Invest & Manage Airports 2011 London December 9th, 2011 North Queensland Airports (NQA) In January 2009, a consortium led by institutional investors advised by J.P.Morgan Asset Management bought Cairns & Mackay airports from the Queensland government NQA owns and manages Cairns and Mackay airports under 99-year leases – Cairns is Australia's 7th largest airports with c. 4.0m pax in FY11 and the gateway to World Heritage Great Barrier Reef and Tropical Rainforests of Northern Queensland – Mackay airport, with c. 1m pax in FY11, is the main airport serving the Bowen Basin, which contains one of the largest deposits of coal in the world 2 NQA - Overview Cairns Airport Cairns Airport 758 ha site located c.8 km from the CBD Separate domestic & international terminals Two runways: main runway (3,197m) & cross runway (925m) Curfew free Mackay Airport Mackay Airport 274 ha site located c.5 km from the CBD Single terminal Two runways: main runway (1,981m), cross runway (1,344m) Curfew free 3 NQA – Passenger Profile Cairns Mackay 6% 6% 12% 25% 44% 11% 64% NQA 25% 6% 16% 17% 61% Leisure Business VFR Other 4 NQA – Strong Traffic performance since Acquisition FY 2011/2010 Passenger growth 9.9% 9.5% 7.7% 6.9% 4.3% 4.1% 3.6% NQA Perth Airport APAC MAp QAL Sydney Airport NT Airports 5 Continued route expansion and carrier diversification 81 new services and new routes introduced since acquisition equating to over 1.4m new seats Both Cairns and Mackay have experienced strong volumes growth as a result of: – Strategically marketing the airport to tourists and – Incentivising low cost operators such as Jetstar and Virgin Blue Pro-active and coordinated marketing approach/strategy with the different Queensland tourism authorities: – Tourism Tropical North Queensland – Tropical Queensland – Tourism Australia 6 A Diversified Revenue Revenues Base Commercial yield increased by 21.4% Revenues Split (FY11) Retail performance was negatively impacted by an old-fashioned terminal fit out and product mix in recent years (over- representation of Food & Beverage, and Other souvenir shops) 12% International Terminal Duty Free walkthrough New public transport (access charges, taxis, shuttle buses) and car parking strategy Ground Transport Future Land Use Plans 16% Aeronautical Revenues 54% Real Estate 9% Retail & Advertising 9% 7 Cairns Domestic Terminal Redevelopment (DTR) The DTR was successfully completed in September 2010 The DTR increases significantly the domestic retail performance, including: 50% increase in the departures circulation space Additional 350m2 of departures retail space Increase in tenancies from 13 to 21 Development of a permanent Food & Beverage offer in the landside area of the terminal building Retail Offering Post-redevelopment Retail Precinct 8 Refinancing Successful refinancing at a competitive all-in cost in July 2011 Approximately AUD 530m senior debt raised to refinance the existing senior debt (AUD 344m 3- year facilities arranged at privatization) as well as to fund future capex needs Club deal of four Australian banks (Westpac, ANZ, NAB, and Commonwealth Bank of Australia) as well as SMBC Maturity based on a 60/40 split provides pricing benefits and reduces/diversifies refinancing risk going forward Gearing level of c. 50% and c. 7.0x Net Debt / EBITDA 6-month DSRA providing additional liquidity Facility Tenor Amount Margin Term loan – Tranche A 3 years AUD 315.3m 220 bps Term loan – Tranche B 5 years AUD 139.3m 245 bps Capex facility 5 years AUD 72.2m 245 bps Working capital 3 years AUD 2.0m 220 bps 9.