Hastings Funds Management Limited ABN 27 058 693 388 AFSL No.

238309

Level 27, 35 Collins Street Melbourne VIC 3000 Australia T +61 3 8650 3600 F +61 3 8650 3701 www.hfm.com.au Melbourne, London, San Antonio, Sydney

ASX Announcement
Hastings Diversified Utilities Fund (HDF)
24 February 2012 Total pages: 2

HDF Annual Results highlight strong growth

Operating Cash Flow from continuing operations rose 17 percent Net Profit After Tax from continuing operations rose 33 percent Annual distribution expected to remain steady at 10 cents per security in 2012 and rise 1 to 2 cents per security in 2013 Construction of the South West Queensland Pipeline expansion, completed on time and under budget Credit approval received for refinancing of all debt with lower borrowing costs, generating positive value and increased cash flow Robust long-term revenue profile underpins solid growth outlook APAs highly conditional offer undervalues HDF and Directors recommend rejection

MELBOURNE: Australian energy infrastructure business HDF today announced an increase of 17 percent in Operating Cash Flow from continuing operations to $112.6 million in the 12 months ended 31 December, 2011. HDFs net profit after tax from ongoing operations rose 33 per cent, with an overall net loss of $29.8 million was recorded after the payment of the performance fee. Free operating cash flow rose 16 percent to $73.8 million in the latest period. HDF securityholders received an annual distribution of 10 cents per security (cps) in 2011, with guidance for a total payment of 10cps in 2012. Distributions are expected to rise 1 to 2 cents per security in 2013. In the medium term, HDF is poised to deliver significant growth in revenue and distributable cash flows. HDF Chief Executive Officer Colin Atkin said The latest results again show that HDF is an excellent business with impressive growth opportunities that will provide ongoing benefits to securityholders. HDF is committed to providing strong and sustainable returns to securityholders through contracted revenue certainty, efficient asset and investment management, as well as exposure to the energy market. Mr Atkin added, The completion of the South West Queensland Pipeline expansion project on time and under budget ensures HDF is strategically positioned to benefit from the expected increase in domestic gas

Unless otherwise stated, the information contained in this document is for informational purposes only. It does not constitute an offer of securities and should not be relied upon as financial advice. The information has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person or entity. Before making an investment decision you should consider, with or without the assistance of a financial adviser, whether any investments are appropriate in light of your particular investment needs, objectives and financial circumstances. Neither Hastings, nor any of its related parties including Westpac Banking Corporation ABN 33 007 457 141, guarantees the repayment of capital or performance of any of the entities referred to in this document and past performance is no guarantee of future performance. Hastings, as the Manager or Trustee of various funds, is entitled to receive management and performance fees.

demand. The refinancing of all of Epic Energys debt facilities will immediately improve HDFs credit profile while reducing the total cost of borrowing and improving cash generation through interest cost savings of approximately $20 million to $25 million annually. Mr Atkin said With HDFs favourable outlook and its ongoing assessment of all strategic alternatives, it remains clear that APAs highly conditional offer undervalues HDF and does not recognise the value of HDFs strategically positioned pipelines. The Hastings Board of Directors continues to unanimously recommend that HDF securityholders reject APAs offer for the reasons detailed in HDFs Targets Statement dated 20 January 2012. As outlined in HDFs Targets Statement, HDF expects significant contracted revenue growth, underpinned by more than $4 billion of total contracted revenue. For further enquiries, please contact: Colin Atkin Chief Executive Officer Hastings Diversified Utilities Fund Tel: +61 3 8650 3600 Fax: +61 3 8650 3701 Email: investor_relations@hfm.com.au Website: www.hfm.com.au/hdf Simon Ondaatje Head of Investor Relations Hastings Funds Management Tel: +61 3 8650 3600 Fax: +61 3 8650 3701 Email: investor_relations@hfm.com.au Website: www.hfm.com.au/hdf

Jane Frawley Company Secretary Hastings Funds Management Limited