Babcock & Brown in Antwerp



Presentation to The Antwerp Real Estate Conference
Important Notice

    The information contained in this presentation is given without any liability whatsoever to Babcock ...
B&B is a Global Investment Firm




•       Founded in San Francisco in 1977,
        listed on ASX in Sydney on 6 October...
Principal Businesses in the Infrastructure Sector




      Renewables          Energy         Transport         Social
  ...
Why B&B invests in ports?
                            •   Terminals provide reliable cash flow over the long-term
        ...
Where has B&B invested?
                          B&B Current Port Facilities
                          Finland: Rauma, Pi...
Where has B&B invested?
                          B&B Current Port Facilities
                          Finland: Rauma, Pi...
Why Antwerp?
    •   Belgium in general and Antwerp in particular is today
        the backbone of our port investment in ...
B&B Ports Strategy
    B&B Port‟s strategy was (and still is) to look for:


           •       Stable port businesses;
  ...
Starting in the HARA-Range: an Obvious Choice
     •     We knew we had to focus on the HARA Range because of its:


     ...
But Where?




      We had to look closer…
11
Looking Closer
     Our „port‟ should:


                          •   Have a strong general cargo and speciality bulk tra...
Quick Score
PORT                                      Le Havre    Dunkirk   Zeebrugge    Ghent    Antwerp     R‟dam       ...
Antwerp: B&B‟s Choice
     •   Rotterdam and Antwerp were the two obvious starting points: nothing new!


     However:
  ...
Antwerp: Sum-up

     •   MORE POTENTIAL OVERALL
     •   MARKET LEADER IN VARIOUS SEGMENTS
     •   MORE POTENTIAL FOR AD...
Thank you
Preso To Antwerp Real Estate Final
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Preso To Antwerp Real Estate Final

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This paper outlines the strategy of a port investor regarding its key position in Europe.

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Preso To Antwerp Real Estate Final

  1. 1. Babcock & Brown in Antwerp Presentation to The Antwerp Real Estate Conference
  2. 2. Important Notice The information contained in this presentation is given without any liability whatsoever to Babcock & Brown Limited or any of its related entities (collectively “B&B”) or their respective directors or officers, and is not intended to constitute legal, tax or accounting advice or opinion. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or thoroughness of the content of the information. The recipient should consult with its own legal, tax or accounting advisers as to the accuracy and application of the information contained herein and should conduct its own due diligence and other enquiries in relation to such information. The information in this presentation has not been independently verified by B&B. B&B disclaims any responsibility for any errors or omissions in such information, including the financial calculations, projections and forecasts set forth herein. No representation or warranty is made by or on behalf of B&B that any projection, forecast, calculation, forward-looking statement, assumption or estimate contained in this presentation should or will be achieved. Please note that, in providing this presentation, B&B has not considered the objectives, financial position or needs of the recipient. The recipient should obtain and rely on its own professional advice from its tax, legal, accounting and other professional advisers in respect of the addressee‟s objectives, financial position or needs. This presentation does not confer any right of publication on the recipient. This presentation is incomplete without reference to, and should be viewed solely in conjunction with, the oral briefing provided by B&B. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of B&B. © 2007 Babcock & Brown 1
  3. 3. B&B is a Global Investment Firm • Founded in San Francisco in 1977, listed on ASX in Sydney on 6 October 2004. • 1,400 employees. • Operates in 30 offices in 19 countries. • Four business divisions – Real Estate, Infrastructure, Corporate & Structured Finance and Operating Leasing. • Strong “ownership culture” developed through long history of investing alongside investors. Employees own 40% of the Babcock & Brown Group. • Total assets under management: EUR 42 billions 3
  4. 4. Principal Businesses in the Infrastructure Sector Renewables Energy Transport Social Development Power Plants Marine Ports & Development Wind Terminals Midstream Military and Geothermal Rail Student Pipelines Toll Roads Housing Solar Transmission Bridges/Tunnels Schools Hydro Gas T&D Airports Hospitals Biomass/Biofuels Electric T&D Development Prisons Water 4
  5. 5. Why B&B invests in ports? • Terminals provide reliable cash flow over the long-term • Ability to realise synergies within a global terminal portfolio • Leverage B&B‟s rail industry presence • Growth through expansion and acquisitions • As a long term investor in infrastructure with significant capital available to invest, our interest in ports does not waiver with short term market trends – ports are one of B&B‟s key long term businesses 5
  6. 6. Where has B&B invested? B&B Current Port Facilities Finland: Rauma, Pietarsari Germany: Rostock, Munich Italy: Melzo, Savona, Genoa, Venice, Domodossola Switzerland: Willer France: Rouen, Le Havre Spain: Tarragona Belgium: Antwerp, Meerhout, Ghent UK: Teesport, Hull B&B Terminals in development or in bidding stage Finland: Rauma UK: Teesport Belgium: Liege Spain: Sagunto 6
  7. 7. Where has B&B invested? B&B Current Port Facilities Finland: Rauma, Pietarsari Germany: Rostock, Munich Italy: Melzo, Savona, Genoa, Venice, Domodossola Switzerland: Willer France: Rouen Spain: Tarragona Belgium: Antwerp, Meerhout, Ghent UK: Teesport, Hull B&B Terminals in development or in bidding stage Finland: Rauma UK: Teesport Belgium: Liege Spain: Sagunto 7
  8. 8. Why Antwerp? • Belgium in general and Antwerp in particular is today the backbone of our port investment in Europe; • We have acquired majority interests in WCT, Manuport and Westerlund; • All three companies play a pivotal role in the fields of general cargo, speciality bulks and niche container terminals; • All together they handle 18 Mtpa of which containers consist of 500,000 TEU; • Our Belgian port operators represent 20% of our current total portfolio in Europe (UK included); The question is: Why did B&B choose Antwerp as its „home base‟? 8
  9. 9. B&B Ports Strategy B&B Port‟s strategy was (and still is) to look for: • Stable port businesses; • Businesses that we fully understand (dynamics, drivers, trade pattern, etc); • Businesses that have organic growth and investment potential (i.e. improvement of facilities or hinterland enlargement); • Businesses that operate on long term concessions or on freehold owned land (landlord); • Businesses between which we can develop operational and commercial synergies; 9
  10. 10. Starting in the HARA-Range: an Obvious Choice • We knew we had to focus on the HARA Range because of its: • Overall Volumes (1.110 million tons of cargo in 2007) • Quality and Number of Port Companies operating in the HARA range • Central Geographical position in Europe • Strong Hinterland • We had the aim of becoming a leading port operator in Europe; and • We wanted to focus on a sector that had thus far attracted little interest (general cargo and speciality bulk) but had strong fundamental drivers of growth and stability. 10
  11. 11. But Where? We had to look closer… 11
  12. 12. Looking Closer Our „port‟ should: • Have a strong general cargo and speciality bulk traffic  core for B&B • Have a good Traffic Growth  positive dynamics • Host a Dense Community of Port Companies  increase our acquisition potential • Be located into a Dense Transport Network (rail, roads, inland)  allow the development of the hinterland further and create follow-up synergies • Serve a Large Hinterland  lower risks through multi-markets and multi-customers features 12
  13. 13. Quick Score PORT Le Havre Dunkirk Zeebrugge Ghent Antwerp R‟dam Zeeland Ams‟dam Bremen Hamburg Country France France Belgium Belgium Belgium Holland Holland Holland Germany Germany Total Traffic Excluding Liquid Bulk in 29 38 31 19 123 199 20 54 52 113 million tons GC traffic (containers excluded) in 2 13 13 5 22 18 9 8 8 3 million tons Minor Bulk traffic in million tons 3 2 2 9 9 23 11 17 0 23 Annual Traffic Growth over 2000-2006 1.3% 3.5% 1.6% 0.0% 4.0% 2.6% 3.1% 4.5% 6.4% 8.3% period Ranking based on previous items 7 6 6 7 2 1 6 4 5 6 Number of Possible Acquisition low low low low dense dense low low low dense Targets Hinterland Position low good good strong strongest strongest good good good low Winners Antwerp R'dam number one number two 13
  14. 14. Antwerp: B&B‟s Choice • Rotterdam and Antwerp were the two obvious starting points: nothing new! However: • B&B had a better network in Antwerp; • There was a wider cluster of port operators in Antwerp; • They were more diversified and market leaders in their segments; • The Port Authority strongly advocated the development of general cargo in Antwerp which set-up a very positive framework; • Contacts with the Port Authority have always been easy and helpful; • Antwerp is a forwarder port – a key point to develop a general cargo and specialty bulk strategy; • Antwerp provides the ability to create more added value into the logistics chain through the sale of more sophisticated services. 14
  15. 15. Antwerp: Sum-up • MORE POTENTIAL OVERALL • MARKET LEADER IN VARIOUS SEGMENTS • MORE POTENTIAL FOR ADDED VALUE CREATION • POSITIVE LOCAL ECONOMICS • STRONG PORT SUPPORT • PORT TO REGAIN TRADES CREATING VALUE ADDED SERVICES • POTENTIAL TO CONSOLIDATE THE VALUE CHAIN AND HINTERLAND CONNECTIONS 15
  16. 16. Thank you
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