Spark Infrastructure : 2016 shareholder review

AGM

11:30am, Tuesday, 23 May 2017 Marble Room

Radisson Blu Plaza Hotel 27 O'Connell Street Sydney NSW

CONTENTS

About Us 1 Strategy 2 Financial Highlights 4 Strategic and Operational Highlights 6 Chair's Message 8 Managing Director's Message 12 Board of Directors 16 Management Team 18 Assets Overview 20 SA Power Networks 24 Victoria Power Networks 27 TransGrid 33 Corporate Contact Details 38

SPARK INFRASTRUCTURE

An understanding of the regulation of energy infrastructure in Australia, with its various constraints and opportunities,

is the key to making good financial and operational decisions that will deliver results now and into the future. It is this expertise which stands Spark Infrastructure out from the crowd.

The regulatory regime remains incentive based with a range of opportunities for out-performance and various in-built protections.

Importantly, it provides inflation protection of revenues and

the Regulated Asset Base and pass-throughs for operating and capital costs.

Spark Infrastructure has a proven track record of prudent, disciplined and transparent management

of its investments and brings this accumulated knowledge and

experience to the table when assessing new opportunities and improving the quality of its investment portfolio.

Our in-house team possesses

a deep understanding of regulated network assets and how to make them deliver the best possible results for consumers, employees and Securityholders.

Spark Infrastructure's consistent performance and returns from its investments are founded on business plans which are robust and sufficiently flexible to deliver

growing cashflows under a variety of different business circumstances and regulatory outcomes.

Our consistent approach

is to apply rigorous financial and operational oversight to the portfolio of assets with a view to achieving long-term growth and profitability in a measured way. The emphasis is always on prudent financial management, efficient operations, a safe and

engaged workforce and the effective management of all business risks.

SA Power Networks and Victoria Power Networks (SAPN and VPN respectively)

consistently outperform regulatory benchmarks while TransGrid possesses significant growth opportunities in both the regulated and non-prescribed parts of

its business. Each business in Spark Infrastructure's investment portfolio targets a solid investment grade credit rating.

Spark Infrastructure values sustainable growth in distributions to Securityholders over time.

This commitment shapes the way we look at all matters of strategy, operations and capital management. We take the same disciplined approach to our assessment of any opportunities to further grow and diversify the portfolio of assets.

At the same time we are focused on promoting continuous improvement in the operational performance of the businesses in our investment portfolio - in cost management, service planning, customer

service, employee safety and capital management.

We also recognise that the business environment is changing and network businesses must respond energetically to new technologies and evolving customer expectations. Spark Infrastructure is ideally placed to grow the businesses

in its investment portfolio in new and exciting directions over the coming years.

SHAREHOLDER REVIEW 2016 | 1

STRATEGY