extend the About Kiwi Income Property Trust duration of its funding base and provide flexibility to consider iwi Income Property Trust (KIPT) is New Zealand’s value added investment opportunities. largest listed diversified property trust by total assets, KIPT had the following debt funding facilities in place as at with NZ$1.85 billion invested in a diversified 31 March 2010:

portfolio of prime office and retail assets located BANK FACILITIES NZ$M K throughout New Zealand. It was founded in 1992 Bilateral facilities [ANZ, BNZ, CBA and Westpac] 800 and became New Zealand’s first listed property trust in 1993. Balance drawn 571 KIPT’s objectives are to optimise earnings and provide Balance undrawn 229 attractive long-term sustainable returns to investors through the Cash on deposit 118 strategic acquisition, intensive management and ongoing Percentage of drawn debt hedged 94% MANDATORY CONVERTIBLE NOTES (MCNS) 2005 SERIES 2009 SERIES development of office, retail and industrial property assets. (NZ$M)* (NZ$M) Number of MCNs on issue 142.2 120 Ownership Maturity date 30 Jun 10 20 Dec 14 KIPT is a unit trust established under the Unit Trusts Act 1960 Coupon 8.00% 8.95% * On 30 June 2010 these converted to 162 million units in KIPT by a deed of trust dated 21 August 1992 (as amended). KIPT is listed on the New Zealand Exchange as KIP. KIPT has the following covenants: Liquidity position (a) Bank covenants At the year ending 31 March 2010 KIPT had a strong liquidity • Loan to value ratio threshold of <45% (30.5% as at 31 position with total committed facilities of NZ$800 million and March 2010). Calculated as bank borrowings (including net drawn debt of NZ$571 million. In addition, KIPT had cash on interest rate derivatives liability of NZ$32.7m) over total assets. deposit of NZ$113.8 million. KIPT generates sufficient cash • Interest cover ratio of >2.25x (3.73x as at 31 March 2010). flows from operating activities to meet obligations arising from Calculated as net rental income over net interest expense (the its financial liabilities. latter excludes interest on mandatory convertible notes). (b) Trust deed covenant Debt funding • Ratio of bank debt to total assets of <40% (28.8% as at 31 The board has consistently held the view that it is essential to March 2010). This is calculated as bank borrowings over maintain a strong balance sheet. During FY10 KIPT total assets. undertook the following capital management initiatives: FOR FURTHER INFORMATION PLEASE CONTACT: • Institutional placement in April 2009: NZ$50m; • Unit purchase plan in June 2009: NZ$15m; Gavin Parker, Chief Financial Officer +64 9 359 4012 • Asset sales in June and August 2009: NZ$38m; and [email protected] • Mandatory convertible notes in December 2009: NZ$120m. www.kipt.co.nz

33 ISSUER PROFILES

LEASEPLAN

KEY CREDIT METRICS CREDIT RATING BBB+/A3/A- (S&P/MOODY’S/FITCH) WEIGHTED AVERAGE COST OF DEBT 3.3% (AVG INTEREST RATE ON PARENT COMPANY’S OUTSTANDING DEBT AS AT 31 DEC 09)

KEY DATA debt will largely match the average maturity of the company’s FINANCIAL YEAR END 31 DEC lease contracts. Consequently, new funding is required on a BLOOMBERG TICKER LPTY regular basis to provide clients with new vehicles at the end of ASX CODE NOT LISTED IN AUSTRALIA the contract term. KEY FINANCIALS (PARENT COMPANY) HY10 FY09 FY08 In debt capital markets LeasePlan has successfully EBITDA (¤ M) 3,512 5,990 6,163 established an independent funding platform. To date it has NET PROFIT (¤ M) 90 165 202 issued in 14 different currencies in multiple formats – both structured and vanilla – off its €15 billion euro medium-term About LeasePlan note (EMTN) programme. This has attracted a wide variety of easePlan is a financial institution operating as a growing investors from numerous jurisdictions in both public and international network of car leasing companies private format. engaged in fleet and vehicle management, mainly In addition to its EMTN programme, LeasePlan also has a through operational leasing. LeasePlan has grown A$2 billion Kangaroo programme and a funding mix that L organically and through acquisitions to become the incorporates committed liquidity backstop facilities (for a total world’s leading independent fleet and vehicle management amount of €1.125 billion), a securitisation programme which to company, with leading positions in 12 countries. date has created over €2.5 billion of asset-backed securities in LeasePlan has a presence in 30 countries and manages 1.3 three different jurisdictions (the Netherlands, Germany and the million vehicles worldwide with a gross lease portfolio totalling UK), a €3 billion euro commercial paper programme, a €2 €14.2 billion on 30 June 2010. Approximately 90,000 vehicles billion Belgian certificates of deposit programme, and German are managed by LeasePlan Australia with clients representing promissory notes (Schuldsheine). In February 2010 LeasePlan corporate, government and small and mid-size enterprises. successfully launched LeasePlan Bank, offering savings products to individuals, companies and institutions. Ownership LeasePlan Australia has also issued fixed and floating rate LeasePlan Australia is one of 30 companies wholly owned by notes in the Australian domestic market, but all these bonds the LeasePlan Corporation. Although 50% owned by have now matured. The last maturity was A$300 million of Volkswagen Bank, LeasePlan is not a captive finance company. March 2010 bonds, which were issued in 2007. The other 50% is owned by Fleet Management BV, an investment vehicle owned by a German investor, Friedrich von PARENT COMPANY: DEBT SECURITIES ISSUED Metzler. LeasePlan has held a banking licence since 1993. The Includes negotiable, interest-bearing securities, other than those of a subordinated nature. group is regulated by the Dutch Central Bank. 2009 (EUR) 2008 (EUR) BONDS AND NOTES 9,935,827 7,404,437 Liquidity position COMMERCIAL PAPER 78,010 235,125 LeasePlan has a solid liquidity position. At 31 July 2010 the CERTIFICATES OF DEPOSIT 54,713 349,471 company had sufficient liquidity to continue business as usual BALANCE AS AT 31 DEC 10,068,550 7,989,033 and meet its financial obligations for well over one year. The maturity analysis of these debt securities issued is as follows: Undrawn committed lines, cash and bank placements totalled 2009 (EUR) 2008 (EUR) €5.2 billion. THREE MONTHS OR LESS 1,122,235 717,854 LONGER THAN THREE MONTHS, LESS THAN ONE YEAR 2,955,082 2,696,357 Debt funding LONGER THAN ONE YEAR, LESS THAN FIVE YEARS 5,850,425 4,418,042 LeasePlan’s funding strategy is aimed at achieving broad LONGER THAN FIVE YEARS 140,807 156,780 diversification of funding sources. Wholesale funding remains BALANCE AS AT 31 DEC 2009 10,068,549 7,989,033 important but the reliance on this source will continue to be FOR FURTHER INFORMATION PLEASE CONTACT: reduced. Alternative funding sources such as securitisation and retail deposits will increase in importance. Total debt securities LeasePlan Treasury LeasePlan Australia Paul Benson, Group Treasurer Ralph Mondel, Treasurer issued at 30 June 2010 was €10.4 billion. +353 1 680 4000 +61 3 9269 2343 LeasePlan adheres to a matched funding principle to [email protected] [email protected] minimise refinancing risk, meaning that the average maturity of www.leaseplan.com www.leaseplan.com.au

34|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 LEIGHTON HOLDINGS

KEY DATA KEY CREDIT METRICS FINANCIAL YEAR END 30 JUN CREDIT RATING BBB/Baa1 (S&P/MOODY’S) BLOOMBERG TICKER LEIAU ASX CODE LEI KEY FINANCIALS FY10 FY09 FY08 Debt funding MARKET CAPITALISATION (A$M) 8,626 6,841 14,141 Leighton accesses different capital markets to extend its debt REVENUES (A$M) 18,642 18,315 14,542 maturity profile and diversify its sources of funding. The EBITDA (A$M) 1,846 1,387 1,345 company had outstanding debt of A$1.67 billion as at 30 June NET PROFIT AFTER TAX (A$M) 615 439 609 2010. This comprised A$609 million of bank debt, a non- DEBT/EBITDA (X) 0.9 0.9 1.1 NET DEBT/NET DEBT + EQUITY (%) 12 21 36 recourse US$110 million bond issue, US$280 million US SHARE PRICE (FY END) (A$) 28.95 23.5 50.85 private placement (USPP), a A$280 million medium-term note (MTN) issue and finance lease liabilities of A$323 million. The debt profile of the Group has continued to be About Leighton Holdings restructured to a longer-term maturity, reducing reliance on ounded in Australia in 1949, Leighton Holdings short-term financial markets. (Leighton) listed on the Australian Securities Exchange During the year ended 30 June 2010 Leighton secured a (ASX) in 1962. Now one of the world’s major project A$280 million MTN facility with a maturity of July 2014. In development and contracting organisations, Leighton is July 2010 the Group successfully completed a US$350 million F also the world’s largest contract miner. USPP which further diversifies the group’s funding sources at Leighton is headquartered in Sydney and owns seven substantially lower rates. diverse and independent companies: Thiess, Leighton The Group had total available guarantee facilities of A$3.5 Contractors, John Holland, Al Habtoor Leighton Group, billion at 30 June 2010, of which A$2.9 billion was used. Leighton Asia, Leighton International and Leighton Properties. These operating companies provide development, OUTSTANDING BONDS construction, contract mining, and operation and maintenance ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON services to the infrastructure, resources and property markets. AUD (DOMESTIC) Collectively, the Leighton Group directly employs around 21 Jul 09 230 28 Jul 14 Fixed 9.50% 45,000 people in more than 20 countries. 6 Aug 09 50 28 Jul 14 Fixed 9.50% USD (USPP) 15 Oct 08 111 15 Oct 13 Fixed 6.91% Ownership 21 Jul 10 90 21 Jul 15 Fixed 4.51% Leighton is a 54.98% subsidiary of German-based Hochtief 15 Oct 08 90 15 Oct 15 Fixed 7.19% and has been listed on the ASX since April 1962 as LEI. It is 21 Jul 10 145 21 Jul 17 Fixed 5.22% one of the top 25 listed companies on the ASX. 15 Oct 08 79 15 Oct 18 Fixed 7. 6 6 % 21 Jul 10 115 21 Jul 20 Fixed 5.78% Liquidity position The Leighton Group’s sound debt profile combined with its strong capital base has resulted in Moody’s Investors Service issuing an upgraded rating to Baa1 stable (from Baa1 negative). Leighton’s operating cash for the year ended 30 June 2010 was over A$1.7 billion from excellent project performances, a reduction in variations and claims, and a strong level of depreciation. The operating cash underpinned the Group’s investment of A$513 million for the year ended 30 June 2010 FOR FURTHER INFORMATION PLEASE CONTACT: in new plant to support future growth in mining operations. Plant and equipment at June 2010 represented A$1.5 billion of Tom McKay, Executive General Manager,Treasury & Investments +61 2 9925 6044 the total PP&E of A$2 billion. [email protected] www.leighton.com.au

35 ISSUER PROFILES

KEY CREDIT METRICS CREDIT RATING A2/BBB+ (S&P/FITCH) BOND PROTECTION

GEARING COVENANT Y (55%) LEVERAGE RATIO N INTEREST COVER RATIO Y (2.5X) CHANGE OF CONTROL N COUPON STEP-UP N KEY DATA TARGET GEARING 35% YEAR END 30 JUN WEIGHTED AVERAGE DEBT MATURITY 4.8 YRS (AS AT 30 JUN 10) BLOOMBERG TICKER 1242Z NZ WEIGHTED AVERAGE COST OF DEBT* 4.23% (AS AT 30 JUN 10) NZX CODE MEL* * Prior to any hedging KEY FINANCIALS FY10 FY09 FY08 REVENUES (NZ$M) 2,062 1,892 2,600 funding requirements. In 2010 it secured a NZ$150 million EBITDA (NZ$M) 641.7 512.4 373.9 Danish Export Credit Facility with EKF (the official export NET PROFIT AFTER TAX (NZ$M) 184.0 89.3 128.6 credit agency of Denmark) that is fully amortising and matures NET DEBT/NET DEBT + EQUITY (%) 27.4 20.3 18.3 in 2026. Also in 2010 Meridian issued NZ$200 million of * Renewable Energy Bonds are listed on the New Zealand Debt Exchange (NZDX) Renewable Energy Bonds (REBs), of which NZ$125 million mature in March 2015 and NZ$75 million mature in March About Meridian Energy 2017. The REBS are listed on the New Zealand Debt eridian Energy (Meridian) is the largest state- Exchange (NZDX). owned electricity generator in New Zealand, At 30 June 2010 Meridian had NZ$134.6 million of supplying one-third of the country’s power and Renewable Energy Notes on issue. electricity to New Zealand’s single largest user – the Tiwai Point Aluminium Smelter – and to M DEBT MATURITY PROFILE more than 185,000 residential, business, and rural customers throughout the country. Its electricity is generated entirely 700 from renewable resources, using nine hydro stations and three 600 125 wind farms. 500

Meridian and its subsidiaries are involved in a number of 400 200 wider, complementary activities, such as dam surveillance 300 185 156 521 with DamWatch Services, the provision of advance metering 200 20 285

VOLUME (NZ$M) VOLUME 249 with Arc Innovations, and online electricity retailing with 100 225 Powershop. 141 125 0 Meridian operates primarily in New Zealand but also has 1 YR 2 YRS 3 YRS 4 YRS 5 YRS >5 YRS operations in Australia, Antarctica and the US. In 2010 Debt Available facilities Meridian acquired the 70MW Mt Millar wind farm in South

Australia, completed the 5MW Cal RENWEW-1 solar project SOURCE: MERIDIAN ENERGY JUNE 30 2010 which was the first grid-connected utility-scale solar project in California, and completed a 3x330kW wind farm supplying OUTSTANDING BONDS

Scott Base and the US McMurdo Station in Antarctica. ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON NZD (DOMESTIC) (% OR BPS) 25 Feb 10 125 16 Mar 15 Fixed 7.15% Ownership 25 Feb 10 75 16 Mar 17 Fixed 7. 5 5 % Meridian is a state-owned enterprise and was formed in 1998 AUD(DOMESTIC) when the Electricity Corporation of New Zealand divided into 100 9 Feb 12 Floating 612.5/BBSW three state-owned enterprises – the others being Genesis USD (USPP) Energy (see p27) and Mighty River Power (see opposite). 29 Apr 04 70 15 Feb 12 Fixed 4.64% 29 Apr 04 42 15 Feb 14 Fixed 5.06% Liquidity position 29 Apr 04 101 15 Feb 16 Fixed 5.21% At 30 June 2010 Meridian had NZ$1.546 billion of debt and 29 Apr 04 187 15 Feb 19 Fixed 5.48% NZ$740 million of cash and undrawn debt facilities. FOR FURTHER INFORMATION PLEASE CONTACT:

Debt funding Linda Robertson, Group Treasurer +64 4 381 1293 Meridian uses a combination of bank debt, short-term notes [email protected] and long-term bonds and other funding facilities to meet its www.meridianenergy.co.nz

36|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 KEY CREDIT METRICS MIGHTY RIVER POWER CREDIT RATING BBB+ (S&P) BOND PROTECTION

GEARING COVENANT N LEVERAGE RATIO N INTEREST COVER RATIO N CHANGE OF CONTROL N MINIMUM SHAREHOLDER FUNDS Y KEY DATA TARGET GEARING N YEAR END 30 JUN WEIGHTED AVERAGE DEBT MATURITY 5.4 YRS (AS AT 30 JUN 10) BLOOMBERG TICKER 1135Z NZ NZX CODE NOT LISTED KEY FINANCIALS FY10 FY09 FY08 facility that expires in September 2011 (bridge facility for a REVENUES (NZ$M) 1,100 1,120 1,179 capital markets transaction) and NZ$150 million wholesale EBITDAF (NZ$M) 327.8 447.1 304.6 bonds with October 2016 and February 2020 maturities. NET PROFIT AFTER TAX (NZ$M) 84.6 159.6 110.9 Other funding consists of a NZ$150 million bank facility DEBT/EBITDAF (X) 2.96 1.31 2.05 due in December 2012, NZ$200 million of fixed rate retail NET DEBT/NET DEBT + EQUITY (%) 27 18 22 bonds maturing in May 2013, and NZ$300 million of 15-year credit-wrapped notes issued in September 2006. As at 30 June About Mighty River Power 2010 total debt facilities amounted to NZ$1.05 billion. ighty River Power is an integrated energy Mighty River Power’s bonds and bank loans are unsecured generation, trading, retailing and metering but benefit from a negative pledge deed that restricts the business. With a strong emphasis on generation company from creating a security interest over its assets to from renewable energy sources, the company third parties. owns and manages a diverse and expanding M DEBT MATURITY PROFILE portfolio of generation assets throughout the North Island of New Zealand. 1,200

Mighty River Power sells electricity and gas to more than 1,000 410,000 customers through its retail businesses Mercury Energy, Bosco and Tiny Mighty Power. Its metering business, 800 Metrix, provides meters and meter-reading services to 600 residential and commercial customers across Auckland, and to 400 other electricity retailers. (NZ$M) VOLUME 200

Ownership 0 Jul 11 Jul 17 Jul 14 Jul 15 Jul 16 Jul 12 Jul 13 Jul 18 Jul 19 Jul 10 Jan 11 Jul 20 Jul 09 Jan 17 Jan 14 Jan 15 Jan 16 Jan 21 Jan 12 Jan 13 Jan 18 Jan 19 Jan 10 Mighty River Power is a state-owned enterprise (SOE) and was Jan 20 formed in 1998 when the Electricity Corporation of New NZ$300m FRN NZ$30m bond NZ$120m bond Zealand divided into three state-owned enterprises – the others NZ$200m bond NZ$150m term NZ$250m RCAF loan being Genesis Energy (see p26) and Meridian Energy (see opposite). As an SOE, the New Zealand government is Mighty SOURCE: MIGHTY RIVER POWER AUGUST 2010 River Power’s sole shareholder, with two shareholding ministers, the minister for state owned enterprises and the OUTSTANDING BONDS minister of finance, each holding 50% of the company’s shares. ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON NZD (DOMESTIC) (% OR BPS) 9 May 03 200 15 Apr 13 Fixed 8.36% Liquidity position 12 Oct 09 20 12 Oct 16 Fixed 7. 5 5 % Mighty River Power’s liquidity policy states that it is not allowed 12 Oct 09 30 12 Oct 16 FRN 185/BKBM more than 25% of debt facilities to mature within any 12- 11 Feb 10 50 12 Oct 16 Fixed 7. 5 5 % month period, and it must maintain NZ$50 million headroom 11 Feb 10 20 12 Oct 16 FRN 185/BKBM over maximum net debt forecast over the next six months. 11 Feb 10 30 11 Feb 20 Fixed 8.21% 7 Sep 06 300 7 Sep 21 FRN 35/BKBM Debt funding FOR FURTHER INFORMATION PLEASE CONTACT: At 30 June 2010 net debt was NZ$970.9 million – an increase of NZ$385.2 million over the previous financial year. Patrick Hoerler,Treasurer +64 9 308 8249 During FY10 the company negotiated an additional [email protected] NZ$400 million of funding, including a NZ$250 million bank www.mightyriverpower.co.nz

37 ISSUER PROFILES

MIRVAC GROUP KEY CREDIT METRICS CREDIT RATING BBB (S&P) BOND PROTECTION

GEARING COVENANT N LEVERAGE RATIO Y (TD/TA<0.47 & PRIORITY FINANCIAL INDEBTEDNESS:TA<0.15)

INTEREST COVER RATIO Y (>2.0X) CHANGE OF CONTROL Y (IF RATING IS NON-INVESTMENT GRADE) KEY DATA COUPON STEP-UP N FINANCIAL YEAR END 30 JUN TARGET GEARING 25% BLOOMBERG TICKER MGR AU WEIGHTED AVERAGE DEBT MATURITY 3.3 YRS (AS AT 6 AUG 10) ASX CODE MGR WEIGHTED AVERAGE MATURITY OF 6.4 YRS (AS AT 6 AUG 10) FIXED/HEDGED DEBT KEY FINANCIALS FY10 FY09 FY08 WEIGHTED AVERAGE COST OF DEBT 7.10% (AS AT 6 AUG 10) MARKET CAPITALISATION (A$M) 4,280.1 3,012.9 3,209.7 REVENUES (A$M) 1,526.8 1,675.0 1,797.0 through the oversubscribed A$150 million five-year MTN deal EBITDA (A$M) 386.30 281.69 536.73 in March 2010. aims to continue to source funds from NET PROFIT AFTER TAX (A$M) 237.4 (1,080.0) 171.8 the domestic bond market as well as exploring opportunities in DEBT/EBITDA (X) 4.90 5.43 6.26 NET DEBT/NET DEBT + EQUITY (%) 19.40 18.70 38.73 other markets both domestically and offshore. SHARE PRICE (FY END) (A$) 1.32 1.08 2.96 Mirvac is seeking to refinance the maturity of the group’s A$1.1 billion bank facility in June 2011 concurrently with the About Mirvac Group later maturing A$805 million facility. stablished in 1972 and headquartered in Sydney, Mirvac maintains one of the lowest gearing levels among its Mirvac Group (Mirvac) is an Australian-based peers, with 30 June 2010 headline gearing of 18.1%. The target integrated real estate group with activities across the is to underpin the strong BBB rating with gearing levels of investment and development spectrum. Mirvac is a around 25%. E stapled group comprising the units of Mirvac Property Trust and the shares of Mirvac. Mirvac Property Trust has a diverse portfolio of assets across the commercial, DRAWN DEBT MATURITY PROFILE retail and industrial sectors, leased to Australian and 1,200

international companies. 1,000 Mirvac’s integrated property business model includes using the specialised in-house asset management team – Mirvac 800 Asset Management – that is responsible for all leasing and 600 property management across the entire portfolio. 400 VOLUME (ASM) VOLUME 200 Ownership Mirvac listed on the Australian Securities Exchange in 1987. In 0 June 1999 its code was changed to MGR following the stapling FY11 FY12 FY13 FY14 FY15FY16 FY17 FY18 FY19 of Mirvac Limited and Mirvac Property Trust. The responsible USPP Bank MTN Bank: secured

entity of Mirvac Property Trust is Mirvac Funds. SOURCE: MIRVAC JUNE 30 2010

Liquidity position At the full-year ending 30 June 2010 Mirvac had available OUTSTANDING BONDS ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE liquidity in excess of A$1.7 billion, including A$1.2 billion in AUD (DOMESTIC) (% OR BPS) DATE (BPS) undrawn banking facilities and A$600 million cash on hand. 19 Mar 10 150 19 Mar 15 Fixed 8.25% 265/swap 5 Oct 06 10 15 Nov 16 Fixed 7.13% Not disclosed Debt funding USD (USPP) Mirvac is funded by A$2,117.5 million of unsecured bank 5 Oct 06 275 15 Nov 16 Fixed 5.90% Not disclosed facilities, A$350 million of domestic medium-term notes 5 Oct 06 100 15 Nov 18 Fixed 6.01% Not disclosed (MTNs) and A$513 million equivalent in the US private

placement market. The net debt at 30 June 2010 was A$1.3 FOR FURTHER INFORMATION PLEASE CONTACT: billion, with facilities expiring from September 2010 through to Darren Lake, Group Treasurer November 2018 with a weighted average maturity of 3.1 years. +61 2 9080 8439 Mirvac’s strategy is to continue to diversify its sources of [email protected] debt capital and extend its maturity profile. This was shown www.mirvac.com

38|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010

KEY DATA KEY CREDIT METRICS FINANCIAL YEAR END 30 JUN CREDIT RATING BBB+/Baa1 (S&P/MOODY’S) BLOOMBERG TICKER ORGAU ASX CODE ORG KEY FINANCIALS FY10 HY10 FY09 INTEREST-BEARING DEBT & BANK GUARANTEE MATURITY PROFILE (EXCLUDING ) MARKET CAPITALISATION (A$M) 13,000 15,000 13,000 REVENUES (A$M) 8,534 4,300 8,042 2,200 EBITDA (A$M) 1,346 706 1,219 2,000 1,800 NET PROFIT AFTER TAX* (A$M) 680 371 6,998 1,600 UNDERLYING PROFIT (A$M) 585 355 530 1,400 GROSS DEBT/EBITDA (X) 2.7 N/A 3.1 1,200 1,000 NET DEBT/NET DEBT + EQUITY (%) 20 11 (1) 800 SHARE PRICE (FY END) (A$) 14.94 16.82 14.64 VOLUME(A$M) 600 * FY09 net profit includes significant item benefit 400 200 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 About Origin Energy Loans & bank guarantees – drawn Loans & bank guarantees – undrawn rigin Energy (Origin) is involved in gas and oil US private placement & medium-term notes

exploration and production, power generation and SOURCE: ORIGIN ENERGY AUGUST 2010 energy retailing. It has almost 4,000 employees across Australia, New Zealand and the Pacific, and more than three million customer accounts. Origin O OUTSTANDING BONDS has significant operations in New Zealand through its 51.8% ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE interest in Contact Energy (see p19), one of New Zealand’s AUD (DOMESTIC) (% OR BPS) DATE (BPS) largest energy providers. 6 Oct 06 100 6 Oct 11 FRN 52/BBSW 52/BBSW 6 Oct 06 100 6 Oct 11 Fixed 6.50% 52/swap Ownership USD (USPP) 28 Jun 05 50 Origin is a public company, listed on the Australian Securities 28 Jun 12 Fixed 4.73% Not disclosed 11 Mar 03 80 11 Mar 15 Fixed 5.39% Not disclosed Exchange since 2000 as ORG. It is one of the top 50 listed 11 Mar 03 95 12 Mar 18 Fixed 5.66% Not disclosed companies on the exchange. NZD (USPP) 28 Jun 05 176 30 Jun 14 FRN 70/BKBM 70/BKBM Liquidity position 28 Jun 05 105 28 Jun 17 FRN 75/BKBM 75/BKBM Origin maintains significant balance sheet flexibility and at 30 28 Jun 05 141 29 Jun 20 FRN 85/BKBM 85/BKBM June 2010 it had cash and undrawn committed debt facilities of A$3.4 billion available to fund ongoing growth opportunities.

Debt funding Origin maintains a prudent debt portfolio from a range of bank and capital market providers, including the Australian and Asian bank syndication market, and the Australian and US capital markets.

FOR FURTHER INFORMATION PLEASE CONTACT: Peter Rice, Group Treasurer +61 2 8345 5308 [email protected] www.originenergy.com.au

39 ISSUER PROFILES

POWERCO KEY CREDIT METRICS CREDIT RATING BBB (S&P) BOND PROTECTION

GEARING COVENANT N LEVERAGE RATIO Y (59.8%*) INTEREST COVER RATIO Y (2.5X) CHANGE OF CONTROL KEY DATA Y COUPON STEP-UP N YEAR END 30 JUN TARGET GEARING 60%* BLOOMBERG TICKER PIFAU WEIGHTED AVERAGE DEBT MATURITY 3.1 YRS (AS AT 30 JUN 10) NZX CODE NOT LISTED WEIGHTED AVERAGE COST OF DEBT 7.8% (AS AT 30 JUNE 10) KEY FINANCIALS FY10 FY09 FY08

REVENUES (NZ$M) 357.6 357.1 348.7 * Includes deferred tax liability as part of equity EBITDA (NZ$M) 215.8 217.8 218.1 NET PROFIT AFTER TAX (NZ$M) 19.8 8.1 (6.5) debt facilities of NZ$175 million and NZ$245 million for three DEBT/EBITDA (X) 5.1 5.5 6.1 and two years, respectively. Powerco operates a six- to nine- NET DEBT/NET DEBT + EQUITY (%) 59.8 62.4 63.2 month forward-looking approach to refinancing, and actively monitors opportunities for early refinancing 12 months ahead. About Powerco In April 2010 NZ$100 million of subordinated bonds was owerco is New Zealand’s second-largest electricity and repaid after an equity injection from Powerco’s shareholders. gas distribution company. Its network area spreads Powerco has covenants including minimum interest coverage across the upper-central, central and lower North ratios, minimum net worth values and maximum gearing or Island servicing approximately 420,000 consumers – leverage ratios, including distribution lock-up covenants. Prepresenting 46% of the gas connections and 16% of the electricity connections in the country. While the majority of DEBT MATURITY PROFILE the company’s customers are residential electricity and gas consumers, Powerco also distributes energy to some of New 400 100 Zealand’s leading businesses and organisations. Powerco has 350 more than 240 employees in New Zealand and its head office is 300 130 250 275 in New Plymouth. 200 150 175 Ownership 141 100 109 100 94 Powerco is 58% owned by funds managed by Queensland (NZ$M) VOLUME 50 50 Investment Corporation and 42% owned by Prime 0 Infrastructure. 2010 2011 2012 2013 2014 2015 2016 2017 Bonds Bank debt

Liquidity position SOURCE: POWERCO JUNE 30 2010 As at 30 June 2010 Powerco had undrawn committed facilities of NZ$67.9 million. OUTSTANDING BONDS

ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON Debt funding NZD (domestic) 29 Mar 04 100 29 Mar 11 Fixed 6.22% As at 30 June 2010 Powerco had NZ$1.1 billion of drawn 28 Sep 05 130 28 Sep 12 Fixed 6.59% facilities. The control parameters of Powerco’s debt funding 29 Mar 04 100 29 Mar 13 Fixed 6.39% facility require that no more than 40% of debt funding facilities 29 Mar 04 50 29 Jun 15 Fixed 6.53% can mature within the next three years, at least 30% of debt 28 Sep 05 50 28 Sep 17 Fixed 6.74% facilities must mature in more than five years, and all debt USD (USPP) funding facilities require board approval. 25 Nov 03 56 30 Nov 14 Fixed 5.47% Powerco targets a maximum gearing level of 60%, which is 25 Nov 03 54 30 Nov 15 Fixed 5.57% currently achieved. The actual level is determined by the 25 Nov 03 65 30 Nov 16 Fixed 5.67%

company’s expansion and capital expenditure plans, financial FOR FURTHER INFORMATION PLEASE CONTACT: covenants, dividend policy, a desire to maintain or improve its credit rating and optimal capital structure considerations. Stuart Marshall, Treasurer +64 6 968 6236 Powerco targets a long spread in its debt maturity profile. In [email protected] 2009 NZ$420 million of bank debt was refinanced with bank www.powerco.co.nz

40|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 POWERCOR AUSTRALIA

KEY DATA KEY CREDIT METRICS FINANCIAL YEAR END 31 DEC CREDIT RATING A- (S&P) BLOOMBERG TICKER CKEZHK ASX CODE NOT LISTED , a specialist infrastructure group listed on KEY FINANCIALS FY09 FY08 the Australian Stock Exchange as SKI. Its objective is to invest REVENUES (A$M) 920.2 886.2 in regulated utility infrastructure in Australia and overseas, EBITDA (A$M) 512.6 471.8 including electricity and gas distribution and transmission and NET PROFIT AFTER TAX (A$M) 194.2 193.4 regulated water and sewerage assets. DEBT/EBITDA (X) 3.85 3.66 NET DEBT/NET DEBT + EQUITY (%) 48.15 46.83 Liquidity position As at the year ending 31 December 2009 Powercor had a About Powercor Australia strong liquidity position with A$46.7 million of cash on hand owercor Australia (Powercor) is an electricity and A$95 million in undrawn committed facilities, supported distributor. Together with CitiPower (see p16) it owns by its solid A- S&P credit rating. and manages the poles and wires that deliver electricity to more than a million homes and businesses within Debt funding P Melbourne’s central business district and suburbs as As at 31 December 2009 Powercor had total unsecured well as across central and western Victoria. Powercor is Victoria’s borrowings of just under A$2 billion. The majority of this debt largest electricity distributor, supplying electricity to homes and was sourced from capital markets issuance. businesses in regional and rural centres in central and western Powercor has A$350 million of medium-term notes Victoria, and Melbourne’s outer western suburbs. It services expiring in June 2011, with the next capital market issuances approximately 700,000 distribution customers. maturing in 2014. The prices, or network tariffs, that electricity retailers pay Powercor to deliver electricity are regulated by the Australian OUTSTANDING BONDS

Energy Regulator (AER). The AER also sets standards for its ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE network performance and service. AUD (DOMESTIC) DATE (BPS) CitiPower and Powercor’s business operations are managed May 01 350 Jun 11 FRN Not disclosed Not disclosed Nov 05 200 Nov 15 FRN Not disclosed Not disclosed through a joint management structure, with the senior Aug 07 300 Aug 21 FRN Not disclosed Not disclosed management team comprising general managers from each of Aug 07 630 Jan 22 FRN Not disclosed Not disclosed nine internal business units, led by the chief executive officer. USD (USPP) In 2009, for the first time, the two companies produced a Nov 09 100 Nov 14 Fixed 4.29% Not disclosed combined annual report for the 2008 financial year. Nov 09 175 Nov 16 Fixed 4.90% Not disclosed

Ownership Powercor and CitiPower’s electricity distribution networks are managed through a single corporate structure, CHEDHA Holdings, which also includes two non-regulated businesses – CHED Services and Powercor Network Services. Cheung Kong Infrastructure (CKI) and Hongkong Electric Holdings (HEH) together own 51% of CitiPower and Powercor. CKI and HEI are members of the Cheung Kong Group, which includes nine listed companies with a combined market capitalisation of HK$647 billion as at 31 December FOR FURTHER INFORMATION PLEASE CONTACT: 2009. CKI and HEH are listed on the Hong Kong Stock Exchange and are also majority owners of South Australian James Lowe, Manager,Treasury +61 3 9683 4639 electricity distributor ETSA Utilities. The remaining 49% of [email protected] CitiPower and Powercor (as well as ETSA Utilities) is owned by www.powercor.com.au

41 ISSUER PROFILES

KEY CREDIT METRICS QBE INSURANCE GROUP CREDIT RATING A/A3/A- (S&P/MOODY’S/FITCH) BOND PROTECTION

GEARING COVENANT N LEVERAGE RATIO 23.1% INTEREST COVER RATIO 6.3% (30 JUN 10) 12.1% (31 DEC 09) 11.1% (31 DEC 08)

CHANGE OF CONTROL N KEY DATA COUPON STEP-UP N FINANCIAL YEAR END 31 DEC TARGET GEARING <40% BLOOMBERG TICKER QBEAU WEIGHTED AVERAGE DEBT MATURITY 7.8 YRS (AS AT 30 JUN 2010) ASX CODE QBE WEIGHTED AVERAGE COST OF DEBT 5.2% (30 JUN 10) 6.8% (31 DEC 09) 6.5% (31 DEC 08) KEY FINANCIALS (CONSOLIDATED) HY10 FY09 FY08

MARKET CAPITALISATION (A$M) 18,837 26,252 25,479 REVENUES (US$M) 6,110 10,943 10,773 issue of £550 million of senior notes maturing in 2015 and EBITDA (US$M) 645 2,102 2,251 short-term bank finance of around A$500 million. The short- NET PROFIT AFTER TAX (US$M) 440 1,532 1,558 term borrowings were repaid from operating cash flow before DEBT/EBITDA (X) 2.7 1.3 1.1 NET DEBT/NET DEBT + EQUITY (%) 38.9 29.1 32.9 year end. The remaining A$156 million of hybrid senior SHARE PRICE (HY OR FY END) (A$) 18.20 25.62 25.81 convertible securities was converted to QBE shares. Borrowing costs in the period were US$98 million. The weighted average annualised interest rate on borrowings at 30 About QBE Insurance Group June 2010 was 5.2%. As of 19 August 2010 QBE’s debt-equity BE Insurance Group (QBE) is Australia’s largest ratio was 36%. This low ratio provides the company with international insurance and reinsurance group and one flexibility for funding future growth and acquisitions. of the top 25 in the world. It engages in underwriting QBE’s ratio of borrowings to shareholders’ funds was Q general insurance and reinsurance risks, and 29.1% at the end of 2009 (32.9% FY08). This is the lowest investment management. Founded in 1886, QBE has level of gearing for many years and will provide increased operations in Australia, Asia Pacific, Europe and the Americas. financial flexibility to assist growth when opportunities arise With its head office in Sydney, QBE has offices in 45 countries and as debt markets improve. The weighted average cost of staffed by around 13,000 team members. borrowings at the 2009 year end was 6.8% (6.5% in FY08).

Ownership OUTSTANDING BONDS

QBE is a public company, listed on the Australian Securities ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE Exchange since June 1973 as QBE. It is one of the top 50 SENIOR BONDS (% OR BPS) DATE (BPS) 30 Dec 08 US$211/A$233 14 Mar 14 Fixed 9.75% Not disclosed listed companies on the exchange. 30 Dec 08 £191/A$340 14 Mar 14 Fixed 10.00% Not disclosed 22 Sep 09 £550/A$985 28 Sep 15 Fixed 6.125% Not disclosed Liquidity position EMTNS At the half-year ending 31 June 2010 QBE had a strong 18 Jul 00 £58/A$150 2 Aug 20 FRN 195/BBSW 195/BBSW liquidity position with US$2.6 billion of cash on hand. Cash 18 Jul 00 £8/A$20 2 Aug 20 Fixed 8.75% Not disclosed flows from operating activities for the six months ended 30 18 Jul 00 ¤115/£70/A$156 2 Aug 20 FRN 180/Euribor 180/Euribor June 2010 totalled US$647 million. HYBRID SECURITIES 12 May 10 US$850 12 May 30 Fixed 2.5% Not disclosed Debt funding SUBORDINATED DEBT 12 Jun 03 US$220/A$242 1 Jul 23 Fixed 5.647% Not disclosed As at 30 June 2010 QBE’s borrowings were US$3,468 million Not disclosed US$80/A$87 31 Dec 35 Not disclosed 6.35% Not disclosed and the ratio of borrowings to shareholders’ funds was 38.9% 30 Jun 10 US$500 30 Jun 20 FRN 250/USLibor 250/USLibor (29.1% at 31 December 2009). Excluding the eurobonds which CAPITAL SECURITIES settled in early August 2010, the ratio would have been 35.9%. 2 May 07 US$151 No fixed date Fixed until 6.797% Not disclosed The increase was mainly due to the issue of US$850 million of 1 Jul 17 18 Jul 06 £18 No fixed date Fixed until 6.857% Not disclosed hybrid securities and US$500 million of lower tier 2 18 Jul 16 subordinated debt securities, which were used to finance the settlement of a previous hybrid issue during May, lock in a lower FOR FURTHER INFORMATION PLEASE CONTACT: cost of borrowings and partly assist the funding of the NAU Country Insurance Company acquisition. Chris Sargent, Corporate Counsel +61 2 9375 4444 Funding of acquisitions and the refinancing of around A$1.1 [email protected] billion of borrowings which matured in 2009 was assisted by the www.qbe.com

42|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 KEY CREDIT METRICS SNOWY HYDRO CREDIT RATING BBB+ (S&P) BOND PROTECTION

GEARING COVENANT YES: 60% LEVERAGE RATIO NO INTEREST COVER RATIO YES: 1.35X (2X DIVIDEND LOCK-UP) CHANGE OF CONTROL PARTIAL: CHANGE OF RATINGS AS A CONSEQUENCE OF CHANGE OF CONTROL KEY DATA TARGET GEARING 35-45% FINANCIAL YEAR END 4 JUL WEIGHTED AVERAGE DEBT MATURITY 2-3 YRS (AS AT SEP 2010) IS CURRENTLY UNDERTAKING SOME BLOOMBERG TICKER SNOWY REFINANCING OF A$450M OVER 3-, ASX CODE NOT LISTED 4-, AND 5-YR TRANCHES WEIGHTED AVERAGE COST OF DEBT KEY FINANCIALS (CONSOLIDATED) FY10 FY09 FY08 6.5% (AS AT SEP 2010)

REVENUES (A$M) 711 651.8 609.2 EBITDA* (A$M) 410.7 344.4 303.4 Debt funding NET PROFIT AFTER TAX (A$M) 266.9 211.9 95.9 As at the FY10 year-end Snowy Hydro had A$223 million of DEBT/EBITDA (X) 0.73 1.45 2.20 bonds outstanding, maturing in February 2013. The company NET DEBT/NET DEBT + EQUITY (%) 15.5 25.5 33.8 * EBITDA values exclude non-cash mark-to-market adjustments operates within a debt-maturity policy that no more than 20% of total drawn debt (or A$350 million, whichever is greater) is subject to refinancing in any financial year. About Snowy Hydro As Snowy Hydro expects to grow its business and it has no nowy Hydro owns, operates and maintains the Snowy access to additional equity, all growth must be debt funded Mountains Hydroelectric Scheme (Snowy Scheme) while maintaining a BBB+ credit rating. The current low debt under a 75-year water licence and 75-year Kosciusko levels are in anticipation of future growth opportunities. The National Park Lease, both commencing in 2002. The graph below represents the anticipated longer-term pattern of S Snowy Scheme consists of seven power stations and Snowy Hydro’s debt: peaks as a result of investment spending, 16 large dams. In addition, Snowy Hydro owns and operates two followed by periods of debt reduction due to strong cash flows. gas-fired power stations in Victoria. The company employs At present, Snowy Hydro’s debt has been reduced to little more almost 400 people across and Victoria. than its bonds, noted in the table below. Snowy Hydro offers a complex array of financial hedge and risk management products to participants in the National Electricity Market (NEM), as well as ancillary services to the DEBT LEVELS NEM pool. It is the leading provider of peak, renewable 1,000 electricity to the NEM, and manages the water releases from 900 the Snowy Scheme for irrigation and environmental purposes. 800 700 Ownership 600 Snowy Hydro is a Corporations Act company and has an

(A$’OOO) 500 independent board. While its shareholders are three 400 governments – New South Wales (58%), Victoria (29%) and 300 MONTH-END TOTAL DEBT DEBT MONTH-END TOTAL the Commonwealth of Australia (13%) – Snowy Hydro is not 200 a government entity and the shareholders have no active 31 Aug 10 31 Aug 30 Apr 10 31 Dec 07 31 Aug 07 31 Aug 31 Dec 05 31 Aug 05 31 Aug 31 Dec 08 31 Dec 06 31 Dec 09 30 Apr 07 31 Aug 08 31 Aug 31 Aug 06 31 Aug 31 Aug 09 31 Aug 30 Apr 08 30 Apr 06 participation in the management of the business. 30 Apr 09

SOURCE: SNOWY HYDRO SEPTEMBER 2010 Liquidity position OUTSTANDING BONDS Snowy Hydro is in a low debt position. In its latest accounts as ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE at 3 July 2010, the company had A$300 million of debt and AUD (DOMESTIC) (% OR BPS) DATE (BPS) A$373 million in unused, committed revolving debt facilities. 25 Feb 03 53 25 Feb 13 FRN (wrapped) 68/BBSW 68/BBSW Snowy Hydro typically does not maintain cash reserves. Instead, 25 Feb 03 66 25 Feb 13 FRN (unwrapped) 125/BBSW 125/BBSW it uses the A$450 million in revolving facilities to drawn down 25 Feb 03 104 25 Feb 13 Fixed (unwrapped) 6.5% 6.5% cash at need and reduce debt at other times. FOR FURTHER INFORMATION PLEASE CONTACT: Snowy Hydro has a stable BBB+ rating. Because the company sells risk management products, it regards a BBB+ Les Richardson, Treasurer +61 2 9278 1866 rating to be essential, and targets a debt and liquidity position [email protected] commensurate with that rating. www.snowyhydro.com.au

43 ISSUER PROFILES

KEY CREDIT METRICS SP AUSNET GROUP CREDIT RATING A-/A1 (S&P/MOODY'S) BOND PROTECTION

GEARING COVENANT N LEVERAGE RATIO N INTEREST COVER RATIO N CHANGE OF CONTROL N COUPON STEP-UP Y KEY DATA TARGET GEARING A-RANGE CREDIT RATING FINANCIAL YEAR END 31 MAR WEIGHTED AVERAGE DEBT MATURITY 4.4 YRS BLOOMBERG TICKER SPOWER ASX CODE SPN complete the group’s refinancing requirement of A$960 million KEY FINANCIALS FY10 FY09 FY08 for 2010/11, well ahead of the scheduled maturity dates. MARKET CAPITALISATION (A$M) 2,300 1,900 2,500 REVENUES (A$M) 1,334 1,169 1,055 DEBT MATURITY PROFILE EBITDA (A$M) 778.3 709.6 648.0 1000 NET PROFIT AFTER TAX (A$M) 209.0 177.2 168.0 900 DEBT/EBITDA (X) 6.05 5.95 5.90 800 DEBT/DEBT + EQUITY* (%) 62 65 58 700 SHARE PRICE (FY END) (A$) 0.91 0.91 1.21 600 185 500 * MtM: debt divided by MtM debt plus equity 400 775 300 530 435 520 538 VOLUME (ASM) VOLUME 485 200 407 400 About SP AusNet 100 300 35 100 eadquartered in Melbourne, SP AusNet is a diversified 0 CP Mar 11 Mar 12 Mar 13 Mar 14 Mar 15 Mar 16 Mar 17 Mar 18 Mar 19 Mar 20 energy business managing three Victorian energy Bank debt USD CHF AUD credit wrapped networks: SPI PowerNet, am electricity transmission GBP HKD AUD MTNs CP & working business; SPI Electricity, an electricity distribution capital H business; and SPI Networks (Gas), a gas distribution SOURCE: SP AUSNET MARCH 31 2010 business. The group uses SPI Electricity and Gas Australia Holdings as its common-funding vehicle. The company’s assets OUTSTANDING BONDS ISSUER & VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE include Victoria’s high-voltage electricity transmission network, ISSUE DATE AUD (DOMESTIC) (% OR BPS) DATE (BPS) an electricity distribution network in eastern Victoria, and a gas SPI Aus. Finance distribution network in western Victoria. 7 Sep 10 185 7 Sep 10 FRN 45/BBSW 45/BBSW SPI Electricity & Gas AUD (DOMESTIC) Ownership 16 Nov 04* 85 30 Nov 11 FRN 49/BBSW 49/BBSW SP AusNet is a public company, listed on the Australian 16 Nov 04* 150 30 Nov 11 Fixed 6.25% 49/swap Securities Exchange since December 2005 as SPN. The majority 20 Oct 04 200 3 Nov 11 Fixed 6.5% 63/swap 18 Mar 10 300 25 Sep 17 Fixed 7.5% 160/swap owner of SP AusNet is Singapore Power International. USD (144A) 3 Dec 03 300 15 Nov 13 Fixed 6.15% 175/UST Liquidity position EMTN SP AusNet closely monitors liquidity risk. It had A$570 million 28 Oct 04 US$300 4 Nov 14 Fixed 5.0% 95/UST committed but undrawn bank facilities as at 31 March 2010. 4 Feb 10 CHF475 8 Sep 15 Fixed 2.375% 65/swap 7 Sep 06 US$275 14 Sep 16 Fixed 5.75% 103/UST Debt funding 12 Jun 08 £250 26 Jun 18 Fixed 7.125% 195/UK Gilts As at the end of March 2010 SP AusNet had net debt of 16 Mar 10 HK$700 16 Mar 20 Fixed 4.125% Not disclosed A$4.16 billion and gearing of 62%. The company maintains SPI Electricity USD (144A) 1 Dec 96 40 3 Dec 16 Fixed 7.25% Not disclosed prudent gearing to maintain an A-range credit rating and, as at SPI ALP USD (144A) 31 March 2010, had 99% of its debt hedged against 1 Dec 96 60 3 Dec 16 Fixed 7.25% Not disclosed movements in interest rates. SP AusNet’s policy is to hold * The formation of the common-funding vehicle resulted in issuer substation to SPI 100% back-up for all commercial paper issued. Electricity & Gas. Bonds were originally issued by SPI Australia Finance In May 2009 SP AusNet raised A$325 million via three-year bank debt facilities. In February and March 2010, SP AusNet FOR FURTHER INFORMATION PLEASE CONTACT: completed a CHF475 million 5.5-year bond issue, a HK$700 Alastair Watson, Manager Treasury million 10-year bond issue, and a A$300 million 7.5-year bond [email protected] issue. The proceeds of around A$920 million effectively www.sp-ausnet.com.au

44|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010

KEY DATA KEY CREDIT METRICS FINANCIAL YEAR END 30 JUN CREDIT RATING A- (S&P) BLOOMBERG TICKER SGPAU BOND PROTECTION ASX CODE SGP GEARING COVENANT Y (TL/TTA<45%) KEY FINANCIALS FY10 FY09 FY08 INTEREST COVER RATIO Y (2:1)

MARKET CAPITALISATION (A$M) 8,855.2 7,637.6 7,937. 3 CHANGE OF CONTROL Y REVENUES (A$M) 2,060.1 1,847.4 2,134 COUPON STEP-UP Y EBITDA (A$M) 828.2 786.0 871.2 TARGET GEARING 25-35% OF TANGIBLE ASSETS NET PROFIT AFTER TAX (A$M) 478.4 (1,800) 704.6 WEIGHTED AVERAGE DEBT MATURITY >6.2 YRS (AS AT 30 JUN 10) UNDERLYING NPAT (A$M) 692.3 631.4 674.0 WEIGHTED AVE. COST OF DEBT (1) 4.9% (AS AT 30 JUN 10) DEBT/EBITDA (X) 3.42 3.83 3.94 1. FY10 average including fees and margins. NET DEBT/NET DEBT + EQUITY (%) 19 18 31 NET DEBT/TANGIBLE ASSETS (%) 18 16% 29 SHARE PRICE (FY END) (A$) 3.72 3.21 5.39 Stockland noted in its FY10 results presentation that it intends to proactively refinance upcoming maturities, including undrawn bank facilities and a A$256 million MTN expiring in About Stockland June 2011. tockland is Australia’s leading diversified property All lenders have consistent covenants, which include a total group listed on the Australian Securities Exchange liabilities/total tangible asset ratio of 45% maximum and (ASX). The company has three operating businesses: interest cover of at least 2:1. In addition, the gearing covenant Commercial Property, Residential Communities and is limited to Stockland’s balance sheet liabilities and excludes S Retirement Living. the mark-to-market movements in all derivatives and the gross- up of Retirement Living obligations. Ownership Stockland is a public company, listed on the ASX since February 1988 as SGP. It is one of the top 50 listed companies LONG-DATED DRAWN DEBT MATURITY PROFILE on the exchange. 700 600 Liquidity position 500 At 30 June 2010 Stockland had A$1 billion of undrawn debt 400 facilities and A$900 million of cash. The company’s current 300 growth plan around Residential Communities, Retirement 200 VOLUME (A$M) VOLUME Living and Retail development is fully funded, helped by 100 conservative gearing of 18%. 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY27 FY36 Debt funding DMTNs USPP EMTNs

As at 30 June 2010 Stockland had total drawn debt of SOURCE: STOCKLAND JUNE 30 2010 A$2,983.7 million, with a weighted average debt maturity profile of 6.2 years. Bank debt totalled A$6 million, while A$705.6 million was outstanding in the domestic debt capital market, A$770.6 million equivalent was outstanding in offshore medium-term notes (MTNs), and A$1,501.5 million was outstanding in US senior term notes. All foreign currency denominated debt is swapped into AUD, except for US$107 million which is swapped to £53.7 million to hedge the UK subsidiary’s net assets. Net currency risk is therefore fully hedged. CONTINUED ON P46>>

45 ISSUER PROFILES

OUTSTANDING BONDS* (STOCKLAND) FOR FURTHER INFORMATION PLEASE CONTACT:

ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE James McHardy AUD (domestic) (% OR BPS) DATE (BPS) Treasurer 15 Jun 05 50.0 16 Jun 11** FRN 50/BBSW 50/BBSW +61 2 9035 2746 13 Feb 06 49.2 16 Jun 11 Fixed 6.25% Not disclosed [email protected] 15 Oct 07 125.0 16 Jun 11 Fixed 6.25% Not disclosed 15 Oct 07 50.0 16 Jun 11 FRN 50/BBSW 50/BBSW Tram Nguyen 15 Dec 09 (18.6)** 16 Jun 11 FRN 50/BBSW 50/BBSW Treasury Accountant +61 2 9035 2565 4 Jul 03 135 15 May 13 Fixed 6.00% 91/BBSW [email protected] 4 Jul 03 15 15 May 13 FRN 91/BBSW 91/BBSW www.stockland.com.au 15 Dec 09 300 18 Feb 15 Fixed 8.50% 270/BBSW Margin above 90-day GBP (PP) bank bill rate 20 Oct 06 £250 25 Oct 13 Fixed 5.63% 0.63-0.64% USD (PP) Volume in hedged Margin above 90-day A$M equiv. as at 30 bank bill rate Jun 2010

19 Aug 03 32.1 11 Oct 11 Fixed 5.10% 0.46-0.79% 23 Jun 05 51.4 14 Jul 12 Fixed 4.68% 0.55-0.87% 19 Aug 03 45.8 9 Oct 12 Fixed 5.42% 0.46-0.79% 23 Jul 05 51.4 14 Jul 13 Fixed 4.79% 0.55-0.87% 23 Jun 05 28.3 17 Jul 14 Fixed 4.89% 0.55-0.87% 6 Jun 07 74.7 21 Jun 15 Fixed 5.81% 0.39-1.00% 22 Jun 05 64.3 14 Jul 15 Fixed 4.99% 0.55-0.87% 19 Aug 03 99.2 8 Oct 15 Fixed 5.72% 0.46-0.79% 23 Jun 05 61.7 14 Jul 16 Fixed 5.04% 0.55-0.87% 19 Aug 03 27.5 11 Oct 16 Fixed 5.87% 0.46-0.79% 6 Jun 07 176.5 21 Jun 17 Fixed 5.93% 0.39-1.00% 19 Aug 03 61.1 11 Oct 17 Fixed 5.96% 0.46-0.79% 6 Jun 07 250.0 21 Jun 18 Fixed 5.98% 0.39-1.00% 19 Aug 03 268.6 9 Oct 18 Fixed 6.01% 0.46-0.79% 23 Jun 05 70.7 14 Jul 19 Fixed 5.19% 0.55-0.87% 23 Jun 05 90.0 14 Jul 20 Fixed 5.24% 0.55-0.87% 6 Jun 07 27.7 21 Jun 22 Fixed 6.15% 0.39-1.00% 6 Jun 07 20.5 21 Jun 27 Fixed 6.28% 0.39-1.00% YEN (PP) Volume in hedged Margin above 90- A$M equiv. as at 30 day bank bill rate Jun 2010 5 Aug 05 151.3 24 Aug 35 Fixed 3.99% 0.80% * As at 30 Jun 10 ** Of the AU domestic Jun 11 bonds, A$175.8 million was repurchased and cancelled and A$18.6 million was repurchased.

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46|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 SYDNEY AIRPORT CORPORATION

KEY DATA KEY CREDIT METRICS FINANCIAL YEAR END 31 DEC CREDIT RATING BBB/Baa2/BBB (S&P/MOODY’S/FITCH) BLOOMBERG TICKER SYDAAU BOND PROTECTION ASX CODE SAKHA* GEARING COVENANT Y (ND/EV<75%) KEY FINANCIALS (SOUTHERN CROSS LEVERAGE RATIO N AIRPORTS CORPORATION HOLDINGS LIMITED) HY10 FY09 FY08 INTEREST COVER RATIO Y (>1.1X)

REVENUES (A$M) 453 853 813 CHANGE OF CONTROL Y EBITDA (A$M) 367 689 649 COUPON STEP-UP N NET PROFIT** (A$M) 74 135 64 WEIGHTED AVERAGE DEBT MATURITY > 8.5 YRS (AS AT DEC 31 2009)

NET PROFIT (A$M) (65) (147.7) (146.96) NET FINANCE DEBT/EBITDA (X) 6.7 7.0 8.5 *SKIES is also listed on the ASX indexed bonds and other hybrid securities called Sydney ** Excluding shareholder-related RPS finance costs Kingsford Smith Interest-Earning Securities (SKIES). At 31 December 2009 SCACH Group had net debt of A$5,497 million – including A$650 million of SKIES (issued by About Sydney Airport Corporation SCACH). The average maturity of outstanding debt is greater ydney Airport Corporation Limited (SACL) operates than 8.5 years. The company has no further term debt Australia’s busiest airport, with an average of 90,000 maturities until September 2011. passengers each day. It is one of the oldest On 6 July 2010 the SCACH Group issued A$175 million in continually operating airports in the world, the domestic market and bought back A$120 million of bonds S established in 1919. It has been consistently ranked maturing in November 2011 and 2012. as one of the best airports in the world by industry-respected The SCACH Group is continuing to diversify its debt passenger satisfaction surveys and in 2009 ranked as the 28th portfolio and will be looking at the international capital markets largest airport in the world by passenger numbers. in addition to bank debt and domestic capital markets. The principal activities of SACL are the provision and management of airport facilities including retail, commercial OUTSTANDING BONDS and property businesses with the airport. ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE In 1998 Sydney Airport entered into a lease with the AUD (domestic) (% OR BPS) DATE (BPS) 8 Dec 06 250 Commonwealth of Australia for 50 years with an option for a 21 Nov 11 Fixed 6.25% 20/BBSW 8 Dec 06 150 21 Nov 11 FRN 20/BBSW 20/BBSW further 49 years to operate Sydney Airport. October 02 240 11 Oct 12 FRN 65/BBSW 65/BBSW October 02 40 11 Oct 12 Fixed 6.43% Not disclosed Ownership 8 Dec 06 217 20 Nov 13 FRN 23/BBSW 23/BBSW In June 2002 SACL was privatised by the Commonwealth 7 Sep 04 700 20 Nov 14 FRN 49/BBSW 49/BBSW government. Southern Cross Airports Corporation Holdings 7 Sep 04 300 20 Nov 15 FRN 49/BBSW 49/BBSW Limited (the SCACH Group) is the ultimate parent company Various 6,231 20 Nov 20 CPI-linked* 3.76% 82/BBSW of SACL. Current shareholders of the SCACH Group are 5 Dec 06 200 20 Nov 21 FRN 31/BBSW 31/BBSW MAp airports (74%), Hochtief AirPorts and affiliates (12%) 12 Dec 06 750 11 Oct 22 FRN 29/BBSW 29/BBSW 1 Dec 06 659 11 Oct 27 FRN 33/BBSW 33/BBSW and Ontario Teachers Pension Funds (11%). 8 Dec 06 3,281 20 Nov 30 CPI-linked* 3.12% 75/BBSW * Outstanding volume as at 31 December 2009 Liquidity position As at 31 December 2009 the SCACH Group had undrawn committed facilities of A$572 million and cash balances of A$358 million.

FOR FURTHER INFORMATION PLEASE CONTACT: Debt funding Christine Kelly, Treasurer The SCACH Group uses a variety of capital market +61 2 9667 6140 instruments and bank debt for its debt funding. It has on issue [email protected] credit-wrapped and unwrapped medium-term notes, capital- www.sydneyairport.com.au

47 ISSUER PROFILES

KEY CREDIT METRICS CREDIT RATING BBB+ (S&P) BOND PROTECTION

GEARING COVENANT Y LEVERAGE RATIO N INTEREST COVER RATIO Y CHANGE OF CONTROL N COUPON STEP-UP N KEY DATA TARGET GEARING INVESTMENT GRADE FINANCIAL YEAR END 30 JUN WEIGHTED AVERAGE DEBT MATURITY 5 YRS (AS AT 30 JUN 10) BLOOMBERG TICKER TAHAU WEIGHTED AVERAGE COST OF DEBT 7.42% (AS AT 30 JUN 10) ASX CODE TAH KEY FINANCIALS FY10 FY09 FY08 loans, bonds and notes. The group’s policy is that not more MARKET CAPITALISATION (A$M) 3,877.9 4,322.5 5.149.5 than 33% of debt facilities should mature in any 12-month REVENUES (A$M) 4,219.7 4,211.3 3,992.5 period within the next five years. At 30 June 2010 12% (2009: EBITDA (A$M) 998.0 1,072.6 1,037.9 14%) of the group’s debt facilities will mature in less than one NET PROFIT AFTER TAX (A$M) 469.5 521.7 516.3

DEBT/EBITDA (X) 2.1 2.1 2.4 year. Due to the measures in place for managing liquidity and NET DEBT/NET DEBT + EQUITY (%) 50.1 40.76 48.57 access to capital markets, this risk is not considered significant. SHARE PRICE (FY END) (A$) 6.33 7.16 9.81 Tabcorp’s drawn debt comprises 85% bond and 15% bank debt with an average maturity of just over five years. Following About Tabcorp Holdings the 2009 five-year debt issuance, Tabcorp has a diversified debt s one of the world’s largest publicly listed gambling portfolio to now include AUD bank debt, AUD medium-term companies, Tabcorp Holdings (Tabcorp) conducts a notes, AUD retail bonds and USD bonds. Tabcorp remains unique combination of wagering, gaming, casino and well within its existing banking covenants. media activities across Australia. It manages the Star City and Jupiters casinos, TAB, TAB Sportsbet, DEBT MATURITY PROFILE A 700 Luxbet, Tabaret and Keno, and it owns and operates electronic gaming machines in licensed hotels and clubs. Tabcorp’s 600 television and radio operations focus on the racing industry and 500 other sporting activities, such as Racing and Sky Sports radio. 400 Tabcorp employs about 11,000 people in all states of 300

Australia. Its head office is in Melbourne. (A$M) VOLUME 200 100 Ownership Tabcorp has been listed on the Australian Securities Exchange 0 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 as TAH since August 1994. It is one of the top 50 listed Medium-term notes Tabcorp retail bonds USPP companies on the exchange. Drawn bank debt Undrawn bank debt

SOURCE: TABCORP AUGUST 5 2010 Liquidity position Tabcorp aims to retain a strong investment grade credit rating OUTSTANDING BONDS and conservative balance sheet ratios. During FY09 the ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE company raised A$387 million of new equity and A$434 AUD (domestic) (% OR BPS) DATE (BPS) 13 Oct 04 65 13 Oct 11 FRN 73/BBSW 73/BBSW million of five-year debt. To help reduce liquidity risk, the 13 Oct 04 385 13 Oct 11 Fixed 6.50% Fixed at 6.59% group targets a minimum level of cash and cash equivalents to 30 Apr 09 284 1 May 14 FRN 425/BBSW 425/BBSW be maintained, and has revolving facilities in place with 19 Jun 09 150 1 May 14 FRN 425/BBSW 425/BBSW

sufficient headroom. As at 30 June 2010 Tabcorp reported a USPP net debt position of A$1.7 billion, with headroom of A$640 21 Dec 04 US$267.3 21 Dec 14 Fixed 5.3-5.6% 92/BBSW million in existing AUD bank lines. 21 Dec 04 US$353.7 21 Dec 16 Fixed 5.3-5.6% 88/BBSW Tabcorp is undertaking a A$860 million investment at its 21 Dec 04 US$217.6 21 Dec 19 Fixed 5.3-5.6% 86/BBSW Star City Casino on Sydney Harbour. This will be completed 21 Dec 04 A$100 21 Dec 19 Fixed 5.3-5.6% 85/BBSW

by FY12. FOR FURTHER INFORMATION PLEASE CONTACT: Damien Johnston, Deputy Chief Financial Officer Debt funding +61 3 9868 2191 The group’s objective is to maintain a balance between [email protected] continuity of funding and flexibility through the use of bank www.tabcorp.com.au

48|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 CORPORATION KEY CREDIT METRICS CREDIT RATING A/A2/A (S&P/MOODY’S/FITCH) BOND PROTECTION

GEARING COVENANT N LEVERAGE RATIO N INTEREST COVER RATIO N CHANGE OF CONTROL Y (CHANGE OF INTEREST IF CHANGE IN CONTROL) COUPON STEP-UP Y KEY DATA WEIGHTED AVERAGE DEBT MATURITY 4 YRS (AS AT 30 JUN 2010) FINANCIAL YEAR END 30 JUN BLOOMBERG TICKER TELECO ASX CODE TLS One of Telstra’s strengths in providing integrated KEY FINANCIALS FY10 FY09 FY08 telecommunications services is its extensive geographical MARKET CAPITALISATION (A$M) 40,440 42,180 52,760 coverage through both the fixed and mobile network SALES REVENUE (A$M) 24,800 25,400 24,700 infrastructure. This underpins the carriage and termination of EBITDA (A$M) 10,800 10,900 10,400 the majority of Australia’s domestic and international voice and NET PROFIT AFTER TAX (A$M) 3,900 4,100 3,700

NET DEBT/EBITDA (X) 1.3 1.5 1.5 data traffic. GEARING: NET DEBT / (NET DEBT + EQUITY) 51.7 54.5 55.7 Telstra also owns 50% of FOXTEL, with Consolidated SHARE PRICE (FY END) (A$) 3.25 3.39 4.24 Media Holdings (formerly called Publishing & Broadcasting) and News Corporation each owning 25%. FOXTEL is Australia’s leading provider of subscription television services. About Telstra Corporation elstra Corporation (Telstra) is Australia’s leading National Broadband Network telecommunications and information services In relation to the Australian government’s National Broadband company offering a full range of services. It also Network (NBN ) proposals, Telstra is committed to working operates in certain overseas countries. With its constructively with the government to find the best possible T headquarters in Melbourne, Telstra’s origins date solution for Australia and for Telstra’s investors, customers and back to 1901, when the Postmaster General’s Department was employees. established by the Australian government to manage all On 20 June 2010 Telstra signed a non-binding financial domestic telephone, telegraph and postal services, and to 1946, heads of agreement with NBN Co to participate in the rollout when the Overseas Telecommunications Commission was of the NBN. The transaction, if completed, would involve the established by the Australian government to manage decommissioning of Telstra’s copper network and cable international telecommunications services. broadband service and the use by NBN Co of certain types of Since then, Telstra has undergone many changes and was Telstra infrastructure. The transaction would see Telstra incorporated as an Australian public limited liability company progressively migrate its voice and broadband traffic from its in November 1991. It is now a company limited by shares, copper and cable networks to NBN Co’s network as it is rolled incorporated and operating under the Corporations Act. out. Telstra would continue to use its cable network to meet its Telstra’s main activities include the provision of basic pay TV contract with FOXTEL. access services to most homes and businesses in Australia, as Telstra would use the NBN and other network assets to well as the provision of enhanced products and value-added offer a full array of products and services to customers. In services, long distance telephone calls in Australia and addition to requiring shareholder approval, the financial heads international calls to and from Australia. The latter includes of agreement has a range of conditions, including the passage international telephone services to more than 230 countries of necessary enabling legislation and approval by the Australian and territories. Telstra also provides mobile telecommunications Competition and Consumer Commission. Accordingly, there services, broadband access and content under the BigPond® can be no guarantee at this time (September 2010) that the brand – Australia’s leading internet service provider – and a transaction will progress to completion. comprehensive range of data and IP services. Telstra also provides services that include the supply of International equipment; the management of business and government Telstra’s major international investments include a 76.4% customers’ network services; wholesale services to other ownership stake in CSL New World Mobility Group – Hong carriers, carriage service providers and ISPs; advertising, search Kong’s leading mobile operator – and TelstraClear – Telstra’s and information services through Sensis® – these include wholly-owned subsidiary which is a full-service carrier in New popular information services such as Yellow™, White Pages®, Zealand. Telstra also has a 50/50 joint venture with PCCW in CitySearch® and Whereis®– and cable distribution services for REACH, which provides outsourcing services in support of FOXTEL’s cable subscription television services. CONTINUED ON P50>>

49 ISSUER PROFILES

TELSTRA’S LONG-TERM DEBT MATURITY PROFILE average net debt was 6.9% at the end of FY10 (FY09: 6.7%). The average maturity of outstanding debt was four years 3.00 (FY09: 3.9 years). 2.50 Telstra continues to look at executing long-term 2.00 borrowings across a diverse range of debt markets in FY11. Given the size of its funding requirements and solid credit 1.50 ratings, Telstra has a longstanding presence in global debt 1.00 capital markets and is able to access multiple debt markets on

VOLUME (A$BN) VOLUME 5.0 standard and competitive terms using its global debt issuance

0 programme. Telstra has debt securities listed on the ASX, the 10/11 11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 London Stock Exchange and the Swiss Stock Exchange.

FINANCIAL YEAR In March 2010 Telstra completed a €1 billion 10-year benchmark bond. The borrowing represented a successful SOURCE: TELSTRA CORPORATION JUNE 30 2010 return to the debt capital markets after the global financial crisis. This was followed by a NZ$100 million seven-year bond Telstra’s and PCCW’s international voice and data services. issued in May 2010 and further 10-year private placements of REACH is one of the world’s top carriers of international voice A$150 million (equivalent) in June 2010. traffic. Telstra also has a 46.9% equity interest in Australia-Japan These term borrowings coupled with strong cash flows Cable Holdings, a network cable provider which owns and have improved the company’s financial position. During FY10 operates a fibre optic cable between Australia and Japan. Telstra prepaid A$1.1 billion of bank loans and A$1.5 billion In addition, Telstra has investments in a number of online of euro and other borrowings. These repayments more than and digital businesses in the People’s Republic of China. offset new borrowings and Telstra has no further significant long-term debt maturities to refinance until June 2011. Ownership Following the opening of Australia’s telecommunications OUTSTANDING BONDS markets to full competition in July 1997, the Australian ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON government progressively reduced its holding in Telstra from AUD (DOMESTIC) (% OR BPS) 100% to 16.9% and in February 2007 transferred its remaining May 02 500 15 Nov 12 Fixed 7.25% shares in Telstra into the Future Fund (an Australian government Mar 05 500 15 Nov 13 Fixed 6.25% investment fund set up to strengthen the government’s long- Nov 04 500 15 Apr 15 Fixed 6.25% Aug 06 100 2 Aug 16 Fixed 7.00% term finances by providing for its unfunded superannuation Nov 06 275 1 Dec 16 FRN 65/BBSW liabilities). In August 2009 the Future Fund decreased this Jun 10 100 15 Jul 20 Fixed 7.75 % holding to 10.9%, and in October 2010 the holding was further NZD (KAURI) decreased to 9.9%. Nov 04 100 24 Nov 11 Fixed 6.99% As at 30 June 2010 Telstra had on issue 12,443 million fully- Nov 04 100 24 Nov 14 Fixed 7.15% paid ordinary shares. The shares are quoted on the Australian Oct 08 55 24 Nov 14 Fixed 7.15% Securities Exchange (ASX) and on the New Zealand Stock May 10 100 11 Jul 17 Fixed 7. 5 2 % Exchange. Telstra complies with the ASX Corporate USD (144A) Governance Council’s principles of good corporate Apr 02 500 1 Apr 12 Fixed 6.375% EMTN governance and best practice recommendations. Jun 01 ¤1,500 29 Jun 11 Fixed 6.375% Oct 08 CHF250 9 Oct 12 Fixed 4.00% Liquidity position Apr 08 ¤500 8 Apr 13 Fixed 6.00% In FY10 Telstra reported free cash flow of A$6.23 billion. This Apr 05 CHF300 19 Apr 13 Fixed 2.50% represented a 42.6% increase on the free cash flow of A$4.37 Jul 04 ¤500 15 Jul 14 Fixed 4.75% billion at the end of FY09. The key drivers were reduced Aug 02 £200 6 Aug 14 Fixed 6.125% capital expenditure and improved cash flow from operations. Jun 05 ¤500 24 Jul 15 Fixed 3.875% The free cash flow guidance for FY11 is A$4.5-5.0 billion. This Mar 07 ¤1,000 21 Mar 17 Fixed 4.75% Mar 10 ¤1,000 guidance assumes wholesale product price stability and no 23 Mar 20 Fixed 4.25% additional impairments to investments. It excludes any proceeds from sale of businesses. FOR FURTHER INFORMATION PLEASE CONTACT: Cliff Davis Phil Wallis Corporate Treasurer Manager, Funding and Debt funding +61 3 8647 9708 Investments The net debt position at 30 June 2010 was A$13.93 billion [email protected] +61 3 8647 9722 (FY09: A$15.65 billion). Telstra’s effective interest rate on www.telstra.com.au [email protected]

50|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 KEY CREDIT METRICS TRANSPOWER CREDIT RATING AA/Aa3 (S&P/MOODY’S) (STABLE) BOND PROTECTION

GEARING COVENANT N LEVERAGE RATIO N INTEREST COVER RATIO N CHANGE OF CONTROL N COUPON STEP-UP N KEY DATA TARGET GEARING 40-60% YEAR END 30 JUN WEIGHTED AVERAGE DEBT MATURITY 5.23 YRS (AS AT 30 SEP 10, TO 9 JAN 16) BLOOMBERG TICKER 1002Z NZ WEIGHTED AVERAGE COST OF DEBT 7. 38% (FROM 1 AUG 10 TO 30 SEP 10) NZX CODE NOT LISTED KEY FINANCIALS FY10 FY09 FY08 REVENUES (NZ$M) 734.4 699.3 644.2 the exception of a most favoured lender covenant, debt EBITDA (NZ$M) 464.5 405.9 376.3 issuance is free of covenants. To smooth refinancing NET PROFIT AFTER TAX (NZ$M) 65.0 92.9 78.1 requirements, committed debt facilities maturing in any 12-month DEBT/EBITDA (X) 3.6 3.3 3.1

NET DEBT/NET DEBT + EQUITY (%) 53.4 48.7 47.3 period are not to exceed NZ$500 million. No more than 50% of long-term debt can mature within the next three years and at least 30% of long-term debt must mature after five years. About Transpower ranspower owns and operates New Zealand’s high- DEBT MATURITY PROFILE

voltage electricity transmission grid which provides 400 electricity to towns, cities and major industries across 350 the country. Transpower transports high-voltage 300 T electricity from power stations owned by companies 250 such as Meridian Energy (see p36) and Mighty River Power (see 200 p37) to cities, towns and major industrial users. Electricity is 150 then distributed to home and business consumers through local 100 VOLUME (NZ$M) VOLUME distribution networks such as those owned by Powerco (see 50 p40) and Vector (see p54). As a system operator, Transpower 0 also manages New Zealand’s power system. 2010 2011 2012 2014 2016 2017 2019 2020

SOURCE: TRANSPOWER 30 SEPTEMBER 2010 Ownership Transpower is a state-owned enterprise. Since the transmission OUTSTANDING BONDS network is a natural monopoly, Transpower’s investments are ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON NZD (DOMESTIC) regulated by the Electricity Commission and its pricing is 13 Dec 95 40 15 Dec 10 Fixed 7.00% regulated by the Commerce Commission. 26 Jul 00 60 15 Dec 10 Fixed 7.00% 15 Feb 10 50 15 Feb 17 Fixed 6.95% Liquidity position 19 Nov 08 50 12 Nov 19 Fixed 7.19% The liquidity policy requires Transpower to have access to 15 Apr 10 100 15 May 20 CPI-linked 4.115% committed funding facilities to cover the sum of all debt 10 Jun 05 150 10 Jun 20 Fixed 6.95% maturing in the next six months plus peak cumulative anticipated EMTN 28 Nov 01 ¥5,000 28 Nov 11 Fixed 1.3725% operating cash flow requirements in the next six months. 11 Jun 08 CHF100 6 Aug 14 Fixed 3.385% Transpower has two committed standby facilities in place 6 Dec 07 CHF200 6 Aug 14 Fixed 3.385% (undrawn), totalling NZ$500 million, and a fully-drawn 24 Mar 10 HK$400 24 Mar 20 Fixed 4.00% revolving cash advances facility of NZ$100 million. USD (USPP) 27 Sep 04 25 27 Sep 16 Fixed 5.59% Debt funding 27 Sep 04 75 27 Sep 19 Fixed 5.74% Debt funding is achieved through a mix of internal cash flows CAD (MAPLE) and capital market issues. Transpower has five active debt 15 May 07 125 18 May 12 Fixed 4.614% facilities: a European commercial paper programme, a euro FOR FURTHER INFORMATION PLEASE CONTACT: medium-term note (MTN) programme, a domestic MTN John Bishop, Treasurer programme, an Australian MTN programme and a domestic +64 4 494 7338 multi-option facility. As at 30 September 2010 net debt stood at [email protected] NZ$466.7 million, with an average maturity of 5.23 years. With www.transpower.co.nz

51 ISSUER PROFILES

TRANSURBAN GROUP KEY CREDIT METRICS ( GROUP) CREDIT RATING (senior secured) A-/Baa1/A- (S&P/MOODY’S/FITCH) WEIGHTED AVERAGE DEBT MATURITY 10.2 YRS (AS AT 30 JUN 10) WEIGHTED AVERAGE COST OF DEBT 6.9% (AUD) 5.5% (USD) (TRANSURBAN GROUP) (AS AT 30 JUN 10)

KEY DATA FINANCIAL YEAR END 30 JUN 2010 In 2009 Transurban established new bank facilities of BLOOMBERG TICKER TCLAU A$230 million maturing in Q2 2013 to refinance the June 2010 ASX CODE TCL A$195 million of bank debt facilities. The next material debt KEY FINANCIALS (TRANSURBAN HOLDINGS) FY10 FY09 FY08 refinancing of group facilities is not scheduled until February PROPORTIONAL RESULTS (1) 2011, when A$320 million of bank debt facilities mature. DEBT 5,998 5,356 5,153 TOLL FEE & OTHER REVENUES (A$M) 880.3 843.7 785.6 CORPORATE DEBT MATURITIES EBITDA (A$M) 629.9 556.8 477.4 STATUTORY RESULTS 800

TOLL FEE & OTHER REVENUES (A$M) 751.1 739.0 681.9 700 600 EBITDA (A$M) 527.5 479.4 407.0 500 NET PROFIT AFTER TAX (A$M) 59.6 (16.1) (105.3) 400 DEBT/EBITDA (X) 9.5 10.6 11.5 300 NET DEBT/NET DEBT + EQUITY (%) 50 * 52.3 51.6 200 SHARE PRICE (FY END) (A$) 4.24 4.18 4.23 100

VOLUME (A$M OR EQUIV.) (A$M VOLUME 0 1. Including contribution from M4 Motorway 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 * FY10 gearing ratio: debt to enterprise value FINANCIAL YEAR

Bank lines – drawn Term bank debt Bank lines – undrawn About Transurban Group Unwrapped bonds Wrapped bonds ransurban Group (Transurban) is a toll road owner USPP: USD USPP: AUD and operator with interests in Australia and North SOURCE: TRANSURBAN JUNE 30 2010 America. Commencing business in 1996 as a single- purpose business with one asset, it now has a stake in OUTSTANDING BONDS

eight roads. Servicing around five million customers ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE T AUD (domestic) (% OR BPS) DATE (BPS) globally, Transurban’s headquarters are in Melbourne. It also has offices in Sydney, New York and Washington, D.C. 15 Sep 06 200 15 Sep 11 Fixed 6.50% 45/swap 15 Sep 06 100 15 Sep 11 FRN 45/BBSW 45/BBSW 15 Mar 10 250 24 Mar 14 Fixed 7.25% 180/swap Ownership 29 Aug 05* 300 10 Nov 15 FRN 31/BBSW 31/BBSW Transurban is a public company, listed on the Australian 29 Aug 05* 300 10 Nov 17 FRN 34/BBSW 34/BBSW Securities Exchange since March 1996 as TCL. It is one of the * Credit-wrapped bonds top 50 listed companies on the exchange. AUD (USPP) 7 Dec 04 72 7 Dec 19 FRN 73/BBSW Not disclosed Liquidity position USD (USPP) Transurban has a liquidity policy of maintaining A$300 million 7 Dec 04 100 7 Dec 14 Fixed 5.02% Not disclosed 10 Aug 15 Fixed 5.04% Not disclosed in cash and undrawn facilities. As at 30 June 2010 it had A$501 10 Aug 05 98 14 Nov 06 56.98 14 Nov 16 Fixed 5.71% Not disclosed million of undrawn facilities and A$681.3 million of cash on 7 Dec 04 38.9 7 Dec 16 Fixed 5.17% Not disclosed hand – more than sufficient to support growth projects. 10 Aug 05 125.5 10 Aug 17 Fixed 5.19% Not disclosed 14 Nov 06 181.53 14 Nov 18 Fixed 5.86% Not disclosed Debt funding 7 Dec 04 108.6 7 Dec 19 Fixed 5.47% Not disclosed Transurban has a medium- to long-dated corporate debt profile, 10 Aug 05 156.5 10 Aug 20 Fixed 5.35% Not disclosed diversified by both sources of debt and maturities. At 30 June 14 Nov 06 162.2 14 Nov 21 Fixed 5.95% Not disclosed 2010 there was A$600 million outstanding in term bank debt, 14 Nov 06 67.39 14 Nov 26 Fixed 6.06% Not disclosed A$174 million and A$1.294 billion (USD) equivalent in US FOR FURTHER INFORMATION PLEASE CONTACT: private placements, A$550 million in domestic unwrapped bonds and A$600 million in domestic credit-wrapped bonds. All up, a Gary West, Treasurer +61 3 9612 6908 total of A$3.254 billion in drawn corporate debt was outstanding [email protected] by the end of FY10. www.transurban.com.au

52|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 KEY CREDIT METRICS TRUSTPOWER CREDIT RATING NOT RATED BOND PROTECTION (SENIOR BONDS)

GEARING COVENANT N LEVERAGE RATIO Y (NET DEBT/TTA) <= 50% INTEREST COVER RATIO N CHANGE OF CONTROL N COUPON STEP-UP N KEY DATA WEIGHTED AVERAGE DEBT MATURITY 3.3 YRS (AS AT 31 MAR 10) YEAR END 31 MAR BLOOMBERG TICKER TPW:NZ NZX CODE TPW Debt funding KEY FINANCIALS FY10 FY09 FY08 At 31 March 2010 net debt was NZ$726.1 million. TrustPower MARKET CAPITALISATION (NZ$M) 2,286 2,224 2,381 has recently accepted offers to refinance its A$160 million of REVENUES (NZ$M) 759.3 785.4 681.5 bank facilities due to mature in early September 2010. These EBITDA (NZ$M) 273.9 261.4 208 facilities will be increased to A$180 million and extended to NET PROFIT AFTER TAX (NZ$M) 119.4 105.1 98.1

DEBT/EBITDA (X) 2.7 2.8 3.2 July 2013. Following completion of the refinancing process, NET DEBT/NET DEBT + EQUITY (%) 33.9 33.9 34.3 committed debt funding will be NZ$1.07 billion. SHARE PRICE (FY END) (NZ$) 7. 30 7.67 7.44 The average maturity of outstanding debt as at 31 March 2010 was 3.3 years. TrustPower’s current cash advance facilities mature between About TrustPower July 2011 and July 2013 while its bonds – including tarting business in 1925, TrustPower has grown to be subordinated bonds – mature between September 2012 and New Zealand’s fourth-largest electricity retailer and December 2016. fifth-largest electricity generator. TrustPower is an integrated electricity company operating electricity S generation facilities from renewable energy sources DEBT MATURITY PROFILE (hydro and wind), and retailing electricity to commercial and 300 residential customers. TrustPower has assets of more than NZ$2.5 billion, mainly comprised of 36 small- to medium- 250 sized hydro-generating stations and two wind farms (one in 200

New Zealand and one in South Australia). Its head office is 150 in Tauranga. 100

Ownership (NZ$M) VOLUME 50

TrustPower is a public company, listed on the New Zealand 0 Exchange as TPW. It is majority New Zealand owned. 2011 2012 2013 2014 2015 2016 2017+ TrustPower has two large shareholders and approximately Bonds Bank funding 13,500 small parcel shareholders, as well as 9,400 bondholders. SOURCE: TRUSTPOWER MARCH 31 2010 The main shareholders are Infratil (see p31) (50.4%), a specialist investor in infrastructure and utility assets company, and the Tauranga Energy Consumer Trust (33%), a consumer- OUTSTANDING BONDS elected trust board based in Tauranga. ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON NZD (DOMESTIC) Subordinated bonds Liquidity position 16 Sep 02 108.6 15 Sep 12 Fixed 8.5% TrustPower continues to maintain conservative levels of 17 Dec 08 100 15 Dec 15 Fixed 8.4% committed credit facilities. Including subordinated bonds, the 16 Feb 04 54.7 15 Mar 14 Fixed 8.5% group currently has NZ$1.06 billion of committed debt Senior bonds funding in place. 18 Dec 09 75 15 Dec 14 Fixed 7. 6 % TrustPower currently has over NZ$300 million of unused 27 Jan 10 65 15 Dec 16 Fixed 8.0%

committed bank facilities. This gives the group considerable FOR FURTHER INFORMATION PLEASE CONTACT: capacity to commit to new projects as and when conditions Robert Farron, Chief Financial Officer support investment. +64 7 574 4820 [email protected] www.trustpower.co.nz

53 ISSUER PROFILES

VECTOR KEY CREDIT METRICS CREDIT RATING BBB+ (STABLE) (S&P) AVERAGE DEBT MATURITY 6 YRS (AS AT 30 JUN 10)

further extend the maturity of its debt portfolio to better reflect the long-term nature of the company’s asset profile. On 30 July 2010 Vector announced the establishment of a new KEY DATA NZ$50 million senior credit facility and a new NZ$125 million YEAR END 30 JUN working capital facility to replace existing facilities that were BLOOMBERG TICKER VCT NZ due to expire. On 23 September Vector priced US$182 million NZX CODE VCT (approximately NZ$250 million) of unsecured notes in private KEY FINANCIALS FY10 FY09 FY08 placement to US investors. The proceeds will be used to repay MARKET CAPITALISATION (NZ$M) 2,151 2,034 1,970 NZ$250 million credit-wrapped medium-term notes that REVENUES (NZ$M) 1187.4 1,174.2 1,182.0 mature in April 2011. EBITDA (NZ$M) 578.1 582.2 547.9 NET PROFIT AFTER TAX (NZ$M) 193.5* 164.9** 141.8** GROUP DEBT MATURITY DEBT/EBITDA (X) 4.43 4.54 5.77 600 NET DEBT/NET DEBT + EQUITY (%) 54.0 54.7 62.0 SHARE PRICE (FY END) (NZ$) 2.16 2.04 1.97 500

* Includes NZ$20.9m one-off, non-cash decrease in deferred tax liability due to 2010 400 government budget. ** Excludes the sale of Vector’s Wellington electricity network, sold in July 2008. 300

200

About Vector (NZ$M) VOLUME 100 ector is a multi-infrastructure utility with operations 0 primarily spread across electricity distribution 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 networks in Auckland, natural gas distribution in 7.625% Sterling Credit-wrapped USPP Auckland and 30 towns and cities in New Zealand’s bonds FRNs NZ senior bond Credit-wrapped AUD Credit-wrapped North Island, high-pressure natural gas transmission, MTNs (1) FRNs V 8% Capital bonds Senior credit facility Working capital facility (2) natural gas processing and wholesale, retail of liquefied petroleum gas, lease of meters to electricity retailers, and fibre SOURCE: VECTOR JUNE 30 2010 optic networks in Auckland and Wellington. 1. The credit-wrapped MTNs which expire in April 2011 will be replaced with a USPP which will mature in Dec 2022 2. In Dec 2010 the NZ$150m working capital facility which expires will be replaced with a Ownership new NZ$125m working capital facility which expires in Dec 2013 Vector is listed on the New Zealand Exchange as VCT. The majority shareholder is the Auckland Energy Consumer Trust OUTSTANDING BONDS ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON (AECT) with a 75.1% shareholding. The remaining shares are NZD (DOMESTIC) held by individual and institutional shareholders. 15 Dec 06 307 15 Jun 12 Fixed 8.0% 29 May 09 150 15 Oct 14 FRN 7. 8 % Liquidity position 26 Oct 05 250 26 Oct 15 FRN Not disclosed For the year ended 30 June 2010 Vector reported that it 4 Apr 07 160 4 Apr 17 FRN Not disclosed continued to have comfortable headroom with cash on balance 26 Oct 05 400 26 Oct 17 FRN Not disclosed 26 Oct 05 350 26 Oct 20 Fixed Not disclosed sheet of NZ$114.8 million and undrawn credit facilities of AUD NZ$325 million. The company continues to have a strong 6 Apr 01 203.80 6 Apr 11 FRN Not disclosed liquidity position with operating cash flow increasing 11.3% to USD (USPP) NZ$367.5 million and interest cover of 2.5 times for the year 15 Sep 04 15 16 Sep 12 Fixed Not disclosed ended 30 June 2010. 15 Sep 04 65 16 Sep 16 Fixed Not disclosed 15 Sep 04 195 16 Sep 19 Fixed Not disclosed Debt funding EMTN (GBP) Vector’s debt portfolio has a spread of maturities extending out 11 Apr 08 115 14 Jan 19 Fixed 7.625% to 2021, with an average maturity of seven years. At 30 June FOR FURTHER INFORMATION PLEASE CONTACT: 2010 Vector had borrowings of NZ$2.47 billion, principally from bank debt facilities, domestic retail and wholesale bonds, Binaifer Behdin, Group Treasurer +64 9 978 7546 US private placement notes and GBP bonds. The tenors of the [email protected] new debt facilities are consistent with Vector’s strategy to www.vector.co.nz

54|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 WATERCARE SERVICES

KEY DATA* KEY CREDIT METRICS* YEAR END 30 JUN CORPORATE CREDIT RATING A- (S&P) BLOOMBERG TICKER 10252Z NZ DEBT CREDIT RATING AA-/A-1+ (S&P) NZX CODE NOT LISTED BOND PROTECTION

KEY FINANCIALS FY10 FY09 FY08 GEARING COVENANT Y (SHAREHOLDERS’ FUNDS >= NZ$500M)

REVENUES (NZ$M) 198.12 184.6 167.3 LEVERAGE RATIO Y (TOTAL LIABILITIES / TTA <= 60%) EBITDA (NZ$M) 109.39 97.15 84.02 INTEREST COVER RATIO Y (EBITDA / FUNDING COSTS >= 1.75X) NET PROFIT AFTER TAX (NZ$M) (26.67) (10.36) (2.80) CHANGE OF CONTROL Y DEBT/EBITDA (X) 4.81 4.72 4.85 COUPON STEP-UP Y (ON SOME FACILITIES)

NET DEBT/NET DEBT + EQUITY (%) 58 58 50 TARGET GEARING WATERCARE TARGETS INTEREST SERVICEABILITY RATHER THAN A GEARING RATIO. WATERCARE’S FUNDS FROM OPERATIONS / INTEREST COVER IS MAINTAINED ABOVE 2.5X About Watercare Services WEIGHTED AVERAGE DEBT MATURITY 2.44 YRS (AS AT 30 JUN 10) atercare Services Limited (Watercare) is New WEIGHTED AVERAGE COST OF DEBT 5.25% (AS AT 30 JUN 10) Zealand’s largest company in the water and waste water industry. The company supplies water and provides wastewater services to more than 1.2 DEBT MATURITY PROFILE million customers in the Auckland region W 250 through a regional water network. 200

Ownership 150 Watercare is owned by Auckland Council. In July 2008 100 Watercare entered into an agreement with Auckland City Council (now Auckland Council) under which the council 50 VOLUME (NZ$’000) VOLUME explicitly guarantees the company’s borrowings and interest rate 0 hedges. FY11 FY12 FY13 FY14 FY15 FY16

SOURCE: WATERCARE SERVICES JUNE 30 2010 Liquidity position Watercare’s liquidity position is underpinned by the stability and OUTSTANDING BONDS* predictability of its primary revenues. Refinancing risk is ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON NZD (DOMESTIC) (% OR BPS) mitigated by its financing policy, which requires funding to be 19 Oct 04 50 19 Oct 11 Fixed 6.86% in place at least six months before an upcoming debt maturity. 15 May 09 130 15 May 14 Fixed 6.785% As at 30 June 2010 Watercare had NZ$158.5 million* of 15 May 09 40 15 May 14 FRN 200/BKBM available headroom under committed bank funding facilities. 8 Dec 09 40 15 May 14 Fixed 6.79% 8 Dec 09 10 15 May 14 FRN 200/BKBM Debt funding 18 May 09 30 18 May 16 Fixed 7. 1 4 % * All financial data in this profile reflects Watercare’s financial position before it became the Watercare’s objective is to maintain a balance between integrated water and waste water company for the Auckland region on 1 November 2010. continuity of funding and flexibility through the use of medium-term notes (MTNs), term loans, its bank overdraft, revolving credit facility and a commercial paper (CP) programme. Providers of bank funding and holders of MTNs and CP receive the benefit of a negative pledge undertaking from the company. This undertaking limits the extent to which the company can give security to lenders and requires the FOR FURTHER INFORMATION PLEASE CONTACT: company to ensure that financial covenant ratios are respected. Jason Isherwood, Treasury Manager +64 9 539 7543 [email protected] www.watercare.co.nz

55 ISSUER PROFILES

WELLINGTON AIRPORT

KEY DATA KEY CREDIT METRICS YEAR END 31 MAR CREDIT RATING BBB+ (S&P) BLOOMBERG TICKER 1011Z NZ BOND PROTECTION NZX CODE WIA010 GEARING COVENANT N KEY FINANCIALS FY10 FY09 FY08 LEVERAGE RATIO Y

REVENUES (NZ$M) 104.6 96.1 88.4 INTEREST COVER RATIO Y EBITDA (NZ$M) 68.2 65.3 60.0 CHANGE OF CONTROL N NET PROFIT AFTER TAX (NZ$M) 7.28 7.00 10.65 COUPON STEP-UP Y DEBT/EBITDA (X) 5.23 5.94 4.90 WEIGHTED AVERAGE DEBT MATURITY 5.4 YRS (AS AT 31 MAR 10)

NET DEBT/NET DEBT + EQUITY (%) 49.1 51.5 47.6 WEIGHTED AVERAGE COST OF DEBT 6.86% (AS AT 31 MAR 10)

About Wellington Airport ellington Airport is one of New Zealand’s three expected that the standby credit facilities, expiring in June 2011, largest airports, handling more than five million will be renewed over the coming months. passengers annually. It acts as a major domestic Various standard banking and bond covenants are in place. hub in the national transport system, serving as the gateway to central New Zealand as well as W OUTSTANDING BONDS providing international services to Australia and Fiji. The airport has three main airline customers – , 200 (including Jetstar) and Pacific Blue. The airport opened in 1959 and it now has approximately 150 1,500 people working there, of which Wellington International 100 Airport Limited (WIAL) employs 84. Passenger numbers are forecast to double over the next 20 years, with international 50 passenger numbers growing 6.4% per year and domestic (NZ$M) VOLUME

passengers growing 2.8% per year over the last 15 years. 0 Approximately 20 hectares of airport land have been 2013 2017 developed for non-aeronautical use. SOURCE: WELLINGTON AIRPORT SEPTEMBER 2010

Ownership OUTSTANDING BONDS Wellington Airport was privatised in 1998 and is now 66% ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON owned by NZ Airports (which is wholly-owned by Infratil [see NZD (DOMESTIC) (% OR BPS) p31]) and 34% owned by Wellington City Council. In the 2 Dec 08 100 15 Nov 13 Fixed 7.5% normal course of business the airport transacts with the 1 Aug 07 150 1 Aug 17 FRN 25/BKBM Wellington City Council on an arms-length basis.

Liquidity position As of September 2010 WIAL has ample funding headroom with undrawn standby credit facilities of NZ$77 million. WIAL is due to complete a major capital expenditure project for its international departure terminal expansion in October 2010. No further significant projects have been committed to.

FOR FURTHER INFORMATION PLEASE CONTACT: Debt funding All the airport’s funding is by way of medium-term bonds with Martin Harrington, Chief Financial Officer +64 4 385 5100 maturities in 2013 and 2017. This form of long-dated debt [email protected] suits the nature of the company’s assets and income flows. It is www.wellington-airport.co.nz

56|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 KEY CREDIT METRICS CREDIT RATING BBB+/Baa1 (S&P/MOODY’S) BOND PROTECTION GEARING COVENANT (X) N LEVERAGE RATIO (%) N INTEREST COVER RATIO N CHANGE OF CONTROL Y SUBJECT TO CERTAIN CONDITIONS COUPON STEP-UP Y SUBJECT TO CERTAIN CONDITIONS KEY DATA WEIGHTED AVERAGE DEBT MATURITY 2.8 YRS (30 JUN 10) FINANCIAL YEAR END 30 JUN BLOOMBERG TICKER WESAU ASX CODE WES fund its businesses. It also has a substantial amount of off- KEY FINANCIALS (GROUP)* FY10 FY09 balance sheet operating-lease debt relating to its retail store REVENUES (A$M) 51,827 50,982 networks. All the group’s bank and capital market debt benefits EBITDA (A$M) 3,786 3,803 from cross guarantees from the major operating subsidiaries of NET PROFIT AFTER TAX (A$M) 1,565 1,522 the group. NET DEBT/EBITDA (X) 1.1 1.2

NET DEBT/ EQUITY (%) 16.3 18.3 As at June 30 2010 the company’s A$304 million of short- CASH INTEREST COVER 6.8 5.0 term debt maturities was amply covered by A$1.3 billion of SHARE PRICE (FY END) (A$) 28.65 22.65 cash and A$1.3 billion of undrawn bank facilities.

* of companies acquired 23 Nov. 2007, therefore FY08 figures are not comparable Wesfarmers’ borrowings are subject to a number of financial covenants, including EBITDA net interest cover, net About Wesfarmers debt to EBITDA, and restrictions on secured debt. Wesfarmers esfarmers has grown into one of Australia’s has comfortable headroom within all financial covenants and largest listed companies and employers, with over various bank facilities include ratings-based pricing grids. 200,000 employees. Its diverse business operations cover supermarkets, department stores, home DEBT MATURITY PROFILE improvement, office supplies, coal mining, W 2,000 insurance, chemicals, energy, fertilisers, and industrial and safety 1,500 products. Wesfarmers operates 271 home improvement sites, 1,000 128 office supply sites, 727 department stores, 742 supermarkets, 766 liquor stores, 619 Coles Express sites and 96 hotels. It is the 500 second-largest player in Australia in supermarkets (Coles 0 Group), and the largest player in discount department stores -500 (brands include Target and Kmart), hardware and home -1,000 DEBT / (CASH) (A$M) / (CASH) DEBT improvement (Bunnings) and office supplies (Officeworks). The -1,500 company is headquartered in Perth. Current FY11 FY12 FY13 FY14 FY15 FY16 Deposits Syndicated Capital markets Bilaterals Ownership SOURCE: WESFARMERS JUNE 30 2010 Wesfarmers has been listed on the Australian Securities Exchange since November 1984 as WES. It is one of the top OUTSTANDING BONDS

20 listed companies on the exchange. ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE AUD (DOMESTIC) (% OR BPS) DATE (BPS) 25 Jul 05* 400 25 Jul 12 Fixed 6.00% 51/swap Liquidity position 4 Sep 09 400 11 Sep 14 Fixed 8.25% 260/swap As at June 30 2010 cash at bank and on deposit available for 4 Sep 09 100 11 Sep 14 FRN 260/BBSW 260/BBSW immediate debt reduction totaled A$1.3 billion, while the * Issued in the name of Coles Myer (before the Wesfarmers acquisition of Coles) company had committed undrawn facilities of A$1.3 billion. USD (144A) 3 Apr 08 650 10 Apr 13 Fixed 6.998% 425/UST Debt funding EUR (EMTN) By the end of FY10 Wesfarmers had gross debt of A$5.4 10 Mar 10 500 10 Jul 15 Fixed 3.875% 135/mid-swaps billion and net debt of A$4 billion, with an average debt FOR FURTHER INFORMATION PLEASE CONTACT: maturity profile of 2.8 years. The majority of financial obligations are long-dated operating leases with staggered Luigi Mottolini, General Manager Finance and Tax +61 8 9327 4282 maturities and low refinancing risk. [email protected] Wesfarmers has a well-spread debt maturity profile. It https://www.wesfarmers.com.au/debt-investors.html accesses a number of bank and debt capital markets globally to www.wesfarmers.com.au

57 ISSUER PROFILES

KEY CREDIT METRICS WESTFIELD GROUP CREDIT RATING A- OUTLOOK STABLE (S&P) A2 OUTLOOK NEGATIVE (MOODY’S) BOND PROTECTION

SECURED DEBT Y (<45%) UNENCUMBERED LEVERAGE Y (>125%) LEVERAGE RATIO Y (<65%) INTEREST COVER RATIO Y (>1.5X) KEY DATA CHANGE OF CONTROL N FINANCIAL YEAR END 31 DEC COUPON STEP-UP N BLOOMBERG TICKER WDCAU TARGET GEARING NOT SPECIFIED ASX CODE WDC WEIGHTED AVE. MATURITY: BANK FACILITIES 2.1 YRS (AS AT 30 JUN 2010) KEY FINANCIALS HY10 FY09 FY08 WEIGHTED AVE. MATURITY: BONDS & MORTGAGES 4.9 YRS (AS AT 30 JUN 2010) MARKET CAPITALISATION (A$M) 28,037.2 28,865.9 25,367.8 REVENUES (A$M) 1,799.4 4,123.0 4,351.2 bank facilities and secured mortgages. In the capital markets EBITDA (A$M) 1,290.2 2,735.7 2,570.7 Westfield has issued bonds in USD, EUR, GBP and AUD. At NET PROFIT AFTER TAX (A$M) 965.8 (450.1) (2,182.1) 30 June 2010 interest-bearing liabilities totalled A$18 billion – SHARE PRICE (FY END) (A$) 12.18 12.54 12.95 on a statutory consolidation basis – including bonds totalling About Westfield Group the equivalent of A$10.7 billion. Westfield has been active in eadquartered in Sydney, the Westfield Group the capital markets with A$9.1 billion raised during FY09, (Westfield) is one of the world’s largest listed retail including equity issuances totalling A$3.6 billion and new and property groups by equity market capitalisation. It is a extended financing facilities totalling A$5.5 billion. vertically integrated, internally managed global H shopping centre group engaged in the ownership, DEBT MATURITY PROFILE operation, development (with particular emphasis on the 6.0

redevelopment and expansion of existing shopping centres), 6.0 5.0 design, construction, management, leasing and marketing of shopping centres and in funds and asset management on behalf 4.0 4.7 of institutional and other investors. As at 31 December 2009 3.0 3.0 3.0 Westfield’s property investment portfolio consisted of interests 2.0 1.5 1.5 1.5 VOLUME (A$BN) VOLUME 1.3 1.0 in 119 mainly regional shopping centres in Australia, New 2.0 1.0 Zealand, the US and the UK, with a gross value of 0,6 approximately A$59.5 billion. At the same date, Westfield’s total 0.0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 consolidated assets were A$47.2 billion. H2

Mortgages Bonds Undrawn Facilities Bank Ownership Westfield is a stapled group, comprising the securities of SOURCE: WESTFIELD GROUP JUNE 30 2010 Westfield Holdings Limited (WHL), Westfield Trust (WT) and Westfield America Trust (WAT), which has been listed on the OUTSTANDING BONDS ASX since July 2004. WHL is an Australian corporation and ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE USD (144A) was incorporated and listed on the Australian Securities DATE (BPS) 21 Sep 06 600 1 Oct 12 Fixed 5.40% 85/UST Exchange (ASX) in 1979 as part of a corporate reorganisation 26 May 09 700 2 Jun 14 Fixed 7.50% 548.9/UST of Westfield Limited (formerly known as Westfield 26 Oct 04 1,400 15 Nov 14 Fixed 5.125% 115/UST Development Corporation Limited) which had been listed on 26 Aug 09 750 2 Sep 15 Fixed 5.75% 350/UST the ASX since 1960. WT and WAT are managed investment 21 Sep 06 900 1 Oct 16 Fixed 5.70% 109/UST schemes registered under the Australian Corporations Act. 9 Apr 08 1,100 15 Apr 18 Fixed 7.125% 375/UST Westfield is ranked in the top 20 companies on the ASX. 26 Aug 09 1,250 2 Sep 19 Fixed 6.75% 350/UST EMTN 16 Jun 05 ¤600 Liquidity position 27 Jun 12 Fixed 3.625% 60/mid-swaps 16 Jun 05 £600 27 Jun 17 Fixed 5.50% 110/Gilts At 30 June 2010 Westfield’s undrawn committed bank facilities and cash totalled approximately A$7.3 billion. FOR FURTHER INFORMATION PLEASE CONTACT:

Debt funding Richard Williams, Group Treasurer +61 2 9358 7972 Westfield has a diversified funding base made up of domestic [email protected] and international bonds, syndicated bank facilities, bilateral westfield.com/corporate

58|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010

KEY DATA KEY CREDIT METRICS FINANCIAL YEAR END 31 DEC CREDIT RATING A- (S&P) BLOOMBERG TICKER WPLAU ASX CODE WPL KEY FINANCIALS HY10 FY09 FY08 Debt funding REVENUES (US$M) 2,102 3,487 5,045 On 31 December 2009 Woodside had US$2.25 billion EBITDA (US$M) 1,597 3,061 3,584 outstanding in bonds and US$2.74 billion outstanding in other NET PROFIT AFTER TAX * (US$M) 901 1,474 1,546 debt facilities. The company has issued bonds in the US144a DEBT/EBITDA (X) N/A 1.44 0.71 NET DEBT/NET DEBT + EQUITY (%) 22.8 29.8 29.6 market and in 2009 Woodside raised approximately US$3.4 SHARE PRICE (FY OR HY END) (A$) 41.84 47.2 36.7 billion in debt. * After significant items All loans and bonds are subject to various covenants and a negative pledge restricting future secured borrowings, subject to a number of permitted lien exceptions. About Woodside Petroleum oodside Petroleum (Woodside) is Australia’s largest publicly-traded independent oil and gas DEBT MATURITY PROFILE

exploration and production company and one of 3,000 the world’s leading producers of liquefied natural gas, helping meet the demands for cleaner energy W 2,000 from Japan, China, Korea and other countries in the Asia Pacific region.

Formed in 1954, one year after Australia’s first oil discovery, 1,000 the company had an initial focus on oil exploration off Australia’s south coast. Its direction changed during the 1970s (US$M) VOLUME when major natural gas discoveries were made off the Western 0 Australian coast. Woodside has its headquarters in Perth and 2010 2011 2012 2013 2014 2015 2016-23 the company employs more than 3,000 staff around the world. Bank debt US bonds Graph includes undrawn facilities of US$1.7bn Ownership SOURCE: WOODSIDE PETROLEUM JUNE 30 2010 Woodside is a public company, listed on the Australian Securities Exchange since November 1971 as WPL. It is one of the top 20 OUTSTANDING BONDS ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE listed companies on the exchange. Shell Australia owns 34.3%. USD (144A) DATE (BPS) 25 Jul 01 300 1 Aug 11 Fixed 6.70% Not disclosed Liquidity position 3 Nov 03 250 15 Nov 13 Fixed 5.00% Not disclosed The liquidity position of the group is managed to ensure 24 Feb 09 400 1 Mar 14 Fixed 8.125% Not disclosed sufficient liquid funds are available to meet its financial 3 Nov 09 700 10 Nov 14 Fixed 4.50% Not disclosed commitments in a timely and cost-effective manner. Group 24 Feb 09 600 1 Mar 19 Fixed 8.75% Not disclosed treasury continually reviews the group’s liquidity position, including cash flow forecasts, to determine the forecast liquidity position and maintain appropriate liquidity levels. Woodside entered 2010 with A$2.9 billion of undrawn cash and debt and A$1.2 billion received in early 2010 from the

conclusion of the retail portion of an equity raising in 2009. FOR FURTHER INFORMATION PLEASE CONTACT: Woodside also received A$705 million from the sale of the Lee Marshall, Assistant Treasurer non-core Otway asset. +61 8 9348 4179 [email protected] www.woodside.com.au

59 ISSUER PROFILES

KEY CREDIT METRICS WOOLWORTHS CREDIT RATING A-/A3 (S&P/MOODY’S)

years. The maturity profile of the group’s on-balance sheet debt maturities is well spread and diversified across the bank and capital markets in Australia, Asia and the US. KEY DATA Woolworths’ debt facilities comprise domestic Australian FINANCIAL YEAR END JUN (1) commercial paper and medium-term note (MTN) issuance, US BLOOMBERG TICKER WOWAU private placement (USPP) and 144a issuance, syndicated and ASX CODE WOW revolving bank facilities, and step-up, deferrable, subordinated KEY FINANCIALS HY10 FY09 FY08 notes. REVENUES (A$M) 51,694.3 49,594.8 47,034.8 The maturity profile of Woolworths’ debt facilities is such EBIT (A$M) 3,082.1 2,815.5 2,528.8 that there is no immediate need to refinance any long-term NET PROFIT AFTER TAX (A$M) 2,020.8 1,835.7 1,626.8 debt in the current financial year. NET DEBT/EBIT (X) 0.95 0.87 0.86 Some of Woolworths’ USPP and bank facilities benefit GEARING (2) (%) 27.16 25.87 25.91 SHARE PRICE (FY END) (A$) 27.02 26.36 24.45 from financial covenants, including a minimum fixed-charge 1. Different day each year: always on a Sunday. cover of 1.75 times, maximum net debt to EBIT, cross default, 2. Net repayale debt/net repayable debt + equity limitations on priority debt, and material adverse-change clauses. The US$725 million and US$1.25 billion 144a notes About Woolworths and the A$350 million MTNs issued in 2006 do not include oolworths is made up of some of the most these financial covenants. recognisable and trusted brands in retailing, serving millions of customers every day in DEBT MATURITY PROFILE communities across Australia and New Zealand. (INCLUDING UNDRAWN COMMITTED BANK FACILITIES, It is Australia’s largest, and New Zealand’s BUT EXCLUDING REVOLVING BANK FACILITIES)1 W 1,800 second-largest, supermarket retailer with operations comprising more than 800 supermarket stores in Australia and more than 1,600 150 stores in New Zealand. It also provides wholesaling services 1,400 1,200 in India and has buying offices in Hong Kong and Shangahai. 1,000 1,699 The first store opened in Sydney in 1924: it became a chain 800 6002 in 1927 and an Australia-wide retailer in 1960. Woolworths’ retail 600 VOLUME (A$M) VOLUME 400 expertise stretches across food and grocery, liquor, petrol, 581 410 general merchandise and consumer electronics. It operates 975 200 350 381 0 127 127 supermarkets, 1,208 retail liquor outlets, 561 petrol outlets, 161 1H11 2H11 1H12 2H12 2013 2014 2015 2016 2017 2018 2019 2020 discount department stores, 416 electronics stores and 284 Bank Bond Hybrid hotels. Based in Sydney, Woolworths is one of the largest private 1. Excludes A$2,245m of revolving bank facilities, which typically roll on an annual basis sector employers in Australia, with almost 200,000 staff. 2. First call period for the hybrid notes SOURCE: WOOLWORTHS JUNE 2010 Ownership Woolworths is a public company, listed on the Australian Securities Exchange since July 1993 as WOW. It is one of the OUTSTANDING BONDS ISSUE DATE VOLUME (M) MATURITY FORMAT COUPON MARGIN AT ISSUE top 50 listed companies on the exchange. AUD (DOMESTIC) DATE (BPS) Mar 06 200 Mar 21 Fixed 6.00% Not disclosed Liquidity position Mar 06 150 Mar 11 FRN 30/BBSW 30/BBSW Woolworths sets its capital structure with the objectives of Jun 06 600 Perpetual FRN 110/BBSW 110/BBSW enhancing shareholder value through minimising its weighted USD (USPP) average cost of capital while retaining flexibility to pursue growth Feb 05 100 Apr 15 Fixed 5.06% Not disclosed Feb 05 300 Apr 17 Fixed 5.16% Not disclosed and capital management opportunities. As at 27 June 2010 Feb 05 100 Apr 20 Fixed 5.41% Not disclosed undrawn committed bank debt facilities totalled A$3.03 billion. USD (144A) Nov 05 300 15 Nov 11 Fixed 5.25% Not disclosed Debt funding Nov 05 425 15 Nov 15 Fixed 5.50% Not disclosed The majority of Woolworths’ debt financing is provided by Sep 10 500 Sep 15 Fixed 2.55% Not disclosed long-term operating leases, with lease maturities of up to 40 Sep 10 750 Sep 20 Fixed 4.00% Not disclosed

60|KANGANEWS/WESTPAC AUSTRALASIAN CORPORATE YEARBOOK NOVEMBER 2010 ARE YOU KEEPING UP TO DATE? CHECK www.kanganews.com for the most reliable and credible source of data on the AU domestic, Kangaroo, NZ domestic & Kauri bond markets

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