Mirvac Group · ASX:MGR
Mirvac — Corporate Update (June 2005)
12 slides from Mirvac's corporate update, Jun 6, 2005
Slide 1: Mirvac Group
MIRVAC GROUP Mirvac Group 6 June 2005
Slide 2: Mirvac Group
Mirvac Group MIRVAC GROUP • Integrated property group • Leading residential brand in Australia • Owner of quality assets • Business model is resilient and sound • Experienced and focused management team • Strong pipeline of assets under control $15 Billion Of Assets Under Control Investment Resident
Slide 3: Revised FY05 Forecast
Revised FY05 Forecast MIRVAC GROUP $m $m FY04 earnings 252 FY05 distribution 266 Earnings variances (35) - Residential projects (17) - Property retention vs sale(s) (11) - Other (7) Revised FY05 forecast earnings 231
Slide 4: Revised FY05 Forecast – Details
Revised FY05 Forecast – Details MIRVAC GROUP Residential Projects - Housing underperformance due to slow sales - Provision for settlement delay at Tower 5 Docklands - Provision against Esperance - Slowdown in sales at Waverley, Torquay and Newington - Cost increases and time delays at Ephraim Island
Slide 5: Residential Cycle
Residential Cycle MIRVAC GROUP • Residential market going through “orderly correction” • Market peaked at end of 2003 • Have witnessed slowing in prices and increase in costs - varies across States • But fundamentals strong: Low unemployment, low interest rates, growing migration, supply not outstri
Slide 6: FY06 Earnings Guidance
FY06 Earnings Guidance MIRVAC GROUP $m Investments 159 Developments 96 Hotels 12 Funds Management 17 Corporate Services (20) NPAT* (Earnings from Operations after Tax) 264 * NPAT is on a settlements basis as required from 1 July 2005 excluding non-cash IFRS adjustments for (1) depreciating PPE/hotel
Slide 7: FY06 Distribution Guidance
FY06 Distribution Guidance MIRVAC GROUP • FY05 distribution is 33.8 cents • FY06 expected distribution to be 31.0 cents • Prudent to reduce distribution in line with earnings from operations • Future policy to distribute after tax earnings from operations • DRP turned off
Slide 8: Key FY06 Profit Drivers
Key FY06 Profit Drivers MIRVAC GROUP Investments • Full year earnings from James Fielding Trust & assets internally developed in FY05 ie 189 Grey Street, Brisbane and 191 Salmon Street, Port Melbourne • Addition of assets internally developed to be completed in FY06 – Retail - Waverley Gardens, Peni
Slide 9: Key FY06 Profit Drivers
Key FY06 Profit Drivers MIRVAC GROUP Developments – FY06 expected residential earnings - 52% house and land and 48% medium density compared to 36% and 64% respectively for FY 2004 – $754m in contracts exchanges at May 2005 compared to $623m at 31 December 2004 – Key projects in FY06 include: • Epica
Slide 10: Key FY06 Profit Drivers
Key FY06 Profit Drivers MIRVAC GROUP Hotels – Full year management income from Sea Temple Palm Cove & Sebel Maroochydore – 50% acquisition of Cairns International – income and management fees – New management contracts at Sebel Trinity Wharf Tauranga, Sea Temple Port Douglas, Sebel Harbour Lights Ca
Slide 11: Summary
Summary MIRVAC GROUP • Integrated property model – resilient and strong • Portfolio activities - diversified across all major sectors and key property related businesses • Weaker residential market - reflected in FY05 result with market going through orderly correction provides cyclical opportunity
Slide 12: Appendix - IFRS Adjustments
Appendix - IFRS Adjustments MIRVAC GROUP IFRS Adjustments Already In FY06 Earnings Guidance • No amortisation of existing goodwill as no longer required under IFRS (subject to more stringent impairment testing) • Selling & marketing costs now expensed (formerly capitalised to inventory – timing impa