Aspen Group Limited · ASX:APZ
Aspen — Shareholder Meeting (November 2006)
38 slides from Aspen's shareholder meeting presentation, Nov 29, 2006
Slide 1: Aspen Group 2006 Annual General Meeting
Slide 2: 1. FY06 Key Achievements
1. FYO6 Key Achievements
Slide 3: FY06 Key Achievements
}6.Key-Achievement Financial Funds Management » Underlying EPS increases 46% » Acquisition and syndication of to 12.81 cents per security. the Dunsborough Lakes Golf Course Estate for $93 million. » DPS increases 20% to 10 cents +» Rezoning of Aspen Living per security. Village No.1 land to resident
Slide 4: Expansion of Residential Subdivision business
» Expansion of Residential Subdivision business: » Acquisition of Whitsunday Shores residential subdivision in November 2006. » Acquisition of management rights to the West Swan Estate residential subdivision in November 2006. » Grown to circa 3000 lots within 12 months >» Acquisition of the Port Au
Slide 5: Agenda: 2. Overview
Slide 6: Diversified national property investment and management group
> Diversified national property investment and management group >» Growing funds management business > Strong track record of out-performance in earnings and NTA growth >» Continuous record of earnings exceeding distributions each year since inception >» Strong Balance Sheet and low gearing provide
Slide 7: Co-invests in funds
y Ly a > Co-invests in funds Strategic stakes > Portfolio of diversified Division established April property assets 2004 > Characterised by strong Driving DPU and EPU Growth income security through high quality tenants and Ion term leases Recently agreed to acquire two new residential subdivision pr
Slide 8: Results Driven
esults Driven >» Distribution growth driven by: » Acquisition of properties with accretive yields » Active management of portfolio » Growth in the funds management business » Organic growth in rents >» Current annualised distribution of 11.5 cps commencing December quarter >» Forecast 47% tax deferr
Slide 9: 3. Financial Summary
3. Financial Summary
Slide 10: Earnings
Earnings 2006 2005 Change Underlying Net Profit* ($’m) 18.50 7.40 A 148% Underlying EPS* (cents) 12.81 8.75 te 46% DPS (cents) 10.00 8.35 ® 20% Underlying Earnings above 2.81 0.40 A 602% Distribution (cents) * equity and hedge instruments. 10 Underlying operating earnings are defined as net profit a
Slide 11: Aspen continues to drive earnings and distribution growth
Aspen continues to drive earnings and distribution growth FY03 (¢) FY04 (¢) FY05 (¢) FYO6 (¢) 3YR CAGR EPS* 20.1% DPS 21.3% NTA*™* 68 ~ 109 17.0% *Adjusted to exclude the effect of property, equity and hedging instruments revaluations. “Following settlement of the $50m Institutional Placement in Jul
Slide 12: Total Returns vs ASX LPT
ian otal Ret urns vs. ASX LPT 300 >Compound total return of 30% per annum in the last 3 years. >Total return over 3 years of 121% Aspen Group <x ASX LPT 300 Dec-02 dun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 412
Slide 13: Balance Sheet
Balance Sheet 2006 2005 Change Assets Under Management ($’m) 632* 307 m 106% Property Investment Portfolio ($’m) 284 189 A 50% Gearing 32%"* 59% V 27% NTA (cents) 109 ** 81 ® 35% * Following acquisition of the West Swan and Whitsunday Shores Estates in November, AUM totals $708 million *“ Following
Slide 14: Capital Structure
nan pital’S' cture Capllal Structure Stapled Securities on Issue at 30 September 2006 206.9M Unlisted Options on Issue 41.3M ($0.9375, $1.00, $1.25 Various Exercise daies) 414 Substantial Securityholders UBS Global Asset Management Deutche Asset Management Challenger Acorn Capital AMP Limited Wylie
Slide 15: 4. Property Portfolio
15
Slide 16: Overview
rview » Blue Chip tenants » Strong revaluation performance in FY06 » Increased sector and geographic diversification June 2006 Number of Properties 9 Total Asset Value 284 million GLA 230,000 sq.m Occupancy 97.4% Weighted Average Lease Expiry 46 Years 16
Slide 17: Acquisition Philosophy
> > Cquisition Philosophy Investment portfolio reflects Aspen’s acquisition strategy ® $30 -70 million » Attractive running yield » \ncome security leveraged to value add opportunities Counter cyclical acquisition strategy Active management style Identify properties with future land bank/ redevelopm
Slide 18: Major Tenants
Major Tenants Expiry Ince Elders 2012 17% DIMIA 2014 7% Alcoa 2014 6% Australian Bureau of Statistics 2008 6% HP Aust Pty Ltd 2008 5% Acme Fine Furniture 2012 4% Total 45% 18
Slide 19: Property Location, Sector, Book Value
Property Location Sector Book Value A$ millions Septimus Roe Square Perth, WA Office 50.2 100% Occupancy Alcoa ‘Office Complex —— Booragoon, WA Office — 22.6 a 100% _ Elders Woolstores Spearwood, WA Industrial 45.0 100% Noble Park Melbourne, vic Industrial 25.0 86% aig ee — Bo 564 St. Kilda Road Mel
Slide 20: Portfolio Diversification
4. Property Portfolio iversification Portfolio Sector Diversification 2005 (sy value} 2006 Industrial 40% Office 58% i Retail 1396 Retail 19% Accommodation 1% Office 41% Industrial 28% Portiolio Geographic Diversification (by value} WA 49% WA 40% NSW 2% VIC 25% VIG 18% Nsw 2% SA 23% QLD 17% QLD 24%
Slide 21: Funds Management
Funds Management 5 24
Slide 22: Funds Management Overview
Overview » Aspen currently has 4 key funds management activities: Resort/Caravan Park Core Income Fund Affordable Housing Sec » Leverages Aspen’s core property managi2ment expertise » Provides investment opportunities not readily available to investors » Important source of EPS/DPS growth with effic
Slide 23: Aspen Parks Property Fund
nds Management. spen Parks Property Fund Expected to significantly exceed growth target of $150m over 5 years - $100 million and 14 parks within first 2 years Parks generally in excellent locations with potential for capital appreciation and development of excess land Fragmented industry providing a
Slide 24: Aspen Parks locations map
Airlie Beach Monkey Mia 2. a Oana: a en ee Twofold eS i og e
Slide 25: Location of properties owned by Aspen Parks
Location of properties owned by Aspen Parks Cooxe Point BALMORAL [stan Gateway Piipana Monney Mia DoLPHin REsony Tworale Bay Coocee Beach WOODMAN POINT Pont AUGUSTA HORSESHOE A ABRABY 25
Slide 26: Aspen Diversified Property Fund
sified Property Fund., Launched April 2005 — objective to achieve AUM $250 million within 5 years - excellent year one growth with $134.7 million in assets by June 2006 Fund continues to mature and now shows excellent diversification across sectors and states Leverages Aspen’s core commercial proper
Slide 27: oe ae
Ly oe oe ae eae es, Lo - es eee
Slide 28: Aspen Diversified Property Fund diversification
Sector Diversification Industrial 36% Office 33% Retail 31% oe Geographical Diversification VIC 21% WA 36% NSW 438% "a én Diversified Property Fund. Asset State Asset Book Value Type Abernethy Park WA Office $11.5M Champion Drive WA Retail $9.3M Shopping Centre Riseley Corporate WA Office $7.7M Cent
Slide 29: Aspen Living Villages — Background
pe ing Villages — Background... » Established to manage the development of residential and affordable accommodation villages » Baby boomers who retire early, mining industry and annuals — requirement for low cost residential accommodation » Commenced with Aspen Living Village Not Fund following the
Slide 30: Development Division
pment Divisit » Introduced to develop residential land subdivision projects on a syndicated basis » Low risk/ high return syndicated model » Utilise the Group's expertise in project management and sales. » First project (Aspen Dunsborough Lakes Limited) has shown a strong first half performance. » W
Slide 31: Aspen Dunsborough Lakes Limited
y y Aspen Dunsborough Lakes Limited Acquired the 230ha Dunsborough Lakes golf course estate for $93.7M in January 2006 Equity of $40M raised from institutional/sophisticated investors Aspen hold 20% equity and acts as Project Manager Estimated 1447 lots over project life Valuation has increased from
Slide 32: Aspen Whitsunday Shores Limited
evelopment Divisior Aspen Whitsunday Shores Limited » Agreed to acquire the 269ha Whitsunday Shores Estate in November 2006 Equity of $20M to be raised from institutional and sophisticated investors » Aspen hold 25% equity and acts as project manager, vendor will retain 25% equity Estimated 670 lots
Slide 33: Aspen West Swan Estate
evelopment Diy. Aspen West Swan Estate » Acquired management rights to the 96ha West Swan Estate syndicate in November 2006 Equity of $25M raised by previous managers from institutional and sophisticated investors » Aspen have acquired a circa 10% cornerstone equity stake Expected to create in exces
Slide 34: 6. Future Growth
6. Future Growth 34
Slide 35: Further acquisitions in investment portfolio
~ Further acquisitions in investment portfolio » Continued Growth in existing Managed Funds with the aid of Aspen Group’s strong balance sheet » Continued strong Growth in Residential Estate Division through off balance sheet syndicated projects. Number of significant projects under review. » Afford
Slide 36: 6. Summary
6. Summary 36
Slide 37: Gearing maintained at conservative level of circa 32%
Gearing maintained at conservative level of circa 32% Strong track record of EPS and DPS growth, with earnings exceeding distributions Fundamentally sound business model: « Property investments provide recurring income to underpin Aspen’s distribution and provides balance sheet strength High growth
Slide 38: Disclaimer
Disclaimer This presentation has been prepared by Aspen Group (“Aspen”). This presentation is not an offer, invitation, solicitation or recommendation with respect to the subscription for, purchase or sale of any security, and neither this document nor anything in it shall form the basis of any cont