ASX ANNOUNCEMENT Thursday 13 May 2010 The Manager Company Announcements Office Australian Securities Exchange Level 45, South Tower Rialto 525 Collins Street MELBOURNE VIC 3000

ELECTRONIC LODGEMENT

Dear Sir or Madam 13-14 May 2010 Investor Briefing and NSW Site Tour I attach for release to the market a copy of Asciano’s 2010 Investor Briefing and Site Tour to be held in the Hunter Valley later today. Yours faithfully

Fiona Mead Company Secretary

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13 - 14 May 2010

Investor Briefing and Site Tour Hunter Valley, NSW

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Agenda

2

Welcome

Intermodal

Container Ports

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Auto, Bulk and General4

Debt Strategy5

Coal6For

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Intermodal Director Intermodal, Chris Keast

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IntermodalDivisional Overview

• Pacific National is the major intermodal provider in Australia, carrying around 800,000 TEUs per annum and typically around 3Mtpa of steel

• Intermodal has leading market positions on key long haul corridors. Main competition is from road not from other rail operators

• Customers are major freight forwarders, with ~80% of revenue under contract, typically of 3 to 5 year durations. Long term relationships with key customers

• Currently Intermodal contributes 27% of group EBITDA

• Intermodal has 195 locomotives and 3,953 wagons

• Key costs are fuel, track access, labour and equipment maintenance

Note: Scheduled Superfreighter, Express and PortLink trains only . Excludes dedicated Steel and Passenger services

Brisbane

AdelaidePerth

Darwin

Cairns

Townsville

MS – SM11 Trains /Week

SB – BS14 Trains /Week

AS – SA Direct6 Trains /Week

SP - PS10 Intermodal Trains /Week

6 Express Trains /Week

MP – PM18 Intermodal Trains /Week

6 Express Trains /Week

MA - AM16 Trains /Week

Sydney

To/From NorthQueensland via PNQ

up to 21 Services /Weekeach way

MB-BM Direct13 Trains /Week

Melbourne

Terminals

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IntermodalOperational Summary

Intermodal uses a rail terminal in each capital city. 4 terminals operated by Pacific National (PN): Sydney (owned by PN), Adelaide (owned by PN), Melbourne (30 year lease) and Perth (50 year lease). The Brisbane terminal is a multi user terminal operated by P&O Trans Australia, and owned by Queensland Rail

Terminals

PN provides locomotives and drivers to pull prestige passenger services under contract to the operator Great Southern Rail - The Indian Pacific, The Ghan and The Overlander.

Other

PNQExpressSteelLinkSuperfreighter

13 locomotives, 178 wagons

182 locomotives, 3,775 wagonsRolling Stock

Containerised freight narrow gauge rail operator in Queensland between Brisbane and Cairns

Premium high speed rail service, and supply of containers, road trailers and sub-contract PUD

Rail freight services to steel manufacturers

Steelworks Rail Operation

Interstate containerised freight services including specialised containers for auto industry

Description

QR Network ARTC, RailCorp, Westnet

ARTC, RailCorp, Westnet, QR Network

ARTC, RailCorp, Westnet, QR Network

Access providers

• Toll QRX• Toll Transport• Rand Transport• TNT

• BlueScope Steel• OneSteel

• Toll Transport• Linfox• K&S Freighters• Sadleirs

Key Customers

95 ~40 21 to / from Nth Queensland

12# of services / week

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IntermodalIndustry Structure

• Transit time, frequency of service and reliability are as important dimensions of competition as is price

• Rail becomes more competitive with road as distance increases due to the decreasing proportion of pick up and delivery (PUD) costs from rail terminals. The East-West corridor is the most attractive for rail vs road

• Improvements in infrastructure resulting from current Government investment in the east coast North-South corridor should improve rail competitiveness on the corridor

Basis ofCompetition

• Strategically located terminals in most major capital cities, either owned or under long term lease

• Capital intensity• Significant economies of scale in rolling stock procurement, fuel costs, labour,

insurance & operational risk management• Considerable operational expertise required and complex regulatory environment• Long term customer relationships

Strategic Advantage

• Intermodal has around 70% rail market shares on East-West and long haul North-South corridors. PN SteelLink carries around 75% of contestable interstate steel freight

MarketConcentration

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IntermodalLong term growth projections – interstate freight

• The Bureau of Infrastructure, Transport and Regional Economics (BITRE) projects interstate total freight volumes to increase at a CAGR of 3.6% p.a. to 2030

• Australian Rail Track Corporation is forecasting significant growth in Intermodal rail freight volumes of between 3%-6% p.a. compound to 2024

• This growth is based on expected economic activity levels and the relative costs (economic and otherwise) of the various transport modes

• Historically, intermodal demand has experienced above GDP growth and is driven primarily by the Retail, Fast Moving Consumer Goods (FMCG), Mining, Manufacturing, Automotive and Removalist sectors

Historical and Projected Freight Growth

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Melbourne to Brisbane Modal Share

1%

71%

28%

Sea Road Rail

East West Modal Share13%

25%

62%

Sea Road Rail

IntermodalRail Modal Share

Source: Management information

East West Modal Share Melbourne to Brisbane Modal Share

Over the next 3 to 5 years rail has the opportunity to increase its share of the task as a result of:

• Increasing environmental focus

• Infrastructure investment coming online

• Increasing road congestion

• Introduction of safety/chain of responsibility obligations

Interstate non-bulk freight market is growing and rail is set to increase its share of this market

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IntermodalCustomer Base

• Intermodal’s top 5 customers account for approximately 63% of revenues and the top 10 account for approximately 80%

• Intermodal’s top customers are major national transport and manufacturing companies.

• Intermodal’s largest customers are contracted:

• New Toll linehaul 5 year contract in place

• Includes long term lease of site in Perth rail terminal precinct

• Linfox has exercised an option to extend a long term contract until at least December 2012

• K&S is in the second year of a 5 year contract

• Also developing site in Perth rail terminal precinct

• BlueScope Steel and OneSteel contracted until at least December 2014

• Recent extension of Sadleirs contract to 2017

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IntermodalOperating Update March 2010

• March 2010 quarter volumes were strong and showed some encouraging signs (NTKs up 10% on last years corresponding period).

• Steel tonnes have increased 62% for the 3 months to March 2010 compared with the corresponding period last year on the back of improved Steel demand from the construction sector and restocking.

• Express volumes for the 3 months to March 2010 have grown by 8% compared to the same corresponding period last year.

• Superfreighter volumes for the 3 months to March 2010 are in line with the same corresponding period last year.

Intermodal Quarterly NTKs (m)- excluding Tasmania

4000

5000

6000

7000

Sep-08 Dec-08 Mar-09 Jun-09 Sep-09 Dec-09 Mar-10

4,828

3 months to Mar. 09

INTERMODAL 3 months to Mar. 10

Change

NTKs (m) 5,289 +10%

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IntermodalEfficiency Review & Future Business Improvement

• Intermodal’s efficiency review target is for annualised total sustainable benefits of $32M by FY11 onwards.

• Delivered to date

– At the end of March 2010, Intermodal’s annualised total sustainable benefits was 8% ahead of target.

– Intermodal has achieved cumulative gains to date of $43M (from Jan-09 to Mar-10) and completed 100% of its total targeted headcountreductions.

• Focus of future efficiency improvements

– Fuel savings from a range of initiatives, including new technology and better management of fuelling points

– Asset effectiveness through the optimisation of the train planning function, minimisation of wagon storage charges in non peak periods and reduction in damage to company owned equipment

– A number of key projects targeting the elimination of waste in the business

– Improvement in equipment reliability and reduction in maintenance costs

Efficiency Review – FY10 Targeted Benefits

Overhead

Labour optimisation

Fuel optimisation

Asset effectiveness

Waste reduction

Route profitability

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IntermodalOutlook

• June Quarter volume outlook steady

• No clear signs of recovery in container volumes evident

• Short term impact of OneSteel Whyalla blast furnace outage on steel volumes in April & May

• Medium term growth in line with GDP

• Positive growth on most corridors

• Subject to growth risk in Australian economy

• Additional steel volumes won from road to rail

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Container PortsDirector Container Ports, Paul Garaty

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Container PortsDivisional Overview

• Container Ports is concerned with the operation and provision of services to importers, exporters, shipping lines, freight forwarders and other parties involved in the containerised maritime trade

• The principal activity is the management of international shipping containers at Australia’s four major ports in Melbourne, Sydney, Brisbane and Fremantle involving the movement of international shipping containers from ‘ship to shore’ by Terminals and from ‘shore to door’ by Port Logistics (not exclusively)

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Container PortsTerminals

• The Terminals business operates shipping container terminals with operations at the aforementioned states around Australia and operates in a duopoly with DP World

• Terminals handles approximately 50% of international containerised trade in Australia

• Terminals is the core division of the Container Ports business

• The historical growth of the Terminals business reflects the general strength of the Australian economy at a macro level, growth in international shipping volumes and a general increase in the percentage of cargo being containerised

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Container Ports

Port Logistics

• The Port Logistics business aims to maximise its participation in the landside container cycle

Trade Volumes

• The key driver of revenue for the Container Ports business is total container volumes within the major Australian Ports

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Container PortsGrowth

• The Terminals business has benefited from significant growth over recent years as a result of:

• Increasing trading volumes in/out of Australia on the back of strong GDP growth

• Increasing containerisation of these trade flows

• The recent global economic crisis has resulted in a decline in volumes

• A key response to these conditions from the shipping lines has been service consolidation

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Container PortsOperating Update March 2010

• The March quarter saw growth in Melbourne (+7%) and Brisbane (+1%) when compared with the previous corresponding period. This was offset by a decline in Sydney volumes (-2%) and Fremantle (-5%)

• Volumes in Sydney for the quarter were impacted by the closure of the terminal in late March following the tragic death of one of our employees

• When compared with the December quarter, the March quarter volumes are down 12% which reflects normal post peak cyclical trends

430

3 months to Mar. 09

CONTAINER PORTS 3 months to Mar. 10 Change

Container Lifts (‘000) 435 +1%

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Container Terminals

Melbourne: East Swanson Dock

• Land area circa 40 Ha

• Berth length: 885m

Sydney: Port Botany

• Land area circa 44 Ha

• Berth length: 1,005m

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Container Terminals

Brisbane : Fisherman Islands

• Land area circa 44 Ha

• Berth length: 900m

Perth : Fremantle

• Land area circa 21 Ha

• Berth length: 766m

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Container PortsChanging Environment

• Hutchison has been awarded the concession for berths 11 & 12 in Brisbane and the new berths in Sydney

• Patrick is well placed to compete in this new environment, having made strategic investments in equipment and infrastructure that will provide a strong foundation for low cost, efficient stevedoring operations into the future

• Strong landside interfaces

• Focus , zero harm , customer service , operating performance and efficiency

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Auto, Bulk and GeneralDirector Auto, Bulk and General – Steven Ford

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Auto, Bulk and General Divisional Overview

• Three separate but interdependent businesses each with their own strategic plan

• Autocare - Only “ship to dealer” automotive stevedoring, processing and delivery service in 10 locations including all capital cities

• General Stevedoring - Largest bulk and general stevedore in Australia, with operations in 18 locations in all major regional and capital city ports

• Ports and Bulk Rail - Fully integrated ports and bulk rail capability providing logistics solutions from source to ship mainly in NSW and Victoria

• Diversified customer base

• Industrial companies

• Grain handlers

• Automotive manufacturers

• Shipping lines

• Distributors

• Joint Ventures

• AAT – 50/50 with DPW and P&O Auto and General Stevedoring (POAGS)

• C3 – 50/50 with Port of Tauranga (NZ)

• ABH – 50/50 with Itochu (included in Ports and Bulk Rail)

• Ports Pty Ltd – 30%/RREEF 35%/ Hastings Funds 35% (included in Ports & Bulk Rail)

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Auto, Bulk and GeneralBusiness Strengths

Structurally attractive markets

• Highly concentrated markets

Earnings resilience

• Diversified customer base and revenue drivers

• Portfolio effect on earnings

• De-risking via take-or-pay contracts

Leading market positions

• Bulk port businesses have strong regional positions

• Autocare has over 50% market share

Unparalleled capabilities

• Distinctive bulk ports and rail capability

• Only wharf-to-dealer vehicle service

• Port, terminal and processing facilities

Essential services

• Service levels & operating performance are very important for customers

Low risk growth

• Improving demand outlook across most segments

• Efficiency review benefits realised

Growth through

structure & diversification

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Auto, Bulk and GeneralPatrick Autocare

• Volkswagen / Skoda

• Kia• Isuzu• Suzuki

Autocare provides wharf to dealer services for auto distributors, which includes:

– Vehicle processing – Vehicle Storage – Transportation services

Business description

• Inland Facilities: Laverton, Ingleburn

• New Facility in Perth (July 10)• Ports: Port of Brisbane, Port

Kembla, Melbourne• IT system

Key Assets

• Toyota• Mitsubishi• Nissan /

Renault• Honda

Key Customers

Inland processing facilityOn–wharf processing facility

On–wharf and inland facility

Darwin

Townsville

Brisbane

SydneyPort Kembla

Melbourne

Perth

Adelaide

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Auto, Bulk and GeneralPatrick Autocare - Competitive Positioning

Full Service with On-Wharf Processing

Full Service with In-Land Processing

Modular Services

Storage Services

Processing Services

Distribution Services

Value Added Services

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Auto, Bulk and GeneralPorts and Bulk Rail

Christmas Island/Cocos Keeling Island (Existing)• Port Management for the

Commonwealth Government

Integrated Port and Bulk Rail (Opportunity)• Mid West region iron ore exporters

Port of Geraldton (Existing)• Bulk Handling and Rail Receival subcontract • Multi-product bulk exports – iron ore /

concentrates / mineral sands / talc

GeelongPort (Existing)• Port Management and Bulk Handling• Growth opportunities cars, mineral sands,

coal

Port of Hastings (Existing)• Port Management• 7 years remaining of operating agreement

Port Adelaide (Existing)• Integrated Port and Bulk Rail business• Mineral sands / concentrates

Mid Tier Midwest

Townsville

Port Headland

Port Lincoln

Cloncurry

Mid Tier Pilbara Iron Ore Exporters

Mid tier Iron Ore Miners

Bulk Rail (Feb 2011)• Iron Ore and concentrates• Xstrata Copper

Integrated Port and Bulk Rail (Opportunity)• Iron ore exports from mid tier miners

Integrated Port and Rail (Opportunity)• Iron ore from mid tier miners

Grange Resources

First and Second Tier Miners Iron Ore / Concentrates

Sheep Hill

Bemax

Mt Isa

Bulk Rail - NSW (Existing and Opportunity)• Grain, Minerals, Construction, Hook and Pull, Short

Haul containers• Growth opportunities – export grain, concentrates,

Sydney aggregate, containerised grain

Bulk Rail - (Opportunity)• Break into WA Bulk Rail Market• Grain • Iron Ore

Kwinana

Mid TierIron Ore Exporters

Albany Bulk Handling (Existing)• Bulk Handling JV with Itochu • Integrated Port and Bulk Rail business• Woodchip and timber pellet exports

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Iron Ore Exporters

Current Operations and Future Growth Targets

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Auto, Bulk and GeneralGeneral Stevedoring

• Patrick Stevedoring is the leading provider of bulk and general stevedoring in 18 locations across Australia

• Revenue generated by General Stevedoring consists of:

– facility charges at leased wharf facilities

– stevedoring services– other services such as

storage, freight, cargo shipping

Business description

Long term property license: • Eastern Basin • 3 – 5 Webb Dock East

Key Assets

Bluescope Steel, NYK, AAL, Mitsui OSK Group

Key Customers

• Bulk – 12.3M Tonnes • General – 860K Tonnes • Vehicles – 500K Units • Steel – 4.1M Tonnes • Containers – 74K Units

Volume

Dampier

••

Port Hedland

••

Darwin••

Townsville

••

Whyalla

••

Gladstone

•

Geraldton

••

Fremantle

••

Adelaide

••

Brisbane

••

Newcastle

••

••

•

Bell Bay ••

Melbourne

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Geelong ••

Westernport

•••

Albany

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Esperance Port Kembla

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Stevedoring locations

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Safety

• Ensure that safety, health and environment is our primary focus and drive actions via line management

• Further develop behavioural based system and processes to ensure long term effective embedding of safety culture

People • Develop culture within the Asciano framework – Safety First, Open & Honest Communication, Accountability, Respect & Financial Success

Auto, Bulk and GeneralDivisional Strategies

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Operating Performance & Efficiency

• Continuous improvement in asset utilisation, costs and efficiency to maintain and improve margins and ROCE

• Implement Business Improvement Plans in each business

Customers & Business Growth

• Develop and expand integrated port and bulk handling market offering and capability in the resources sector

• Maintain core customers and defend our market positions

Strategic Positioning• Secure and leverage ownership and control of strategic assets and facilities

• Improve the understanding of AB&G business sectors by investors and analysts

Reduce Volume Risks

• Secure returns on invested capital in businesses via long term take-or-pay contracts which reflect the essential nature of the services we provide

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Auto, Bulk and GeneralOperating Update March 2010

• Vehicle movements have improved over the last 6 months with market conditions in the third quarter very similar to the second quarter reflecting continuing strength in motor vehicle sales

• Storage days increased during the quarter however this is largely seasonal. Current storage levels remain at close to record lows reflecting lower inventory levels post the GFC

• Bulk and General tonnes were impacted by a Western Australian grain company’s decision to bring stevedoring of exports in-house. Excluding grain, bulk and general cargo volumes improved (up 14 % on FY09) and are returning to pre GFC levels. This was offset by some seasonality in the third quarter

• Bulk Rail volumes have improved due to the strength in the construction and minerals sector. This was offset by lower grain export volumes reflecting softer grain export sales off the back of the high Australian Dollar and large stocks of grain worldwide

Auto, Bulk and General 3 months to Mar. 10

3 months to Mar. 09 Change

Vehicle Movements (‘000)Vehicle Storage Days (‘000)

2752,031

2204,643

+25%(56%)

Bulk/General Tonnes (‘000)Vessels Stevedored (excl grain)

3,590498

7,064475

(32%)+5%

Bulk Rail NTKs (m) 802 986 (18%)

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400

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Q3- 09 Q4 - 09 Q1-10 Q2 -10 Q3 -10

Vessel s (excl udi ng bul k gr ai n l oadi ng)

Auto, Bulk and GeneralStevedoring

Stevedoring vessels handled (excluding bulk grain loading)

10

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Auto, Bulk and GeneralMarket Outlook

• In recent years, there has been a shift from locally manufactured to imported vehicles due to lower tariffs and increasing focus on fuel efficiency

• Both trends are expected to continue to drive imported vehicle demand over the medium term, which is expected to favour Autocare given its customer mix

• Sales have almost recovered to pre GFC levels in the last two quarters

• Inventory levels are still historically low but have stabilised

• Project cargoes returning with new projects in Queensland and Western Australia

• Steel exports are strong and steel imports showing encouraging signs

• Future grain crop expected to be slightly higher than 2009/10

050,000

100,000150,000200,000250,000

Q3- 09 Q4 - 09 Q1-10 Q2 -10 Q3 -1001,0002,000

3,0004,0005,000

Thou

sand

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Sales Storage Days

Australian Automotive retail sales

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SalesStorage Days

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Debt StrategyGroup Treasurer - Michael Larkin

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Debt StrategyKey objectives

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Facilitate execution of business strategy

Optimise capital structure & financial flexibility

Minimise funding costs

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Debt Strategy

Medium term outlook

3

FacilitateBusinessStrategy

Optimise Capital Structure

• Current committed undrawn facilities & cash on hand of over $700m available to fund growth

• Refinancing program will free up bank market capacity

• Asset finance a potentially attractive way to fundnew or existing equipment

• Executing medium term debt strategy will significantly improve financial flexibility

• Capital structure now provides a balance between sustainable gearing and flexibility to grow

• Target maximum Net Debt / EBITDA of 3.25x - 3.5x and minimum EBITDA / Net Interest of 3x – 3.5x based on strength and resilience of businesses and quality of earnings

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Debt StrategyMedium term outlook

4

Minimise Funding Costs

• Maintain access to a broad range of markets and funding sources

• Take advantage of market conditions by moving proactively to refinance 2012 maturity

• Target BBB / Baa2 long term ratings

Minimise Refinancing & Liquidity Risk

• Diversify funding so no single source exceeds 50%• Reduce bank debt to around 33% to 50% of total• Lengthen average maturity to 5 to 10 years, to more

closely match asset base• Break up maturity profile, reducing individual

maturities to around 15% to 20% of total• Maximise window to refinance 2012 debt, by acting

proactively during 2010• Maintain minimum $300m cash & undrawn facilitiesF

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Debt StrategyRefinancing plan

5

CommenceExecution

FromLate 2010

Credit Ratings

CompletedFebruary 2010

Bank FacilityExtensions

CompletedDecember 2009

Capital raising

CompletedAugust 2009

• Proactive refinancing of $2.25b debt maturing in 2012

• 144A and € denominated markets likely preferred initially

• Commencing after FY10 results, subject to market conditions

• Target debut issuance for a minimum of A$500m equivalent

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CoalDirector Coal, David Irwin

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CoalDivisional Overview

• Second largest coal rail haulage operator in Australia, hauling 99Mt in FY09, primarily for export to Asia for base load power generation

• Leading market positions in the Hunter Valley in NSW, Southern NSW and South Australia, and expanding market share in Queensland

• Customers are major global mining houses and power generators with 90% of revenue generated under take-or-pay contracts

• Coal represented 22% of group EBITDA in FY09 but is expected to grow to almost 40% over 5 years

• Two of Coal’s three largest costs, comprising over 50% of expenses, are track access fees and fuel, which are passed through in full to customers

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CoalOverview : South Eastern Australia

16 Mtpa / 2,971 MNTK83 Mtpa / 10,693 MNTKHaulage Task

Australian Rail Track Corp, Rail Infrastructure Corp and Rail Corporation New South Wales

91% export / 9% domestic

20% Metallurgical / 80% Thermal

460

97 locomotives / 2,150 wagons

58% export / 42% domestic

36% Metallurgical / 64% Thermal

143

45 locomotives / 758 wagons

Employees

Export / Domestic

Type of Coal

Access providers

Rolling Stock

Southern Region

Note: all data is FY09 actual, Southern Region includes Port Augusta

Northern Region

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CoalOverview: North Eastern Australia

30.0 MtpaHaulage Task

108Employees

100% export / 0% domesticExport / Domestic

80% Metallurgical / 20% ThermalType of Coal

QR NetworkAccess provider

36 locomotives / 1,198 wagonsRolling Stock

Note: all data is FY11 forecast

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CoalOperating Update March 2010

3,316

3 months to Mar. 09

COAL 3 months to Mar. 10

Change

NTKs (m) 4,418 +33%

• The increase in coal haulage volumes on last year’s corresponding quarter is predominantly due to the incremental ramp up of the Queensland coal haulage contract requirements from 1 July 2009

• Throughout the quarter there has been continued demand from New South Wales coal customers despite planned and unplanned track outages in the Hunter Valley

• The strength in New South Wales was somewhat offset by lower than expected volumes in Queensland due to the operational impacts associated with Cyclone Ului and the extended wet weather in central Queensland

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CoalIndustry Structure

• Coal rail haulage is a highly concentrated market• Pacific National currently has an 85% market share in SEA and approximately 17% share

in NEA

MarketConcentration

• Current rolling stock providers are predominantly locally based• Potential for Pacific National to procure locomotives direct from China • 200 wagons have been ordered with China Northern Rail

Suppliers

• Service levels and operating performance are more important than price• Customers are prepared to pay for guaranteed capacity, as demonstrated by Asciano’s

entry into Queensland• On a per tonne basis, haulage rates are approximately 4% of the coal spot price, which

illustrates the limited scope for price pressure and, when coupled with dedicated capacity, the potential for sensible yield management

Basis of Competition

• Capital intensity – high replacement cost of assets• 90% of customers contracted on take-or-pay contracts• Significant economies of scale in rolling stock procurement, fuel costs, labour, insurance

and operational risk management• Considerable operational expertise required to perform in high intensity coal supply chains• Limited rolling stock availability combined with long lead times

Strategic Advantage

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CoalCost Structure

• Track access and fuel make up over 50% of Coal’s operating expenses

• Access charges and fuel costs are passed through to customers

• Coal’s employees are typically full time and more than 95% are locomotive drivers and terminal operators

• Locomotive maintenance is fully outsourced (currently to Downer EDI, Siemens and United Group Limited). Wagon maintenance is predominantly managed in house

• Pricing optimisation through competitive differentiation accounts for a significant portion of the overall efficiency benefits for the Coal business

• Operational efficiencies include employee cost management and IT improvements

• Investing in training and personnel to position for growth

• Asset management efficiencies include improvements to maintenance execution and fuel management

Employee benefits

Lease & rent

Repairs & maintenance

Fuel & power

Rail Access

Insurance & risk

Other expenses

Breakdown of Costs

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2001 2002 2003 2004 2005 2006 2007 2008 2009E 2010F

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Pric

e pe

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S$/t)

Metallurgical coal (Mt) Thermal coal (Mt) Metallurgical coal ($/t) Thermal coal ($/t)

CoalDemand Outlook

Coal Export Volumes and Prices

Source: ABARE

Source: ABARE 2008

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CoalCapacity Growth

• The coal haulage market is expected to grow through capacity expansion in major coal supply chains in NSW and Queensland, with over 287Mt of additional capacity in the pipeline

• Rail capacity is expected to remain below both mine and port capacity, thereby constraining the threat of irrational pricing behaviour and the ability of competitors to take market share from Asciano

• A long term agreement between coal producers and the NSW Government on port capacity allocation is expected to align service provider contracts (in terms of coal tonnages, and Origin / Destination of Coal) and markedly increase contractual certainty for the Coal Division

• NCIG commissioned in April 2010

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NCIG (NSW) PWCS (NSW) DBCT (QLD) Hay Point (QLD) Abbot Point (QLD) Wiggins Island (QLD)

Cap

acity

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Existing capacity Increase to 2011 Increase to 2020

Expected Capacity Increases

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CoalQueensland Coal Case Study

• Queensland expected to deliver annual EBITDA in excess of $100m in FY11

• Initial results in line with expectationsPerformance

Market entry: beachhead contracts signed with Xstrata & Rio Tinto

Contracted capacity: follow-on contracts signed with Anglo, Macarthur and Isaac Plains

Contract quality: 9 and 10 year terms, with returns above cost of capital

Project start-up: operations commenced 6 months ahead of plan

Project Delivery

• Low risk organic growth from robust Queensland coal export outlook

• Keen interest from other producers in Queensland

• Target is to build profitable #2 position to 30% market share within the next 5 years

Potential

• Major opportunity for Pacific National

• Entry to Queensland was at invitation of key national customers

• Pacific National did not buy entry to the market by cutting price

• Established a precedent where customers pay for dedicated capacity

StrategicSignificance

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CoalQR Privatisation

• Queensland Government plans to privatise QR National via IPO by end 2010

• Privatisation will likely mean a more commercial focus and higher funding costs for QR National post-privatisation

• Queensland Government needs to provide certainty to QR National’s competitors and the State’s coal producers

• We are looking at all options to ensure a ‘level playing field’– the regulatory regime must protect and foster competition

QR National

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CoalStrategy

• Promote organic growth through improvements to coal supply chain capacity

• Secure 30% market share in Queensland by 2015 at returns above the cost of capital via long term take-or-pay contracts for base load volumes

• Secure capacity pipelines to enable continued growth

High QualityGrowth

• Secure returns on invested capital via long term take-or-pay contracts which reflect the essential nature of the services we provide

• Retain and extend long term contracts with key customers

• Maintain pass through arrangements for key costs

Take-or-payContracts

• Strengthen customer relationships and create solid relationships with service providers across the supply chain

• Manage yield through competitive differentiation to maintain and grow profit margins

Relationship &Yield Management

• Maintain superior operating performance to meet or exceed contractual obligations and justify pricing

• Continuous improvement in asset utilisation, costs and efficiency to maintain and improve margins

Operating Performance & Efficiency

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