INTERVIEW WITH KERRIE MATHER, CHIEF EXECUTIVE OFFICER OF MACQUARIE AIRPORTS (MAP)

“MAp Result Demonstrates a Strong Financial Position”

http://www.brr.com.au/event/49636

WEDNESDAY, AUGUST 20, 2008, 11:10 AM.

            BRR    Today on Boardroom radio welcomes Kerrie Mather, Chief Executive Officer of MacQuarie Airports, who recently announced their first half results for its

10                    portfolio of airports and the results of the portfolio and capital reviews. So Kerrie, did the market responded very positively to the announcement?

            MAP     Yes.

            BRR    Kerrie, could you firstly please briefly outline the operating results for the first

15                    half of 2008?

            MAP     Yeah. Well, MAp’s results, MAp’s Airport achieved a solid EBITDA growth of 9.6% for the first half of 2008, reflecting the wide range of aero and commercial initiatives that we’ve put in place. Proportionate earnings was up 13.3% and proportionate earnings per share increased just over 12%. And

20                    these growth results reflect the, you know, the resilient nature of our airport portfolio and demonstrate that we’re in a strong financial position.

            BRR    Moving on to the portfolio and capital revenue, can you just take us through initiatives to be undertaken, please?

25        MAP     Sure. The operating performance of our airport portfolio has been strong. The last 12 months have been challenging for equity markets and MAp security prices definitely have not been immune to market volatility. So despite the solid performance and the value of our airports, there’s been disconnect with the security price and our focus has been on delivering and enhancing

30                    security holder value. Hence, we took the opportunity to our most recent semi-annual business planning evaluation process to conduct a comprehensive portfolio and capital review. And as a result of that review, we’re launching a withdrawal of the partially redeemed TICkETS which is our hybrid capital instrument and after completing that, we’ll defease the

35                    remaining balance of TICkETS. And secondly, we’re seeking security holder approval for a buyback of up to A$1 billion of MAp securities. And then to facilitate these actions, in addition to our existing cash flow list, we intend to do best stakes in Copenhagen and Brussels and we’ve been able to achieve sale prices of directors’ valuations. In fact, at very significant premiums to our

40                    original acquisition prices of 45% to 50% respectively without moving management influence. And finally, in addition to the review, we’ve acquired an interest in ASUR which is an exciting growth opportunity offering returns superior to those currently on offering a privatization space.

45        BRR    So Keri, why are your conducting this actions at this time? Are the underlying issue is with respect to the financial position?

            MAP     Well, certainly not. MAp continues to be operationally strong and financially sound. The initiatives we’ve announced today will put MAp on the strongest possible footing in this really challenging environment and position us well for future growth. I guess, the comprehensive package accomplishes a deleveraging and also a simplification of the MAp balance sheet, but also enhances our distribution quality and sustainability. Secondly, it validates the value of our assets and I believe in both those values. And of course MAp is

5                      an investment proposition, and also reinforces our investment discipline and demonstrates our ability to continue to sought accretive growth opportunities with the example of Mexico that we’ve just announced. So I just wanted to reiterate that MAp is in a solid financial position and that the initiatives we’ve announced today further strengthen our position.

10

            BRR    Kerrie, it’s certainly a comprehensive set of measures that you’ve announced today. Any final comments?

            MAP     Well, it’s clear that we’re being proactive in our approach. The actions will deliver significant security holder value and put us on the strongest possible

15                    footing in a really challenging environment, but also position us well for future growth.

            BRR    Kerrie, thank you again for joining us on Boardroom Radio and delivering this positive news to the market. We appreciate it and look forward to catching up

20                    with you again soon.

            MAP     Thanks, Cameron.

INTERVIEW CONCLUDED

Contact brr@brr.com.au for more information

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