MACQUARIE KOREA INFRASTRUCTURE FUND …...Toll roads(4) Subway(1) Port(1) 1. Investments having a total par value of KRW 100mil or less are subject to withholding tax of 5.5% in 2008

MACQUARIE KOREA INFRASTRUCTURE FUNDGeneral PresentationMay 2009

P

CONTENTS

1 GENERAL UPDATE –Q1 2009

2 BUSINESS OVERVIEW

Share information

Corporate structure

11

12

Asset manager

Portfolio

Landmark assets

Long-term concession period

13

14

15

16

Government revenue support

Protected revenue growth

Capital restructuring opportunities

17

18

19

Distribution

Conclusion

21

22

Balance sheets

Profit and loss statements

Cashflow statements

Recent transactions

Construction progress

New asset openings in 2009

Operating performance by asset

24

25

26

27

28

29

35

MRG summary

Portfolio

Management fees

Macquarie worldwide investment

Macquarie Capital’s advantage

Macquarie capital funds snapshot

36

37

38

39

40

41

3 APPENDICES

Highlights

Financial results

5

6

Construction progress 7

Underlying asset performance

Capital position

8

9

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HIGHLIGHTS

SOLID 1st QUARTER 2009 RESULTS DESPITE ADVERSE BUSINESS ENVIRONMENTTraffic volume and revenue down 1.7% and 0.2%, respectively, on prior corresponding period (pcp)1

Normalised EBITDA2 growth of 22% on pcpInterest income growth of 10% mainly due to increase in loan investments

DELIVERING ON CAPITAL MANAGEMENT INITIATIVESDivested MKIF’s senior loan commitment of KRW 188bn in Incheon Grand Bridge Total net cash proceeds to MKIF of KRW 134.5bn, representing the amount which has been drawndownProviding cash to service existing investment commitments Proved healthy appetite for MKIF assets

CONSERVATIVE CAPITAL POSITION (as at 31 March 2009)

MRG (minimum revenue guarantee) backing currently on substantially all of MKIF’s operating cash receiptsProportionately consolidated cash balance of circa KRW 354bn (MKIF level cash balance of KRW 213bn)No external funding required for 3 yearsAll asset level external senior debt are fully-funded, amortising debt with weighted average amortising maturity of ~9 yearsProportionately consolidated gearing of 51%3

WELL-MANAGED CONSTRUCTION PROGRESS All six greenfield assets progressing generally on scheduleFive greenfield assets expected to open to operation in next 6 months generally on time and on budgetSeoul Subway Line 9, Section 1 and Yongin-Seoul Expressway to commence operation as early as June 2009More visibility on cashflows as new assets become operational

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Well positioned in challenging economic and market environment

S

FY2008 1Q 2008 1Q 2009 % change

Revenue 235,064 117,224 40,867

Interest & dividend income 154,870 36,925 40,534

Capital gain (one-off) 79,4001 79,4001 -

Other income 794 899 333

Expense 51,364 13,791 11,746

Management fee 27,836 7,584 5,859

Interest expense 16,235 3,447 4,512

Other expense 7,293 2,760 1,375

Net income 183,700 103,433 29,121

EBITDA 199,935 106,880 33,633

Normalised EBITDA2 120,535 27,480 33,633

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FINANCIAL RESULTS

Unaudited, non-consolidated financial information

OOB

Continued delivery of solid results

T

CONSTRUCTION PROGRESS

COMPLETION

PROGRESS

RISK MITIGATION

CONTRACTORCREDIT

Potential delays or cost overruns generally covered by the contractors

Contractors in the consortium jointly liable for the event of defaults

% of Greenfield assets in MKIF portfolio expected to reduce from 47% to 13%3

Circa KRW297bn4 of investment commitment remaining over next 3 years

Majority of the contractors are blue chip companies

5/6assets to be

operational in 2009

97%1

Actual vs Scheduled progress

6Average construction

contractors per project

Credit ratings2 above

A

1.

As at 31 March 2009. Average construction progress of 6 greenfield assets. Construction progress is measured in terms of actual progress against scheduled progress to date.2.

Domestic credit rating 3.

On a commitment basis4.

Includes MKIF’s conditional commitment to acquire an additional 32% equity interest in Yongin-Seoul Expressway after two years of operation

Construction progressing mostly on time and on budget

First opening as early as June 2009 (Yongin-Seoul Expressway and Subway Line 9, Section 1 )

Managing construction risk

U

UNDERLYING ASSET PERFORMANCE

1.

On a weighted average basis based on revenue size of each asset and the MKIF’s equity interest in each concession company. Excludes Machang Bridge commenced operation on 15 July 2008.

2.

Estimated, unaudited figures. EBITDA margin=EBITDA/Operating Revenue where, revenue compensation and other compensations are reflected on accrual basis. Excludes construction assets.

3.

Based on estimate of the aggregate of the revenues of MKIF’s operating assets.

Traffic growth1 MRG revenue portion-FY083

41%

Q1 2009 over Q1 2008 FY2008 over FY2007

Asset Traffic Volume Traffic Revenue Traffic Volume Traffic Revenue

Cheonan-Nonsan Expressway 1.6% 5.9% (0.6%) 2.2%

Gwangju Second Beltway, Section 1 (0.7%) (1.4%) (2.7%) (3.1%)

Gwangju Second Beltway, Section 3-1 15.5% 15.1% 14.9% 14.4%

Baekyang Tunnel (3.9%) (4.7%) (2.8%) 4.6%

Soojungsan

Tunnel (3.6%) (5.1%) (2.2%) 5.0%

Incheon International Airport Expressway (9.8%) (9.2%) (5.5%) (2.4%)

Woomyunsan Tunnel 13.5% 12.9% 8.6% 8.3%

Deagu

4th Beltway East (0.4%) (0.4%) (3.3%) (3.2%)

Weighted average growth rate (1.7%) (0.2%) (1.6%) 1.5%

TRAFFIC PERFORMANCE

EBITDA margin –

FY082

85%VOLUME

REVENUE

(1.7%)

(0.2%)

Resilient to economic slowdown

V

CAPITAL POSITION

1. Proportionately consolidated cash balance (including corporate cash balance of KRW 213bn) 2. Weighted average amortising maturity of underlying asset level debt3. Gearing = MKIF Net Debt / ( MKIF Net Debt + MKIF market capitalisation

(3-month average)), where MKIF Net Debt = Proportionate net debt from assets + Corporate net debt. Excludes shareholder loans

4. As of 31 December 2008. Proportionate average of 9 operating assets 5. Hedging (Fixed or swapped to fixed) = Proportionate net debt from assets adjusted for fixed or swapped debt / MKIF net debt6. Proportionately consolidated external debt. Excludes shareholder loans

DEBT PROFILE6

Asset Debt Corporate Debt

(Roll over)

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GEARING3

AMORTISING MATURITY2

51%

9 years

INTEREST RATE HEDGE5

54%for next one year

CASH BALANCE1 KRW

354bn

Conservative capital position maintained

100

200

300

400

500

600

700

2009 2014 2019 2024 2029 2034

NET DEBT TO EBITDA4 3.9x

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SHARE INFORMATION Korea’s only listed infrastructure fund

1. Based on the share price as of 31 March 2009, KRW 4,4502. 60-day average daily turnover3. Based on the share price as of 31 March 2009, KRW 4,450 and FY2008 distribution (Cash basis) 4. Source: Financial Supervisory Service

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TOP SHAREHOLDERS4

KRX -088980.KS / LSE –

MKIF.LI

INTERNATIONAL SHAREHOLDING

MARKET CAP1 DAILY VOLUME2

EXCHANGE FREE FLOAT

TRADING YIELD3

85%

KRW 1.5 trillion (US$ 1.1 billion )

30% Circa 10%

2. Shinhan Financial Group

4. Capital Research & Mgmt Company

5. Korea Life Insurance

11.2%

7.5%

6.0%

5.9%

1. Military Mutual Aid Association 11.8%

3. Kumho

Life Insurance

7. Macquarie Group 4.4%

6. Korea Government Employees Pension Services 5.4%

NO

–

External fund manager–

JV between Macquarie & Shinhan Financial Group

–

Managed under Macquarie’s global policies and procedures

Macquarie Shinhan Infrastructure Asset Management Co., Ltd.

Management AgreementMKIF

Invest in 15 Concession companies

Operating assets Construction assets

Toll roads (9) Toll roads(4) Subway(1) Port(1)

1. Investments having a total par value of KRW 100mil or less are subject to withholding tax of 5.5% in 2008 and 6.6% in 2009.

Investments having a total par value over KRW100mil are subject to 15.4% (applicable until December 2010)

Externally-managed infrastructure investment company

Active manager of the invested companies through management participation

Corporate tax exempted when MKIF distributes more than 90% of its annual net income

Korean retail residents benefit from a lower distribution withholding tax1

Invests in the form of:EquitySubordinated debtSenior debt

Receives:Interest incomeDividend

CORPORATE STRUCTURETax flow through vehicle

15

9 6

NP

MSIAM

JV between Macquarie Group & Shinhan Financial Group

Managed under Macquarie’s global policies and procedures

30 staff involved in active management

Aacquisition Asset Management FinanceLegal &

Compliance

MACQUARIE GROUP SHINHAN FINANCIAL GROUP

COMPETITIVE ADVANTAGES

Dominant local presence in the infrastructure sector - Macquarie infrastructure specialists working in the advisory and in asset management in Seoul

Committed and experienced board of directors

Backed by Macquarie’s expertise and global network

Korea’s largest financial group

Brings strong local relationships and expertise

Established and experienced lender to Korean infrastructure projects

Global infrastructure funds management businesses

Macquarie has close to 350 staff in Korea, across a variety of businesses

ASSET MANAGER Experienced infrastructure manager

Proven

Track Record in Managing

Infrastructure Funds Strong Korean Financial Expertise

Representative Director

NQ

PORTFOLIO COMPOSITION BY ASSET PORTFOLIO COMPOSITION BY PHASE AND TYPE

5.1%

Subway3.8%

Toll Roads82.8%

Port13.4%

Yongin-Seoul Expressway

10.6%

Incheon

Grand Bridge

8.4%

Seoul Subway Line 9, Section 1

3.8%

Seoul-ChuncheonExpressway

7% Machang Bridge 4.6%

Busan

New PortPhase 2-3

13.4%

7%

13.9%

1.0%

Gwangju 2nd

Beltway, Section 19.8%

Beakyang

Tunnel0.1%

Gwangju 2nd

Beltway, Section 3-1

5.3%

Incheon

International Airport Expressway

5.7%

Woomyunsan Tunnel

Cheonan-NonsanExpressway

Seosuwon-Osan-Pyungtaek

Expressway4.1%

Daegu

4th

Beltway, East

Soojungsan

Tunnel

OPERATING STAGES

Ramp-upEarly stages of operations (depending on length of concession, could be up to 3~4 years after operation commencement)

GrowthPhase generally lasts from 2~5 years after ramp-up period ends. Characterised

by stable organic growth in traffic and revenue

MaturityCharacterised

by steady patronage and low levels of operating risk or uncertainty

As of 31 March 2009

PORTFOLIO Balanced, diversified mix of assets

Equity36.7%

Sub debt48.5%

Senior debt14.8%

Construction47.4%

Growth27.6%

Ramp-up10.4%

Mature14.6%

NR

LANDMARK ASSETS Presence in major metropolitan areas

As of 31 March 2009

Source: Korea National Statistical Office (As at 31 December 2008)

NS

LONG-TERM CONCESSION PERIODGovernment support packages1

underpin investment security

1.

Revenue support and termination payment provisions vary for each

concession 2.

Revenue support until at least 2023 with weighted average support remaining of about

14

years

(excluding Busan New Port Phase 2-3) 3.

Concessions last at least until 2035 with weighted average life remaining of over 26 years4.

Concession companies have the right to receive payments if the relevant concession agreement is terminated prior to expiration of the concession term, including termination due to events attributable to the concession company or the government body or

for events of force majeure

CONCESSION TERM VS. GOVERNMENT REVENUE SUPPORT PERIOD

Revenue Support Duration 2 Concession Term 3 Early Termination Support4

Weighted Average Concession Term

26 years

Weighted Average Revenue Support

14years

Present

2000 2005 2010 2015 2020 2025 2030 2035 2040 2045

(C)Busan New Port Phase 2-3

(C)Seosuwon-Osan-Pyungtaek Expressway

(C)Yongin-Seoul Expressway

(C)Incheon Grand Bridge

(L)Seoul Subway Line 9, Section 1

(C)Seoul Chuncheon Expressway

(L)Machang Bridge

(L)Daegu 4th Beltway, East

(L)Soojungsan Tunnel

(C)Cheonan Nonsan Expressway

(L)Woomyunsan Tunnel

(L)Kwangju 2nd Beltway, Section 1

(L)Kwangju 2nd Beltway, Section 3

(L)Baekyang Tunnel

(C)Incheon International Airport Expressway

Relevant Authority(C) Central government (L) Local government

As of 31 March 2009

NT

Revenue Cap1

MRG1

Forecast Revenues2

Government bodies compensate the shortfall

Relevant government authorities extract the excess portion

Actual Revenue

1. MRG and revenue caps vary across assets2. Forecast revenues set out in the Concession Agreement

Revenue

GOVERNMENT REVENUE SUPPORT1

Mechanism

MRG and Revenue support for 14 of MKIF’s 15 assets

Real and inflation-linked revenue support

MRG line tracking the forecast revenue line (typically 80~90% below forecast revenue)

No history of Korea sovereign default

Korea sovereign rating as of October 2008:

−

S&P : A (Stable)

−

Moody’s : A2 (Stable)

Details for the government revenue support by each asset attached – Slide 30

Conceptual Diagram

MINIMUM REVENUE SUPPORT MECHANISM

NU

PROTECTED REVENUE GROWTH Inflation linked revenue guarantees feed directly to equity returns

ESTIMATED AGGREGATE REVENUE OF UNDERLYING ASSETS

-

REAL AND INFLATION LINKED GROWTH

1. Represents the cumulative profile of the minimum guaranteed level of revenue to 14 assets (Busan

New Port Phase2-3 excluded)

in which MKIF has invested. MKIF has various and different interests in each of

these concession companies. Actual traffic and revenue performance may vary from the total concession agreement revenue forecast for each project in which MKIF has an investment.

Note: Inflation forecast based on estimation provided by Consensus Economics –

short term forecasts (taken from September 2008) / long-term forecasts (taken from April 2008)

Government Protected Project Revenue (Escalated)

Concession Agreement Revenue Forecast (Escalated)

Future Actual Revenue Line (Not based on estimation of actual revenue. For illustrative purpose only )

(KRW billion)

2,500

2000 2005 2010 2015 2020 2025 2030 2035

500

1,000

1,500

2,000

2040

0

Revenue guaranteed income1

Inflation-linked growthin revenue-guaranteed income of 10.7% nominal CAGR to 2018

Conceptual Diagram

As of 31 December 2008

NV

CAPITAL RESTRUCTURING OPPORTUNITIESValue creation from capital management activities

Year

Conceptual Diagram

51%1

③ DELAY DEBT AMORTISATION

① REFINANCING

Gearing

② INCREASE GEARING

Lower interest rate

Improve debt covenants

Release trapped cash

Bring forward available cash

1.

Proportionately consolidated net gearing as at March 2009

Capacity to gear up further

② INCREASE GEARING ③ DELAY DEBT AMORTISATION① REFINANCING

Opportunities exist to optimise capital structure

Asset level senior debt typically have amortising debt with restrictive cash reserve covenants

Certain assets are subject to Benefit Sharing Plan where financial benefits from refinancing need to be shared with the relevant government authority

OM

Optimising the capital structure of Woomyunsan Tunnel through a new KRW 112.3bn debt package in December 2008

–

Refinancing of existing senior debt of KRW 90.7bn and increase in senior debt of KRW 21.6bn

–

Capital redemption to Woomyunsan Tunnel

shareholders of KRW 53.2bn of which KRW 26.6bn is invested back into Woomyunsan in the form of subordinated debt

–

Refinancing benefit sharing1

with Seoul Metropolitan City involving changes in the Concession Agreement with net result being positive for the shareholders of Woomyunsan Tunnel

1. Concession agreement of PPI projects introduced after 2004 in Korea contains refinancing benefit sharing clause where financial benefits arising from refinancing of asset level debt need to be shared with relevant government authority

Concession life

BEFOREEquity Distributions

Senior Debt

(interest and principal payments)

Concession life

AFTERCapital RedemptionEquity DistributionsSubordinated Debt (interest and principal payments)Senior Debt

(interest and principal payments)

Conceptual diagram of cashflow

Example: Woomyunsan Tunnel refinancing

CAPITAL RESTRUCTURING OPPORTUNITIES

ON

DISTRIBUTION Stability ensured by MRG revenue streams

Distribution made twice a year

Distributions to be funded through operating cashflows and surplus cash, together with additional cash from capital management activities

In 2008, MKIF paid a total distribution of KRW 582 per share, composed of KRW 460 in cash and KRW 122 in newly issued shares

−

maintained 4.5% growth in cash distribution

−

stock component helped to maintain tax-exempt status and to preserve cash to fund existing capital commitments

0

100

200

300

400

500

600

Second Half

First Half

(KRW) DISTRIBUTION HISTORY (PER SHARE, POST-LISTING)

230220200

220 220

2006 2007 2008

122

230

Stock distribution (0.02464 share)

OO

CONCLUSION Key value propositions

Minimum Revenue Guarantee (MRG) provided to14 out 15 underlying assets

Currently, substantially all of the operating cash receipts are MRG-backed

Underlying revenues are fully inflation-adjusted

Real and inflation-linked growth

Capital restructuring opportunities

Re-rating of assets

Growth through new investments

Global leader managing 118 infrastructure businesses in 26 countries

Superior track record delivering over 9%1 annual return since 1994

Management fees aligned with shareholders’ interests

#1 infrastructure management and advisory platform with over 100 professionals

Unrivalled brand recognition and track record in the infrastructure space in Korea

Sound balance sheet position

Conservative gearing with solid debt profile

Stability of operating cashflows supported by predictable cost basis

1. Annualised return based on all capital raised, distributions paid

and valuations (market capitalisation for listed funds and net asset value for unlisted, including managed assets) for Macquarie Capital Funds since inception to 31 December 2008 (unlisted funds and managed assets as at 30 June

2008).

REDUCED CAPITAL RISKS

EMBEDDED GROWTH POTENTIAL

HEALTHY FINANCIALS

MACQUARIE MANAGED FUND

STRONG MARKET PRESENCE

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OQ

Mar-09 Dec-08

Total Assets 2,120,729 2,099,832

Ⅰ. Invested Assets 1,948,621 1,929,621

Cash

and deposits 212,649 182,412

Loans 1,139,466 1,144,656

Equity securities 596,506 602,553

Ⅱ. Others (Receivables, prepayments, etc.) 172,108 170,211

Total Liabilities 425,194 359,004

Accounts payables 9,602 9,606

Management fee payable 5,859 5,975

Long-term debts 407,053 340,523

Other liabilities 2,680 2,900

Total Shareholders’

Equity 1,695,535 1,740,828

Total Liabilities and Shareholders’

Equity 2,120,729 2,099,832

CAPITAL INJECTION INTO MKIF INVESTMENTS1

(Unit: KRW mn)

BALANCE SHEETSNon-consolidated -

as at 31 March 2009 and 31 December 2008

Asset Item 1Q 2009

Incheon Grand Bridge

Equity 9,900

Sub Debt 12,367

Senior Debt (45,814)

Busan New PortEquity 3,205

Sub Debt 13,792

Seosuwon-Osan-Pyungtaek Sub Debt 4,900

Woomyunsan Tunnel Equity (19,152)

Sub Debt 9,576

Total (11,226)

1.

Excluding transaction costs

(Unit: KRW mn)

OR

1Q 2009 4Q 2008 1Q 2008

Revenue 40,867 41,035 117,224

Interest Income 40,534 40,470 36,925

Dividend Income

Arrangement fees

-

144

-

-

482

2,895

Loss on valuation of debt securities - - (2,921)

Gain on sale of investment, net - - 79,4001

Other Income 189 565 443

Expense 11,746 12,697 13,791

Management fees 5,859 5,975 7,584

Custodian fee 84 87 127

Administrator fee 73 76 74

Interest expense 4,512 5,267 3,447

Other expenses 1,218 1,292 2,559

Net Profit 29,121 28,338 103,433

(Unit: KRW mn)

PROFIT AND LOSS STATEMENTSNon-consolidated –

3 months to 31 March 2009, 31 December 2008, 31 March 2008

1. Includes gain on (i) securitisation of shareholders loan in Baekyang Tunnel of KRW24.5bn and (ii) divestment of the convertible bond in New Daegu Busan Expressway of KRW54.9bn

OS

FY2008 FY2007 % Change

Cash flows from operating activities:

Cash inflows from operating activities 386,127 97,102 298%

Sale of investment 280,319 - NA

Collection of other loans receivable - 1,799 NA

Interest income and other 105,808 95,303 11%

Cash outflows from operating activities: (355,673) (264,640) 34%

Investments (314,485) (196,432) 60%

Fees and expenses (41,188) (68,208) (40%)

Net cash provided by (used in)

operating activities 30,454 (167,538) 118%

Cash flows from financing activities:

Repayment of long-term debt (100,000) - NA

Share issuance costs - (267) NA

Proceeds from long-term debt, net 314,000 112,000 180%

Distributions paid (145,571) (142,336) 2%

Net cash provided by (used in) financing activities 68,429 (30,603) 324%

Net increase (decrease) in cash and deposits 98,883 (198,141) 150%

Cash and deposits at beginning of the period 83,529 281,670 (70%)

Cash and deposits at end of the period 182,4121 83,529 118%

(Unit: KRW mn)

CASHFLOW STATEMENTS

1. MKIF received net cash proceeds of KRW 9.6 bn in January 2009 from Woomyunsan refinancing

Audited, non-consolidated -

12 Months to 31 December 2008 (compared to FY2007)

OT

1. Based on market rate as at 12 December 2008. Weighted average interest rates on fixed and floating rate tranches of the senior debt after refinancing

RECENT TRANSACTIONSValidation of MKIF intrinsic value and recycle story

—

Refinancing of existing senior debt of KRW 90.7bn

—

Increase in senior debt of KRW 21.6bn

—

Capital redemption to shareholders of KRW 53.2bn of which KRW 26.6bn invested back to Woomyunsan in the form of subordinated debt

—

Interest rate of new senior debt reduced by 330bps compared to the previous senior debt1

—

Financing subordinated debt at interest rate of 20% p.a.

—

Immediate net cash inflow of KRW 9.6bn to MKIF through the capital redemption

—

Increasing short term cash yield for shareholders of Woomyunsan Tunnel

—

Improved senior debt terms

CAPITAL RESTRUCTURING

VALUE

—

Source of cash to pay down debt and service investment commitments

SECURITISATION

—

Securitisation of the shareholder loan involving issuance of asset-backed securities bonds

—

Net cash proceeds to MKIF of KRW169 bn

—

Bonds have been priced at 90bps margin over 10yr Korean treasuries, or 6.73%

—

Received “AAA”

domestic rating supported by credit wrap provided by Shinhan Bank

—

Accounting gain: KRW 22.4 bn

—

Divestment

of MKIF held convertible bonds

–representing minority interest of 6.5% if converted

—

Total sale consideration of KRW 108.3 bn

—

Implied investor IRR of around 7%

—

Accounting gain: KRW 54.9 bn—

Circa 31% IRR pa

since investment

—

Recycling mature assets to fund early stage projects

—

Immediate source of cash —

Structured to capture future upside

BAEKYANG TUNNEL

January 2008

DAEGU BUSAN EXPRESSWAY

March 2008

WOOMYUNSAN TUNNEL

December 2008

SALE OF CONVERTIBLE

BONDS

DESCRIPTION

TRANSACTION RATIONALE

PRICING

—

Divestment of MKIF’s senior loan commitment of KRW 188bn

—

Net cash proceeds to MKIF of KRW 134.5bn, representing the amount which has been drawndown

—

Sold at book value in a very tight credit market

—

Immediate net cash inflow of KRW 134.5bn

—

Providing cash reserves to service existing commitments

SALE OF SENIOR LOAN

March 2009

INCHEON GRAND BRIDGE

OU

CONSTRUCTION PROGRESS

Construction progressing mostly on time and on budget

5 of 6 greenfield assets scheduled to be operational by the end of 2009

Cash injections made according to construction progress avoiding construction delays

As of 31 March 2009

As at 31 March 2009

Seoul Subway Line 9, Section 1

Seoul-Chuncheon Expressway

Incheon Grand Bridge

Yongin-Seoul Expressway

Busan New Port Phase 2-3

2005 2006 2007 2008 2009 2010 2011

JUNJUN

AUG AUG

JUL OCT

OCT

JUL OCT

JAN DEC

87%

94%


Expressway

% OF ACTUAL VS. SCHEDULE

97%

100%

100%

Civil work116%

Equipment82%

JUN

OV

JUNESeoul Subway Line 9, Section1

JUNEYongin-Seoul Expressway

NEW ASSET OPENINGS IN 2009

AUGUSTSeoul-Chuncheon Expressway

OCTOBERIncheon

Grand BridgeOCTOBERSeosuwon-Osan-Pyungtaek

Expresswaty

PM

vlkdfkJpblri=bumobppt^v=Expected Opening in June 2009

Expected opening in June 2009

22.9km dual two to three-lane tolled expressway

An Alternative route, alleviating traffic congestion between Suwon and Seoul section of the Seoul-Busan Highway

Consisting of six bridges, 10 tunnels and six interchanges connecting Yongin to Seoul

Government Authority

Concession Term

Ministry of Land, Transport and Maritime Affairs

30 years

Guarantee Duration 10 years from commencement of operations

Minimum Guarantee 70% of annual CA projected revenue

130% of annual CA projected revenue Revenue Cap

MKIF COMMITMENT

CONCESSION AGREEMENTOVERVIEW

Subordinated loan 58.3% 77.0

Equity 35.0/67.0%1 129.6

Senior Debt - -

MKIF’s total investment 35.0/67.0%1 206.6

Investment Type Percentage Amount (KRW billion)

BUNDANG

PN

pblri=pr_t^v=ifkb=VI=pb`qflkNExpected Opening in June 2009

Expected opening in June 2009

25.5km subway line with 25 stations (including 6 transfer stations)

A direct railway connection between Kimpo airport and the major business and residential districts of Seoul


Concession Term

Seoul Metropolitan City

30 years


Minimum Guarantee* 90%, 80%, 70% of annual CA projected revenue

110%, 120%, 130% of annual CA projected revenueRevenue Cap*

MKIF COMMITMENT



Equity 24.5% 40.9

Senior Debt - -

MKIF’s total investment 24.5% 74.4


* Change by every five year

PO

pblriJèrkèblk=bumobppt^vExpected Opening in August 2009

Expected opening in August 2009


Providing a direct link between Seoul to Chuncheon, the largest city in Gangwon province

Relieving traffic congestion in east part of Seoul to Chuncheon via Kyunggi-do


Concession Term


30 years



120%, 130%, 140% of annual CA projected revenueRevenue Cap*

MKIF COMMITMENT



Equity 15.0% 48.

Senior Debt - -




PP

fkèblk=do^ka=_ofadbExpected Opening in October 2009

Expected opening in October 2009

12.3km dual three-lane tolled bridge

Korea’s longest bridge and the fifth largest cable stayed bridge in the world

Connecting Incheon international Airport to the commercial area of New Songdo City in the Incheon Free Economic Zone


Concession Term


30 years


Minimum Guarantee 80% of annual CA projected revenue

120% of annual CA projected revenueRevenue Cap

MKIF COMMITMENT



Equity 41.0% 74.5

Senior Debt - -



PQ

pblprtlkJlp^kJmvrkdq^bh=bumobppt^vExpected Opening in October 2009

Expected opening in October 2009


A ‘T’ shaped expressway expected to relieve traffic congestion and connect to the fast growing satellite cities of Seoul

Ideally located to become one of key infrastructure projects to support the continued population and economic growth in the region


Concession Term


30 years



110%, 120%, 130% of annual CA projected revenue Revenue Cap*

MKIF COMMITMENT

CONCESSION AGREEMENT


Equity -

-

Senior Debt - -




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OVERVIEW

PR

OPERATING PERFORMANCE BY ASSET12 Months to 31 December 2008

Assets Operating Revenue1 OPEX EBITDA Net Debt2 EBITDA

marginNet Debt

to EBITDAOperating Revenue1 OPEX EBITDA Net Debt2 EBITDA

marginNet debt

to EBITDA

Gwangju Second Beltway, Section 1 25,461 (3,813) 21,648 (346) 85% (0.0x) 23,443 (3,963) 19,480 (826) 83% (0.0x)

Gwangju Second Beltway, Section 3-1 14,037 (3,157) 10,880 (2,465) 78% (0.2x) 13,048 (3,156) 9,891 (690) 76% (0.1x)

Soojungsan Tunnel 17,914 (2,566) 15,348 (4,361) 86% (0.3x) 15,491 (2,744) 12,747 (1,065) 82% (0.1x)

Baekyang Tunnel 16,571 (4,469) 12,102 164,823 73% 13.6x 15,763 (6,972)3 8,791 (3,348) 56% (0.4x)

Incheon International Airport Expressway 239,753 (21,417) 218,337 532,974 91% 2.4x 222,136 (20,112) 202,025 604,383 91% 3.0x

Cheonan-Nonsan Expressway 140,583 (19,914) 120,669 470,234 86% 3.9x 129,911 (21,100) 108,811 531,203 84% 4.9x

Woomyunsan Tunnel 19,911 (3,648)4 16,263 74,948 82% 4.6x 20,380 (3,893) 16,487 83,010 81% 5.0x

Daegu 4th

Beltway East 23,697 (2,649) 21,048 104,811 89% 5.0x 22,175 (2,553) 19,622 94,462 88% 4.8x

Machang Bridge5 20,658 (4,734) 15,924 189,053 77% 25.6x N/A N/A N/A N/A N/A N/A

Proportionate average 260,572 (38,625) 221,947 873,976 85% 3.9x 222,023 (37,069) 184,955 568,824 83% 3.1x

2008 2007

1.

Revenue compensation and other compensations from the relevant government authority are reflected on accrual basis. Payments are

typically received within 6 to 18 months after the end of the year to which they relate. Actual results may vary

2.

Excludes Shareholders loans3.

Includes maintenance CAPEX aggregated into outsourced O&M cost4.

Adjusted to exclude costs related to capital restructuring in 4Q

2008 5.

Operation commenced on 15 July 2008. Operating revenue, OPEX and

EBITDA figures have been annualised

(Unit: KRW million)

PS

MINIMUM REVENUE GUARANTEE SUMMARY

AssetConcession

Term Concession Term

RemainingRevenue

Guarantee Duration Revenue Guarantee Duration Remaining

Revenue Guarantee Threshold 1

Revenue Cap Threshold 1,2 Remarks

Operating asset

Incheon

International Airport Expressway 30 22 20 12 80% 110%Partial revenue sharing in excess of 80% to 110% level

Baekyang Tunnel 25 16 25 16 90% 110%

Gwangju 2nd Beltway, Section 3-1 30 26 30 26 90% 110%

Gwangju 2nd Beltway, Section 1 28 20 28 20 85% 115%

Woomyunsan Tunnel 30 25 30 25 79%3 110%

All revenue sharing excess of 79% to 85% and excess 110%/ Partial revenue sharing excess of 90% to110%

Cheonan-Nonsan Expressway 30 24 20 14 82% 110%Partial revenue sharing in excess of 82% to 110% level

Soojungsan

Tunnel4 25 18 25 18 90% 110%

Daegu

4th Expressway, East 24 18 20 14 79.8% 120.2%

Machang Bridge 30 30 30 30 80% 120%

Construction asset

Seoul-Chuncheon Expressway 5 30 30 15 15 80%/70%/60% 120%/130%/140% Change by every five year

Seoul Subway Line 9, Section

1 5 30 30 15 15 90%/80%/70% 110%/120%/130% Change by every five year

Incheon

Grand Bridge 30 30 15 15 80% 120%

Yongin-Seoul Expressway 5 30 30 10 10 70% 130%


Expressway 5 30 30 15 15 80%/70%/60% 110%/120%/130% Change by every five year

Busan

New Port Phase 2-3 29 29 N/A N/A

Weighted average6 29 26 17 14

1. % of annual concession agreement projected revenue 2. Relevant government authorities are entitled to the excessive portion 3. 79% up to 2023 and 78% from 2024 to 20344. In toll revenue below 90%, Busan

City Government is obliged to compensate 91.5% of the shortfall

amount 5. No revenue guarantee applies if actual revenue are below 50 %

of the toll revenue forecast6. Weighted by investment commitment

As of 31 March 2009

PT

PORTFOLIO Balanced, diversified portfolio

1.

Includes KRW 3.2 bn working capital facility2.

Includes MKIF’s conditional commitment to acquire an additional 32% equity interest agreed with project sponsors (increasing MKIF’s equity stake to 67%)

MKIF COMMITMENT AND DEBT INTEREST RATE

As of 31 March 2009

Name Abbrv. Equity Ownership (%)Subordinated

DebtInterest

RateSenior

DebtInterest

Rate Total

Incheon International Airport Expressway NAHC 58.2 24.1 51.7 13.9 - 109.9

Baekyang Tunnel BYTL 1.2 100.0 - 1.7 15.0 2.9

Gwangju 2nd Beltway Section 3-1 KRRC 28.9 75.0 - 73.3 7.85 102.2

Gwangju 2nd Beltway Section 1 KBICL 13.1 100.0 35.21 20.0 142.0 190.3

Woomyunsan Tunnel WIC 10.7 36.0 9.6 - 20.3

Cheonan-Nonsan Expressway CNE 87.7 60.0 182.3 16.0 - 270.0

Soojungsan Tunnel SICL 47.1 100.0 19.3 20.0 70.2 8.5 136.6

Daegu 4th Beltway, East D4 57.5 85.0 32.0 17.0 - 89.5

Machang Bridge MCB 48.3 100.0 51.2 20.0 - 99.5

Seoul-Chuncheon Expressway SCE 48.6 15.0 87.4 11.0 - 136.0

Seoul Subway Line 9

Section 1 SM9 40.9 24.5 33.5 15.0 - 74.4

Incheon Grand Bridge IGB 74.5 41.0 89.4 12.0 257.9

Yongin–Seoul Expressway YSE 129.6 35.0/67.02 77.0 13.0 - 206.6

Seosuwon-Osan-Pyungtaek Expressway SOPE - - 80.0 9.0 - 80.0

Busan New Port Phase 2-3 BNP 66.4 30.0 193.0 10.0 - 259.4

Total 712.7 941.6 381.2 2,035.5

Percentage (%) 35.0 46.3 18.7 100.0

10.0

(KRW bn, %)

20.0

94.0

-

-

-

-

-

-

-

-

-

-

-

-

-

PU

Management fee

calculated quarterly basis as:

Base Fee

–

1.25% pa falling to 1.10%1

of Net Investment Value (NIV) of MKIF; plus (+)

–

1.15% pa

falling to 1.05%1

per annum of Commitment2

of MKIF

Performance Fee

–

20% sharing in cumulative total returns3

over 8% pa

Net Investment Value for any quarter equals:

The average market capitalisation of MKIF over all trading days in each calculation; plus (+)

The amount of any external borrowings by MKIF; less (-)

cash held by MKIF

1. For NIV in excess of KRW 1.5 trillion2. Commitments means all amounts that MKIF has firmly committed

for future investment contributions.3. Total return to shareholders reflects both distributions from MKIF to its shareholders and share price performance over each

calculation.

Manager’s interests aligned with shareholders

No performance – no performance fees

Underperformance carried forward

MANAGEMENT FEES Aligned with shareholder interests

PV

As at 31 December 2008 representing the operations of the 118 businesses managed by Macquarie Capital Funds on behalf of investors with various direct percentage stakes held in each.Note: Lusoponte

located in Portugal was sold on 5 January 2009, and therefore excluded from the map.1.

Investment is subject to regulatory approval and/or other closing conditions2.

In December 2008, MIG announced the sale of 100% of its interest

in Westlink

M7 to the Western Sydney Road Group (WSRG). WSRG is 50% owned by MIG. This transaction is expected to close in the quarter ending March 2009

The NetherlandsDe Telefoonggids

(directories)Gouden

Gids

(directories)

SwedenArlanda ExpressEPR Sweden (wind farm)Lokaldelen

(directories)

FinlandFonecta

(directories)

New ZealandMetlifecarePrivate LifecareRetirement Care New Zealand

USAAIR-serv (tyre inflation)Airport Parking BusinessAirport Services (fixed base operations)American Consolidated MediaAquarion CompanyBulk Liquid Storage Terminal BusinessDistrict EnergyDulles Greenway

JapanHanjin

Pacific Corporation (Tokyo, Osaka)Ibukiyama

DrivewayJapan Airport TerminalToyo Tires Turnpike

CanadaA-25AltaLinkCardinal (power station)Chapais (biomass facility)Edmonton Ring RoadErie Shores Wind FarmFraser Surrey DocksHalterm

Limited (port)Highway 407 ETRHydro Power BusinessLeisureworldNew World GamingSea To SkyWhitecourt(biomass facility)

South KoreaBaekyang TunnelBusan New Port Phase 2-3C&M (cable TV)Cheonan-Nonsan ExpresswayDaegu 4th

Beltway EastGwangju 2nd Beltway, Section 1Gwangju 2nd Beltway, Section 3-1Hanjin

Pacific Corporation (ports)Incheon

International Airport ExpresswayIncheon Grand BridgeMachang BridgeSeosuwon-Osan-Pyungtaek ExpresswaySeoul Chuncheon ExpresswaySeoul Subway Line 9, Section 1SK E&S Gas DistributionSoojungsan

TunnelWest Sea Power / West Sea WaterWoomyunsan TunnelYongin-Seoul Expressway

South AfricaBakwena Platinum Corridor ConcessionaireKelvin Power StationN3 Toll ConcessionsNeotelTrans African Concessions

TanzaniaKilimanjaro Airport Development Company

ChinaChangshu Xinghua PortHua Nan Expressway

TaiwanHanjin

Pacific Corporation (Kaohsiung)Miaoli

WindTaiwan Broadband Communications

United Arab EmiratesAl Ain Industrial CityICAD Effluent Treatment PlantIndustrial City of Abu Dhabi

NigeriaLekki

Concession Company

AustraliaAlintaGas NetworksBroadcast AustraliaDampier to Bunbury

Natural Gas Pipeline EastLinkHobart International AirportMacquarie Southern Cross MediaMultinet

Gas Holdings

Duquesne LightExpress EnergyGas Production and Distribution BusinessGlobal Tower PartnersHanjin

Container TerminalsHarley Marine ServicesIcon ParkingIndiana Toll RoadPenn TerminalsPetermann

(school buses)Puget Energy1

Regis Group (aged care)Retirement Villages Group Sydney AirportTranstollUnited Energy DistributionWestlink M72

AFRICA & MIDDLE EAST

AUSTRALIA & NEW ZEALAND

EUROPE NORTH AMERICA ASIA

Sentient (private aviation)SkywaySmarte

CarteSouth Bay ExpresswayWaste Industries

MexicoGrupo Aeroportuario del Sureste de Mexico

S.A. de C.V.

UKAirwaveArqivaBristol AirportCombined Landfill Projects EnvirogasCondor Group (ferry services)East London Bus GroupEnergy Power ResourcesM6 TollMoto (motorway services)National Car ParksRed Bee MediaSteam Packet (ferry services)Thames WaterWales & West UtilitiesWightlink (ferry services)

BelgiumBrussels Airport

SpainAsset Energia

SolarItevelesa

(vehicle inspection)Solpex

Energia

Solar

FranceAutoroutes Paris-Rhin-RhôneCompteurs

Farnier

(water metering)EPR France (wind farm)Pisto

SAS (oil storage and distribution)RES (wind farm)Trois Sources & Lomont Windfarms

GermanyGWE (heat and power)TanQuid (tank storage business)Techem A.G (submetering)Warnow Tunnel

DenmarkCopenhagen AirportsDe Gule

Sider

(directories)

AustriaHerold

(directories)

PolandDCT Gdansk (container terminal)pkt.pl

(directories)

Czech RepublicMediatel

(directories)

SlovakiaMediatel

(directories)

Unique global positioning, local business teams in 26 countries

MACQUARIE WORLDWIDE INVESTMENTS

QM

GLOBAL TEAM Over 2,200 executives dedicated to sourcing, analysing and executing opportunities1

STRONG ALIGNMENT OF INTERESTS

Macquarie and staff investment of $A3.5bn in

Macquarie Capital managed funds, and a robust corporate governance framework

BUSINESS MANAGEMENT SPECIALISTS

Driving improved operational performance across the businesses and

ensuring the delivery of high quality services to over 100 million people around the globe daily

1.

As at 30 September 2008. There is no assurance that any fund managed by Macquarie Capital Funds division would receive any investment opportunities from other divisions of the Macquarie Group2.

As at 31 December 2008. Listed funds –

market capitalisation plus fully underwritten or committed future capital raisings. Unlisted funds –

committed capital less any called capital which has subsequently been returned to investors. Invested capital for other Macquarie Capital Funds managed businesses. For jointly managed funds the amount is representative of Macquarie’s economic ownership of the JV manager. Adjustments have been made where Macquarie-managed funds have invested in other Macquarie-managed funds

3.

Annualised internal rate of return for Macquarie Capital Funds since inception

based on all capital raised, distributions and valuations (market capitalisation for listed funds as at 31 December and

the net asset value for the most recent valuation date. For the majority of unlisted funds and managed businesses this will be at 30 September 2008, but no earlier than 30 June 2008).

Calculated on an AUD basis, with cash flows converted at fixed exchange rates (based on the date of listing for listed funds, first close date for unlisted funds, and financial close date for managed businesses). Past performance is not indicative of future results

4.

Should the unrealised performance fees/carried interest payable by unlisted funds/vehicles as at the applicable calculation date

be taken into account, the annualised return would have been 8%. Past performance is not indicative of future results

Macquarie Capital’s advantage is demonstrated by its track record and active approach to sourcing, investing in and managing businesses that provide essential services

SUPERIOR TRACK RECORD

$A52b2

in equity under management across 35 funds/vehicles, 118 businesses in 26 countries and a 9%3,4

return to investors across all vehicles managed by Macquarie Capital Funds

since its inception in 1994

MACQUARIE CAPITAL’S ADVANTAGE

QN

MACQUARIE CAPITAL FUNDS SNAPSHOT

1996 December 2008

Funds/vehicles No. 2 35

Businesses No. 4 118

Assets under management $bn 1.6 1521

Equity under management $bn 0.6 522

Offices No. 1 203

Mac Cap Funds Staff No. 5 780+3

Return to investors % NA 9% pa

4,5

Ó Listed fund return % NA 4% pa5

Ó Unlisted fund return % NA 16% pa4,5

Sustainable growth delivering superior performance for investors

1.

As at 31 December 2008 exchange rates. Based on proportionate enterprise value, calculated as proportionate net debt and equity value as at the most recent valuation date. For the majority of the businesses this will be at 30 September 2008, but no earlier than 30 June 2008. Businesses acquired subsequent to 30 September have been included at cost. Includes $A2.6b held directly by Macquarie and managed by Macquarie Capital Funds

2.

As at 31 December 2008. Listed funds –

market capitalisation plus fully underwritten or committed future capital raisings. Unlisted funds –

committed capital less any called capital which has subsequently been returned to investors. Invested capital for other Macquarie-managed businesses. For jointly managed funds the amount is representative of Macquarie’s economic ownership of the JV manager. Adjustments have been made where Macquarie-managed funds have invested in other Macquarie-managed funds

3.

As at 30 September 20084.

Annualised internal rate of return for Macquarie Capital Funds since inception

based on all capital raised, distributions and valuations (market capitalisation for listed funds as at 31 December and

the net asset value for the most recent valuation date. For the

majority of unlisted funds and managed businesses this will be at 30 September 2008, but no earlier than 30 June 2008).

Calculated on an AUD basis, with cash flows converted at fixed exchange rates (based on the date of listing for listed funds, first close date for unlisted funds, and financial close date for managed businesses). Past performance is not indicative of future results

5.

Should the unrealised performance fees/carried interest payable by unlisted funds/vehicles as at the applicable calculation date

be taken into account, the unlisted annualised return would have been 15% and the total Macquarie Capital Funds annualised return would have been 8%. Past performance is not indicative of future results

Documents

MACQUARIE KOREA INFRASTRUCTURE FUND …...Toll roads(4) Subway(1) Port(1) 1. Investments having a total par value of KRW 100mil or less are subject to withholding tax of 5.5% in 2008