ASX HY12 final · 2012. 2. 27. · ASX Release BrisConnections Management Company Limited ABN 67...

ASX Release

BrisConnections Management Company Limited ABN 67 128 614 291 AFSL 322 275 as responsible entity for BrisConnections Holding Trust ARSN 131 125 025 and

BrisConnections Investment Trust ARSN 131 124 813 Address Level 2, Airportlink Operations Centre, Cnr Stafford & Clarence Roads, Kedron Qld 4031

Australia PO Box 412 Lutwyche Qld 4030 Australia

Investor Hotline 1800 236 994 or +61 7 3170 1900 Link Market Services Limited, Locked Bag A14, South Sydney, NSW 1235 Australia

Web www.brisconnections.com.au

27 February 2012 BrisConnections announces financial results BrisConnections (ASX: BCS) today announced financial results for the six‐month period to 31 December 2011. The financial results were in line with expectations and reflect the substantial progress BrisConnections has made in progressing towards operations in mid 2012 of the Airportlink toll road in Brisbane, almost 95% complete by dollar spend by 31 December 2011. The project remains on time and on budget. During the period a number of milestones were achieved including

Over $450 million spent on Airportlink bringing the total to over $3.5 billion spent on construction activities Completion of Bowen Hills bridges and ramps

Reached over 25 million hours worked

Tolling system development and systems testing undertaken

Continued marketing of the benefits of Airportlink with briefings to individuals and stakeholder organisations

Relocation into our permanent home at Airportlink Operations Centre (ALOC) enabling the growth of operations resources to start in readiness for operations to commence in mid 2012.

BrisConnections’ Chairman Mr Trevor Rowe AO said preparations for commencement of operations in mid 2012 are well underway. “The past six months has been a busy period as we prepare for the transition from construction to an operating entity. This has involved marketing and customer service, ramping up operations and maintenance (including with our O&M contractor), planning and recruitment – all essential aspects for launching Airportlink later this year” Mr Rowe said. “As I have said before there is much more to establishing a major motorway, even one such as Airportlink which will revolutionise the Brisbane road network, than just construction. The engagement with our end users – drivers of Brisbane and South East Queensland – is also critical and this is not something which can be done overnight. That is why we started our marketing last year, well before opening and indeed, we believe, much earlier than any other toll road in Australia has done in the past.” “Not only have we learned from other toll road experiences but we have also listened to potential customers and briefed individuals and stakeholder organisations. That consultation indicated road users need time to become familiar with Airportlink and how it benefits their journeys and to recognise the significant time savings using Airportlink will offer. As a result, we are now looking at options which benefit all Brisbane tollroad account holders and users including pricing options, rewards programmes and navigational/travel time signage,” Mr Rowe said. Mr Rowe also noted that Airportlink continued to benefit from ongoing support of the Queensland Government and other important stakeholders in the project such as Brisbane City Council and our banking syndicate.

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ASX Release






Financial Results As at 31 December 2011, BrisConnections had net assets of $986 million. Assets include cash of $157.9 million. For the financial period, BrisConnections incurred approximately $451.0 million in construction expenses associated with the project, which includes approximately $53.2 million of construction expenses incurred in December but paid after the period. In accordance with its accounting policies, since inception BrisConnections has capitalised as future tolling rights approximately $3.5 billion including interest associated with the design and construction phase of the project. “Airport Roundabout Upgrade has already been completed in July 2011 and we remain confident that Airportlink and Northern Busway (Windsor to Kedron) will be completed and operational on‐time and on‐budget, in accordance with the construction contract timetable of June 2012.” Mr Rowe said. ENDS ~~~~~~ About BrisConnections BrisConnections has been awarded a 45 year concession to design, construct, operate, maintain and finance the Airport Link tollroad in Brisbane. Airport Link is a 6.7 kilometre multi‐lane electronic free‐flow tollroad with dual 5.7 kilometre tunnels. Upon completion, Airport Link will operate as a multi‐destinational road connecting Brisbane’s northern suburbs with Brisbane’s CBD and Brisbane Airport, the CLEM7 Tunnel and the Inner City Bypass. It will also serve as a key distribution road, connecting some of Brisbane’s major destinations such as Brisbane Airport, the CBD, Royal Brisbane Hospital, Australia TradeCoast and Chermside Shopping Centre. Airport Link is being constructed using a world class, innovative design solution, with connections avoiding intersection delays and streamlining traffic flows. Lane configuration will provide for separate traffic movements, with early decision points, to minimise traffic weaving and merging. Airport Link is being built around an electronic free‐flow tolling design. Electronic free‐flow tolling is mandatory across all Queensland tollroads and Airport Link tags will be fully interoperable with other Queensland and Australian tollroads. BrisConnections is also designing and constructing a portion of the Northern Busway between Windsor and Kedron and an upgrade of the East‐West Arterial / Airport Drive / Gateway Motorway interchange at Brisbane Airport, both of which are funded by the Queensland Government. BrisConnections will not receive any revenue from these projects and they will both be handed over to the Queensland Government upon commissioning. An investment in BrisConnections Unit Trusts comprises a stapled security made up of one unit in BrisConnections Investment Trust and one unit in BrisConnections Holding Trust. Stapled securities in BrisConnections are listed on the Australian Stock Exchange under the code “BCS”. There are many factors that may affect the results of an investment in BCS which are outside the control of the Directors of the Responsible Entity or may not be capable of being foreseen or accurately predicted.

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ASX Release






27 February 2012

BrisConnections Investment Trust and BrisConnections Holding Trust

Appendix 4D Half Year report

Information for the half‐year ended 31 December 2011 given to ASX under listing rule 4.3A Pursuant to listing rule 4.3A.3, the following information is given to the ASX by BrisConnections Management Company Limited ACN 128 614 291 as responsible entity for BrisConnections Investment Trust ARSN 131 124 813 and BrisConnections Holding Trust ARSN 131 125 025 (“BrisConnections”). The following information should be read in conjunction with the attached financial report together with any public announcements made by BrisConnections and its controlled entities during the half‐year ended 31 December 2011 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001.

Details of the reporting period and the previous corresponding period Current period: 1 July 2011 to 31 December 2011 Prior corresponding period: 1 July 2010 to 31 December 2010 Results for announcement to the market The Board of BrisConnections is pleased to report on the half year results for the period to 31 December 2011. Half year to 31 December 2011 highlights:

Construction continued with the project almost 95% complete (by dollar spent) with many of the final permanent structures and bridges completed as we progress towards commencement of operations in mid 2012. Construction during the period saw

o Completion of Bowen Hills bridges and ramps o Reaching over 25 million hours worked o Tolling system development and systems testing undertaken

Continued marketing of the benefits of Airportlink with briefings to individuals and stakeholder organisations

In November 2011, BrisConnections moved into our permanent home at Airportlink Operations Centre (ALOC) enabling the growth of operations resources to start in readiness for operations to commence in mid 2012.

The BrisConnections team in the next half year will continue to progress the final stages of this exciting project, and prepare for the commencement of operations in mid 2012.

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ASX Release






Key BrisConnections Performance Statistics

Period ending 31 December 2011 31 December 2010 Change (%)

$’000s $’000s Change (%)

Net operating income 456,785 727,764 (37.2)

Net profit(loss) before tax attributable to members

(2,805) 294 (1054.1)

Income tax benefit/(expense) 20,878 13,049 60.0

Net profit(loss) after tax attributable to members

18,073 13,343 35.4

EPS Cents Cents

Earnings per stapled security (basic) (cents) 17.12 11.24 52.3

Distributions

Amount per stapled security

Amount per stapled security

Interim distribution n/a n/a

Record date for determining entitlement to distributions

Date

n/a

Date

n/a

Period ending 31 December 2011 30 June 2011 Change (%)

NTA Cents Cents

Net asset backing per stapled security (cents) 252 279 (9.7)

NTA per stapled security (cents)(1) (902) (777) (16.1)(1) Under the Listing Rules, Net Tangible Asset backing per security must be determined by deducting from total tangible assets all

claims on those assets ranking ahead of the ordinary securities (ie. All liabilities, preference shares, outside equity interests etc). The NTA per stapled security is a negative amount for the half year ending 31 December 2011. It is anticipated that this amount will continue to grow until construction completion, scheduled for mid 2012. As disclosed in the 2011 Annual Report, Australian Accounting Standards require the capitalisation of all motorway related construction costs to be recorded as an intangible asset rather than as property, plant and equipment. Accordingly, whilst the Group’s intangible assets will significantly increase with construction, the Group’s tangible assets will not, resulting in the negative NTA per stapled security.

Change to capital During the half year ending 31 December 2011, there were no changes to capital. Controlled entities

Name of entities where control was gained in the half year Date control gained

n/a ‐

Name of entities where control was lost in the half year Date control lost

n/a ‐

There are no other entities over which control has been gained or lost. Distribution details BrisConnections announced on 20 November 2009 it has suspended its distributions until further notice.

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ASX Release






Half‐year ended 31/12/11 Half‐year ended 31/12/10

Interim distribution per stapled security

n/a n/a

There is no foreign sourced distribution. A distribution reinvestment plan (DRP) is in place and unless security holders elect not to participate, they will receive any distributions in stapled securities. Securities are allocated at the daily weighted average market price of the Schemes securities on the ASX over a period of 20 business days commencing on the day before the distribution record date. As distributions have been suspended, there can be no allocation of securities under the DRP. Investment associates and joint ventures

Name Ownership Interest (%)

Material interests in associates and joint ventures are as follows:

n/a Material interests held for sale associates are as follows:

n/a

Subsequent events There has not been any matter or circumstance, other than that referred to in the attached financial statements or notes thereto, that has arisen since the end of the half year ending 31 December 2011 which has significantly affected, or may significantly affect, the operations of BrisConnections, the results of those operations, or the state of affairs of BrisConnections of future financial years. Outlook The Board expects that the pace of construction will continue until commencement of operations in mid 2012. Airport Roundabout Upgrade was completed on 1 July 2011 and BrisConnections remains confident at this time that the Airport Link and Northern Busway (Windsor to Kedron) projects will be finished and operational by the contractual completion date of June 2012. This report is based on the attached half year financial report which has been subject to an audit. The financial report contains:

A statement of financial performance together with the notes to the statement prepared in compliance with Accounting Standards

A statement of financial position together with notes to the statement

A statement of cash flows together with notes to the statement

A statement of changes in equity showing movements The financial statements are not subject to any audit dispute or qualifications. The Schemes have a duly constituted audit committee.

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ASX Release






For and on behalf of the Board

Trevor C Rowe AO DUniv Chairman 27 February 2012

……….. About BrisConnections BrisConnections has been awarded a 45 year concession to design, construct, operate, maintain and finance the Airport Link tollroad in Brisbane. Airport Link is a 6.7 kilometre multi‐lane electronic free‐flow tollroad with dual 5.7 kilometre tunnels. Upon completion, Airport Link will operate as a multi‐destinational road connecting Brisbane’s northern suburbs with Brisbane’s CBD and Brisbane Airport, the CLEM7 Tunnel and the Inner City Bypass. It will also serve as a key distribution road, connecting some of Brisbane’s major destinations such as Brisbane Airport, the CBD, Royal Brisbane Hospital, Australia TradeCoast and Chermside Shopping Centre. Airport Link is being constructed using a world class, innovative design solution, with connections avoiding intersection delays and streamlining traffic flows. Lane configuration will provide for separate traffic movements, with early decision points, to minimise traffic weaving and merging. Airport Link is being built around an electronic free‐flow tolling design. Electronic free‐flow tolling is mandatory across all Queensland tollroads and Airport Link tags will be fully interoperable with other Queensland and Australian tollroads. BrisConnections is also designing and constructing a portion of the Northern Busway between Windsor and Kedron and an upgrade of the East‐West Arterial / Airport Drive / Gateway Motorway interchange at Brisbane Airport, both of which are funded by the Queensland Government. BrisConnections will not receive any revenue from these projects and they will both be handed over to the Queensland Government upon commissioning. An investment in BrisConnections Unit Trusts comprises a stapled security made up of one unit in BrisConnections Investment Trust and one unit in BrisConnections Holding Trust. Stapled securities in BrisConnections are listed on the Australian Stock Exchange under the code “BCS”. There are many factors that may affect the results of an investment in BCS which are outside the control of the Directors of the Responsible Entity or may not be capable of being foreseen or accurately predicted.

For further information please contact Nick Lattimore, CFO T: 617 3170 1902; M: 0419 243 092; E: [email protected]

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BrisConnections Unit Trusts 31 December 2011 Interim Financial Report 1

BrisConnections Investment Trust ARSN 131124813

and BrisConnections Holding Trust

ARSN 131125025

Interim Financial Report

For the period ended 31 December 2011

Contents Directors’ Report ............................................................................................................................................................ 2

Audit Independence Letter ............................................................................................................................................. 9

Consolidated interim statement of financial position .................................................................................................. 10

Consolidated interim statement of comprehensive income ........................................................................................ 11

Interim statement of changes in equity ‐Consolidated ................................................................................................ 12

Consolidated interim statement of cash flows ............................................................................................................. 14

Condensed Notes to the Financial Statements ............................................................................................................ 15

Directors’ Declaration ................................................................................................................................................... 33

Independent Audit Report ............................................................................................................................................ 34 For

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Directors’ Report Your Directors present their report on BrisConnections Unit Trusts (“BrisConnections”) together with the consolidated financial statements of BrisConnections and its controlled entities (”the Group”), for the period 1 July 2011 to 31 December 2011 and the audit report thereon. The period 1 July 2011 to 31 December 2011 is hereafter referred to as the period ended 31 December 2011. The comparative period is 1 July 2010 to 31 December 2010 with the exception of the statement of financial position which uses the 30 June 2011 comparatives. The information disclosed in the interim Directors’ Report and accompanying financial report is significantly less than is required for a full financial year report. Trust Information BrisConnections is made up of two Australian unit trusts, BrisConnections Holding Trust (“BCHT”) and BrisConnections Investment Trust (“BCIT”). Units in BrisConnections comprise a unit in BCHT and a unit in BCIT stapled together and traded as one on the ASX. BrisConnections is managed by BrisConnections Management Company Limited (“BMCL”), a wholly‐owned subsidiary of BrisConnections RE Holdings Pty Limited, a wholly owned subsidiary of BCHT. BMCL’s only function is to act as the responsible entity of BCIT and BCHT. BMCL has delegated management of the day‐to‐day business affairs of BrisConnections to BrisConnections Operations Pty Limited (BCOps), which is a wholly owned subsidiary of BrisConnections Holdings 2 Pty Limited, a wholly owned subsidiary of BCHT. BMCL retains responsibility for the corporate governance of BCIT and BCHT and the protection of unitholders’ interests. BMCL, therefore, monitors BCOps’ compliance with its regulatory and contractual obligations. AASB 3 “Business Combinations” requires entities combining under stapling arrangements to identify one entity as acquirer or parent entity. The parent entity is required to prepare consolidated financial statements in accordance with the principles of AASB 3 and AASB 127 “Consolidated and Separate Financial Statements”. On 19 May 2008 the Group was awarded the concession from the State of Queensland (“State”) to design, construct, operate, maintain and finance the Airportlink Project, and to construct on behalf of the State the Northern Busway (Windsor to Kedron) and the Airport Roundabout Upgrade. A project deed was executed on 2 June 2008 to reflect the award of the Concession (“Project Deed”). Units in BCHT and BCIT were stapled and registered with ASIC prior to entering into the Project Deed. Accordingly, the combination of the BrisConnections Group occurred prior to being awarded the Project Deed when there were only nominal assets and liabilities in each Trust. As a result, no fair value adjustment is required on consolidation of the BrisConnections Group. In the above circumstances BCIT has been identified as the parent entity of the BrisConnections Group on the basis that it comprises 99% of the value of the stapled units on issue. The financial statements have been prepared by consolidating the financial statements of all the entities that comprise BrisConnections Group being:

1. BCIT and its controlled entities by ownership interest and 2. BCHT and its controlled entities, as a result of the contractual arrangements represented by the staple.

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Directors’ Report (continued)


Consistent accounting policies have been employed in the preparation and presentation of the financial statements. In preparing the financial statements, all transactions within the BrisConnections Group have been eliminated. The Group includes the following entities: BCIT and its controlled entities: BrisConnections Asset Trust, BrisConnections Investment Trust 2 and BrisConnections Finance Pty Limited, and BCHT and its controlled entities: BrisConnections Holding 2 Pty Limited, BrisConnections Nominee Company Pty Limited, BrisConnections Operations Pty Limited, BrisConnections Contracting Pty Limited, Northern Busway Contracting Pty Limited, AirportlinkM7 Pty Limited, BrisConnections RE Holdings Pty Ltd and BrisConnections Management Company Limited.

The ASX, without limiting its discretion, has reserved the right to remove BCHT or BCIT or both from the official list if any of the units in BCHT and the units in BCIT cease to be stapled together, or any equity securities are issued by either of the Stapled Trusts which are not stapled to equivalent securities in the other entity.

Directors and Officers of Responsible Entity The Board of directors (“Board”) has power to appoint additional persons as directors. The names of BrisConnections’ Directors in office during or since the end of the financial year are as follows: Trevor C Rowe Chairman and Independent Non‐executive Director Appointed 23 May 2008 Raymond H Wilson Managing Director and CEO* Appointed 23 May 2008 John G Allpass Independent Non‐executive Director Appointed 23 May 2008 Andrea C Harcourt Independent Non‐executive Director Appointed 1 December 2010 Martin DE Kriewaldt Independent Non‐executive Director Appointed 24 October 2008 Richard JE Wharton Independent Non‐executive Director Appointed 23 May 2008 Mark A Snape Non‐executive Director Appointed 24 October 2008 Retired 15 December 2011 Mark H Lynch Non‐executive Director (alternate to Mark A Snape) Appointed 21 November 2008 Retired as alternate 15 December 2011 Non‐executive Director Appointed 15 December 2011 *Dr. Wilson was originally appointed Non‐Executive Director on 23 May, 2008 and then became Managing Director and CEO on 3 November, 2008

Each of the above Directors has been in office since the date of appointment noted above and up to the date of this report, unless retired. Principal activities BrisConnections has been awarded a 45 year concession from 2008 to design, construct, operate, maintain and finance Airportlink toll road in Brisbane. Airportlink is a 6.7 kilometre multi‐lane electronic free‐flow toll road with dual 5.7 kilometre tunnels. It is Australia’s largest privately funded transport infrastructure project which, when complete in mid‐2012, will reduce congestion, transform the road network and help to build a better Brisbane community through its economic and social value to the city. Airportlink is a key connector road, and will boost business efficiency in the economic heart of one of Australia’s highest growth capital cities. Upon completion, Airportlink will connect multi‐destinations including Brisbane’s northern suburbs, Brisbane’s CBD and Brisbane Airport, the Clem 7 (North‐South Bypass Tunnel) and the Inner City Bypass. It will also serve as a key distribution road, connecting some of Brisbane’s major destinations such as Brisbane Airport, the CBD, Royal Brisbane Hospital, Australia TradeCoast and the Chermside Shopping Centre area.

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BrisConnections also designed and constructed a portion of the Northern Busway between Windsor and Kedron and an upgrade of the East‐West Arterial / Airport Drive / Southern Cross Drive interchange (“ARU”) at Brisbane Airport, both of which are funded by the Queensland Government. BrisConnections will not receive any profit from these projects and they are both being handed over to the Queensland Government upon completion. ARU reached practical completion on 1 July 2011. In the opinion of the Directors there were no significant changes in the state of affairs of the Group that occurred during the period ended 31 December 2011 (other than progress made towards completion of the projects) not otherwise disclosed in this report or the financial statements. Review of Operations BrisConnections is in the design and construction phase of the Airportlink, Northern Busway and ARU projects. Accordingly, BrisConnections has capitalised all costs relating to debt establishment, deferred costs or intangible assets as appropriate. BrisConnections has, as Principal Contractor, appointed Thiess John Holland (TJH) on a fixed time fixed price contract to undertake design and construction activities. Airportlink is expected to open to traffic in mid‐2012. As at the end of the period ended 31 December 2011, approximately 95% of the three projects were complete with over 25 million manhours worked, and construction expenditure of almost $4 billion. In addition, a number of milestones since 1 July 2011 have been achieved to the date of this report including completion of Bowen Hills ramps and bridges, development of our customer processes, growth of operations resources, continued acceptance testing of the tolling system, completion and relocation to our permanent home at Airportlink Operations Centre (ALOC) , continued marketing with briefings to over 3000 individuals and 90 briefing sessions with stakeholder organisations, and further development and assessment of pricing options and innovative driver rewards programs. Except for the matters disclosed, there are, at the date of this report, no other matters or circumstances which have arisen since 31 December 2011 that have significantly affected or may significantly affect: (a) the operations in future financial periods subsequent to the half year ended 31 December 2011, of the Group

constituted by BrisConnections and the entities it controls from time to time; (b) the results of those operations in future financial periods; or (c) the state of affairs, in future financial periods, of the Group. Distributions The Board announced on 20 November 2009 no further distributions will be paid prior to completion of the toll road. As such, no distributions were paid or declared during the half year to 31 December 2011. Securities All BrisConnections stapled securities on issue, comprising 390,264,895 stapled securities, trade on ASX as fully paid securities under the ASX code BCS. During the period ended 31 December 2011, no stapled securities were issued by BrisConnections. Number of

Stapled Securities

Total $’000*

Opening balance – 1 July 2011 390,264,895 1,170,489

Closing Balance – 31 December 2011 390,264,895 1,170,489*excludes the impact of non‐controlling interests and the net present value (NPV) of the final instalment and equity raising costs.

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Events subsequent to reporting date There has not arisen in the interval between the end of the reporting period and the date of this report any item, transaction or event of a material and unusual nature likely, in the opinion of the Directors of BrisConnections, to affect significantly the operations of BrisConnections, the results of those operations, or the state of affairs of BrisConnections in future financial years. Future or Likely Developments, Operating Results and Prospects During the balance of the financial year, the Group will continue to work toward completion of construction and commencement of operations in mid 2012. The scheduled commencement of operations is 30 June 2012 and it is anticipated as at the date of this report that Airportlink will be open for traffic on the scheduled date. Pursuant to the requirements of the Project Deed with the State of Queensland granting the concession to operate Airportlink for 45 years from 2008, a toll free period will apply from commencement of operations. BrisConnections recognises that it takes time to build the usage habit by motorists within the target market for use of Airportlink. Marketing, education programmes and demonstrating how to use Airportlink – that is how to access the road and ability to use interactive testing of journey options via the Airportlink website (www.airportlinkM7.com.au) – commenced during the half year and will continue until and beyond opening. In addition, a number of pricing options to encourage use of Airportlink is also being considered. The future results of the Group will critically depend on various operating outcomes including particularly traffic patronage on Airportlink. In the absence of knowing actual traffic patronage, the Group has considered and concluded that taken collectively, the current input factors are not materially different from those used in developing the traffic forecasts, the outputs of which are contained in the Product Disclosure Statement dated 24 June 2008 (see Note 13). The traffic forecast is an estimate and once Airportlink opens, actual traffic numbers may be different, possibly materially so, from this forecast. Reference is made to the BrisConnections’ Annual Report for financial year ended 30 June 2011 and in particular the risk report contained therein which highlights that the Group is subject to risks that can adversely impact our business, results of operations, financial condition and future performance. Financial Statement Sensitivities Note 13 to the Financial Statements provides disclosure in respect of the valuation of the key asset of the BrisConnections Group being Future Tolling Rights. That disclosure highlights that the value of Future Tolling Rights is most sensitive to movements in pre‐tax discount rates and to the actual traffic performance of the toll road once open. It should be noted that of the discount rates and forecasts and traffic sensitivities, while undertaken with consideration of relevant factors, discount rates may vary and traffic forecasts may not be achieved. Environmental Issues BrisConnections pays due attention to the management of environmental matters. Significant environmental risks have been considered and BrisConnections is not aware of any current environmental issues giving rise to any obligations which have not been addressed. Fees paid to the Responsible Entity and Associates Fees paid to the Responsible Entity out of BrisConnections’ property are disclosed in Notes 25 and 28. Retirement, Election and Continuation in Office of Directors BrisConnections Management Company Limited is a wholly owned subsidiary of BrisConnections RE Holdings Pty Limited (“BREH”), a wholly owned subsidiary of BCHT, and accordingly, directors are nominated by BREH and appointed by the Board of BrisConnections Management Company Limited. There is no requirement for Directors to retire by rotation.

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Directors’ and executives’ interests The tables below show the interests of each director (as notified by the Directors to the Australian Securities Exchange in accordance with section 205G(l) of the Corporations Act) and executives in the issued Securities of the Group as at the date of this report. Fully Paid Ordinary Securities Mr TC Rowe 282,808 Dr RH Wilson 15,009 Mr JG Allpass 65,988 Ms AC Harcourt 9,178 Mr MDE Kriewaldt 57,179 Mr RJE Wharton 50,901 Mr MH Lynch 0 Ms TD Herbst 3,002 Mr N Lattimore 10,009 Dr CC MacDonald 5,000 Pursuant to the remuneration of Independent directors, their remuneration which would otherwise be applied to the purchase of BrisConnections units has been paid in cash during the period in accordance with BrisConnections’ Securities Trading Policy. Directors’ Interests in Contracts No material contracts involving Directors’ interests were entered into during the period, or existed at the end of the year, other than those transactions detailed in Note 28. Directors’ and officers’ indemnity BrisConnections has by way of deed of indemnity and access, indemnified each Director referred to in this report, BrisConnections’ Secretary, Chief Financial Officer and previous directors and secretaries (Officers) against all liabilities or loss (other than to BrisConnections or a related body corporate) that may arise from their position as Officers of BrisConnections and its controlled entities, except where the liability arises out of conduct involving a lack of good faith or indemnification is otherwise not permitted under the Corporations Act. The indemnity stipulates that BrisConnections will meet the full amount of any such liabilities, including costs and expenses, and covers a period of seven years after ceasing to be an Officer of BrisConnections. Directors’ and officers’ insurance BrisConnections has paid insurance premiums for one year cover in respect of Directors’ and Officers’ liability insurance contracts, for Officers of BrisConnections and of its controlled entities. The insurance cover is on standard industry terms and provides cover for loss and liability for wrongful acts in relation to the relevant person’s role as an Officer, except that cover is not provided for loss in relation to Officers gaining any profit or advantage to which they were not legally entitled, or Officers committing any criminal, dishonest, fraudulent or malicious act or omission, or any knowing or wilful violation of any statute or regulation. Cover is also only provided for fines and penalties in limited circumstances. The insurance does not provide cover for the independent auditors of BrisConnections or of a related body corporate of BrisConnections. In accordance with usual commercial practice, the insurance contract prohibits disclosure of details of the nature of the liabilities covered by the insurance, the limit of indemnity and the amount of the premium paid under the contract.

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Infrastructure Entities BrisConnections notes the release by ASIC of Regulatory Guide 231: Infrastructure Entities: Improving disclosure for retail investors prior to the date of this report. Consistent with BrisConnections’ belief in transparency and disclosure, and to provide meaningful and consistent information enabling investors to understand the characteristics of and the risks associated with BrisConnections, the table below sets out the following disclosures:

Key relationships BrisConnections has key relationships with ‐ its design and construction contractor, Thiess John Holland which has a right to appoint a director to the Board of BMCL – see Note 24 Commitments

‐ its operations and maintenance contractor, Thiess John Holland Motorway Services – see Note 24 Commitments

‐ its banking syndicate comprising 10 Australian and European banks ‐ see Note 22 Debt Funding Risks and Note 23 Borrowings

‐ related parties – see Note 28 Related Party Transactions ‐ the State of Queensland as the party granting the concession and responsible to repay the State Bridge Facility – see Note 23 Borrowings

Management and performance fees

See Notes 25 Acquisition of Subsidiary and 28 Related Party Transactions

Related party transactions See Note 28 Related Party Transactions

Financial ratios Interest cover ratios were disclosed in the Product Disclosure Statement dated June 2008. BrisConnections has covenants in relation to the interest cover ratio with its financiers which will be applied upon completion of the construction.

Capital expenditure and debt maturities

Planned capital expenditure for the next 12 months is as detailed in the Product Disclosure Statement dated June 2008 namely the completion of the construction of Airportlink and commencement of operations ‐ see Notes 22 Debt Funding Risks, 23 Borrowings and 24 Commitments – Capital Expenditure

Foreign exchange and interest rate hedging

BrisConnections’ policy in relation to foreign exchange and interest rate hedging is contained in BrisConnections’ Annual Report for financial year ended 30 June 2011 Note 3(l).

Base case financial model The base case financial model is regularly reviewed by management and has been externally reviewed by two independent parties and a check undertaken of the mathematical accuracy. Key assumptions contained in the base case financial model were disclosed in the Product Disclosure Statement dated June 2008. Reference is also made to the BrisConnections’ Annual Report for financial year ended 30 June 2011 and in particular the Risk Report contained therein which highlights that the Group is subject to risks that can adversely impact our business, results of operations, financial condition and future performance.

Valuations BrisConnections is in the design and construction phase of the Airportlink, Northern Busway and ARU projects. Accordingly, BrisConnections has capitalised all costs relating to debt establishment, deferred costs or intangible assets as appropriate. See Note 13 Non Current Assets – Intangibles for valuation of intangibles.

Distribution policy The Board announced on 20 November 2009 no further distributions will be paid prior to completion of the toll road. As such, no distributions were paid during the half year to 31 December 2011 ‐ see Note 21 Distributions

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9

Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To: the directors of BrisConnections Management Company Limited, the responsible entity of BrisConnections Investment Trust and BrisConnections Holding Trust

I declare that, to the best of my knowledge and belief, in relation to the audit for the half-year ended 31 December 2011 there have been:

(i) no contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and

(ii) no contraventions of any applicable code of professional conduct in relation to the audit.

KPMG

Scott Guse Partner

Brisbane

27 February 2012

KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative.

Liability limited by a scheme approved under Professional Standards Legislation.

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BrisConnections Group Consolidated Interim Financial Report


Consolidated interim statement of financial position

As at 31 December 2011

Consolidated

In thousands of AUD Notes 31 Dec 2011 30 Jun 2011

ASSETS

Current Assets

Cash 8 157,921 169,498

Other financial assets 8 29,072 73,300

Capital Work In Progress 11 255,524 ‐

Other Current Assets 640 290

Receivables 12 7,805 10,206

Total Current Assets 450,962 253,294

Non‐Current Assets

Receivables 12 177,572 173,087

Plant & Equipment 10 406 209

Intangible Assets 13 3,520,383 3,033,727

Capital Work In Progress ‐ 244,304

Other Non‐Current Assets 14 299 356

Deferred Tax Assets 7 205,121 132,798

Total Non‐Current Assets 3,903,781 3,584,481

Total Assets 4,354,743 3,837,775

LIABILITIES

Current Liabilities

Trade & Other Payables 15 42,610 89,005

Other Financial Liabilities 16 96,294 70,451

Employee Benefits 27 1,913 1,246

Loans and borrowings 17 266,316 ‐

Current Tax Liability 104 ‐

Total Current Liabilities 407,237 160,702

Non‐Current Liabilities

Other Financial Liabilities 16 329,942 185,305

Loans and borrowings 18 2,631,089 2,404,213

Total Non‐Current Liabilities 2,961,031 2,589,518

Total Liabilities 3,368,268 2,750,220

Net Assets 986,475 1,087,555

EQUITY

Issued capital/units 1,064,371 1,064,371

Deferred capital/unit contribution 120,130 120,130

Hedging Reserve 16 (298,365) (179,030)

Retained Earnings 264,654 197,824

Total equity attributable to unit holders 1,150,790 1,203,295

Non‐controlling interest (164,315) (115,740)

Total Equity 986,475 1,087,555

The above Consolidated Interim statement of financial position should be read in conjunction with the accompanying Notes

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Consolidated interim statement of comprehensive income For the six months ended 31 December 2011

Consolidated

In thousands of AUD Notes 31 Dec 2011 31 Dec 2010

Revenue 450,994 722,162

Financial Income 4 5,791 5,602

Total revenue and income 456,785 727,764

Expenses

Administrative Expenses 8,596 5,308

Construction Expenses 450,994 722,162

Total expenses 459,590 727,470

Profit (Loss) Before Income Tax (2,805) 294

Income Tax (Expense) /Benefit 6 20,878 13,049

Net Profit/ (Loss) after income tax 18,073 13,343

Other comprehensive income

Effective portion of changes in fair value of cash flow hedges, net of tax

(119,335) 54,951

Other comprehensive income/(expense) for the period, net of Income Tax

(119,335) 54,951

Total comprehensive income/(expense) for the period (101,262) 68,294

Profit /(Loss) after income tax attributable to:

Unit Holders 66,830 43,880


Profit for the period 18,073 13,343

Total comprehensive income/(expense) attributable to:

Unit Holders (52,505) 98,831


Total comprehensive income/(expense) for the period (101,262) 68,294

Earnings per unit 20

Basic earnings per unit (cents )(profit per unit) 17.12 11.24

Diluted earnings per unit (cents)(profit per unit) 14.13 8.94

The above Consolidated Interim Statement of Comprehensive Income should be read in conjunction with the accompanying Notes.

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Interim statement of changes in equity ‐Consolidated

For the six months ended 31 December 2011 Attributable to unit holders of the Parent

Issued Deferred Accumulated Hedging Total Non‐Controlling Total

In thousands of AUD Capital Capital Profit/(Loss) Reserve Equity Interest Equity

Opening Balance 1 July 2011 1,064,371 120,130 197,824 (179,030) 1,203,295 (115,740) 1,087,555 Total comprehensive income for the period Profit or (Loss) ‐ ‐ 66,830 ‐ 66,830 (48,757) 18,073Other comprehensive income Effective portion of changes in fair value of cashflow hedges, net of tax ‐ ‐ ‐ (119,335) (119,335) ‐ (119,335)

Total other comprehensive income ‐ ‐ ‐ (119,335) (119,335) ‐ (119,335)

Total comprehensive income ‐ ‐ 66,830 (119,335) (52,505) (48,757) (101,262)

Transactions with unit holders, recorded directly in equity Contributions by and distributions to unit holders Units issued ‐ ‐ ‐ ‐ ‐ ‐ ‐DRP Underwriting Fee ‐ ‐ ‐ ‐ ‐ ‐ ‐Deferred Tax ‐ Equity ‐ ‐ ‐ ‐ ‐ 182 182

Total transactions with unit holders ‐ ‐ ‐ ‐ ‐ 182 182

Closing Balance at 31 December 2011 1,064,371 120,130* 264,654 (298,365) 1,150,790 (164,315) 986,475

*This amount is equal to $122,309,545 less the non‐controlling interest of $2,180,056.

The above Consolidated Interim Statement of Changes in Equity should be read in conjunction with the accompanying Notes.

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Statement of changes in equity ‐ Consolidated

For the six months ended 31 December 2010

Attributable to unit holders of the Parent

Issued Deferred Accumulated Hedging Total Non‐Controlling Total

In thousands of AUD Capital Capital Profit/(Loss) Reserve Equity Interest Equity

Opening Balance 1 July 2010 1,064,371 120,130 99,775 (208,229) 1,076,047 (45,529) 1,030,518

Total comprehensive income for the period

Profit or Loss ‐ ‐ 43,880 ‐ 43,880 (30,537) 13,343

Other comprehensive income Effective portion of changes in fair value of cashflow hedges, net of tax ‐ ‐ ‐ 54,952 54,952 ‐ 54,952

Total other comprehensive income ‐ ‐ ‐ 54,952 54,952 ‐ 54,952

Total comprehensive income ‐ ‐ 43,880 54,952 98,832 (30,537) 68,295

Transactions with unit holders, recorded directly in equity Contributions by and distributions to unit holders

Other ‐ ‐ ‐ ‐ ‐ 179 179

Total transactions with unit holders ‐ ‐ ‐ ‐ ‐ 179 179

Closing Balance at 31 December 2010 1,064,371 120,130 143,655 (153,277) 1,174,879 (75,887) 1,098,992

The above Consolidated interim Statement of Changes in Equity should be read in conjunction with the accompanying Notes.

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Consolidated interim statement of cash flows

For the six months ended 31 December 2011

Consolidated

In thousands of AUD Notes 31 Dec 2011 31 Dec 2010

Cash Flows from Operating Activities

Cash paid to suppliers and employees (9,668) (8,862)

Interest Received 6,544 6,346

Interest Paid (127,582) (74,840)

Net Cash Outflow from Operating Activities 9 (130,706) (77,356)

Cash Flows from Investing Activities

Payments for intangible assets and capital work‐in‐progress (414,655) (593,011)

Payment for acquisition of: Physical non‐current assets (215) ‐

Net Cash Outflows from Investing Activities (414,870) (593,011)

Cash Flows from Financing Activities

Receipts from State for Airport Roundabout Upgrade & Northern BuswayProjects

84,144 155,885

Payments to contractor for Airport Roundabout Upgrade & Northern BuswayProjects

(84,144) (155,855)

Proceeds from borrowings 489,771 687,884

Net Cash Inflow from Financing Activities 489,771 687,884

Net Increase/(Decrease) in Cash Held (55,805) 17,517

Cash & other financial assets at the beginning of the year 242,798 241,186

Cash & other financial assets at the end of the year 186,993 258,703

The above Consolidated Interim Statement of cash flows should be read in conjunction with the accompanying Notes.

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Condensed Notes to the Financial Statements 1. Reporting entity

The directors of BrisConnections Management Company Limited (”BMCL”) (ABN 67 128 614 291/AFSL 322 275), being the responsible entity (“RE”) of the BrisConnections Investment Trust (“BCIT”) & BrisConnections Holding Trust (“BCHT”) stapled group and their controlled entities (“BrisConnections Group” or “the Group”), submit the consolidated interim financial statements of the Group for the six months ended 31 December 2011 and the auditor's report thereon. On 29 May 2008 the Group was registered with ASIC as a managed investment scheme. On 30 July 2008 the Group was listed on the ASX Limited (“ASX”) and commenced trading on 31 July 2008. The period 1 July 2011 to 31 December 2011 is hereafter referred to as the six months ended 31 December 2011. The comparative for the prior reporting period are from 1 July 2010 to 31 December 2010 with the exception of the statement for financial position (and the notes relating thereto) which uses 30 June 2011 comparatives. The units of BCIT and BCHT are stapled together and quoted as one on ASX. BCIT and BCHT were established in Australia. Under each Trust Deed they have been set up as ‘indefinite’ life trusts. As these trusts do not have a termination date, contributions by unitholders have been classified as equity in the balance sheet. For the purposes of this report the Parent Entity is defined as BCIT. The ASX reserves the right (but without limiting its absolute discretion) to remove BCIT or BCHT or both from the official list if any of the units in BCIT and the units in BCHT cease to be stapled together, or any equity securities are issued by either of the Stapled Trusts which are not stapled to equivalent securities in the other entity. These consolidated financial statements of the Group as at and for the period ended 31 December 2011 are available upon request from the Group’s registered office at 43 Stafford Road, Kedron QLD 4031 or at www.brisconnections.com.au.

2. Basis of preparation (a) Statement of compliance

These condensed consolidated interim financial statements for the period ended 31 December 2011 have been prepared in accordance with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Act 2001. They do not include all of the information required for full financial statements, and should be read in conjunction with the consolidated financial statements of the Group as at and for the period ended 30 June 2011. The accounting policies of the group in these condensed consolidated interim financial statements are the same as those applied by Group in its consolidated financial statements as at and for the year ended 30 June 2011. This financial report was authorised for issue by the Directors of the RE on 27 February 2012.

(b) Basis of measurement These financial statements have been prepared under the historical cost convention except for derivative financial instruments that are measured at fair value. The financial report is presented in Australian dollars unless otherwise stated and all values are rounded to the nearest thousand dollars ($’000) unless otherwise stated.

(c) Functional and presentation currency These consolidated financial statements are presented in Australian dollars, which is the Parent’s functional currency. The Group is of a kind referred to in ASIC Class Order 98/100 dated 10 July 1998 and in accordance with that Class Order, all financial information presented in Australian dollars has been rounded to the nearest thousand unless otherwise stated.

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Condensed Notes to the Financial Statements (continued)


2. Basis of preparation (continued) (d) Use of Estimates and Judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. The impairment testing of the BrisConnections Group’s major intangible asset relies upon judgement in respect of the BrisConnections Group’s weighted average cost of capital (“WACC”) which was used to discount project cash flows. The BrisConnections Group has applied a generally accepted approach to the calculation of the WACC and has used a range of inputs drawn from independent market sources. The WACC or discount rate and the potential for impairment is subject to sensitivities as outlined in Note 13. Deferred tax assets relating to tax losses are recognised when the BrisConnections Group believes that recoverability is probable. Under some circumstances, adverse operating outcomes may jeopardise the recoverability of the deferred tax assets detailed in Note 7 of this Report. The key critical estimate made by the BrisConnections Group is that of “traffic usage of the motorway” once it opens. This traffic forecast is key in assessing whether there is any potential impairment to the motorway’s carrying value or its related assets. The traffic forecasts used in the impairment testing are those outlined in the Product Disclosure Statement dated 24 June 2008. These forecasts were made by independent traffic experts Arup Pty Ltd. Refer to Note 13 of this Report. With respect to the operations, the ability of the BrisConnections Group to continue as going concerns is dependent upon a number of factors but in particular the actual traffic volumes in the initial ramp‐up phase and beyond not being significantly lower than those levels estimated in the 2008 Product Disclosure Statement (refer also Note 13). There exist uncertainties, potentially significant, in respect of actual traffic volumes when the Airportlink Project commences operations during 2012 which may flow on to operating cashflows and debt covenants. The Directors regularly monitor the inputs into the traffic forecasts and have formed the view that the Arup traffic forecast contained in the 2008 Product Disclosure Statement continues to represent the best available forecast of Airportlink traffic. On the basis that the actual traffic volumes approximate the traffic volumes estimated by Arup there are reasonable grounds to believe that the toll road business will generate sufficient net cash inflows to meet the obligations of its financing arrangements and support the carrying of the Intangible Asset. The carrying value of the intangible assets has been considered in Note 13 of this Report. Based upon the views outlined above, the directors believe that whilst there exists potentially significant uncertainties with respect to revenues resulting from actual traffic volumes during the operating period, the going concern basis of preparation for the consolidated entity is appropriate.

3. Significant accounting policies

This financial report was authorised for issue by the Directors of BMCL as RE on 27 February 2012. The accounting policies of the group in these consolidated condensed interim financial statements are the same as those applied by the Group in its consolidated financial statement as at and for the year ended 30 June 2011. The Group’s financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 30 June 2011.

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4. Income

Consolidated

Other Income 31 December 2011

$’000 31 December 2010

$’000

Amortised Interest on Deferred Capital 4,486 4,486

Interest 1,305 1,116

5,791 5,602

5. Employee Expenses

Consolidated

31 December 2011 $’000

31 December 2010$’000

Wages and Salaries 4,376 2,040

Other associated personnel expenses 260 206

Contributions to defined contribution superannuation funds 333 212

Increase/(decrease) in Liability for annual leave 45 (31)

Increase in provision for long term incentive (refer Note 27) 622 ‐

5,636 2,427

6. Current Tax Expense/(Benefit)

Consolidated

31 December 2011

$’000 31 December 2010

$’000

Current tax expense/(benefit)

Current period 154 69 Deferred tax expense/(benefit)

Recognition of net temporary differences (21,032) (13,118)

Total income tax expense/(benefit) (20,878) (13,049)

Income tax recognised directly in Equity

Derivatives 127,871 65,690

Total Income Tax Benefit recognised directly in Equity 127,871 65,690

Numerical reconciliation between tax expenses and pre‐tax net profit

Profit for the period 18,073 13,343

Total income tax benefit (20,878) (13,049)

Profit/(Loss) excluding income tax (2,805) 294

Income tax at entity rate 30% (841) 88

Tax effect on income in entities not subject to tax (20,016) (13,138)

Non‐deductible expenses (21) 1

Income tax expense/(benefit) (20,878) (13,049)

This Note presents the consolidated tax position for the Group which comprises both taxable and non‐taxable entities.

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7. Tax Assets and Liabilities

Consolidated

31 December 2011 $’000

30 June 2011$’000

(a) Deferred tax asset and liability balance Deferred tax asset

Hedges (recognised in equity – see Note 16) 127,871 76,727

Tax Losses 104,045 80,510

Balance at 31 December 2011 231,916 157,237

Deferred tax liability

Loans and borrowings 13,775 13,704

Other Costs 13,020 10,735

Balance at 31 December 2011 26,795 24,439

Net deferred tax asset (see Note 2(d)) 205,121 132,798

(b) Movement in deferred tax assets and liabilities

Deferred income tax expense/(benefit) comprises:

Decrease (increase) in deferred tax assets:

Hedges** (51,144) 12,539

Other* (1) (45)

Tax losses* (23,535) (41,633)

(Decrease) increase in deferred tax liabilities:

Other costs* 2,357 11,213

Total Movement in deferred tax balances (72,323) (17,926)

* Recognised in Income Statement

**Recognised in Equity

This Note presents the consolidated tax position for the Group which comprises both taxable and non‐taxable entities.

BrisConnections Investment Trust (BCIT) Pursuant to provisions of Division 6A of the Income Tax Assessment Act 1936 (“the Act”), it is intended that BCIT will not be liable for income tax under the Act, provided that the taxable income of the Trust is fully distributed to unitholders each year. Accordingly, income tax and tax‐effect accounting will not be applied in relation to BCIT. BrisConnections Holding Trust (BCHT) Pursuant to the provisions of Division 6C of the Act, it is intended BCHT will be treated as a public trading trust and effectively treated as a company for income tax purposes. The income tax expense or revenue for the period is the tax payable on the current period’s taxable income based on the income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial statements, and to unused tax losses. Tax consolidation legislation Under the Syndicated Facilities Agreement executed in June 2008, the debt obligors within the Group are prevented from joining a consolidated group for tax. This undertaking will remain in place until July 2018.

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8. Cash and other financial assets

Consolidated

31 December 2011 $’000

30 June 2011$’000

Cash at Bank and on hand (1) 157,921 169,498

Other Financial Assets (cash on deposit) (2) 29,072 73,300

186,993 242,798

(1) The amount shown in Cash at Bank and on hand includesi. $7,320,000 comprising an amount on deposit for market flex arrangements with

the Bank syndicate. This money is not available for general use at 31 December 2011 (30 June 2011: $7,320,000).

ii. $125,200,000 comprising an amount held in the Group’s disbursement account for payment of design and construction costs. This money is not available for general use at 31 December 2011 (30 June 2011: $143,150,000).

(2) The amount shown in other financial assets includes i. $13,700,000 comprising an amount held in the Group’s disbursement account

for payment of design and construction costs. This money is not available for general use at 31 December 2011 (30 June 2011: $61,100,000).

ii. $5,072,123 comprising an amount relating to a bank guarantee held for a subsidiary of the Group to discharge its Net Tangible Assets requirement for its Australian Financial Services License. This money is not available for general use at 31 December 2011 (30 June 2011: $5,000,000)

9. Reconciliation of cash flows from operating activities Cash flows from operating activities

Consolidated

31 December 2011 $’000

31 December 2010$’000

Profit (loss) for the period 18,073 13,343

Adjustments for:

Depreciation (19) (14)

Amortisation of Intangible assets

Net finance income (1,305) (1,116)

Non‐cash income items (interest on deferred equity) (4,485) (4,486)

Income tax expense (20,878) (13,049)

Operating profit before changes in working capital and provisions (8,614) (5,322)

Change in receivables 2,401 (175)

Change in trade and other payables (756) 34

Change in prepayments (350) (182)

Change in provisions and employee benefits 667 ‐

Other (3,016) (3,217)

(9,668) (8,862)

Interest paid (127,582) (74,840)

Interest received 6,544 6,346

Net cash outflow from operating activities (130,706) (77,356)

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10. Plant and equipment

Consolidated 31 December 2011

$’000 30 June 2011

$’000

Cost

Opening Balance 276 154

Additions 216 122

Balance 492 276

Depreciation

Opening Balance 67 32

Depreciation for the period 19 35

Balance 86 67

Written down value 406 209

11. Capital Works in Progress

Consolidated

31 December 2011 $’000

30 June 2011$’000

Cost

Opening Balance 244,304 159,032

Costs capitalised 11,220 66,413

Interest capitalised ‐ 18,859

255,524 244,304

12. Receivables

Consolidated

Current 31 December 2011

$’000 30 June 2011

$’000

Sundry Debtors 2,038 2,230

GST Refundable 5,767 7,976

Total Current Receivables 7,805 10,206

Non Current

Deferred Equity Contribution1 177,572 173,087

Total Non Current Receivables 177,572 173,087 1 Thiess Infrastructure Trust & John Holland Infrastructure Trust have each subscribed for $100,000,000

stapled units at $3.933 per stapled unit on the Deferred Equity contribution date (currently expected to occur 24 months after Construction Completion). $177,572,146 represents the present value of this contribution at a discount rate of 5.35% which represents the Group’s cost of borrowings for the Equity Facility.

The $177,572,146 receivable is shown at present value at 31 December 2011. This is calculated as $173,086,576 plus interest income of $4,485,570 for the period ending 31 December 2011. The increase in its present value each period will be reflected as interest income in the income statement. The present value of the receivable will increase to $200,000,000 at the time the Deferred Equity contribution is received. Thiess Infrastructure Trust and John Holland Infrastructure Trust will contribute equity as follows:

Thiess Infrastructure Trust: $100,000,000, representing approximately 5.5% of the Notional Equity

in the BrisConnections Unit Trusts.

John Holland Infrastructure Trust: $100,000,000, representing approximately 5.5% of the Notional

Equity in the BrisConnections Unit Trusts.

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12. Receivables (continued) Stapled Units issued under the Deferred Equity Commitment Deed will rank equally with previously

issued Stapled Units.

Notional Equity is the anticipated number of Stapled Units on issue including the Stapled Units issued to Thiess Infrastructure Trust and John Holland Infrastructure Trust on the assumption that no additional Stapled Units are issued after the Allotment Date (29 July 2008). Thiess Infrastructure Trust and John Holland Infrastructure Trust cannot novate, assign, transfer or otherwise dispose of all or any part of their rights, benefits or obligations under the Deferred Equity Commitment Deed prior to Construction Completion. In the 24 month period after Construction Completion, Thiess Infrastructure Trust and John Holland Infrastructure Trust may nominate a replacement deferred subscriber to assume all its rights to subscribe for the Stapled Units provided that the mechanism set out in the Deferred Equity Commitment Deed is observed. This mechanism requires Thiess Infrastructure Trust and John Holland Infrastructure Trust (as applicable) to provide at least seven days’ written notice to the deed’s parties of its intention to nominate a replacement deferred subscriber and stipulates that a replacement deferred subscriber cannot be appointed until the State has consented in writing to the replacement, the replacement deferred subscriber has provided substitute equity support which is acceptable to the Security Trustee, the Security Trustee is satisfied that the replacement deferred subscriber is solvent and reputable and the replacement deferred subscriber and the remaining parties to the deed have entered into a deed of accession on certain specified terms. In the event of a capital reorganisation by consolidation, sub‐division or bonus issue, the deferred issue price may be adjusted. The deferred subscribers may also contribute their equity before the Deferred Equity Contribution Date in the event of a pro rata offer to existing Unitholders or if there is an unconditional takeover offer for at least 50% of the Stapled Units, or a similar procedure structured as a scheme for the Stapled Units. BMCL, as trustee of the BrisConnections Unit Trusts, has agreed that it will exercise its powers as members of BrisConnections Investment Trust 2 and BrisConnections Holding 2 Pty Ltd to ensure that a single representative of Thiess Infrastructure Trust and John Holland Infrastructure Trust is appointed as a director of each of the BrisConnections Group entities and BMCL. The right to have a director appointed will apply only while Thiess Infrastructure Trust and John Holland Infrastructure Trust collectively hold or are obliged to subscribe for at least 10% of the Notional Equity or Stapled Units to the maximum value of $200 million. A replacement deferred subscriber appointed by either of Thiess Infrastructure Trust or John Holland Infrastructure Trust in accordance with the terms of the Deferred Equity Contribution Deed will not have the right to appoint a director to the abovementioned companies.

13. Non‐Current Assets – Intangibles Consolidated

Future Tolling Rights 31 December 2011

$’000 30 June 2011

$’000

Design & development costs 3,131,838 2,767,698

Capitalised Interest 388,545 266,029

3,520,383 3,033,727

Interest was capitalised at an effective interest rate of 9.2817% (30 June 2011: 9.2672%).

Consolidated

Cost 31 December 2011

$’000 30 June 2011

$’000

Opening Balance 3,033,727 1,859,042

Contract and interest payments during year 486,656 1,174,685

Balance 3,520,383 3,033,727

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13. Non‐Current Assets – Intangibles (continued) Impairment analysis – Principles Applied At each reporting date an assessment is made as to whether there is an indication that an asset may be impaired. When impairment testing for an asset is required, the asset’s recoverable amount is estimated. The recoverable amount is the higher of its fair value less costs to sell and its value in use, which are estimated for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets and consequently the asset’s value in use cannot be estimated. In such cases, the asset is tested for impairment as part of the cash generating unit to which it belongs. When the carrying amount of an asset or cash generating unit exceeds its recoverable amount, the asset or cash generating unit is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. Impairment losses relating to continuing operations (if any) are recognised in those expense categories consistent with the function of the impaired asset. An assessment is also made at each reporting date as to whether there is any indication that previously recognised impairment losses may no longer exist or may have decreased. If such indication exists, a previously recognised impairment loss may be reversed to the extent there has been a change in the estimate of the asset’s recoverable amount. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in profit or loss. After such a reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life. No amortisation has been charged as the asset is still under construction. Impairment Testing The Group has assessed whether Airportlink may be impaired. The Group has made an estimate of the recoverable amount of the asset, using a value in use calculation. In assessing the value in use, the estimated future operating cash flow from the road inclusive of future capital expenditure forecasts over the 41 year operating life of the concession are discounted to their present value using a discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. As its primary assessment, the BrisConnections Group has considered the traffic risks referred to in the Product Disclosure Statement dated 24 June 2008 and a pre‐tax discount rate of 10.64% has been used (30 June 2011: 11.17%). Terminology used in this note is consistent with that used in the 2008 Product Disclosure Statement. The reduction in the pre‐tax discount rate reflects a combination of the decline in long term interest rates and a reduced risk metric due to the fact that the project is now less than six months to completion. The impairment test shows an excess value in use of $1,290.7 million over the carrying current value of the asset and accordingly the BrisConnections Group has determined that there is no impairment. The value in use estimate is most sensitive to changes in assumptions regarding traffic and the pre‐tax discount rate. A cash flow model covering the full concession period has been used and is considered appropriate for these testing purposes given the single revenue stream and long term cash flows generated. Airportlink is still in construction and as such, solely for the purpose of the value in use estimates, a series of assumptions have been made as to future traffic volumes. The steady state (2016 and beyond) traffic volumes as set out in the 2008 Product Disclosure Statement are considered appropriate and no change has been made to them.

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13. Non‐Current Assets – Intangibles (continued)

Impairment Testing (continued) These traffic forecasts were derived by independent traffic experts from a complex modelling exercise incorporating a variety of economic and traffic parameter assumptions including ramp up (starting traffic, length of ramp up period, shape of ramp up curve), network and screenline growth including growth in peak hour traffic and expansion factors, capacity constraints, and other factors. Accordingly, in considering if the asset is impaired for accounting reporting, it has been determined an appropriate way to test sensitivity to changes to these multiple assumptions is to look at the impact of a permanent increase or reduction in forecast traffic volumes over the entire term of the concession period. BrisConnections monitors a number of key assumptions used in developing the original traffic forecasts, including:

Forecast growth in employment at Australia TradeCoast (ATC) – a key market and the second largest employment zone in Brisbane, located at the eastern end of Airportlink.

Actual and forecast growth in passenger numbers at assets controlled by Brisbane Airport Corporation – journeys to and from the airport by passengers, visitors (including meeters and greeters) and workers are a significant market.

Forecast growth in CBD employment – the largest single employment zone in Brisbane and located at the southern end of Airportlink.

Network changes including Clem7, GoBetween Bridge and Northern Link (Legacy Way) –incremental network capacity delivering traffic into the Airportlink catchment.

Public Transport utilisation and mode share – the available capacity and pricing of Public Transport alternatives (predominantly bus) in the Airportlink catchment can impact toll road utilisation.

Urban development forecasts including those for Hamilton, Bowen Hills and Chermside – impacts employment and residential population.

Actual traffic growth across Airportlink screenlines – indicates the general strength of network utilisation and capacity and associated impacts on travel times.

Population growth –a fundamental source of network traffic growth.

Growth in Average Weekly Earnings and the Wage Price Index – a prime factor in the population’s capacity to pay tolls.

Economic growth factors including state product, retail sales, dwelling approvals, motor vehicle sales and finance approvals ‐ a broad indicator of economic robustness generating increased traffic across the network.

Key assumptions continue to perform variably against the forecast assumptions with some assumptions more positive and others negative. It is noted that population and employment growth has slowed and economic growth factors remain generally subdued, but with forecasts for strong activity in the next two years. In addition, BrisConnections has adopted a proactive marketing strategy aimed at encouraging early and sustained use of Airportlink. As a consequence it is felt that, taking the various preceding factors collectively, the traffic model used remains appropriate. Sensitivity Testing Sensitivities have been applied to two scenarios as detailed below: a. The scenario as detailed in the 2008 Product Disclosure Statement being 4 week toll free period

and a 15 month ramp up period from toll road opening (“Scenario One”); and b. An alternative scenario incorporating a longer toll free period followed by an extended period of

discounted tolls. This scenario adopts a 39 month ramp up period from toll road opening. For this scenario, a pre‐tax discount rate of 10.24% has been used. This rate reflects the different risk of obtaining steady state traffic due to a more conservative profile of traffic growth and the impact

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13. Non‐Current Assets – Intangibles (continued) Sensitivity Testing (continued)

of the longer toll free period and the benefit of an extended period of discounted tolls (“Scenario Two”).

The traffic forecast is an estimate and once Airportlink opens, actual traffic numbers may be different, possibly materially so, from this forecast. Accordingly, the table below shows the impact of various sensitivities on the current excess value in use (+$1,290.7 million for Scenario One and +$1,177.9 million for Scenario Two) over the carrying current value of the asset for a change in the forecast traffic over the entire concession period.

% Change in traffic over whole of

Concession period

Change to Excess Value in Use$’million

Scenario One June 2011

Scenario One December 2011

Scenario TwoDecember 2011

‐25.0% n/a ‐$1,144.4 ‐1,107.2

‐20.0% ‐$798.8 ‐$869.8 ‐$836.7

‐15.0% ‐$566.2 ‐$614.8 ‐$587.7

‐10.0% ‐$357.5 ‐$386.5 ‐$367.1

‐5.0% ‐$172.2 ‐$185.5 ‐$175.5

0% 0 0 0

+5.0% +$160.1 +$171.9 +$161.5

+10.0% +$307.6 +$330.9 +$309.7

+15.0% +$446.9 +$477.4 +$445.2

+20.0% +$569.7 +$609.2 +$564.9

+25.0% n/a +$700.1 +$642.5

An excess value in use would still be arrived at under any of these percentage changes. In relation to Scenario One, sensitivities in respect of the ramp up period showed that by increasing the ramp up period to 36 months resulted in a reduction of $46.7 million in the current excess value in use. Leaving the ramp up period at 36 months and doubling the discount of commencing traffic resulted in a further reduction of $64.7 million to a total reduction of $111.4 million. In both these sensitivities, the shape of the ramp up curve was more conservative than assumed in the traffic model in the 2008 Product Disclosure Statement. Again, an excess value in use for both ramp up sensitivities in Scenario One would still be the result. Due to the more conservative ramp up profile in Scenario Two, it was not considered appropriate to apply similar tests to Scenario Two. The current value in use is also sensitive to changes in the discount rate. For example, a 50 basis point change in the pre‐tax discount rate will impact the current value in use by +/‐ $320.0 million for Scenario One and by +/‐ $335.0 million for Scenario Two. Impact of Traffic on Borrowing Covenants Impairment testing is carried out for accounting purposes, and does not directly affect the actual capital structure of the BrisConnections Group. In considering the actual capital structure of the BrisConnections Group, there are other factors that are relevant including the benefit of reserve facilities and the impact of covenants and ratios in the debt documents that may result from a reduction in traffic. Under Scenario One above, a 25% decline in traffic over the whole of the concession period would result in a reduction of the interest cover ratio to a level which would result in a lock up of equity distributions for a period of years but remains above default covenant settings, while a 10% decline in traffic for the whole of the concession period under Scenario Two could result in a technical default (but bank interest would still be fully funded). In both Scenarios there would be no impairment.

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14. Non‐Current Assets – other

Consolidated

31 December 2011 $’000

30 June 2011$’000

Insurance Prepayment 299 356

299 356

15. Current liabilities – trade and other payables


$’000 30 June 2011

$’000

Trade creditors and accruals* 42,610 89,005

42,610 89,005

*Includes Design & Construction payment claims totalling $41,290,360 (30 June 2011: $86,928,786)

16. Cashflow Hedges


$’000 30 June 2011

$’000

Present Value of Derivative Liability ‐ Current 96,294 70,451

Present Value of Derivative Liability ‐ Non Current 329,942 185,305

426,236 255,756

Deferred Tax Assets ‐ Non Current (see Note 7) 127,871 76,726

Cash Flow Hedge Reserve 298,365 179,030

426,236 255,756

17. Current liabilities – loans and borrowings

Consolidated

31 December 2011 $’000

30 June 2011$’000

State Bridge Facility 267,164 ‐

Sub total 267,164

Less deferred debt establishment costs (848) ‐

266,316 ‐

18. Non‐current liabilities – loans and borrowings

Consolidated

31 December 2011 $’000

30 June 2011$’000

Equity Bridge Facility 170,267 170,267 State Bridge Facility ‐ 267,164Construction Facility 2,505,281 2,015,510

Sub total 2,675,548 2,452,941

Less deferred debt establishment costs (44,459) (48,728)

2,631,089 2,404,213

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19. Equity

Consolidated Movement in ordinary stapled units issued

Ordinary Stapled Units The units of BCHT and BCIT are stapled and the number of units issued by each entity is the same, however, their values differ. Currently their respective values are apportioned 1% (BCHT) and 99% (BCIT). Deferred equity contribution Thiess Infrastructure Trust and John Holland Infrastructure Trust have each subscribed for $100,000,000 of stapled units at $3.933 per stapled unit (50,851,767 units). The timing of this subscription is on the earlier of 24 months after completion, 71 months after financial close, or demand made by security trustee on an event of default. As it is currently the Group’s expectation that this subscription will occur 24 months after construction completion, the amount of this subscription has been discounted to present value, and reflected in equity. A corresponding receivable was also taken up. The receivables in relation to the Deferred Equity Contribution from the contractor is guaranteed by way of bank guarantees. Hedging Reserve The hedging reserve comprises the effective portion of the cumulative net change in the fair value cashflow hedging instruments related to hedged transactions that have not yet matured, net of the related tax effect.

20. Earning per unit

Basic Earnings per unit The calculation of earnings per unit at 31 December 2011 was based on a profit of $66,830,000 and a weighted average number of ordinary units outstanding of 390,264,895. Diluted Earnings per unit The calculation of diluted earnings per unit at 31 December 2011 was based on profit of $62,344,000 and a weighted average number of ordinary units outstanding of 441,116,662 after adjustment for the effects of all dilutive potential ordinary units of 50,851,767 calculated as follows: Profit attributable to ordinary unitholders (diluted) 31 December 2011

$,000 31 December 2010

$’000

Net profit attributable to ordinary unitholders 66,830 43,880Amortised interest on deferred capital (4,486) (4,487)Adjusted Net profit attributable to ordinary unitholders 62,344 39,393

Weighted average number of ordinary units (diluted) 31 December 2011

’000 31 December 2010

’000

Weighted average number of ordinary units 390,265 390,265Effect of deferred capital contribution 50,852 50,852Weighted average number of ordinary units 441,117 441,117

December 2011 June 2011

Date Details Number of Units Number of units

1 July 2010 Units on issue 390,264,895

30 June 2011 Balance 390,264,895

1 July 2011 Units on Issue 390,264,895

31 December 2011 Balance 390,264,895

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21. Distributions – consolidated group There have been no distributions declared or paid for the interim period ended 31 December 2011.

22. Debt and Liquidity Risk (a) Debt funding risk The primary debt funding risk relates to the continued funding of BrisConnections’ primary debt funding facility which is the Construction/Term Facility (used to construct and then operate the toll road). This debt funding is secured with various financial institutions. The Product Disclosure Statement dated 24 June 2008 highlighted a number of risk exposures. However, one particular risk, ‘Debt Funding Risk’ has increased as a result of the global credit crisis. The term of the Construction/Term Facility is locked in place for a period of 10 years (maturing 2018). This funding, as outlined in the 2008 Product Disclosure Statement, is being provided by a syndicate of Australian and overseas banks. The ability of the Group to make drawdowns against this facility is subject to the Group meeting its obligations under the funding arrangements. The global credit crisis has significantly impacted the banking industry and events in Europe have particularly impacted European Banks. As a consequence since the 30 June 2011 accounts, most of the Group lenders have experienced rating downgrades or are under review pending a possible downgrade. Notwithstanding the downgrades, at the date of this financial report all banks in the syndicate, apart from three, had a Standard and Poors’ rating of A‐ or greater. Two banks however have a Standard and Poors’ rating of BBB and the other has a Standard and Poors’ rating of BB and the same banks have Moody’s ratings of A1, Baa3 and Ba2 respectively. Two banks were re‐rated upwards by Standard and Poors during the same period. As at the date of this financial report all banks have met their drawdown obligations. However, in the event that a bank in the syndicate fails to continue providing funding for the construction activities, it is the Group’s responsibility to replace that bank in the syndicate as the obligation to provide debt by each of the financiers is a several obligation and not a joint obligation. The remaining amount to be drawn under the Construction/Term Facility has fallen from $912.49 million as at 30 June 2011 to $422.72 million as at 31 December 2011 (see Note 23). (b) Liquidity risk The Group is subject to liquidity risk which is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. Prudent liquidity risk management implies maintaining sufficient cash and term deposits, the availability of funding through an adequate amount of committed credit facilities and the ability to close‐out market positions. At reporting date the Group has sufficient funds and facilities available to meet payments as they arise. It is expected that at the completion of construction, the Group will have in excess of $300.0 million in liquidity of which $198.3 million will be drawn from the Construction Facility at completion of construction (refer Note 23).

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23. Borrowings Financing Arrangements Total facilities available to the BrisConnections Group at 31 December 2011 were as follows:

Facility Drawn Down

Amount Facility Limit Maturity Date

State Bridge* $267,164,299 $267,164,299 6 July 2012

Equity Bridge** $170,267,194 $200,000,000 29 June 2014

Construction/Term *** $2,505,281,428 $2,928,000,000 30 July 2018

Liquidity Facility **** ‐ $110,156,240 30 July 2018

Total facilities available to the BrisConnections Group at 30 June 2011 were as follows:

Facility Drawn Down

Amount Facility Limit Maturity Date

State Bridge* $267,164,299 $267,164,299 6 July 2012

Equity Bridge** $170,267,194 $200,000,000 29 June 2014

Construction/Term *** $2,015,510,155 $2,928,000,000 30 July 2018

Liquidity Facility **** ‐ $110,156,240 30 July 2018

* The State Bridge facility is fully drawn down & it is repaid 7 days after the date of completion of construction, which is assumed to be 29 June 2012. As this facility is due to mature in less than 12 months, it has been reclassified as a current liability in the statement of financial position. ** No further drawings under the Equity Bridge Facility are available until after 29 June 2012. ***Draw down from the Construction facility commenced in December 2009. It converts to the Term facility on completion of construction. This debt financing is being provided through a syndicated senior bank debt facility comprising 10 banks. **** The Liquidity facility is not available to be drawn down until completion of construction which is assumed to be 29 June 2012. Assets pledged as security BrisConnections Nominees Company Pty Limited in its own capacity and as trustee of the BrisConnections Asset Trust, BrisConnections Operations Pty Limited, Northern Busway Contracting Pty Limited BrisConnections Finance Pty Limited, BrisConnections Contracting Pty Limited, BrisConnections Holding 2 Pty Limited, BrisConnections Management Company Limited and Trust Company Limited as trustee and custodian respectively of the BrisConnections Investment Trust 2 and BrisConnections Management Company Limited (in its capacity of responsible entity and manager of each of BrisConnections Holding Trust and BrisConnections Investment Trust) have granted charges over their assets and undertakings to secure the funding provided by the financiers and hedge providers. Equity Bridge Facility, State Bridge Facility and Construction Facility Funds drawn under the Equity Bridge Facility, State Bridge Facility and Construction Facility will be applied towards meeting costs incurred by the Group, specifically:

construction costs – certain amounts payable to the construction contractor under the design and construction contract;

development costs – costs incurred at financial close and during the construction period;

operating costs incurred prior to construction completion – costs payable to the operator, fees payable to the lenders’ engineer or the security trustee, operating expenses, amounts payable to comply with project documents, capital maintenance contributions and taxes (including GST);

financing costs incurred prior to construction completion – funding interest (net of payments under the swap arrangements), fees and other expenses incurred during the construction period in relation to the debt and other fees due;

reserve accounts – funding the required debt services reserve account, ramp up reserve account, equity contingency reserve account, DRP reserve; and

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23. Borrowings (continued) Equity Bridge Facility, State Bridge Facility and Construction Facility (continued)

other – meeting any other costs approved by the lenders. Drawings under the facilities may be requested monthly. The drawings are deposited into an account controlled by the lenders. Withdrawals from the account are permitted subject to certain conditions precedent:

no specified event of default, potential event of default, or review event subsists or will occur;

all necessary authorisations have been obtained for the withdrawal and for the relevant stage of the design and construction contract;

a withdrawal notice has been received by the lenders’ agent; and

receipt by the lenders’ agent of a progress certificate which demonstrates satisfaction of the costs to complete test (demonstrating that there are enough funds to finance construction until construction completion).

The Equity Bridge Facility will be repaid with the proceeds from the deferred equity contribution. The State Bridge Facility will be repaid by the State of Queensland on construction completion. Term Facility The construction facility will be converted into a loan owing under the Term Facility at construction completion (June 2012 or earlier). The Term Facility will comprise a medium‐term, interest only tranche repayable as follows: Tranche A: 100% of principal outstanding, repayable 30 July 2018.

24. Commitments Commitments for the cost of various goods and services to be supplied but not recognised as liabilities: Capital expenditure The Group has entered into a construction contract with an unincorporated joint venture comprising John Holland Pty Ltd and Thiess Pty Ltd (“TJHJV”) to complete the required construction activities over the expected period of 47 months from July 2008.

Construction commitments contracted for, but not recognised in the balance sheet, are payable as follows:

Consolidated

31 December 2011 30 June 2011

$'000 $'000

Within one year 202,080 645,065

One year or later and no later than five years ‐ ‐

202,080 645,065

Commitments related to the intangible asset included above are: Within One Year $159,393,000 (30 June 2011:$528,410,690) and one year or later and no later than five years $nil (30 June 2011:$nil). Maintenance Contract BrisConnections Group has entered into an operations and maintenance agreement with Thiess John Holland Motorway Services Pty Ltd, with a term that ends on the expiration of five years after the completion of construction unless terminated or extended in accordance with the contract (O&M contract).

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24. Commitments (continued) Maintenance Contract (continued)

Construction period

Amounts Payable during the forty‐seven month construction period (adjusted for CPI increases) are as follows:

Consolidated


$'000 $'000


3,000 5,842

Commencement of Operations

Amounts payable for the initial five year period following commencement of operations (adjusted for CPI increases) are as follows:

Consolidated


$'000 $'000


One year or later and no later than five years 105,900 106,105

129,262 129,232

After five years the Group may either elect to extend the O&M contract, re‐tender the contract to other available service providers or bring road‐side operations and maintenance in‐house.

25. Acquisition of Subsidiary On 21 October 2010 the Group pursuant to the option agreement dated, 1 October 2008 acquired all the shares in BrisConnections Management Company Limited (BMCL) for $294,050 in cash. BMCL is the responsible entity of BCIT and BCHT. Following acquisition, BMCL is a wholly owned subsidiary of BrisConnections RE Holdings Pty Ltd (BCREH). BCREH was established by the Group on 30 September 2010 and is wholly owned by BCHT.

26. Contingent Liabilities The contract between the Group and a joint venture comprising TJHJV, whose ultimate parent is Leighton Holdings Ltd (“Leighton”), is a fixed price fixed term contract (subject to usual contractual conditions). Leighton has announced to the market that it has suffered contracting losses on the contract and that it is considering its options to seek recompense from a variety of parties. TJHJV has submitted claims under the contract for extensions of time and delay costs associated with alleged force majeure events. BrisConnections has reviewed its contractual terms with TJHJV and considers that, on the information presently available, it is not appropriate to make any provision for this contingency.

27. Employee Benefits

Consolidated

31 December 2011 $’000

30 June 2011$’000

Current Liability for long term incentives 1,722 1,100Liability for annual Leave 191 146

Total employee benefits 1,913 1,246

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28. Related Party Transactions Aggregate amount of transactions with related parties incurred in relation to the BrisConnections Group being awarded the concession to finance, design, build, maintain and operate Airportlink.

31 December 2011 30 June 2011 $ $

BrisConnections Management Company Limited as Responsible Entity

Management fees ‐ 155,266

Responsible Entity ‐ The BrisConnections Group is a stapled entity and comprises the aggregation of BCHT and its wholly‐owned controlled entities and BCIT and its wholly‐owned controlled entities. The Responsible Entity of BCHT and BCIT is BMCL. BMCL is now wholly owned by the Group and as such the management fee of $36,236 paid to 31 December 2011 is retained by the Group. Refer Note 25 for further details. TJHJV has been engaged to complete the design and construction activities. The amount payable during the period was $450,994,407 (30 June 2011: $1,308,761,356) which includes an amount outstanding at 31 December 2011 of $53,186,217 (30 June 2011: $100,991,567). The corresponding receivable from the State Government in relation to Northern Busway & Airport Roundabout Upgrade projects has been offset from the accrual in the statement of financial position.

29. Investments in Controlled Entities

The BrisConnections Group comprises the aggregation of the BCHT and BCIT.

Name of entity Country of

Incorporation Class of shares/

units

Equity holding 30 June 2011 and 31

Dec 2011

The BrisConnections Investment Trust Group comprises:

BrisConnections Investment Trust Australia Ordinary

BrisConnections Asset Trust Australia Ordinary 100%

BrisConnections Investment Trust 2 Australia Ordinary 100%

BrisConnections Finance Pty Limited Australia Ordinary 100%

The BrisConnections Holding Trust Group comprises:

BrisConnections Holding Trust Australia Ordinary

BrisConnections Nominee Company Pty Limited Australia Ordinary 100%

BrisConnections Holding 2 Pty Limited Australia Ordinary 100%

BrisConnections Operations Pty Limited Australia Ordinary 100%

AirportlinkM7 Pty Limited* Australia Ordinary 100%

BrisConnections Management Company Limited Australia Ordinary 100%

BrisConnections RE Holdings Pty Ltd Australia Ordinary 100%

BrisConnections Contracting Pty Limited Australia Ordinary 100%

Northern Busway Contracting Pty Limited Australia Ordinary 100%

*31 December 2011 only

30. Events Occurring After Reporting Date

No matter or circumstance arose since 31 December 2011 that has significantly affected, or may significantly affect the operations of the BrisConnections Group, the results of those operations or the state of affairs of the BrisConnections Group in subsequent periods.

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31. Segment Information The consolidated entity operates as one segment being the Airportlink, Northern Busway (Windsor to Kedron) and Airport Roundabout Upgrade Project, in one geographic location being Queensland.

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KPMG, an Australian partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative.

Liability limited by a scheme approved under Professional Standards Legislation.

Independent auditor’s report to the unit holders of BrisConnections Investment Trust and BrisConnections Holding Trust

We have audited the accompanying interim financial report of BrisConnections Investment Trust and BrisConnections Holding Trust, which comprises the consolidated statement of financial position as at 31 December 2011, consolidated statement of comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, notes 1 to 31 comprising a summary of significant accounting policies and other explanatory information and the directors’ declaration of the Group comprising BrisConnections Investment Trust and BrisConnections Holding Trust and the entities they controlled at the half-year’s end or from time to time during the half-year.

Directors’ responsibility for the financial report

The directors of BrisConnections Management Company Limited, the responsible entity of BrisConnections Investment Trust and BrisConnections Holding Trust, are responsible for the preparation of the interim financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that is free from material misstatement, whether due to fraud or error.

Auditor’s responsibility

Our responsibility is to express an opinion on the interim financial report based on our audit. We conducted our audit in accordance with Australian Auditing Standards. These Auditing Standards require that we comply with relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain reasonable assurance whether the interim financial report is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the interim financial report. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the interim financial report, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of the interim financial report that gives a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall presentation of the interim financial report.

We performed the procedures to assess whether, in all material respects, the interim financial report presents fairly, in accordance with the Corporations Act 2001 and Australian Accounting Standard AASB 134 Interim Financial Reporting a true and fair view which is consistent with our understanding of the Group’s financial position, and of its performance.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. F

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35

Independence

In conducting our audit, we have complied with the independence requirements of the Corporations Act 2001.

Auditor’s opinion

In our opinion the interim financial report of the Group is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the Group’s financial position as at 31 December 2011 and of its performance for the half-year ended on that date; and

(b) complying with Australian Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001.

Emphasis of matter – Traffic estimates

Pursuant to Auditing Standard ASA 706, and without qualification of our opinion, we draw your attention to Note 13 of the financial report. This note outlines that the intangible asset’s value in use, used to support its carrying value, is highly sensitive to changes in estimated traffic forecasts and other assumptions. Given the subjectivity and long term nature of the traffic forecasts that support the carrying value of the intangible asset, there is significant uncertainty as to whether estimated traffic forecasts will represent actual traffic volumes which may result in material differences to the intangible asset’s value in use. As actual traffic numbers may differ materially from forecast, Note 13 provides sensitivity analysis to identify how a change in traffic estimates would impact the intangible asset’s value in use in the financial report.

KPMG

Scott Guse Partner

Brisbane

27 February 2012

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ASX HY12 final · 2012. 2. 27. · ASX Release BrisConnections Management Company Limited ABN 67...

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