Slide 1: Strategic initiatives and Group outlook
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS For personal use only Strategic initiatives and Group outlook 6 August 2009
Slide 2: Important notice and disclaimer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Important notice and disclaimer For personal use only This document has been prepared by Goodman Group (Goodman Limited (ABN 69 000 123 071) and Not investment advice Goodman Funds Management Limited (ABN 48 067 796 641; AFSL Numb
Slide 3: Introduction
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Introduction For personal use only Goodman Group announces its comprehensive capital management plan and strategic initiatives + Support from Group lenders via extension of existing facilities preserves liquidity + Strengthening o
Slide 4: Contents
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Contents For personal use only + Section 1 Overview + Section 2 FY09 results + Section 3 CIC relationship and China JV with CPPIB + Section 4 Refinancing activity + Section 5 Strategy and Group outlook + Section 6 Equity Offer + S
Slide 5: Section 1 Overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS For personal use only Section 1+ Overview M7 Business Hub, Australia 5
Slide 6: Initiatives overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Initiatives overview For personal use only + Goodman has successfully implemented a series of initiatives that significantly strengthen its platform + Fully underwritten institutional placement and 1 for 1 non-renounceable entitle
Slide 7: Group outlook
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Group outlook For personal use only + Following the initiatives, Goodman will be strengthened and its business model well positioned to capitalise on market opportunities + Premium $2.1 billion stabilised direct Australian industr
Slide 8: Section 2 FY09 results
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS For personal use only Section 2+ FY09 results Highbrook Business Park, New Zealand 8
Slide 9: FY09 results – balance sheet
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS FY09 results – balance sheet For personal use only + $1.2 billion reduction in aggregate asset valuations for FY09 (refer 30 June 2009 balance sheet1 (pre initiatives) to slide 40 for further details) 30 June 2008 30 June 2009 $m
Slide 10: FY09 results – profit and loss
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS FY09 results – profit and loss For personal use only + Full year operating profit of $408 million1 30 June 2009 income statement1 – $0.9 billion in pre-committed development projects were withdrawn as FY08A FY09A a means of capita
Slide 11: Section 3 CIC relationship and China JV with CPPIB
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS For personal use only Section 3+ CIC relationship and China JV with CPPIB Taopu Industrial Estate, China
Slide 12: China Investment Corporation partnership
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS China Investment Corporation partnership For personal use only + CIC is a wholly state-owned Chinese investment institution with over US$200 billion in assets under management Who is CIC? + CIC is a long-term institutional investo
Slide 13: $500 million hybrid securities issue to CIC
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS $500 million hybrid securities issue to CIC For personal use only + CIC has committed to a $500 million hybrid securities investment in Goodman as a step towards a broader long term relationship with the Group (subject to security
Slide 14: New China joint venture with CPPIB
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS New China joint venture with CPPIB For personal use only + Goodman has entered into a new joint venture with CPPIB to undertake logistics ownership and development in Mainland China1 + The joint venture could invest a further $185
Slide 15: Section 4 Refinancing activity
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS For personal use only Section 4+ Refinancing activity Amazon, Germany 15
Slide 16: Group refinancing activity
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Group refinancing activity For personal use only + Goodman has received strong support from its lenders with $1.2 billion of debt agreed to be extended across four facilities1 – Forward start agreement to extend $438 million of th
Slide 17: Liquidity
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Liquidity For personal use only + Total upfront available liquidity of approximately $2.2 billion post recapitalisation covers all maturing Group facilities to May 2012 + Additional proceeds from exercise of options1 ($190 million
Slide 18: Group financial covenants
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Group financial covenants For personal use only + Goodman has agreed amendments to some of its key banking covenants as part of the refinancing process, maintaining significant headroom1 Covenants Revised definition Impact Intangi
Slide 19: Fund debt structure
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Fund debt structure For personal use only + All Goodman funds are structured with conventional debt facilities – No Group or cross-fund guarantees – Fund debt facilities are non-recourse to the Group + Goodman funds generally comp
Slide 20: Goodman fund summary
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Goodman fund summary For personal use only + Refinancing package provides significant headroom for Goodman’s funds – Weighted average gearing of 42.9%1,2 – Current weighted average cap rate of 7.7%2 – Weighted average cap rate to
Slide 21: Strengthening funds
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Strengthening funds1 For personal use only + Extension of $1,350 million syndicate facility for three years to August 2012 + Reduced syndicate ICR covenant from 2.0x to 1.5x until August 2011 and to 1.75x thereafter GAIF + Syndica
Slide 22: Section 5 Strategy and Group outlook
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS For personal use only Section 5+ Strategy and Group outlook Dynamic Cargo Centre, Hong Kong 22
Slide 23: Group business model and outlook
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Group business model and outlook For personal use only + Goodman will continue to focus on its core business of owning, developing and managing industrial property – Significant opportunities to consolidate the business within exi
Slide 24: Pro forma balance sheet
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Pro forma balance sheet For personal use only + $1.8 billion equity raising ($2.0 billion post the exercise of options) and the joint venture with CPPIB significantly reduces Group leverage Upfront Options initiative 30 June 2009
Slide 25: FY10 operating earnings guidance
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS FY10 operating earnings guidance For personal use only + Operating business continues to perform strongly $m FY09A1 FY10E + Key assumptions for FY10: Investment 534 518 – No material changes to operating strategy or market conditi
Slide 26: Investment
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Investment For personal use only + Investment in high quality real estate remains the core activity of the Investment income ($m) FY08A FY09A1 FY10E Group Direct 245 208 182 – Occupancy stable at 94% at 30 June 2009 – No material
Slide 27: Management
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Management For personal use only + $14.5 billion1 of external funds under management underpinned by Management income ($m) FY08A2 FY09A3 FY10E strong relationships with investors and customers Base fees 97 81 60 + Institutional in
Slide 28: Development
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Development For personal use only + Development remains a key component of the Goodman business Development income ($m) FY08A FY09A1 FY10E model Turnkey projects 4 2 n/a + Goodman’s competitive position has improved despite develo
Slide 29: Development – recent projects
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Development – recent projects For personal use only + The following case studies highlight Goodman’s development policy of undertaking high quality projects whilst minimising risk and reducing development capital expenditure requi
Slide 30: Section 6 Equity Offer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS For personal use only Section 6+ Equity Offer Anagni Industrial Estate, Italy
Slide 31: Placement and entitlement offer
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Placement and entitlement offer For personal use only + Fully underwritten institutional placement and non-renounceable Equity Offer metrics entitlement offer to raise up to $1,279 million at $0.40 per stapled security (the Equity
Slide 32: Indicative timetable
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Indicative timetable For personal use only Event Date Institutional offer opens 1pm (AEST), Thursday 6 August 2009 Institutional offer closes 2.30pm (AEST), Friday 7 August 2009 Institutional allocations advised Friday 7 August 20
Slide 33: Section 7 Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS For personal use only Section 7+ Risks Viersen Logistics Centre, Germany 33
Slide 34: Risks
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Risks For personal use only Outline + This section discusses some of the key risks associated with an investment in Goodman Group (GMG). This is not an exhaustive list of risks. Before investing in GMG, you should consider whether
Slide 35: Risks – general risks affecting Goodman Group
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Risks For personal use only General risks affecting Goodman Group + General economic risks: If the Australian economy (and/or any other economy in which GMG has operations) experiences a prolonged downturn this may have an adverse
Slide 36: Risks – general risks (cont.)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Risks For personal use only General risks affecting Goodman Group (cont.) + Changes in accounting policy: GMG is subject to the usual business risk that there may be changes in accounting policies which may have an adverse impact
Slide 37: Risks – specific risks affecting Goodman Group
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Risks For personal use only Specific risks affecting Goodman Group (cont.) + Debt covenants: GMG has various covenants in relation to its debt facilities, including interest cover and gearing ratio requirements. Factors such as fa
Slide 38: Risks – specific risks (cont.)
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Risks For personal use only Specific risks affecting Goodman Group (cont.) + Change in value and income of properties: Returns from investment in properties largely depend on the rental income generated from the property and the e
Slide 39: Appendix A FY09 results – further information
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS For personal use only Appendix A+ FY09 results – further information Venlo North Logistics Centre, The Netherlands
Slide 40: FY09 results – valuations and asset sales
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS FY09 results – valuations and asset sales For personal use only + $669 million devaluation of direct properties and proportionate 30 June 2009 property valuations (look through) share of Fund owned properties for 2H FY09 ($1,158 m
Slide 41: Stabilised direct Australian portfolio
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Stabilised direct Australian portfolio For personal use only Portfolio snapshot Key metrics1 + High quality portfolio of 30 stablised Australian industrial properties Portfolio size $2.1 billion Number of properties 30 + Majority
Slide 42: FY09 results – intangibles and derivatives
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS FY09 results – intangibles and derivatives For personal use only + A substantially audited review of intangibles valuation has been Intangibles – segment carrying values conducted Adjusted for Book value – Review based on DCF and
Slide 43: FY09 results – liquidity
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS FY09 results – liquidity For personal use only + Cash and available lines of credit of $308 million at 30 June 2009 Sources and uses of liquidity + Liquidity has been impacted by the following: Sources $m Uses $m Opening liquidity
Slide 44: FY09 results – profit and loss
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS FY09 results – profit and loss For personal use only Operating income – FY08 to FY09 47 (37) 567 (32) (209) 31 (6) 408 25 22 FY08 operating Cornerstone Direct income Management Development Unallocated Borrow ing Tax Minorities FY0
Slide 45: Appendix B Funds overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS For personal use only Appendix B+ Funds overview Amazon, United Kingdom
Slide 46: Funds overview
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Funds overview For personal use only + Goodman’s funds management platform is underpinned by nine Fund vehicles1 + Industrial/business park specialist vehicles throughout Asia Pacific and Europe Partnership + Supported by major in
Slide 47: Goodman Australia Industrial Fund
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Goodman Australia Industrial Fund For personal use only Fund snapshot Key metrics1 + Established in December 2005, Goodman Australia Industrial Fund Total assets A$4.6 billion (GAIF) is Australia’s largest unlisted industrial fund
Slide 48: Goodman Australia Industrial Fund
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Goodman Australia Industrial Fund For personal use only Capital management initiatives Covenant compliance1,3 + Extension of $1,350 million syndicate facility for three years to + Gearing covenant4 August 20121, and $100 million s
Slide 49: Arlington Business Parks Partnership
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Arlington Business Parks Partnership For personal use only Fund snapshot Key metrics1 + Arlington Business Parks Partnership (ABPP) is a core plus Total assets A$3.1 billion unlisted fund which invests, develops and manages busine
Slide 50: Arlington Business Parks Partnership
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Arlington Business Parks Partnership For personal use only Capital management initiatives Covenant compliance1,2 + LTV covenant on CMBS waived until August 2012, reverting to 77% + Gearing covenant3 thereafter1 Actual Headroom + I
Slide 51: Goodman European Logistics Fund
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Goodman European Logistics Fund For personal use only Fund snapshot Key metrics1 + Goodman European Logistics Fund (GELF) is an unlisted fund that Total assets A$2.8 billion invests in high-quality warehouse and logistics properti
Slide 52: Goodman European Logistics Fund
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Goodman European Logistics Fund For personal use only Capital management initiatives Covenant compliance2 + Extension of €762 million syndicate facility for one year to December + Net to Total Assets covenant3,5 20121 Actual Headr
Slide 53: Goodman Hong Kong Logistics Fund
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Goodman Hong Kong Logistics Fund For personal use only Fund snapshot Key metrics1 + Established in April 2006, Goodman Hong Kong Logistics Fund Total assets A$1.7 billion (GHKLF) is an unlisted fund that invests in institutional g
Slide 54: Goodman Hong Kong Logistics Fund
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Goodman Hong Kong Logistics Fund For personal use only Capital management initiatives Covenant compliance1 + Extension and upsizing of HK$1,009 million tranche to three years + LVR covenant2,3 from signing (currently expires in Ma
Slide 55: Goodman Property Trust
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Goodman Property Trust For personal use only Fund snapshot Key metrics1 + Managed by Goodman since December 2003, Goodman Property Total assets A$1.3 billion Trust (GMT) is New Zealand’s largest listed industrial property trust In
Slide 56: Goodman Property Trust
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Goodman Property Trust For personal use only Capital management initiatives1 Covenant compliance1 + Refinanced NZ$902m bank facilities for three years, one year + LVR covenant2 ahead of expiry Actual Headroom + Disposed of four no
Slide 57: Goodman European Business Parks Fund
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Goodman European Business Parks Fund For personal use only Fund snapshot Key metrics1 + Goodman European Business Parks Fund (GEBPF) is a core plus Total assets A$0.6 billion unlisted fund which invests in, develops and manages bu
Slide 58: Goodman European Business Parks Fund
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Goodman European Business Parks Fund For personal use only Asset sale program Covenant compliance1 + €76 million of assets sold and under due diligence + Five asset-specific funding facilities + Within 5% of book value + All facil
Slide 59: Macquarie Goodman Japan Logistics Fund
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Macquarie Goodman Japan Logistics Fund For personal use only Fund snapshot Key metrics1,2 + Macquarie Goodman Japan Logistics Fund (MGJLF) invests in Total assets A$0.9 billion high quality logistics assets in recognised and emerg
Slide 60: Appendix C Moorabbin asset for equity swap
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS For personal use only Appendix C+ Moorabbin asset for equity swap Homebush Corporate Park, Australia 60
Slide 61: Moorabbin asset for equity swap
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Moorabbin asset for equity swap For personal use only + The Goodman Board is investigating an asset for equity swap with Asset photo Goodman Holdings Group (GHG) in relation to a significant business park in Melbourne1 – A sub-com
Slide 62: Appendix D Offer jurisdictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS For personal use only Appendix D+ Offer jurisdictions Kersdonk Industrial Estate, Belgium 62
Slide 63: Offer jurisdictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Offer jurisdictions For personal use only United Kingdom New Zealand + This document is only intended for distribution on a confidential basis to persons who have + The institutional placement is restricted in New Zealand to perso
Slide 64: Offer jurisdictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Offer jurisdictions For personal use only Switzerland – At any time to fewer than 100 natural or legal persons (other than qualified investors as defined in the Prospectus Directive); or + Neither the Securities nor the Entitlemen
Slide 65: Offer jurisdictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Offer jurisdictions For personal use only France Denmark + Prospective investors are informed that no prospectus (including any amendment, + This document has not been filed with or approved by the Danish Financial Supervisory sup
Slide 66: Offer jurisdictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Offer jurisdictions For personal use only Ireland Norway + This document and any other materials in connection with the Offer relating to Ireland do not + This document has not been approved by, or registered with, any Norwegian s
Slide 67: Offer jurisdictions
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Offer jurisdictions For personal use only Hong Kong United Arab Emirates + The contents of this document have not been reviewed or approved by any regulatory + This document is strictly private and confidential and is being distri
Slide 68: Exchange rates
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS Exchange rates For personal use only + Statement of Financial Position – exchange rates as at 30 June 2009 – AUDGBP – 0.4872 (30 June 2008 – 0.4860) – AUDEUR – 0.5751 (30 June 2008 – 0.6117) – AUDHKD – 6.2586 (30 June 2008 – 7.481
Slide 69: Thank you
NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES OR TO US PERSONS For personal use only thank+you 69