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

“Sydney Airport 9 Months and 3rd Qtr 2008 Results”

http://www.brr.com.au/event/52558

FRIDAY, OCTOBER 17, 2008, 10:15 AM.

            BRR    Macquarie Airports CEO, Kerrie Mather, joins us today to discuss Sydney Airport’s results for the nine months to the 30th of September 2008. MAp has

10                    had a 72.1% interest in Sydney Airport. Kerrie, thanks for joining us today. Sydney Airport reported a 9.4% increase in EBITDA pre-specifics to A$480.5 million, another solid performance.

            MAP     Yes, Sydney Airport continues to deliver solid results with EBITDA increasing 9.4% on pcp, demonstrating the resilience of the airport operating model, and

15                    the result was delivered through a combination of aeronautical and commercial initiatives right across the business and continues strict cost control. As we expected, aeronautical revenues reversed the trend earlier in the year by growing at a faster rate than passengers, and that was in part due to timing differences in recognising revenues associated with the airline

20                    commercial agreements in addition to recovery on significant investment across the airport.

            BRR    What would the global economic slowdown mean for your airports, particularly the potential impact on traffic growth?

25        MAP     Well, I think what the financial results today highlight is the resilience of the airport operating model. Clearly though, the economic environment will present some challenges for Sydney Airport and its airline partners in the near term. We’ve seen traffic growth moderated in the third quarter, although the attractiveness of Sydney Airport continues to be demonstrated with a

30                    number of airlines announcing intentions to expand services and net seat growth continuing, and that includes Singapore Airlines and Cathay Pacific moving to four daily services each, Jetstar announcing trans-Tasman services to Auckland, and Qantas introducing A380s to Los Angeles, which actually commences next week from Sydney.

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            BRR    Can you please provide an update on the T1 redevelopment and the T1 multi-storey car park’s performance since its opening in July?

            MAP     Yes, the T1 redevelopment project is progressing well. During the quarter, the emigration entry points to both terminal piers were relocated, and a new

40                    landside food court was opened. The multi-storey car park continues to impress travellers and visitors by offering undercover parking for the first time in the international precinct, which includes direct access from the car park to the international departures level, and so marketing campaigns have commenced with the goal of introducing the new car park and also in

45                    promoting the improved product mix that is now available.

            BRR    Kerrie, thank you very much for your time today.

            MAP     Thanks, Eddie.

            BRR    That was Kerrie Mather, Macquarie Airports’ CEO. If you have any questions about this broadcast or any other broadcast, please feel free to contact us on brr@brr.com.au. I’m Eddie Saade and thank you for listening to Boardroom Radio.

INTERVIEW CONCLUDED

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