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MACQUARIE INTERNATIONAL INFRASTRUCTURE FUND

Results Presentation

8 August 2012



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Important NoticesHong Kong

This presentation has been prepared and intended to be disposed solely to "professional investors" within the meaning of the Securities and Futures Ordinance (Cap. 571) ofHong Kong for the purpose of providing preliminary information and does not constitute any offer to the public within the meaning of the Companies Ordinance (Cap.32) of HongKong. None of Macquarie Group Limited, its group members or any of their employees or directors is responsible for any liabilities, claims, mistakes, errors or otherwise arising

out of or in connection with the content of the material. Macquarie Bank Limited ABN 46 008 583 542 and its holding companies including their subsidiaries and relatedcompanies do not carry on banking business in Hong Kong and are not Authorized Institutions under the Banking Ordinance (Cap. 155) of Hong Kong and therefore are notsubject to the supervision of the Hong Kong Monetary Authority. The contents of this information have not been reviewed by any regulatory authority in Hong Kong.

Singapore

This material has been prepared for accredited and institutional investors (each as defined under the Securities and Futures Act, Chapter 289 of Singapore) attending the MIIFinvestor presentation and is not intended or prepared for any other persons.

This document is only being distributed to and is directed only at persons falling within the following exemptions from the financial promotion restriction in s 21 of the UnitedKingdom Financial Services and Markets Act 2000 (FSMA): (a) authorised firms under FSMA and certain other investment professionals falling within article 14 of the FSMA(Promotion of Collective Investment Schemes) (Exemptions) Order 2001 Promotion) Order, (the Order); (b) high net worth entities (not individuals) falling within article 22 ofthe Order; and their directors, officers and employees acting for such entities in relation to investment; and (c) persons who receive this document outside the United Kingdom,in accordance with applicable local requirements. The distribution of this document in the United Kingdom to anyone not falling within the above categories is not permitted andmay contravene FSMA.

MACQUARIE INTERNATIONAL INFRASTRUCTURE FUND 3


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Agenda

Page

Highlights 5

Financial Results 8

MIIF Portfolio 11

Strong Balance Sheet 22

Appendix 27



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Highlights



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Period ended 30 June 2012

1H 2012 Netincome on anadjusted basis

Net income of S$19.6m up S$15.2m on prior year driven by:

Higher investment income from Taiwan Broadband Communications (TBC) of S$24.6million (2011: S$10.0 million) reflecting the contribution from MIIFs additional 27.5 per

cent interest in the business acquired in 2011

NAV per shareS$0.71

Net Asset Value (NAV) of S$829.3 million

Lower than S$934.6 million as at 31 March 2012 driven primarily by the reduction in inthe value of Hua Nan Expressway (HNE) by S$95.7 million

The reduction in HNEs valuation reflects the current estimated impact of the GuangdongTransport Bureau and Guangdong Price Bureau enforced standardisation of the toll rateand tolling mechanism used to calculate tolls on all highways in Guangdong Province.The tolling revisions will have an adverse impact on HNE, with toll revenue estimated tobe reduced b a roximatel 20 to 25 er cent

Solid capital

position

Market capitalisation of S$634.3 milllion1

Cash balances of S$83.7 million2

o corporate- eve orrow ngs

Interim dividendat 2.75 cps

Ex-dividend date: 23 August 2012

Date payable: 10 September 2012


Note: (1) As at 7 May 2012(2) Cash at 7 Aug 2012 amounts to S$81.5 million


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Portfolioperformance

TBC continued to see strong demand for its digital television and broadbandproducts

Changshu Xinghua Port (CXP) experienced higher log, paper & pulp volumes andhigher average tariffs for general cargoes

HNE traffic volumes were higher due to the continued positive contribution fromGuanghe Expressway, a complementary road and the reduced impact from thedetolled Xinguang Expressway. However, toll revisions at HNE have impacted

Secure business-level borrowings

Prudent and sustainable business-level gearing

No debt maturing until 20141

Weighted average DSCR2: 2.6x

Deployment ofcash balances

MIIF intends to continue the buy-back of its shares on-market The bu -back will be sub ect to usual tradin restrictions

A summary of MIIFs buy-back activities

Shares bought back for the quarter: 8.3 million shares (1 April 2012 to 30 June 2012),Average price per share: S$0.5651 (excluding brokerage)


. ,price per share: S$0.5520 (excluding brokerage)

Note: (1) Excludes Miaoli Wind as its equity value is zero(2) Debt Service Coverage Ratio Cash flow available for debt service divided by total debt service; as at 30 June 2012


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Financial Results



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Review of revenue and operating expenses

(S$000) 6 months ended 30 June 2012 6 months ended 30 June 2011 Variance Fav/(Adv)

CXP - - -

HNE - - -

Miaoli - - -

TBC 24,639 9,969 147.2%

Interest income 184 592 (68.9%)

Net foreign exchange gain/(loss) 117 (83) 241.0%

Total revenue 24,940 10,478 138.0%

Management fees 4,254 3,927 (8.3%)

.

Lending fees 100 1,062 90.6%

Other operating expense 780 844 7.6%Total o eratin ex ense 5 317 6 015 11.6%

Net income on an adjusted basis1 19,623 4,463 339.7%


Note: (1) Net income on an adjusted basis (excluding gain/loss on sale of investment) represents the earnings of MIIF that underpins the payment of dividends to MIIF shareholders, and as such it isthe measure that the Board of Directors of MIIF focuses on to determine the amount of dividend that is ultimately paid to MIIF shareholders. This excludes all unrealised gains or losses oninvestments and other balance sheet items, and transaction costs incurred, that are ordinarily captured in a statement of comprehensive income prepared in accordance with all applicableaccounting standards


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Portfolio valuation analysis

. .

Portfolio valuation was S$912.0 million as at 31 March 2012

Reduction is primarily due to the impact of the standardisation of toll mechanism on HNEs valuation

CompanyBalance at Investment /

Incomereceived from

Foreignexchange

Revaluationto

CompanyBalance at

. .

ec

S$000

ves men

S$000

nves men s

S$000

e ec s

S$000

un

S$000

un

S$000CXP 101,470 - - (3,301) 5,097 103,266

HNE 244,165 - - (7,929) (95,477) 140,759

ao n - - - - - -

TBC 506,951 - (24,639) (3,654) 23,069 501,7271

Others 72 - - - - 72Investments in unlistedsecurities 852,658 - (24,639) (14,884) (67,311) 745,824

Net cash & cashequivalents

109,979 (26,303) - - - 83,676

Total 962,637 (26,303) (24,639) (14,884) (67,311) 829,500


Note: (1) Excludes S$1.8 million of accrued management fee recognised in Trade and other receivables on the MIIF balance sheet at 30 June 2012


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MIIF Portfolio



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Attractive high-quality investments

Portfolio composition by investment1Portfolio composition by geography1

Cash and Cash andCash

Cashequivalents

10.1%

CXP12.4%

equivalents10.1%

29.4%

17.0%

Taiwan

TBC60.5%


Notes: (1) Based on 30 June 2012 valuation. Numbers are subject to rounding

.


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Proportionate EBITDA

Proportionate EBITDA from assets

Three Months Ended 30 June Six Months Ended 30 JuneProportionate EBITDA1,2

Proportionate EBITDA1,2

35.2

47.9

33.0

45.8

40

50

ons17.0

24.1

17.1

23.4

20

25

ons

5.3 5.05.7 5.710

20

30

S$milli

2.9 3.15

10

15

S$milli

0CXP HNE Miaoli TBC

6 months to June 2012 6 months to June 2011

1.4 1.3

0CXP HNE Miaoli TBC

2Q12 2Q11


Notes: (1) All calculations use 30 June 2012 exchange rates(2) Assumes MIIF owns 47.5% of TBC in 2011


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Leading media company in Taiwan

Business performance

TBC performed well in 1H 2012, with EBITDA 4.4% highercompared to the pcp. Revenues were higher due to

continued increases in subscriber numbers across all the

nanc a g g s or e s x mon sended 30 June

NT$ million 2012 2011Variance

Fav/(Adv)

Digital subscribers increased by 44.7% to 103,818on pcp

Broadband subscribers increased by 6.6% to170,503

Revenue 3,662.8 3,531.5 3.7%

EBITDA 2,370.6 2,269.9 4.4%

EBITDA margin 64.7% 64.3% 0.4%

as c ca e su scr er num ers reac e , ,

representing an increase of 0.9% on pcp Digital TV is a key aspect of TBCs next growth phase. It

currently represents 13.8% of total basic cable TV,im l in substantial rowth o ortunities via successful

Distributions to MIIF

(S$ million) 24.6 10.0 146.0%

750 8

Subscriber Composition

up-selling of digital products to basic cable TV subscribers

TBC raised an additional NT$1.5 billion capex facility

which will allow TBC to continue its expansion ofdigitisation and be at the forefront of Taiwans digitisation

. .

500

600

700

ers(000)

ntatves

103.8170.5

71.7

160.0

0

100

200

300

Subscri


Basic CATV Digital Broadband

Ending Subscribers as at 30 June 2012 Ending Subscribers as at 30 June 2011


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Leading media company in Taiwan

Outlook

With the foundation of a stable and growing Cable TVsubscriber base, TBC continues to lead the market with newproducts in both broadband and digital TV. These are

Business snapshot

Date of initial investment 16 July 2007

expected to continue to drive strong operationalperformance in 2012

.

30 June 2012 valuation S$503.5 million

Distributions since acquisition S$103.8 million2

MIIF ownership 47.5% interest

% of MIIF portfolio 60.5%

Notes: (1) Acquisition cost comprises of:(a) initial acquisition consideration of S$161.8 million in July 2007 (post the return

. . ,distributed to MIIF as a result of the refinancing of TBCs debt facilities shortlyafter MIIFs acquisition of its interest in TBC);

(b) further acquisition consideration of S$174.4 million on 18 March 2011; and(c) securities issue consideration of S$143.0 million on 28 June 2011

(2) Excludes return of capital from TBC of US$68.3 million (S$104.1 million) and aperiod adjustment to reflect differences in exchange rates when distributions were



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Urban toll road in South China

Business performance

Revenue was 6.8% higher compared to the same period in2011 due to:

Financial highlights for the six monthsended 30 June

RMB million 2012 2011

Variance

Fav/(Adv),a complementary road, on HNEs traffic volume; and

Reduced negative impact during the period from thedetolled Xinguang Expressway compared to pcp.

Revenue 268.5 251.4 6.8%

EBITDA 217.6 204.5 6.4%

EBITDA margin 81.0% 81.3% (0.3%)


EBITDA was 6.4% higher compared to the same period in2011 due to revenue growth that was partially offset byhigher operating expenses

Revenue and EBITDA for the 6 months to 30 June 2012

(S$ million) - - -%

Total tolled vehicle volumes by type

wou ave een g er no or e uang ong ransporand Guangdong Price Bureaus enforced standardisation oftoll rate and tolling mechanisms used to calculate tolls on all

highways in Guangdong Province. The standardisationwhich came into effect on 1 June 2012 has resulted in the

21.5

18.3

15.0

20.0

25.0

lume(m

illions)

toll rate for HNE Phase 1 reducing from an average rate ofRMB0.75/km to RMB0.60/km. The toll rate on HNE Phase 2was not affected as it already charged a rate of RMB0.6/km.In addition, the methodology used to calculate the length of

-0.9

3.2

0.3 0.90.9

2.9

0.20.8

5.0

10.0Totalvol


able distance of slip roads and will affect both HNE Phase 1and Phase 2

0.0

Passen ger Min ibus / Lig htTruck

Medium Bus / Truck Large Bus / LargeTruck

Heavy Duty Truck /Semi-Trailer

6 months to 30 June 2012 6 months to 30 June 2011


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Urban toll road in South China

Outlook

HNE is expected to benefit from favourable traffic driverssuch as the opening of Guanghe Expressway, a

complementary road at the end of 2011. However, the

Business snapshot

Date of investment 19 November 2007

1o ng rev s ons en orce on on une areestimated to cause toll revenue to reduce byapproximately 20 to 25 per cent

.


Distributions since acquisition S$85.6 million




Notes: (1) Originally announced acquisition price of S$329.5m included S$295.7m investedat acquisition, and S$33.8m to be drawn at a later date contingent upon certainevents. This contingency is now no longer required and will not be drawn


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Multi-purpose cargo port in China

us ness per ormance

Revenues of RMB155.0 million, up 6.0% compared to pcpdue to increases in log, paper & pulp volumes and higheraverage tariff on general cargo volumes

Financial highlights for the six monthsended 30 June

RMB million 2012 2011Variance

Fav/(Adv).higher operating costs. Operating expenses were higher by20.6% compared to the pcp primarily due to an increase inhandling costs as a result of stronger log and paper & pulpvolumes, jetty maintenance and the one-off cost related toerectin a tem orar stackin ard

evenue . . .

EBITDA 69.6 75.4 (7.7%)

EBITDA margin 44.9% 51.6% (6.7%)

Distributions to MIIF- - -%

CXP general cargo volumes were 6.9% lower compared topcp mainly due to the reduction in steel volumes

Steel volumes were 27.0% lower compared to pcp.This was primary due to a reduction in export steel 1,600

Cargo Composition

42.441.5

45

anticipation of an increase in export duties in June,which caused traders to increase their orders in firsthalf of 2011

Log volumes grew slightly on pcp by 4.9% due to

979.5939.3

1,187.0

, .

895.6

1,095.5

800

1,000

1,200

1,400

es('0

00)

25

30

35

T

EU(

con nu ng eman or mpor e ogs n econstruction sector

Paper and pulp volumes grew on pcp by 8.4% due tothe strong demand for imported paper & pulp in China

Container volumes were 2.2% hi her com ared to

275.6301.1

-

200

400

600Tonn

-

5

10

15

'000)


pcp

Notes: (1) Twenty foot equivalent unit

Steel Logs Other NonSteel Paper & Pulp Container

Six Months to 30 June 2012 Six Months to 30 June 2011


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Multi-purpose cargo port in China

Outlook

CXP is anticipated to continue to perform steadily in 2012,with growing paper & pulp and log volumes

Business snapshot

Date of investment 2 December 2005

cargo types with high growth potential such as specialisedminerals

CXP is well placed to further consolidate its position as the

.



successful partnership with Westerlund and through itsability to increase the warehouse capacity levels requiredto support the growth potential in the Yangtze River Deltaand its surrounding regions





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Operating wind farm in Taiwan

us ness per ormance

Total energy production was 11.2% lower compared to pcpdue to lower wind speeds experienced first quarter

compared to pcp. Consequently EBITDA was 12.0% lower

nanc a g g s or e s x mon sended 30 June

NT$ million 2012 2011Variance

Fav/(Adv) Since acquisition, wind speeds have been significantly

lower than expected which puts at risk Miaoli Winds ability

to refinance its current debt levels in December 20121

Revenue 143.4 161.1 (11.0%)

EBITDA 117.7 133.8 (12.0%)

EBITDA margin 82.1% 83.1% (1.0%)


(S$ million) - - -%

Total Energy Production

74.1

83.4

5060

70

80

90

Wh

10

20

30

40G


Notes: (1) Debt is non-recourse to MIIF

Energy Production

Six Months to 30 June 2012 Six Months to 30 June 2011


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Operating wind farm in Taiwan

Outlook

Miaoli Winds application for Voluntary Gold Standard carboncredits with the Gold Standard Foundation has been

approved. Miaoli Wind will seek to generate incremental

Business snapshot

Date of investment 20 March 2008

1

revenue through the sale of these credits.

30 June 2012 valuation Nil


MIIF ownership 100% interest



Notes: (1) Includes an equity injection of S$1.7 million in March 2010 to avoid a breach of the31 December 2009 debt service cover ratio


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Strong Balance Sheet



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-

Proportionate capital structure1

MIIFs Aggregate gearing is 53% (includes corporate level cash)

Excluding corporate level cash = 56%

1,200

476.4

49%

800

1,000

379.7

73%

400

600

S$million

503.5

140.8 103.3

21.260.5

17%

100%

0

200

TBC Hua Nan CXP Miaoli Wind


Notes: (1) As at 30 June 2012

MIIF Business' Equity Value MIIF Total Net Debt Gearing


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-

Debt terms

Business level borrowings are non-recourse to MIIF Weighted average DSCR of 2.6x

Average Net debt/EBITDA of 4.6x

Business Level Total debt drawn Maturity date Repayment % Hedged DSCR(1)

DSCR

e g e average e ma ur y o seven years across s us nesses

CXP A RMB180 million Jul 2014 Bullet N/A 4.8x

2

N/ACXP B RMB175 million Apr 2017 Bullet; amount to be repaid

over 2015 2017N/A 4.8x2 N/A

HNE RMB2.5 billion Mar 2022 Amortising N/A 1.8x N/A

Miaoli Wind A NT$1.1 billion June 2020 Amortising 100% 1.1x 1.05x

Miaoli Wind B NT$445 million Dec 2012 Bullet 100% 1.1x 1.05x

TBC Senior3 NT$20.8 billion Jun 2017 Bullet / Amortising4 83% 3.4x5 1.20x5 . .

MIIF Level Facility limit Maturity date Total debt drawn

Corporate Facility A S$100 million Oct 2014 - N/A N/A N/A

Notes: (1) Last 12 months Debt Service Coverage Ratio as at 30 June 2012


(3) Includes capex revolver facility(4) Bullet until December 2013, amortising thereafter(5) Last 12 months Debt Service Coverage Ratio as at 31 March 2012


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Outlook



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OutlookMIIF outlook It is anticipated that TBC will see continued subscriber growth across all of its

businesses, with particularly strong growth in digital up-take

CXP is anticipated to continue to perform steadily in 2012, with growing paper & pulp

HNE is expected to benefit from favourable traffic drivers such as the opening ofGuanghe Expressway, a complementary road at the end of 2011. However, the tollingrevisions enforced on HNE on 1 June 2012 are estimated to cause toll revenue toreduce by approximately 20 to 25 per cent

MIIF intends to continue the buy-back of its shares on-market as a means ofdeploying its cash holdings. The buy-back will be subject to usual trading restrictions

Dividendguidance

MIIF is issuing a dividend guidance of 2.75 cents per share for the six months to 31December 2012 to be paid in early 2013. The total dividend for 2012 of 5.5 cents per

share is expected to be fully covered by the income that MIIF will have received fromits businesses

MIIFs ordinary dividend is based on the distributions that MIIF receives from itsinvestments and are generated from the normal operations of these businesses. Thetolling revisions which were enforced on HNE are expected to adversely impact the


. , ,impact MIIFs future dividends from operating income


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Appendix



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30 June 2012

1

Public

Institution MacquarieRetail

Asia-focused private owner andoperator of infrastructure

.. .

Other Macquarie Internationalus nesses s e on ngapore

Stock ExchangeManaged

Fund

Infrastructure Fund

Limited

47.5%52.5%

Miaoli Wind

(Operating wind farm)

Hua Nan

Expressway(Urban toll road inSouth China

Taiwan

BroadbandCommunications

Changshu

Xinghua Port(Multi-purposecar o ort

100.0%81.0%38.0%


Notes: (1) Includes MIMALs interest of 9.1% as at 30 June 2012


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Core portfolio compositionAsia Focus

Sustainable Leverage

ChangshuXinghua Port

os ve s r u a e as

Controlling Interest

China

Hua Nan

Expressway

Taiwan

Communications



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Investment Criteria1

Investment focus Infrastructure businesses that have a dominant market position, sustainable and

redictable cash flows over the lon term and otential for lon -term ca ital

Stringent investment criteria

growth

Targetgeographies

East Asia: China, Taiwan, Hong Kong, Japan

South East Asia: Sin a ore Mala sia Indonesia Thailand Phili ines

Target sectors Transportation infrastructure: Toll roads, ports and airports

Utilities and energy: Water and wastewater treatment, energy distribution and,

Communications infrastructure

Business life stage

Operational and management track record (non-greenfield)

Hold period Potential for long term hold


Note: (1) As at 30 June 2012. The summary above is only intended as a guide and MIIF will consider investment opportunities outside these parameters where returns and benefits meet

MIIFs objectives


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On a paid basis

MIIF dividend per share (on a paid basis)

7.05 c s

8.15 cps8.50 cps

8

9 To be paid

4.50 cps3.95

4.15 4.25

5

6

7

PerShar

e

5.50 cps

2.20 cps1

3.00 cps

4.00 4.25

1.50

1.502

3

4

S

$Cents

.

2.75

2.75

. .

1.50 1.502.20

0

1

2005 2006 2007 2008 2009 2010 2011

2.75

2012


Notes: (1) Reflects a part year of operations in 2005

Relates to prior year 2nd half earnings Relates to current year 1st half earnings


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Share Price vs. NAV

Share price discount toNAV reduced from a high

1.22

1.12 0.97

1.20

1.40

a low of 22% in February2011

0.88

0.87

0.800.82

0.79

0.80

0.80

0.790.80 0.79

0.71

0.60

0.80

.

scount o as at

30 June 20120.20

0.40

.

Jun-08

Sep-08

Dec-08

Mar-09

Jun-09

Sep-09

Dec-09

Mar-10

Jun-10

Sep-10

Dec-10

Mar-11

Jun-11

Sep-11

Dec-11

Mar-12

Jun-12

MIIF Share Price NAV



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S$ strengthen against the RMB and NT$ over the quarter

30 Jun 2012 31 Mar 2012% change

Jun 2012/ Mar 2012

. . .

S$:NT$ 23.517 23.478 0.2%


Source: MIRA economics


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Contact

For further information, please contact:

Wei CheongInvestor Relations

Tel: (65) 6601 0766

Mob: 65 9006 4452

Email: [email protected]




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Results Presentation

8 August 2012


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