27 June 2006 The Manager Company Announcements Australian Stock Exchange Limited 20 Bridge Street SYDNEY NSW 2000 Dear Sir / Madam, PRESENTATION I enclose powerpoint slides which form the basis of a presentation to be made by Spark Infrastructure Group and its asset businesses today. Yours faithfully,

Giri Tenneti Company Secretary

Spark Infrastructure Management Limited ABN 84 114 940 304 Level 19 83 Clarence Street Sydney NSW 2000 Australia

T +61 2 9249 9444 F +61 2 9249 9355

Site Visit and Management Briefing27 June 2006

3 2

• This presentation is not an offer or invitation for subscription or purchase of or a recommendation of securities. It contains general information only and does not take into account the investment objectives, financial situation and particular needs of individual investors. Investors should obtain their own independent advice from a qualified financial advisor having regard to their objectives, financial situation and needs.

• This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or to any “U.S. person”. Neither the Stapled Securities nor the Instalment Receipts have been registered under the Securities Act or the securities laws of any state of the United States. In addition, none of the Stapled Companies, the Trust or the Responsible Entity have been registered under the Investment Company Act of 1940, as amended (“US Investment Company Act”), in reliance on the exemption provided by Section 3(c)(7) thereof.

• No representation or warranty, express or implied, is made in relation to the accuracy or completeness of the information and opinions expressed in the course of this presentation. To the maximum extent permitted by law, each of Spark Infrastructure, all of its related bodies corporate and their representatives, officers, employees, agents and advisors do not accept any responsibility or liability for any of the information or for any action taken by you on the basis of the information or opinions expressed in the course of this presentation, including without limitation any liability arising from negligence on the part of any person.

• No representation or warranty is given as to the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, returns or statements in relation to future matters contained in the information provided in this presentation. Such forecasts, prospects, returns and statements are by their nature subject to significant uncertainties and contingencies many of which are outside the control of Spark Infrastructure. You must make your own independent assessment of the information and in respect of any action taken on the basis of the information

Disclaimers and Securities Warning

3 3

10.00 – 10.15 Spark Infrastructure (Bob Stobbe, CEO)

10.15 – 11.00 Powercor/Citipower (Shane Breheny, CEO)

11.00 – 11.30 ETSA Utilities (Lew Owens, CEO)

11.30 – 12.45 JA sub-station, DocklandsNetwork Operations Centre

1.00 – 1.30 Lunch

Agenda

3 4

• Three high quality natural monopoly seed assets

• Total portfolio has long term regulatory certainty until 2010

• Attractive and sustainable yield underpinned by operating cash-flows

• Organic growth opportunities and growth through targeted investments in domestic and international regulated utility infrastructure assets

• Experienced management at Fund and business level complemented by CKI and RREEF Infrastructure resources

Overview of Spark Infrastructure

CitiPowerCitiPower ETSAETSAPowercorPowercor

49%

Spark InfrastructureSpark Infrastructure

Institutions/Retail

19.5%

Institutions/Retail

PartnersCKI / DBPartnersCKI / DB

CKI / HKECKI / HKE

80.5%

51%

3 5

Business Electricity distribution network in the CBD and inner suburban areas of Melbourne

Network 4,132km servicing 157 km2

Customers 286,000Asset infrastructure 39 zone / 3,148 distribution

substations and 60,487 poles

Wires underground 45%State regulator ESCPrice determination Completed 2006-2010 Final

Price DecisionNetwork availability 99.99%

ETSA

Existing Business Portfolio

CitiPower

Powercor

Business Electricity distribution network in the state of South Australia

Network 80,645km servicing 178,200 km2 of South Australia

Customers 768,000Asset infrastructure 394 zone / 66,336

distribution substations and 723,000 poles

Wires underground 14%State regulator ESCOSAPrice determination Completed 2005-2010 Final

Price (variation) determinationNetwork availability 99.97%

Business Electricity distribution network in Central and Western Victoria and the Western suburbs of Melbourne

Network 81,613km servicing 150,000 km2

Customers 643,000Asset infrastructure 67 zone / 74,973

distribution substations and 515,562 poles

Wires underground 7%State regulator ESCPrice determination Completed 2006-2010

Final Price DecisionNetwork availability 99.97%

Queensland

Sydney

SouthAustralia

WesternAustraIia

Tasmania

VictoriaAdelaide

NorthernTerritory

Melbourne

New South Wales

3 6

High Quality Businesses

• High quality management teams with track record of outperforming operational and financial regulatory targets

• Natural monopoly “Poles and Wires” businesses

• RAB $5.1b (FY05 average)

• No energy market related price risk

• A- credit ratings by S & P

• Well maintained long life assets which have demonstrated superior reliability and performance

• Most reliable urban and rural distribution businesses in Australia (CitiPower and Powercorrespectively as at 31 Dec 2004 (1))

(1) Based on the system average interruption duration index

3 7

Potential For Growth

• Organic – to be discussed by Shane and Lew

– Stable and predictable growth in regulated revenue

– Continued capital investment in the underlying businesses ($438m forecast in 2006(1))

– Potential for growth in unregulated revenue activities

- Semi regulatedi.e. public lighting, asset relocation, disconnections/reconnections

- Contestable servicesi.e. Construction and maintenance services, asset management services, IT support and development, asset rentals and back office support

• Growth through acquisition

(1) All financial forecasts have been prepared by Spark, as with all forward looking statements, there can be no guarantee that the financialinformation, including distributions will be achieved.

3 8

Acquisition StrategyMandate• Focus on regulated electricity and gas distribution and transmission and regulated water

and sewer assets• Seek to build global portfolio diversified by geography, regulatory regime and asset class• Preference to co-invest with our partners CKI and RREEF

3 9

Disciplined approach – will only invest:

• where it enhances shareholder value

• where the risk/return profile is complementary to the existing Spark Infrastructure investment portfolio

• where there are predictable and stable long-term cash flows with revenue growth potential

• where there is a transparent regulatory regime and relatively high barriers to entry

Investment Criteria

3 10

• Attractive and sustainable yield

• Quality businesses and management teams

• Regulatory certainty for 5 years across current portfolio

• Strength and track record of partners

• Strength and independence of board

• Potential for growth from existing businesses

• Prudent long term international growth strategy

Relative Strengths of Spark Infrastructure

3 Page 11

1. CitiPower and Powercor Australia Business Overview

3 Page 12

Powercor

Cheung Kong Holdings LtdPropertyMerchant BankingStock Holdings

Hutchison Whampoa LtdPropertyTelecommunicationsContainer PortsEnergyHotelsRetail

Cheung Kong InfrastructureHoldings Ltd

EnergyTransportationWater

Hong Kong Electric Holdings Ltd

UtilityEngineering consultancyInfrastructure development

SPARK INFRASTRUCTURE

28%

49%

23 %

38.9 %

84.6 %

49.9 %

9.9 %

CitiPower

CHEDHA Holdings

Business Ownership Structure 2006

3 Page 13

CHEDHA Holdings Board of Directors

Shane Breheny : CitiPower/Powercor

Bob Stobbe : Spark Infrastructure

Eric Kwan : Spark Infrastructure

Danny Latham : Spark Infrastructure

Peter St. George : Spark Infrastructure

Peter Tulloch : CKI

H L Kam: CKI

C T Wan : HKE

K S Tso : HKEKey decisions require 75 % majority

3 Page 14

CitiPower & Powercor Organisation Structure

•Customer Response

•RevenueManagement

•Retail & Customer Relations

•Data Man’t•Connection Services

•Customer Service

•Metering Solutions

CHIEF EXECUTIVE OFFICERShane A Breheny

NETWORKSERVICES

Mark Sturgess

POWERCORNETWORK

Bryan Quinn

HUMAN RESOURCES

& CORPORATE

AFFAIRSBrian Sullivan

COMPANYSECRETARY

& LEGALSERVICES

Simon Lucas

•Finance•Taxation•Treasury•Purchasing & Contracts•Corporate Risk Management•Property Servs•Fleet & Logistics•Financial Planning•Business Planning•Strategic Planning

•Network Planning•AssetPerformance

•NetworkEngineering

•CustomerConnections

•Alliance & Bus.Improvement

•MaintenanceStrategy &

Environment•Network AssetManagement

•Network Safety &Compliance

•Information Technology•Business Information Systems

•Human Resources•Corporate Affairs•Quality Management •Health & Safety•Industrial Relations•Training & Development•Community Relations & Environment

•Company Secretary•Legal •Audit•Real Estate

•Regulation•Network Pricing•Price Reset•Business Devel’t & Innovation

CUSTOMERSERVICES

Peter Bryant

REGULATION

Richard Gross

FINANCE

Julie Williams

INFORMATIONTECHNOLOGY

Glen McLean

•Design, Engineering, Construction & Field Services•Business Devel’t•Project Man’t•Logistics /SupplyChain Man’t

•ResourceMan’t

CITIPOWERNETWORK

Garry Audley

CitiPower Network Business (CHED2) Powercor Network Business (CHED) CHED Services

•NetworkPlanning

•AssetOperations

•NetworkFacilities

•NetworkBusiness

•BusinessSupport

•CustomerSupply

3 Page 15

Victorian Industry Structure - 2006Generation:

Retail Sector

YallournEnergy

InternationalPower

Hazelwood

Loy Yang BEcogen SnowyMountainScheme

NEMMCOSP AusNet

SystemSecurityPool

Transmission and Wholesale Market:

Loy Yang A Interstate &Other

Generators

PowercorAustralia CitiPower Alinta/

UED

SmeltersIndependentRetailers

AGL SP AusNet

Large Customers

Origin Energy AGL TRU

Distribution Sector

AGL(Southern

Hydro)

3 Page 16

How electricity is delivered

ZONE ZONE SUBSTATIONSUBSTATIONTERMINAL

STATION

High Voltage Customerusually 22,000 volts

Low Voltage Customer240/415 volts

Transmission GridSP Ausnet

LOW VOLTAGE

66,000 VOLTSSUBTRANSMISSION

220,000 TO 500,000 VOLTSTRANSMISSION

Generators

22,000 VOLTS

DISTRIBUTIO

N

PAL & CP

3 Page 17

Coverage Area 150,000 sq. kmCustomer Density 4 per sq kmDistribution Lines 82,000 km % Underground 8%Annual Throughput 9,652 GWhNetwork availability 99.97%Reliability (SAIDI) 145 minutesCustomer Numbers 643,000

Coverage Area 157 sq. kmCustomer Density 1,652 per sq kmDistribution Lines 4,155 km % Underground 45%Annual Throughput 5,938 GWhNetwork availability 99.994%Reliability (SAIDI) 25.2 minutesCustomer Numbers 291,000

Powercor Network Profile CitiPower Network profile

Total Employees 1500

Network Profiles

3 Page 18

Business StrengthsNatural monopoliesRegulatory certainty until end 2010Low operational riskTransparent / Stable regulatory environmentStrong Consumption GrowthDiverse customer and revenue baseIT ArchitectureStable Industrial Relations situationStrong Health & Safety PerformanceManagement Reputation and competenceStrong governance focus

3 Page 19

Strategic OverviewThe strategic objectives of the CHEDHA Holdings Group

are:

Exceed shareholder expectations in reputation

Exceed shareholder expectations in financial performance

Maintain leadership position in the provision of customer service

Identify and implement opportunities for growth

Drive a culture of safety, innovation and efficiency

Establish CHEDHA Holdings as the employer of choice

Leadership in development of intellectual property

3 Page 20

Distributions Revenue ProfilePowercor 2005 Energy & Revenue

0%10%20%30%40%50%

Domes

ticSmall

Com

mercial

Unmet

Suppli

es

Low V

oltag

e

High Volt

age

Subtra

nsmiss

ion

Revenue MWh

CitiPower 2005 Energy & Revenue

0%5%

10%15%20%25%30%35%40%45%

Domes

ticSmall

Com

mercial

Unmet

Suppli

es

Low V

oltag

e

High Volt

age

Subtra

nsmiss

ion

Revenue MWh

71% of CHEDHA Holdings Revenue is generated from the Domestic and Small Commercial Segments.

20% of CHEDHA Holdings Revenue is sourced from Large Low Voltage customers being large industrial customers.

3 Page 21

2. Performance 2005

3 Page 22

2005 Income Statement

CHEDHA Holdings Pty Limited (Consolidated)

2005A$’000

2004A$’000

Revenue from continuing operations 940,565 849,197

Other income 18,352 1,523

Expense from ordinary activities (491,881) (426,649)

Finance costs (307,671) (312,860)

Profit before income tax 159,365 111,211

Income tax benefit 338,470 70,175

Profit from continuing operations 497,835 181,386

Profit attributable to members of the parent entity 497,835 181,386

3 Page 23

2005 Balance SheetCHEDHA Holdings Pty Limited (Consolidated)

2005A$’000

2004A$’000

AssetsTotal Current Assets 459,290 168,848Total Non-Current Assets 4,579,338 4,455,320

Total Assets 5,038,628 4,624,160

LiabilitiesTotal Current Liabilities 372,605 188.878Total Non-current Liabilities 4,109,725 3,918,791

Total Liabilities 4,482,330 4,107,669

Net Assets 556,298 516,499

EquityIssued Capital 279,499 279,499Reserves (451,159) -Retained Earnings 727,958 237,000

Total Equity 556,298 516,499

3 Page 24

2005 Cash Flows

CHEDHA Holdings Pty Limited (Consolidated)

2005$’000

2004$’000

Net cash inflow from operating activities 250,269 223,193Net cash (outflow) from investing activities (219,011) (193,094)

Net cash inflow (outflow) from financing activities

252,925 (85,500)

Net increase (decrease) in cash and cash equivalents 284,183 (55,401)

Cash and cash equivalents at the beginning of the financial year 11,578 66,979

Cash and Cash equivalents at end of year 295,761 11,578

3 Page 25

Performance Against Regulatory Parameters

2005 PERFORMANCE ACTUAL ESC TARGETPOWERCOR

Operational Expenditure $123.1 million $109.1 millionCapital Expenditure $140.1 million $165.4 millionVolume 9,736 GWh 9,942 GWh

CITIPOWER

Operational Expenditure $25.9 million $47.3 millionCapital Expenditure $73.4 million $83.4 millionVolume 5,805 GWh 5,623 GWh

3 Page 26

Customer Satisfaction 2005

Very satisfiedSatisfiedIndifferentDissatisfied

Target for proportion of Very

Satisfied and Satisfied

Customers is 80%

83% 76% 80%

29%

30%30%

54%46% 50%

13%9% 10%8%

11% 10%

0%

25%

50%

75%

100%

Powercor CitiPower Combined

% o

f res

pond

ents

3 Page 27

Major Customer Satisfaction 2005

3 Page 28

Community Reputation Index - 2005 Results

51.4 48.3 47.8 44.348.2

59.252.4 51.2 53.1 50.1 53.6

59.551.7 48.5

52.7 54.4 52.4

61.5

51.8 48.252.7 53.4

58.3

0

20

40

60

80

100

Powercor AGL CitiPower TXU United Energy ETSA

Wave III: Dec 2001 Wave IV: Dec 2003 Wave V: Dec 2004 Wave VI: Dec 2005

3 Page 29

3. Performance 2006

3 Page 30

Performance YTD 2006Solid financial and operational performance YTDFinancial– Favourable weather & economic conditions have contributed to solid

consumption; Powercor 4% & CitiPower 2% YTD increases on 2005– Customer numbers 2% higher than last year– Continued focus on productivity and efficiency gains– YTD capital expenditure slightly above target due to strong growth and

customer initiated capital projects

Operational– Call centre grade of service on track to meet regulatory target– Extreme weather conditions early in the year have contributed to a

decrease in supply reliability performance for 2006– However, underlying supply reliability performance is strong & the

business focus is for further improvement in underlying performance

3 Page 31

Focus for 2006

Improvement opportunities in contact centre performanceAchieve cross-business synergy and integration benefitsRefine pricing structures to encourage economic activityTarget network investments to consistently outperform regulatory targetsContinually improve business delivery systems and processesPursue external growth opportunities

3 Page 32

4. Growth

3 Page 33

Business DevelopmentOur Approach

Build on existing skill base to establish new business or capabilityFocus on related and ancillary activitiesRely on established networking and referralsProvide support to Spark/CKI/HEH activitiesSmall dedicated groups with reliance on internal business expertiseLinked to innovation program for both internal & external opportunities

3 Page 34

Growth Opportunities

Achieve profitable revenue growth in unregulated markets leveraging core business skills and capacities:– IT– Construction and maintenance services– Private Networks Network Services Growth

- External Contracts– Advanced Interval Metering

3 Page 35

5. Network Management

3 Page 36

SUB TRANSMISSION66kV

SUB TRANSMISSION66kV

ZONE SUBSTATIONZONE SUBSTATION

DISTRIBUTIONDISTRIBUTION

HV FEEDERS22 , 11kV & SWER

HV FEEDERS22 , 11kV & SWER

LV DISTRIBUTION(415V)

LV DISTRIBUTION(415V)

CUSTOMERINSTALLATIONS

CUSTOMERINSTALLATIONS

TERMINAL STATION

TERMINAL STATION

POWER STATIONPOWER STATION Network Asset Management• POWERCOR

ASSETS

• 150k square km & 645k customers

• 515k wood, concrete and steel poles

• Approx 76,000 km route length of distribution line

• Approx 6,000 km of underground cable

• 74,000 distribution sub stations & 65 zone substations

Powercor & CitiPower

3 Page 37

Asset Management Strategy Overview

Subject Matter Experts Business Process Management Regional Asset Managers

Asset Manager

Experts that are responsible for financial & physical performance of assets. Initiators of policy reviews to improve performance

Facilitators of policy, process mapping, strategy documentation and communication.

Local owner of Asset plans & delivered outputs / asset performance

Reliability ImprovementUnderground MaintenancePlant MaintenanceDistribution MaintenancePublic Lighting

Timely co ordination & facilitation of process flows, strategy development & communication

Local Asset Manager responsible for output and project delivery

3 Page 38

Powercor Measure of Reliability Outputs

Network SAIDI Minutes:- 2000 to 2005 (With Exclusions Accounted)

4123 17 12 11 17

9599

7767 57 51

49

18

2126

13 8

63

67

82

64

52 69

8

248

207197

169

141 145

0

100

200

300

2000 2001 2002 2003 2004 2005

EBAUnpl UncontrollablePole FiresUnpl ControllablePlanned

* Most reliable rural electricity distribution business in Australia

3 Page 39

Powercor Network Performance vsESC Reliability Targets 2004 - 2005

Performance in 2005 outperformed targets in all areas.

ReliabilityTarget

ActualPerformance

ReliabilityTarget

ActualPerformance

2004 2004 2005 2005

Total minutes off supply (SAIDI) 225 141.1 212 145.0Unplanned minutes off supply 184 122.8 173 128.0Planned minutes off supply 41 18.3 39 17.0Unplanned interruption frequency (SAIFI) 2.37 1.58 2.28 1.7Unplanned interruption duration (CAIDI) 78 77.9 76 75.0Momentary interruption frequency (MAIFI) 12.5 3.9 12.5 4.5

Notes: 1. The 2005 actual performance reported above are the preliminarily result reported by the business.These results could change before being finalised with the ESC.

2. These results exclude extraordinary events exempted by the ESC.

3 Page 40

Powercor Supply Reliability Improvement 1995 – 2005

0

50100

150200

250300

350

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

*M

inut

es

Av. Mins. off supply per cust. ESC Exempted2005 Exemption granted, but final ESC figures are yet to be released.

3 Page 41

CitiPower Network Performance vsESC Reliability Targets 2004 - 2005

ReliabilityTarget

ActualPerformance

ReliabilityTarget

ActualPerformance

2004 2004 2005 2005

Total minutes off supply (SAIDI) 46.5 29.7 41.8 25.1Unplanned minutes off supply 37.1 21.8 32.4 18.6Planned minutes off supply 9.4 7.9 9.4 6.5Unplanned interruption frequency (SAIFI) 0.77 0.47 0.72 0.37Unplanned interruption duration (CAIDI) 48.0 44.2 45.0 50.1Momentary interruption frequency (MAIFI)

0.25 0.27 0.26 0.15

Notes: 1. The 2005 actual performance reported above are the preliminarily result reported by the business.These results could change before being finalised with the ESC.

2. These results exclude extraordinary events exempted by the ESC.

Performance in 2005 outperformed targets in all areas.

* Most reliable urban electricity distribution business in Australia

3 Page 42

CitiPower Supply Reliability Improvement 1995 – 2005

01020304050607080

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

*M

inut

es

Av. Mins. off supply per cust. ESC Exempted2005 Exemption granted, but final ESC figures are yet to be released.

3 Page 43

SummaryStrong financial and operational performance by businesses in 2005

Businesses performing well in 2006

High quality assets, led by experienced management team

Most reliable urban and rural electricity distribution businesses in Australia

Regulatory certainty through to end 2010

Continued focus on organic growth opportunities

D e l i v e r i n g E n e r g y t o S o u t h A u s t r a l i a n s

ETSA Utilities -Overview, Performance and Directions

45

ETSA UtilitiesBoard of Directors

Lew Owens : ETSA Utilities

Bob Stobbe : Spark Infrastructure

Eric Kwan : Spark Infrastructure

Danny Latham : Spark Infrastructure

Cheryl Bart : Spark Infrastructure

Peter Tulloch : CKI

H L Kam: CKI

C T Wan : HKE

K S Tso : HKE

46

Organisation

* Risk Management* Internal Audit* Regulation* Legal Counsel* Company Secretary* Real Estate* PR, Media &Sponsorships

Dr Eric LindnerGM Corporate

Affairs & Company Sec.

Dr Eric LindnerGM Corporate

Affairs & Company Sec.

David SymeGM Strategy & Resources

David SymeGM Strategy & Resources

Richard TwiskGM Demand &

Network Management

Richard TwiskGM Demand &

Network Management

Sue FilbyGM Services

Sue FilbyGM Services

Rob StevensCFO

Rob StevensCFO

Jeff BamentGM Construction &

Maintenance Services

Jeff BamentGM Construction &

Maintenance Services

Lew OwensCEO

Lew OwensCEO

* Powerline Services* Fleet & Logistics* Substation

Maintenance & Construction

* Telecoms & Technical Services

* Connections* Major Projects

* Electrical Services* Customer Relations* Vegetation Services * Revenue Management* Works Coordination

* Network Planning* Asset Operations* Network Facilities* Customer Supply* Demand Management

* Human Relations* Strategic Planning* Information Technology

* Property Services* Health, Safety & Environment

* Organisational Development

* Finance* Taxation* Treasury* Purchasing & Contracts

• Asset Owner / Asset Manager• New Services department to focus on customer operations• Demand management capability embedded in network design & engineering• New service delivery units in CaMS

We continue to optimise our strategy and structure to better meet stakeholder requirements and emerging needs, and to position ourselves for new opportunities…

47

South Australian electricity industry structure & participants

Generation

Transmission

Distribution

Retail

Torrens Island Power Station

Northern Power Station

Thomas Playford Pelican Point

AGL Origin Energy

ElectraNet SA

End Users of Electricity

TRUenergy

System Operator NEMMCO

Other generators

Other retailers

ETSA Utilities

48

ETSA Utilities Roles and Statistics

Roles• Maintain safety & reliability of the

network• Extend and upgrade the network• Maintain public lighting system• Meter data collector & data

provider• Remote area network operations

Key statistics• 178,000 sq kms supply area • 773,000 customers• 10,600 GWh delivered• 2,633 MW peak demand (Jan

2006)• 1,410 employees

The network• SA’s only distribution

network• ‘Mixed’ network - urban and

rural• Regulated assets of $2.475

billion• 81,850 circuit kilometres of

line • 15% underground • 723,000 poles• 394 zone substations

49

ETSA Utilities Summaryof Strengths

• Experienced management team• Monopoly electricity distributor in South Australia• Stable and predictable load growth patterns• Opportunities to further grow non-regulated business• Further integration and shared services potential with

CitiPower / Powercor• Diversified customer base• Leading health and safety performer amongst utilities in

Australia• Price certainty until end of June 2010• Opportunities with remote areas and mining networks

50

Our Vision

• Our Strategic Intent– To be a financially successful and respected provider of

electricity distribution and associated services

• KPIs will track and guide our success– Creating superior financial returns and growth for

shareholders– Delivering value to customers and benefits to the community– Ensuring an engaged, skilled and safe workforce EMPLOYEES

CUSTOMERS OWNERS

EMPLOYEES

CUSTOMERS OWNERS

We have completed a strategic review aimed at consolidating our core business and related growth successes, while creating the key capabilities that are required for success in our emerging business environment…

51

Customer Numbers

Customer Numbers by Type

Steady growth in residential and small business customers

Dec 2004 Dec 2005Residential (including Hot Water) 662,490 675,441Small Business 96,081 97,233Large Business 21 20Total Customers 758,592 772,694

52

Customer Energy and Revenue

Revenue is concentrated in the high yield residential and small business sectors.Major and large business have a lower yield, so do not impact as significantly on revenue.

Distribution of ETSA Utilities Sales by Energy (GWh) and Rev ($'s)

2005

14% 14%11%

23%

30%

1%2%

8%

28%

50%

3% 1%

7%8%

0%

10%

20%

30%

40%

50%

60%

Major B

us (>

40 G

Wh)

Lge B

us (>

4 GWh)

Med Bus

(>40

0MWh)

Small Bus

(<40

0MWh)

Reside

ntial

Hot Wate

r

Unmete

red

Energy Revenue

53

Customer Industry Energy % Revenue %Zinifex Smelter 2.7% 0.4%Adelaide Brighton Cement Cement 1.6% 0.3%GMH Auto 1.3% 0.3%ACI Glass Glass 1.0% 0.2%Kimberly Clark Paper 2.4% 0.2%Mitsubishi Auto 0.6% 0.1%Intercast & Forge Foundry 0.4% 0.1%Green Triangle Timber Products 0.4% 0.1%BOC Gases Industrial Gases 0.9% 0.1%OneSteel Whyalla Steel 0.8% 0.1%Bridgestone Tyres 0.3% 0.1%DSTO Salisbury Defence Industry 0.3% 0.1%Penrice Soda Ash 0.3% 0.1%Total 13.2% 2.1%

Major Customers

Major customers account for 13% of Energy but only 2% of revenue

54

2005 Income Statement

ETSA Utilities Partnership (Consolidated)

2005A$’000

2004A$’000

Revenue from continuing operations 757,918 735,706

Other income 17,773 84

Expense from ordinary activities (408,926) (405,331)

Finance costs (320,596) (321,114)

Profit before income tax 46,169 9,345

Income tax benefit 0 0

Profit from continuing operations 46,169 9,345

Profit attributable to members of the parent entity 46,169 9,345

55

2005 Balance Sheet

ETSA Utilities Partnership (Consolidated)

2005A$’000

2004A$’000

Assets

Total Current Assets 223,846 753,813

Total Non-Current Assets 4,040,364 3,993,046

Total Assets 4,264,210 4,746,859

Liabilities

Total Current Liabilities 336,092 875,852

Total Non-current Liabilities 2,971,374 3,480,646

Total Liabilities 3,307,466 4,356,498

Net Assets 956,744 390,361

Equity

Issued Capital 623,300 1,000

Reserves (33,628) -

Retained Earnings 367,072 389,361

Total Equity 956,744 390,361

Note: Current Assets and Current Liabilities for 2004 include $534.5m borrowings undertaken in 2004 to repay debt maturing in July 2005.

56

2005 Cash Flows

ETSA Utilities Partnership (Consolidated)

2005$’000

2004$’000

Net cash inflow from operating activities 96,508 121,011

Net cash inflow/(outflow) from investing activities 400,385 (697,426)

Net cash inflow/(outflow) from financing activities (484,660) 565,722

Net increase/(decrease) in cash and cash equivalents 12,233 (10,693)

Cash and cash equivalents at the beginning of the financial year 95,296 105,989

Cash and Cash equivalents at end of year 107,529 95,296

57

ETSA Utilities Network Performance Benchmark comparisons

Australian Benchmark Reliability(2003 data)

0

50

100

150

200

250

300

350

0 10 20 30 40 50 60 70 80 90

Connection Density (connections/km)

SAID

I (m

inut

es)

AGLUEEA

ENX

IEETSA

AEWPCE

AurPCGSENP

TXUAIE

Erg

CP

Whole-of-State or Rural Networks

Urban Networks

CBD Network

58

Reliability Performance

• Steady underlying performance

• Extreme weather impacts in 2005

• Heatwave event January 2006

• Increasing focus on reliability

– Worst served customers >3 hours pa

• Implementing $20m Outage Management System

Reliability (average minutes without supply pa due to significant

weather events)

16

63

8

3135

2001 2002 2003 2004 2005

Reliability (average minutes without supply pa excluding

significant weather events)

154143136131131

2001 2002 2003 2004 2005

59

Benchmark comparisons -Expenditure against Assets

Australian Benchmark Total Expenditures per Regulated Asset Base (RAB)(2004/05 data)

0%

5%

10%

15%

20%

25%

NS

W -

IE

NS

W -

CE

NS

W -

AIE

NS

W -

EA

NS

W -

AV

E

VIC

- A

GL

VIC

- P

C

VIC

- TX

U

VIC

- U

E

VIC

- C

P

VIC

- A

VE

QLD

- E

NX

QLD

- E

rg

QLD

- A

VE

WA

- W

P

TAS

- A

ur

ETS

A

Exp

endi

ture

as

% o

f Ass

et B

ase

Opex Capex Min Average Max

60

2005 ETSA Utilities Business Performance Highlights

• Regulator’s 2005-2010 Price Determination provides a real increase in revenues• Regulator’s industry performance report 2004/05 found that ETSA Utilities had

maintained its service standards and remained one of the nation’s most reliable distributors

• Enterprise Bargaining agreement 2005 certified in November• New demand management plan approved by Regulator in October • Significant new embedded generator connection projects came on line in early 2005• Completed new 66K line to meet fast-expanding power demand in Golden Grove • 23 overseas powerline workers and 22 additional apprentices joined in 2005• Successful tender for work on transmission & connection assets at Iron Duke Mine• Work on new $7 million power station project for Kangaroo Island approved• ETSA Utilities re-certified to SafetyMAP advanced level and Australian Standard AS

4901

61

2006 Performance to date (May 2006)

• Distribution revenue above target due to favourable weather year to date– Mitigated by cap and collar arrangements established in

price determination• Contestable services revenue tracking well

– Mainly due to major contract with electricity transmission company in SA and sale of materials (eg poles) to contractors

• Continued focus on productivity and efficiency gains

• Reliability impacted due to severe weather conditions

62

Improving Reliability and Customer Service

• Using technology and systems to improve service & efficiency

– response and restoration times for customers

– information provision to customers– accessibility for customers– end to end efficiency– reporting

• Leading edge integrated hardware & software

– Outage Management System (OMS)– Geographic Information System (GIS)– Click Schedule– Mobile computing systems in 200 vehicles– Call centre systems– Internet channel for connections

CLICK OMS

MOBILECOMPUTING

Networkinformation

Customerinformation

Plannedwork

Unplannedwork

Crews

Work flow

New systems

63

• Good synergy performance– Shared and supplied

services• >$100 million NPV

– Standardisation and purchasing

– Knowledge sharing– Employment mobility

• Cross-business process alignment

• Collaboration on common issues and strategies– Synergy Committee

SouthAustralia

Victoria

Adelaide

Melbourne

Synergies and Leverage

Network Services

Call Centre and support for Retail

Competition

Strong synergy benefits have been achieved so far, and new Groupbusinesses have been successfully established and grown…

64

South Australian Economy

Economy• Adelaide Australia’s most competitive business city (KPMG Int’l 2004)• Resources boom underway• 220 major projects planned or underway - in excess of $25 billion

across various industry sectors• Key industries – wine, automotive, defence, agriculture, mining, back

offices• Exports – wine, metals and manufactures, cars, meat, wheat,

machinery, seafood, petroleum products, wool

South Australia’s economy was historically based on agriculture and later manufacturing. In the 1990s, the high tech defence, back office services and wine making sectors grew significantly. Now, a newphase based on resources and mining is underway…

65

Mining Boom Underway

• SA exploration and development expenditure at an all time high– Response to record metal prices

• SA Government focus on mineral, petroleum and geothermal sectors• Mine production/refining annual value a record $2.7 billion in 2004-05

– 34% growth on 2003-04– Mineral exports have reached a record $1.4 billion (19% of total state

exports)

Olympic Dam Copper 230,000 tonnes pa Project Magnet Magnetite Ore Middleback Ranges

Operating Mines Advanced Mining Projects

Uranium 3,300 tonnes pa

Gold 3,300 kg pa

MiddlebackRanges

Iron Ore 3,000,000 tonnes pa

Challenger Gold 44,000 ounces pa

Beverley Uranium 1,200 tonnes pa

Leigh Creek Coal 3,700,000 tonnes pa

Australia Zircon Mineral Sands Mindarie, south east

Kanmantoo Copper & Gold East of Adelaide

Strathalbyn Lead & Zinc South of Adelaide

Honeymoon Uranium North of Olary

Kalkaroo Copper & Gold Near Honeymoon

Prominent Hill Copper & Gold N.E. of Olympic Dam

66

Opportunities for Growth and Improvement

• Construction and maintenance services– South Australia– Interstate

• Asset and project management– Mining sector– Remote area networks

• Customer services– Outage Management System– Click and mobile computing– Internet channels

• Demand management

Our track record of success is based on real capabilities and competencies in our core business and closely related areas. In the near and medium term, we have significant areas of opportunity in terms of service and growth performance…

67

Construction and Maintenance Services

• Continued focus on growing unregulated revenue activities

• Dominant SA market position

• Major contracts with SA transmission company (ElectraNet)– Recent $125M contract win

“ETSA’s credit metrics are anticipated to meet Standard & Poor’s expectations of an improving trend. The recently announced five-year A$125 million contract with transmission company ElectraNet is expected to underpin ETSA’s strategy of growing non-distribution revenue, giving further impetus to improving credit metrics.”

-S&P Industry Report Card on Australian Utilities May 2006

68

Construction and Maintenance Services

• Major new opportunities in SA mining sector• Build interstate business • Services to Powercor growing• Penetration of much larger interstate markets

– Joint services to other states’ distribution and transmission companies

– Victorian depot being established

• Focus on expansion strategies

69

Working in partnership with Federal and State Government

A wiser energyfuture

A new way to think about

energy

Getting wise about energy

use

•Federal Government $75 M Solar CitiesProgram

“Securing Australia's Energy Future”•SA regulator $20.3 M Funding for DemandManagement Trials / Evaluation

Federal Government Funding

$75 M

SA Regulator Funding

$20 M

70

Political and Regulatory Scene

• National Economic Regulation by June 2007• Separation of rule maker (AEMC) and regulation

(AER)• AER established – offices in each state and currently

consulting on future regulation guidelines• AEMC develops rules – currently revising

transmission rules• Initial national legislation and rules for distribution

regulation being developed by Ministerial Council of Energy (MCE)

• Distribution rules likely to include :• Merits review (limited) (better appeal process)• Transition process for existing instruments

71

Summary

• Strong financial and operational performance by ETSA in 2005

• Businesses performing well in 2006

• High quality assets, led by experienced management team

• Regulatory certainty through to end 2010

• Continued focus on organic growth opportunities