Mirvac Group · ASX:MGR
Mirvac — Shareholder Meeting (November 2006)
72 slides from Mirvac's shareholder meeting presentation, Nov 17, 2006
Slide 1: Mirvac Group Annual General Meeting cover letter
Level 5S, 40 Miller Street T +61 2 9086 8000 North Sydney NSW 2060 WWW.Mirvac.com.au Australia ype mirvac 17 November 2006 MIRVAC GROUP ANNUAL GENERAL MEETING/GENERAL MEETING In accordance with Listing Rule 3.13.3 | attach the Chairman's Address and presentation slides to be delivered to this mornin
Slide 2: Chairman's Address: Financial Performance
Level 5S, 40 Miller Street T +61 2 9086 8000 North Sydney NSW 2060 Wwww.mirvac.com.al Australia ype MIrVAC CHAIRMAN’S ADDRESS Financial Performance The Mirvac Group produced an exceptional result in the 2005/6 year with revenues increasing by 37.4% to $1.806 billion and net profit after tax up 80.4%
Slide 3: Chairman's Address: Distributions and Capital Raising
Level 5S, 40 Miller Street T +61 2 9086 8000 North Sydney NSW 2060 Wwww.mirvac.com.al Australia ype MIrVAC Mirvac’s operating profit increased by 40.9% to $274.4 million and earnings per share increased 27.0% to 31.64 cents. All of Mirvac’s Divisions performed strongly and it was particularly pleasi
Slide 4: Chairman's Address: Refinancing and New Board
Level 5S, 40 Miller Street T +61 2 9086 8000 North Sydney NSW 2060 Wwww.mirvac.com.al Australia ype MIrVAC This refinancing provides the Group with more flexibility in the management of its capital through enhanced banking relationships and consequent access to local and offshore debt capital market
Slide 5: Re-branding and Sustainability
Level 5S, 40 Miller Street T +61 2 9086 8000 North Sydney NSW 2060 Wwww.mirvac.com.al Australia ype mirvac Re-branding As most of you are aware from the Annual Report and from the banners here today we recently introduced a new corporate logo, to be more reflective of our new businesses and the cult
Slide 6: Corporate governance and Long Term Incentive Plan
Level 5S, 40 Miller Street T +61 2 9086 8000 North Sydney NSW 2060 Wwww.mirvac.com.al Australia ype MIrVAC Mirvac complies with ASX corporate governance best practice guidelines. That is not to say that by complying our job is done, and | assure you the Board will continue to focus on the spirit of
Slide 7: Outlook
Level 5S, 40 Miller Street T +61 2 9086 8000 North Sydney NSW 2060 WWW.Mirvac.com.au Australia Outlook Let me close by assuring you, we are confident, in the absence of any unforeseen circumstances, that the outlook for Mirvac remains positive and we look forward to the year ahead as Mirvac continue
Slide 8: Managing Director
Managing Director Greg Paramor
Slide 9: Mirvac today
Mirvac today A leading quality brand in real estate ownership and development, hotels and funds management >4 integrated divisions generating recurrent earnings across a diversified portfolio with a sustainable approach
Slide 10: Investment, development and funds management overview
Investment $3.5bn 63 properties: * 31 Commercial * 16 Retail * 9 Industrial * 4 Hotel (manage 3,124 rooms across 27 hotels) $22.2bn activities under control (30 Jun 06) Development $10.9bn Residential: $9.2bn * Housing * Medium & high density * Land subdivision Non-residential: $1.7bn + Commercial +
Slide 11: Mirvac reach
Mirvac reach Investment Development Funds Management Hotels & Resorts
Slide 12: New style and imagery
> Anew style and imagery has been introduced that is more reflective of the culture > The new logo represents the way forward for Mirvac and encompasses the quality of life than can only come from investing and working with Mirvac
Slide 13: Aligning values
Aligning values mirvac EMPLOYEES INVESTORS
Slide 14: Mirvac values: integrity, diversity, creating connections, sharing success
ay Mirvac integrity Mirvac is built on a reputation of integrity, in dealing fairly, honestly and transparently with all of its partners and stakeholders Diversity Mirvac has a complementary set of property based assets and skills working together to maximise long-term value Creating connections The
Slide 15: Living Quality
an Living Quality mirvac ooo y he WN i wii | a dé ) YY cE VO 4 Le j ie ye
Slide 16: Responsible and sustainable activities
age Responsible and sustainable activities mirvac > Sustainable practices are integral to our culture of excellence > We have taken the challenge to make our properties more sustainable and our developments more environmentally friendly > Mirvac is committed to industry leadership in sustainable dev
Slide 17: Sustainable investments
Sustainable investments > 5 year action plan to implement energy efficient projects > Energy Monitoring Program — all assets > National roll out of Australian Building Greenhouse Rating (ABGR) > MATES — Mirvac and Tenants Environmental Sustainability program > National waste strategy underway: Clean
Slide 18: Sustainable development
be Sustainable development mirvac Newington, NSW Australia’s first solar suburb: integrated renewable energy and water recycling solutions Magenta Shores, NSW Innovative recycling of water 1.8 km’s of coastline revegetation More than 1 million trees and shrubs planted Orion Springfield, QLD World le
Slide 19: Commitment to education
Commitment to education Partnership with Bond University Mirvac School of Sustainable Development Partnership with University of NSW Bachelor of Renewable Energy Engineering scholarship
Slide 20: Community partnerships
Community partnerships mirvac Stakeholder and community engagement is central to Mirvac’s environmental conscience found ation THE GEORGE GREGAN FOUNDATION
Slide 21: Ethical investment
oh ay ical investment mirvac > Listed constituent on the FTSE4Good Global Index > 1 of 24 Australian and 726 offshore companies to meet global corporate responsibility standards > Independent evaluation of: — work towards environmental sustainability a — developing positive relationships with stakeh
Slide 22: Financial & operational snapshot
Financial & operational snapshot
Slide 23: Slide 23
Slide 24: Overview
Overview mirvac > Strong full year result > Integrated strategy developing new sustainable revenue streams > Strategic shift to dynamic based business model > Recycling capital through investment and funds management initiatives > Period of generational change with new Mirvac Board > Leading Austral
Slide 25: Achievements in 2005/06
Achievements in 2005/06 mirvac > Funds Management established as 4" division of the Group > Re-positioned the Investment portfolio > Successful launch of Magenta Shores defies challenging NSW market > Launched Quadrant Real Estate Advisors adding $3.5bn FUM > Launched 2 fully subscribed unlisted dev
Slide 26: Solid financial performance
Solid financial performance mirvac $441.1m $274.4m NPAT Operating’ Profit 1. Operating profit after tax excluding non-cash AIFRS adjustments iM
Slide 27: Strong financial growth
Strong financial growth mirvac $6.1bn $3.38 Total Assets 1. FUM before adjusting for JV interests (excludes MPT)
Slide 28: Divisional operating profit
Divisional operating profit Investment! $161.1m Development $46.2m Funds Management $1.2m Hotels & Resorts $8.5m $6.8m Corporate / unallocated $(24.9)m $(20.4)m Operating profit? $274.4m $194.8m 1. includes income from Trust investments in hotels and funds management products 2. Operating profit aft
Slide 29: Capital management
Capital management > Current gearing is 35.0% (at 30 June 2006 - 38.0%) > Equity raising in November 2006 of $375m > Security Purchase Plan offered in tranches up to $5,000 (closing 8 Dec 06) > Obtained ‘BBB’ long-term S&P credit rating > Unsecured syndicated loan facility- A$2,000m & A$500m > Domes
Slide 30: Slide 30
Slide 31: Investment portfolio update
Update Properties owned investment in property funds! Portfolio value Gross revaluation uplift Total portfolio occupancy Development pipeline Developments transferred to MPT 1. Refer to 2006 Annual Report for complete list of investments. Le mirvac 63 JF Meridian Trust- 19.9% Mirvac Industrial Trust
Slide 32: Diversification by asset value
Diversification by asset value: HB commercial 52% ES Retail 28% LPT /Infrastructure 7% Industrial 6% HB Hotel 4% Parking 3% FY06 Sector Diversification 4. Excludes development
Slide 33: Investment — commercial portfolio
Mirvac Investment — commercial portfolio TTT TTT TT TITIES si
Slide 34: Commercial snapshot
Commercial snapshot Leasing transactions Tenant rent reviews WALE Acquisitions $116m Disposals $62m Development pipeline ay Mirvac 62,666sqm (14.7% of portfolio) 257 (241,431 sqm) 3.9 yrs 8-12 Chifley Sq, Sydney CBD One Darling Island, Pyrmont 107 Mount St, North Sydney 101 Grenfell St, Adelaide $45
Slide 35: Commercial market - sustained recovery
Commercial market - sustained recovery > Cyclical variation between cities through to 2008 City Outlook % Portfolio Brisbane Strong 10% Perth Strong 0% Canberra Improving 13% Melbourne Stabilising 19% Sydney Strengthening 58% Adelaide Weakening 0%
Slide 36: Investment — industrial portfolio
Mirvac Investment — industrial portfolio TTT TTT TT TITIES si
Slide 37: Industrial snapshot
ay industrial snapshot mirvac Leasing transactions 18,657 sqm (10.6% of portfolio) Tenant rent reviews 24 (115,545 sqm) WALE 5.2 yrs Acquisition $19m Nexus Industry Park, Stage 1 Development pipeline $178m
Slide 38: Industrial market — strong demand
ay industrial market — strong demand mirvac > Strong investor demand should persist into 2007 > User demand led by logistic groups, consolidation of sector means larger facilities > Rising transport costs and capital expenditure by private and public sectors will drive demand for locations near tran
Slide 39: Investment — retail portfolio
investment — retail portfolio
Slide 40: Retail snapshot
Retail snapshot Leasing transactions Tenant rent reviews Occupancy costs WALE Acquisitions $191m Disposals $22m Development pipeline ay Mirvac 43,644sqm (16.3% of portfolio) 466 (68,656 sqm) 11.7% 6.1 yrs Kwinana Hub, WA Springwood Mega Centre, QLD Ballina Central, NSW Hinkler Shopping Centre, QLD W
Slide 41: Retail market - active management
ay Retail market - active management mirvac > Remains a premium asset class > Consumer spending back on trend after 2005 slowdown 4% - 5% forecast in 2006-2008 > Portfolio supermarket sales up 3.4%, specialities up 3.2% > Expanding existing centres and upgrading sub-regionals - Sub-regional 63% - Ne
Slide 42: Divisional outlook
Divisional outlook > Portfolio net income continues to grow (approx 2.8%) > Procurement of new investment grade assets via development is well entrenched over next 5 years > Asset sales will continue, balanced against completion of development projects and new acquisitions > Portfolio rernains overw
Slide 43: Hotels & Resorts
Hotels & Resorts Strong growth in demand and limited new supply underwritten performance’ hotels and tourism sector over the past 12 months. Australian institutions are incréasing ttt exposure to the sey ‘in tighter yields. focus on efficient management.
Slide 44: Hotels update
Update > 3,629 rooms across 32 hotels (at 30 Sept 06) > Average occupancy 74% > Average room rate $184 up from $176 > Openings during FY06: Cairns International Hotel The Sebel Manly Beach Sea Temple Resort & Spa, Port Douglas > Openings post 30 Jun 06: Citigate Melbourne The Sebel Launceston The Se
Slide 45: Development
Development I)
Slide 46: Development update
Update mirvac > 2,463 lots settled in FY06 > $730m exchanged residential contracts at 30 June 2006 > EBIT margin of 21% across house, land and apartments > Completed residential projects: NSW - Towns Place, Epica, Edgewood, Mornington QLD - Ephraim Island Stg 1&2, Cutters Landing WA - Allegro Burswo
Slide 47: Development update: funds, provisions and pipeline
Update mirvac > Development funds / mandates: Seascapes, Meadow Springs, Spring Farm > Provisions taken on 3 NSW residential projects (NPAT): Esperance - $4.6m, Burns Rd - $4.2m, Castle Hill - $3.7m > Development pipeline’ - $10.9 billion over 10 years across all sectors residential pipeline - $9.2b
Slide 48: Re-stocking post June 2006
Re-stocking post 30 June 2006 Project ; Total project - value Leighton Beach, WA $429m Jane Brook, WA $25m Waterways, Braeside, VIC $74m Breakwater Quays, Townsville, QLD $200m Brookwater, Springfield, QLD $120m Gainsborough Greens, Pimpama, QLD $780m Total $1.6bn Total lots 170 62 145 196 202 4,900
Slide 49: Current residential project - NSW
Ls Current residential project - NSW mirvac Acquired: Oct 2001 Total project value: $541m Quay West Resort, villas and houses Total lots: 505
Slide 50: Current residential project - NSW
Ls Current residential project - NSW mirvac Acquired: Jul 2003 Total project value: $45m Lifestyle estate- detached homes Total lots: 105
Slide 51: Current residential project - QLD
Ls Current residential project - QLD mirvac Acquired: Jun 2005 Total project value: $524m Apartments and State Tennis Centre Total lots: 386 Tennyson, QLD
Slide 52: Current residential project - WA
be Current residential project - WA mirvac Acquired: Feb 2003 Total project value: $949m Integrated riverfront suburb Total lots: 1,008 housing y Apartments and luxury w
Slide 53: Current residential project - VIC
Le Current residential project - VIC mirvac Acquired: Dec 2001 Total project value: $632m Housing, land and apartments Total lots: 1,493
Slide 54: Residential market outlook
Residential market outlook mirvac > Underlying factors are positive ~ Immigration- high, unemployment- low - Dwelling supply below underlying dernand ~ Rental market tightens in all capital cities > Issues ~ Affordability — low but likely to improve in the medium term - Cost and delays in bringing p
Slide 55: Non-residential development
Non-residential development mirvac > Mirvac has expanded its capacity to undertake non-residential developments > The Development Division has a mandate to pursue opportunities across commercial, industrial, retail, and hotel sectors > Long-term retention by Mirvac to supplement its residential acti
Slide 56: Current commercial project
Ls Current commercial project mirvac Acquired: Dec 2003 Total project cost: $247m Development and sale of 104Ha (gross) of land. Ownership: 33.3% Mirvac, 33.3% Leighton Properties, 33.3% Wesischeme Bankstown Airport, NSW
Slide 57: Current industrial project
Ls Current industrial project mirvac Acquired: Aug 2004 Total project cost: $100m Atlas Group: 13,000 sqm- completed Mar 06 EW Reinforcement: 9,600 sqm- completed Nov 06, Stg 3: 17,000 sqm- May 07
Slide 58: Current retail project
Le Current retail project mirvac Acquired: Aug 2002 Total project cost: $156m (stage 1) Stg 1 forecast to open in Mar 2007. 160,000 sqm retail floor space- total completed Anchored by Big W and Woolworths. Ownership: 66.7% Mirvac, 33.3% JF Meridian
Slide 59: Divisional outlook
Divisional outlook > Re-stocking across all sectors > Continue to focus on major integrated developments > Excellent database support > Residential pipeline strong > Target commercial, industrial, retail, and hotel opportunities
Slide 60: Funds Management
Funds Management ee eee
Slide 61: Funds management update
Update > Funds under management’ has increased to $8.2bn > Enhanced scale and depth of platform across the four quadrants > Leveraged Mirvac’s integrated property platform — launched 2 residential development funds ~ AustralianSuper value-added / opportunistic mandate (co-invests with Mirvac) > Rati
Slide 62: Funds management update: scaleable funds and Quadrant
Update mirvac > Expanded scaleable funds ~ Mirvac Industrial Trust — JF Meridian Trust — Travelodge Hotel Portfolio ~ JF AQUA mortgage funds ~ Telstra Dome! > Launched Quadrant Real Estate Advisors (50% owned by Mirvac) — US real estate funds management platform — A$3.5bn in FUM > GIC renewed mezzan
Slide 63: Four quadrant investment model
Four quadrant investment model snr OC Srt—“(‘(i‘“‘COéOCOCOCOstw*#SCétésté*C*é~Cséi*C*C*wC*OC*C*Cs*C*CsCéest:sC (§$§:C=‘r a JF Meridian 1,100 | Quadrant! nil? Industrial Trust 972 | Infrastructure 152 | Hotel Capital Partners 100 } Quadrant? | Direct Capital | Infrastructure 508 | Quadrant! 3,533 _ D
Slide 64: Leader in wholesale funds management
Ls Leader in wholesale funds mgt mirvac 7 % Statewide ‘SUPERANNUATION THUST AustralianSuper saris CHEME ie TelstraSuper “F Denver Public Schools Retirement System NEMA io PA axa EQUITABLE Motoring & Services
Slide 65: Divisional outlook
Divisional outlook > Mirvac’s assets under control provide the levers to roll out funds in wholesale / retail markets with differing risk parameters key competitive advantage: access to deal flow > Increase recurrent earnings by: — capital recycling through profitable turnover of group inventory thr
Slide 66: Outlook
cis an
Slide 67: Activity post June 2006
Activity post 30 June 2006 > > > Re-financed $3.2bn debt facilities Equity raising of $375m Re-stocked 2,675 residential lots equating to a total project value of $1.6bn 40,000 sqm of major leasing deals: - One Darling Island, Pyrmont, NSW - Lovett Tower, Woden, ACT Acquired a 50% interest in Chantr
Slide 68: Challenges ahead
Challenges ahead mirvac > NSW residential market continues to be patchy > Managing WA boom > Re-stocking in NSW / VIC at the right price and right location > Leasing of 101 Miller Street, North Sydney > Achieving scale across existing Mirvac funds > Increased competition in funds management space >
Slide 69: Market outlook
Le Market outlook mirvac > Economic growth to rise in 2007 (3.1% vs. 2.7% (est.) in 2006) > Short term interest rates — increase of 25 bps in Q1 2007 > Inflation — moderates to 2.5 to 3.0% in 2007 > Wages growth (+4%) and high employment will support consumer spending > Business investment — stabili
Slide 70: FY07 guidance
FY07 guidance DPS & EPS 31.9 cents Forecast operating profit composition: Hl investment 60-65% (| Development 25-30% _. Funds Management 5-10% Hotels 5%
Slide 71: Capitalise on synergies and skills across integrated business platform
Capitalise on synergies and skills across integrated business platform Drive capacity to identify, design, develop, manage and sell real estate Strengthen link between Mirvac quality, asset base, capital and expertise Leverage diversity ~ manage risk and create cyclical opportunities Generate recurr
Slide 72: Q&A
Mirvac Q&A