Melcor Developments Ltd. · TSX:MRD

Melcor Developments — Shareholder Meeting (2015)

59 slides from Melcor Developments's shareholder meeting presentation, 2015

1. Slide 1: Annual General Meeting

   = <q « wi 2 wi oO = <x 2 ]2 2 4 MEETING MELCOR LIVE. WORK. SHOP. PLAY.

2. Slide 2: Agenda

   AGENDA  Formal Business  Introductions  Call to Order  Presentation of Financial Statements  Fixing the Size of the Board  Election of Directors  Appointment of Auditors  Management Presentations  Q&A

3. Slide 3: Introductions – Directors

   INTRODUCTIONS – DIRECTORS Gordon Clanachan Ross Grieve Andrew Melton Timothy Melton Edmonton, AB Edmonton, AB Calgary, AB Edmonton, AB Eric Newell Catherine Roozen Allan Scott Ralph Young Edmonton, AB Edmonton, AB Edmonton, AB Edmonton, AB

4. Slide 4: Introductions – Executive Team

   INTRODUCTIONS – EXECUTIVE TEAM Brian Baker Jonathan Chia Darin Rayburn President & CEO CFO Executive Vice President Naomi Stefura Jason Fjeldheim Dennis Inglis Brett Halford VP, Finance VP, Community VP, Community VP, Recreational Development North Development South Properties

5. Slide 5: Agenda

   AGENDA  Formal Business  Introductions  Call to Order  Presentation of Financial Statements  Fixing the Size of the Board  Election of Directors  Appointment of Auditors  Management Presentations  Q&A

6. Slide 6: Director Nominees

   DIRECTOR NOMINEES Gordon Clanachan Ross Grieve Andrew Melton Timothy Melton Edmonton, AB Edmonton, AB Calgary, AB Edmonton, AB Eric Newell Catherine Roozen Allan Scott Ralph Young Edmonton, AB Edmonton, AB Edmonton, AB Edmonton, AB

7. Slide 7: Agenda

   AGENDA  Formal Business  Introductions  Call to Order  Presentation of Financial Statements  Fixing the Size of the Board  Election of Directors  Appointment of Auditors  Management Presentations  Q&A

8. Slide 8: Our Melcor

   MELCOR LIVE. WORK. SHOP. PLAY.

9. Slide 9: Management Presentations

   MANAGEMENT PRESENTATIONS  Financial Highlights Jonathan Chia – CFO  Strategic & Operations Brian Baker President & CEO Highlights Brian Baker – President & CEO  Shareholder Questions Jonathan Chia CFO

10. Slide 10: Financial Highlights

    Jonathan Chia, CFO FINANCIAL HIGHLIGHTS

11. Slide 11: Forward Looking Statements

    FORWARD LOOKING STATEMENTS This presentation contains statements that are forward-looking. Forward-looking statements are disclosures regarding possible events, conditions, or results of operations that are based on assumptions about future economic conditions, courses of action and include future-o

12. Slide 12: 2014 Financial Highlights

    2014 FINANCIAL HIGHLIGHTS ($000s) 2014 2013 Change Revenue 313,009 303,742 3.1% Fair value adjustment 12,828 47,571 (73.0%) Net income 100,719 98,623 2.1% Funds from operations 85,477 57,859 47.7% Shareholders’ equity 901,335 769,231 17.2% Total assets 1,863,296 1,727,933 7.8%

13. Slide 13: 2014 Financial Highlights

    2014 FINANCIAL HIGHLIGHTS $ per share 2014 2013 Change Basic earnings 3.18 3.24 (1.9%) Funds from operations 2.70 1.90 42.1% Book value 27.22 25.03 8.7% Average share price 22.98 19.04 20.7% Dividends paid 0.58 0.50 16.0% * Regular dividend only. In 2013, a $0.50 special dividend was also paid follo

14. Slide 14: A Record Year

    A RECORD YEAR  4th consecutive record for revenue  Gross margin improvement to 48%  Competitive financing environment  Strong financial position Positioned for the future.

15. Slide 15: Strategic Highlights

    Brian Baker, President & CEO STRATEGIC HIGHLIGHTS

16. Slide 16: Oil Price

    OIL PRICE =A% since January 2014

17. Slide 17: Melcor: Live. Work. Shop. Play.

    MELCOR LIVE. WORK. SHOP. PLAY.

18. Slide 18: Total asset value

    ‘total asset value

19. Slide 19: Raw land

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20. Slide 20: Under management

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21. Slide 21: Touched

    touched

22. Slide 22: Touched

    touched

23. Slide 23: $350 $2,000 $1,800 $300 $1,600 $250 $1,400 $200 $1,200 $1,000 $150 $800 $100 $600

    $350 $2,000 $1,800 $300 $1,600 $250 $1,400 $200 $1,200 $1,000 $150 $800 $100 $600 $400 $50 $200 $- $- 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 $1,000 $80 $900 $70 $800 $60 $700 $600 $50 $500 $40 $400 $30 $300 $20 $200 $100 $10 $- $- 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014

24. Slide 24: Our Value Chain

    Our Value Chain CAPITAL LAND DEVELOPMENT PROPERTY INVESTMENT REIT DEVELOPMENT PROPERTIES WORK SHOP RESIDENTIAL RECREATIONAL DEVELOPMENT PROPERTIES PLAY LIVE

25. Slide 25: Community Development

    COMMUNITY DEVELOPMENT

26. Slide 26: Property Development

    PROPERTY DEVELOPMENT

27. Slide 27: Investment Properties

    INVESTMENT PROPERTIES

28. Slide 28: REIT

    REIT

29. Slide 29: Our Value Chain

    Our Value Chain CAPITAL LAND DEVELOPMENT PROPERTY INVESTMENT REIT DEVELOPMENT PROPERTIES WORK SHOP RESIDENTIAL RECREATIONAL DEVELOPMENT PROPERTIES PLAY LIVE

30. Slide 30: 2014 Highlights: Revenue

    2014 HIGHLIGHTS revenue

31. Slide 31: 2014 Highlights: Income

    2014 HIGHLIGHTS income

32. Slide 32: 2014 Highlights: Growth

    2014 HIGHLIGHTS growth

33. Slide 33: 2014 Highlights: Margin

    2014 HIGHLIGHTS margin

34. Slide 34: 2014 Highlights: Over 5 Years

    2014 HIGHLIGHTS over 5 years $0.25 $0.58 2009 2014

35. Slide 35: 2014 Highlights: From Operations

    2014 HIGHLIGHTS from operations

36. Slide 36: Melcor: Live. Work. Shop. Play.

    MELCOR LIVE. WORK. SHOP. PLAY.

37. Slide 37: Raw Land, Active Land, Developed

    RAW LAND ACTIVE LAND DEVELOPED

38. Slide 38: Single family

    single family

39. Slide 39: Commercial development

    sq FT 10) 0 0 commercial development

40. Slide 40: 62% GLA Growth

41. Slide 41: Played

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42. Slide 42: ame!

    ame!

43. Slide 43: Revenue & Earnings Since 1986

    Revenue & Earnings Since 1986 WITH MAJOR OIL CORRECTIONS

44. Slide 44: $350 $300 $250 $200 $150 $100 $50 $- 2010 2011 2012 2013 4

    $350 $300 $250 $200 $150 $100 $50 $- 2010 2011 2012 2013 2014

45. Slide 45: Debt to Equity, Gross Margin, Loan-to-Value

    Debt to Equity 1.15 max | Gross Margin AS %o+ iLoan-to-value > 55% GBV ~\ Serviced Inventory 1 year Admin Expense 7-9% S ~ y, a Revenue Mix Diversified

46. Slide 46: wa yout

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47. Slide 47: Melcor: Live. Work. Shop. Play.

    MELCOR LIVE. WORK. SHOP. PLAY.

48. Slide 48: Protect & Grow Shareholder Investment

    $1,000 Protect & Grow Shareholder Investment $900 $800 $700 $600 $500 $400 $300 $200 $100 $- 2010 2011 2012 2013 2014

49. Slide 49: Walking Trails

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50. Slide 50: Parks & Recreation

51. Slide 51: il Te] inl a

    il Te] inl a Bis — cial

52. Slide 52: Signature

    SIgnacur \ MéLcor |nevr

53. Slide 53: By Division, By Country

    2000 2014 2000 2014 by division by country

54. Slide 54: pa hati

    pa hati

55. Slide 55: Our Team

    Our Team

56. Slide 56: Fundamental Goals

    Protect Grow Shareholder Shareholder Investment Value FUNDAMENTAL GOALS Distribute Profit Care for Our to Shareholders Exceptional Team

57. Slide 57: Traditional Values, The Golden Rule

    Traditional The Golden Deep & Values Rule Lasting Relationships

58. Slide 58: Our Melcor

    MELCOR LIVE. WORK. SHOP. PLAY.

59. Slide 59: Questions & Answers

    QUESTIONS & ANSWERS | |

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