Slide 1: Mirvac Group FY15 Results
MIRVAC GROUP 13 AUGUST 2015 For personal use only RESULTS FY15
Slide 2: Agenda
MIRVAC GROUP For personal use only AGENDA FY15 FY15 GROUP OPERATIONAL OUTLOOK RESULTS FINANCIAL RESULTS AND GROUP OVERVIEW RESULTS AND UPDATE GUIDANCE MIRVAC I FY15 RESULTS I 13 AUGUST 2015 I 01
Slide 3: FY15 Results Overview
MIRVAC GROUP For personal use only FY15 RESULTS OVERVIEW MIRVAC I FY15 RESULTS I 13 AUGUST 2015 I 02
Slide 4: Disciplined Execution of Strategy Is Transforming Mirvac
DISCIPLINED EXECUTION OF STRATEGY IS TRANSFORMING MIRVAC For personal use only Deliver stable Disciplined approach Office Retail Industrial Residential growth to allocating capital Create and buy for Competitive advantage Create for continued Create and sell in defined and driving returns continued
Slide 5: Operational Excellence
OPERATIONAL EXCELLENCE For personal use only Safety This Changes Everything > 27% reduction in Group Lost Time Injury Frequency Rate (LTIFR) > Office portfolio achieved 5.1 star NABERs rating without green power in FY15 to 1.2 > 50 Green leases signed in the commercial office portfolio — 5 million c
Slide 6: FY15 Group Financial Results
MIRVAC GROUP For personal use only FY15 GROUP FINANCIAL RESULTS MIRVAC I FY15 RESULTS I 13 AUGUST 2015 I 05
Slide 7: Consistent Delivery of Positive Results
CONSISTENT DELIVERY OF POSITIVE RESULTS For personal use only STATUTORY PROFIT OPERATING PROFIT 1 FUNDS FROM OPERATIONS 2 $600m $609.9m $600m $600m $454.8m $448.1m $468.2m $447.3m $437.8m 400 400 $377.6m 400 $388.0m 200 200 200 $139.9m 0 0 0 FY13 FY14 FY15 FY13 FY14 FY15 FY13 FY14 FY15 > Increased s
Slide 8: Focus on Driving Returns
FOCUS ON DRIVING RETURNS For personal use only NTA 1 DISTRIBUTIONS DEVELOPMENT ROIC OVERHEAD COSTS $2.00 10c 12% 11.1% 2.0% Expenses as a % of asset base 2.0% 10.5% 1.8% $1.74 9.4c 1.8% $1.66 8 $1.62 1.6% 1.6% 1.50 9 9.0c 1.5 1.5% 5.4% 8.7c 4 Expenses as a % of asset base (excluding sales and market
Slide 9: Stronger Development Contribution Underpins Earnings Growth
STRONGER DEVELOPMENT CONTRIBUTION UNDERPINS EARNINGS GROWTH For personal use only FY15 FY14 > Investment earnings supported by NOI growth and acquisitions, EBIT BY DIVISION $M $M however offset by $1.1bn of asset sales in FY14 including the 50% sale Investment 478.6 483.5 of 275 Kent St on 1 July 20
Slide 10: Maintained a Strong Balance Sheet
MAINTAINED A STRONG BALANCE SHEET For personal use only > Gearing within target range of 20-30% and maintained BBB+ credit rating CAPITAL MANAGEMENT METRICS FY15 FY14 Balance sheet gearing 1 24.3% 27.8% > Restructured the Group’s $1.4bn syndicated bank facility from three Look-through gearing 25.2%
Slide 11: Operational Results and Update
MIRVAC GROUP For personal use only OPERATIONAL RESULTS AND UPDATE MIRVAC I FY15 RESULTS I 13 AUGUST 2015 I 10
Slide 12: Office: Maintained Solid Portfolio Metrics and Created Value
OFFICE: MAINTAINED SOLID PORTFOLIO METRICS AND CREATED VALUE For personal use only > Maintained positive like-for-like growth of 2.6% PORTFOLIO RESULTS FY153 HY15 FY14 > Portfolio occupancy of 94.0% impacted by vacancy at Portfolio value $4,108.0m $4,083.2m $4,025.0m Net valuation uplift 1 2.1% 0.8%
Slide 13: Office: Well Positioned Portfolio and Strong Leasing Capability
OFFICE: WELL POSITIONED PORTFOLIO AND STRONG LEASING CAPABILITY For personal use only Office conditions Portfolio positioning > Continued signs of improved tenant demand in Sydney > 83% of portfolio located in Sydney and Melbourne and Melbourne > Track record of leasing capability — Other major mark
Slide 14: Office: Portfolio Quality and Developments Support Outlook
OFFICE: PORTFOLIO QUALITY AND DEVELOPMENTS SUPPORT OUTLOOK For personal use only > FY16 NOI outlook OFFICE LEASE EXPIRY PROFILE BY GEOGRAPHY 2 — Solid occupancy 40% 36% — Embedded rental growth (average 3.4% pa fixed rent increases 30 over 84% of portfolio income) — Contribution from 699 Bourke St (
Slide 15: Retail: Quality Portfolio Driving Strong Metrics
RETAIL: QUALITY PORTFOLIO DRIVING STRONG METRICS For personal use only > NOI up 15% driven by rental growth, acquisitions and development completions PORTFOLIO RESULTS FY15 1H15 1 FY14 — Partially offset by asset sales Portfolio value $2,139.5m $2,093.2m $1,769.6m Net valuation uplift 2 3.4% 1.4% 2.
Slide 16: Retail: Positive Outlook Supported by Focus on Key Urban Markets
RETAIL: POSITIVE OUTLOOK SUPPORTED BY FOCUS ON KEY URBAN MARKETS For personal use only Retail conditions Portfolio positioning > Mixed conditions nationally > The portfolio has re-weighted to stronger, more densely — Retail sales underpinned by low interest rates, steady employment populated urban m
Slide 17: Retail: Maximising Value of Core Assets
RETAIL: MAXIMISING VALUE OF CORE ASSETS For personal use only > Continue to unlock value from existing portfolio RETAIL DEVELOPMENT AND REPOSITIONING PIPELINE — Four projects committed, expected to deliver an average YOC ~7% Committed Masterplanning Phase Future (Target 10yr IRR over 10%) Orion Spri
Slide 18: Industrial: High Occupancy and Long WALE Providing Stable Income
INDUSTRIAL: HIGH OCCUPANCY AND LONG WALE PROVIDING STABLE INCOME For personal use only > Maintained strong portfolio metrics PORTFOLIO RESULTS FY15 1H15 FY14 — Occupancy of 98.7% Portfolio value $661.0m $416.6m $405.6m Net valuation uplift 1 6.5% 0.6% 1.6% — WALE of 7.6 years Like-for-like NOI growt
Slide 19: Industrial: Positive Outlook Supported by Strong Portfolio Metrics
INDUSTRIAL: POSITIVE OUTLOOK SUPPORTED BY STRONG PORTFOLIO METRICS For personal use only Industrial conditions Portfolio positioning > Tenant demand encouraging as business confidence slowly > Portfolio income supported by geographic positioning and strong gains momentum, however tenants remain caut
Slide 20: Residential: Delivering Strong Results
RESIDENTIAL: DELIVERING STRONG RESULTS For personal use only > Settled 2,271 lots in line with FY15 target of >2,200 FY15 LOT SETTLEMENTS — 70% derived from MPC projects, predominately NSW Masterplanned Communities 70% Apartments 30% > Delivered strong FY15 residential gross margins of 23.6% 1, driv
Slide 21: Residential: Successful Releases De-risking Future Earnings
RESIDENTIAL: SUCCESSFUL RELEASES DE-RISKING FUTURE EARNINGS For personal use only > Successfully accelerated release programme with over 4,000 lots released PRE-SALES: EXPECTED SETTLEMENT PROFILE BY STATE in FY15 (80% increase on FY14) $1,000m > ~90% sales success in NSW and VIC including 44% 750 36
Slide 22: Residential: Market Overview
RESIDENTIAL: MARKET OVERVIEW For personal use only Sydney SYDNEY DEMAND VS PAST SUPPLY > Momentum supported by pent-up demand and improved economy 40,000 households — NSW seeing lowest level of net interstate outflow migration level since 1970s — Undersupply of dwellings relative to demand is expect
Slide 23: Residential: Earnings Growth in FY16
RESIDENTIAL: EARNINGS GROWTH IN FY16 For personal use only > Expect to deliver growth in Residential earnings in FY16 FY16 TARGET LOT SETTLEMENTS — FY16 lot settlement target of over 2,800 (~25% increase on FY15) Masterplanned Communities 70% Apartments 30% — Over 65% of target lot settlements secur
Slide 24: Residential: Medium Term Outlook Well Supported
RESIDENTIAL: MEDIUM TERM OUTLOOK WELL SUPPORTED For personal use only > 12 new projects (totalling ~7,160 lots) selectively acquired in FY15 in line with strategic mandates and return hurdles (average IRR 18%) — 84% of lots MPC — Off-market transactions with average upfront payment of less than $60k
Slide 25: Outlook and Group Guidance
MIRVAC GROUP For personal use only OUTLOOK AND GROUP GUIDANCE MIRVAC I FY15 RESULTS I 13 AUGUST 2015 I 24
Slide 26: Outlook and Group Guidance
OUTLOOK AND GROUP GUIDANCE For personal use only Office > Continue to manage lease expiry profile and secure tenant pre-commitments for development pipeline > Deliver committed developments in line with target returns Retail > Continue to maintain solid portfolio metrics > Target acquisitions in urb
Slide 27: Important Notice
IMPORTANT NOTICE For personal use only Mirvac Group comprises Mirvac Limited (ABN 92 003 280 699) and Mirvac Property Trust (ARSN 086 780 An investment in Mirvac stapled securities is subject to investment and other known and unknown risks, 645). This presentation (“Presentation”) has been prepared
Slide 28: Thank You
MIRVAC GROUP For personal use only THANK YOU FOLLOW US MIRVAC MIRVAC ON TWITTER INVESTOR RELATIONS FY15 PROPERTY @MIRVAC WEBSITE COMPENDIUM MIRVAC I FY15 RESULTS I 13 AUGUST 2015 I 27