Slide 1: ASX cover letter: 2016 AGM addresses and presentation
18 November 2016 For personal use only The Manager Company Announcements Office ASX Limited Level 4, Exchange Centre 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam 2016 Annual General Meeting of Vicinity Centres - Addresses and presentation Please find attached copies of the Chairman’s and CEO and
Slide 2: Chairman's address
For personal use only ASX Announcement 18 November 2016 2016 Annual General Meeting addresses Chairman’s address Mr Peter Hay Simple and transparent business model, with a single sector focus At Vicinity Centres (Vicinity or the Group, ASX:VCX), our business model is simple and transparent. We are f
Slide 3: A leading Australian retail property group (Chairman's address)
All these initiatives make Vicinity the leading retail property group that we are today and put us in a strong For personal use only position for the future. A leading Australian retail property group With over $23 billion of assets under management across 87 shopping centres generating around $18 b
Slide 4: CEO and Managing Director's address: FY16 highlights
CEO and Managing Director’s address For personal use only Mr Angus McNaughton FY16 highlights In August we released a strong set of results. As the Chairman noted, we have locked-in over 100% of our targeted merger synergies, over two years ahead of program. Highlights for our first financial year i
Slide 5: Acquisition case study – Ellenbrook Central
We also have significant potential for further enhancement across the portfolio with the development For personal use only pipeline being expanded to $3.7 billion, with our share being $1.7 billion, and a number of projects in the shadow pipeline are also getting closer to commencement. Acquisition
Slide 6: Development update: The Glen and retail environment
In a substantial market with very limited competition, we are very confident the end product will trade very For personal use only strongly and deliver excellent returns. Now onto The Glen. The $450 million redevelopment of this asset is being advanced through a number of conditions precedent prior
Slide 7: Sustainability strategy established
Sustainability strategy established For personal use only This year we established a forward looking sustainability strategy that focuses on creating shared value for both Vicinity and our stakeholders. We also benchmarked our sustainability approach and performance and are very pleased with the res
Slide 8: FY17 guidance and Board renewal
For FY17, our underlying earnings per security (EPS) guidance range is 18.6 to 18.8 cents1. This reflects For personal use only growth of 4.5% to 5.6% over FY16 pro forma underlying earnings and assumes the completion of our $1.5 billion divestment program in the first half of FY17. The payout ratio
Slide 9: 2016 Annual General Meeting
For personal use only Emporium Melbourne, VIC 2016 Annual General Meeting 18 November 2016
Slide 10: Chairman's address
For personal use only Chairman’s address Peter Hay Chadstone, VIC
Slide 11: Agenda
For personal use only Chairman’s address – Peter Hay Agenda CEO and Managing Director’s address – Angus McNaughton Formalities of the Meeting Close of Meeting
Slide 12: Your Board
Your Board For personal use only Peter Hay (Chairman) Charles Macek David Thurin Debra Stirling Karen Penrose Peter Kahan Richard Haddock AM Tim Hammon Trevor Gerber Wai Tang Angus McNaughton (CEO and Managing Director) Vicinity Centres | 2016 Annual General Meeting | 18 November 2016 4
Slide 13: Simple and transparent business model, with a single sector focus
Simple and transparent business model, with a single sector focus Creating value and sustainable growth by owning, managing and developing quality Australian retail assets For personal use only Invest in quality Australian assets across the retail spectrum Focus on long-term value creation and susta
Slide 14: An active period post merger for Vicinity
An active period post merger for Vicinity Substantial progress made on integration and capturing the benefits of the merger, whilst improving portfolio quality For personal use only June 2015 November 2015 May 2016 August 2016 October 2016 Merger Vicinity Centres $926m of non-core assets sold Strong
Slide 15: A leading Australian retail property group
A leading Australian retail property group Our portfolio benefits from significant scale and reach For personal use only Assets under management $23.5 billion Annual retail sales $18.0 billion Development pipeline $3.7 billion Gross lettable area 2.9 million sqm Leases 9,000 Note: Data relates to to
Slide 16: Strong progress on post-merger integration
Strong progress on post-merger integration Synergies achieved ahead of program with integration well progressed and business to reinvest in capability For personal use only Exceeded merger synergies ahead of program People, brand, digital and sustainability strategies set Teams co-located – Melbourn
Slide 17: CEO and Managing Director's address
For personal use only CEO and Managing Director’s address Angus McNaughton Emporium Melbourne, VIC
Slide 18: FY16 highlights
FY16 highlights A strong first 12 months as Vicinity Centres For personal use only Strong operating and financial results $960.9m 12.8% Net profit1 Total return1,2 Over 100% of targeted merger synergies locked-in, well ahead of program 9.5% 4.7% Underlying earnings growth Distribution growth3 Balanc
Slide 19: Retail sales by category
Retail sales by category Vicinity’s direct portfolio generates over $16 billion in retail sales annually For personal use only Actual MAT Sep-16 Comparable1 MAT growth % of MAT portfolio Sep-16 Jun-16 ($m) sales (%) (%) Specialty stores 6,297 38.1 3.3 3.0 Supermarkets 4,808 29.1 0.6 0.1 Mini majors
Slide 20: Delivering on portfolio enhancement
Delivering on portfolio enhancement Clear strategy established and progress made to improve portfolio quality For personal use only $1.4b1 of non-core assets sold as part of ~$1.5b divestment program Acquisitions Divestments Acquired three assets2 and one development opportunity Completed five devel
Slide 21: Acquisition case study – Ellenbrook Central (WA)
Acquisition case study – Ellenbrook Central (WA ) Intensive asset management creating significant value since acquisition For personal use only Acquired for $220m1 in December 2015 Improved occupancy since acquisition Increased income from casual mall leasing and electricity on-selling Benefitting f
Slide 22: Development completions driving strong outcomes
Development completions driving strong outcomes Five projects completed for $309m (Vicinity share: $158m) enhancing our assets and delivering strong returns For personal use only Colonnades, SA Halls Head Central, WA Warriewood Square, NSW DFO South Wharf, VIC Vicinity Centres | 2016 Annual General
Slide 23: Chadstone (VIC) development close to completion
Chadstone (VIC) development close to completion The evolution of Australia’s leading shopping centre has reached another milestone For personal use only $666m1 major redevelopment Key retail stage opened in October 2016 World-class retail, dining and entertainment precinct to create a premier custom
Slide 24: Chadstone (VIC) development
Chadstone (VIC) development Key retail stage completed For personal use only Vicinity Centres | 2016 Annual General Meeting | 18 November 2016 16
Slide 25: Mandurah Forum (WA) development under construction
Mandurah Forum (WA) development under construction Construction commenced on eastern and western ends of the site and leasing is on program For personal use only $350m1 major redevelopment Located in one of Australia’s fastest growing regions Complete centre transformation to reinforce dominance of
Slide 26: DFO Perth Airport (WA)
DFO Perth Airport (WA) Joint venture to create a new DFO at prime location in Perth For personal use only ~$145m1 project First DFO in Perth 120 specialty stores Strong retailer demand Development planning is progressing well Target commencement mid-2017 with completion expected in 20182 1. Total co
Slide 27: The Glen (VIC) development approvals well advanced
The Glen (VIC) development approvals well advanced Major redevelopment to capitalise on high income trade area and capture escape expenditure For personal use only $450m1 major redevelopment Latest format David Jones, new Aldi and relocated Woolworths to anchor fresh food market with Coles New inter
Slide 28: Retail environment supportive
Retail environment supportive Economic indicators remain mixed but customers rewarding better service and retail experience For personal use only 25 years of continuous growth in the Australian economy Interest rates are low and consumer sentiment continues to trend upwards Retail sales growth curre
Slide 29: Digital strategy launched
Digital strategy launched Focused on creating a seamlessly integrated digital and physical retail property platform For personal use only Digital strategy launched in late FY16 which will focus on three pillars • Connectivity – Commenced project to connect all centres and corporate offices to single
Slide 30: Sustainability strategy established
Sustainability strategy established A focus on driving shared value for Vicinity and our stakeholders For personal use only Strong survey results in our inaugural year as Vicinity Strong sustainability survey results Improved resource usage Dow Jones Sustainability Index (DJSI) • Energy intensity1 d
Slide 31: Chadstone development
Chadstone development Evolution in the making For personal use only Vicinity Centres | 2016 Annual General Meeting | 18 November 2016 23
Slide 32: Chairman's address (continued)
For personal use only Chairman’s address (continued) Peter Hay Emporium Melbourne, VIC
Slide 33: FY16 summary
FY16 summary A strong first 12 months as Vicinity Centres For personal use only Strong results delivered Merger synergies fully locked-in and further synergies identified Strengthened balance sheet Strong portfolio fundamentals with key metrics improving and portfolio quality improved Development pi
Slide 34: FY17 guidance unchanged
FY17 guidance unchanged Well positioned to create long-term value and sustainable growth For personal use only Solid retail growth outlook forecast FY17 underlying earnings per security (EPS) guidance of 18.6 to 18.8 cents1 • Payout ratio is expected to be 90% to 95% of underlying earnings Progress
Slide 35: Questions
For personal use only Questions DFO Homebush, NSW
Slide 36: Formalities of the Meeting
For personal use only Formalities of the Meeting Peter Hay Halls Head Central, WA
Slide 37: 1. Financial Reports
1. Financial Reports For personal use only To receive Financial reports and consider Securityholders are asked to receive and consider the financial reports of Vicinity Centres (comprising the Company and the Trust) and the reports of the Directors and Auditor for the year ended 30 June 2016. Note:
Slide 38: 2. Non-binding advisory vote on Remuneration Report
2. Non-binding advisory vote on Remuneration Report For personal use only Resolution 2 Non-binding advisory vote on Remuneration Report To consider and, if thought fit, pass the following as an ordinary resolution of the Company: That the Remuneration Report for the Company for the financial year en
Slide 39: 2. Proxy votes
2. Proxy votes For personal use only Resolution 2 Non-binding advisory vote on Remuneration Report 3,382,327,526 valid proxy votes have been lodged for this resolution with the following voting instructions For Open Against 3,321,112,293 98.19% 3,870,484 0.11% 57,344,749 1.70% The Chairman intends t
Slide 40: 3. Re-election of Directors: Peter Hay
3. Re-election of Directors of the Company For personal use only Resolution 3(a) Re-elect Mr Peter Hay as a Director of the Company To consider and, if thought fit, pass the following as an ordinary resolution of the Company: That Mr Peter Hay being a Director who retires with effect from the conclu
Slide 41: 3. Proxy votes: Peter Hay
3. Proxy votes For personal use only Resolution 3(a) Re-elect Mr Peter Hay as a Director of the Company 3,400,652,477 valid proxy votes have been lodged for this resolution with the following voting instructions For Open Against 3,365,573,587 98.97% 4,049,885 0.12% 31,029,005 0.91% The Chairman inte
Slide 42: 3. Re-election of Directors: David Thurin
3. Re-election of Directors of the Company For personal use only Resolution 3(b) Re-elect Dr David Thurin as a Director of the Company To consider and, if thought fit, pass the following as an ordinary resolution of the Company: That Dr David Thurin being a Director who retires with effect from the
Slide 43: 3. Proxy votes: David Thurin
3. Proxy votes For personal use only Resolution 3(b) Re-elect Dr David Thurin as a Director of the Company 3,376,737,855 valid proxy votes have been lodged for this resolution with the following voting instructions For Open Against 3,347,052,560 99.12% 4,065,750 0.12% 25,619,545 0.76% The Chairman i
Slide 44: 3. Re-election of Directors: Trevor Gerber
3. Re-election of Directors of the Company For personal use only Resolution 3(c) Re-elect Mr Trevor Gerber as a Director of the Company To consider and, if thought fit, pass the following as an ordinary resolution of the Company: That Mr Trevor Gerber being a Director who retires with effect from th
Slide 45: 3. Proxy votes: Trevor Gerber
3. Proxy votes For personal use only Resolution 3(c) Re-elect Mr Trevor Gerber as a Director of the Company 3,374,008,508 valid proxy votes have been lodged for this resolution with the following voting instructions For Open Against 2,515,503,597 74.56% 4,068,113 0.12% 854,436,798 25.32% The Chairma
Slide 46: 4. Proposed equity grant to CEO
4. Proposed equity grant to CEO For personal use only Resolution 4 Approval of proposed equity grant to CEO To consider and, if thought fit, pass the following as an ordinary resolution of the Company and the Trust: That, for the purposes of ASX Listing Rule 10.14 and all other purposes, approval be
Slide 47: 4. Proxy votes: equity grant to CEO
4. Proxy votes For personal use only Resolution 4 Approval of proposed equity grant to CEO 3,382,749,257 valid proxy votes have been lodged for this resolution with the following voting instructions For Open Against 3,318,944,225 98.11% 4,360,273 0.13% 59,444,759 1.76% The Chairman intends to vote a
Slide 48: Close of meeting
For personal use only Emporium Melbourne, VIC Close of meeting
Slide 49: Contact details and disclaimer
Contact details and disclaimer For further information please contact: For personal use only Penny Berger Troy Dahms Head of Investor Relations Senior Investor Relations Manager T +61 2 8229 7760 T +61 2 8229 7763 E penny.berger@vicinity.com.au E troy.dahms@vicinity.com.au Disclaimer This document i