Goodman Group · ASX:GMG
Goodman — Shareholder Meeting (November 2015)
36 slides from Goodman's shareholder meeting presentation, Nov 25, 2015
Slide 1: ASX cover letter: AGM Chairman's and CEO's presentations
25 November 2015 The Manager Company Notices Section ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Dear Sir GOODMAN GROUP (GOODMAN) ANNUAL GENERAL MEETINGS – CHAIRMAN’S AND CEO’S PRESENTATIONS Please find attached the Chairman’s presentation and Group Chief Executive Officer’s present
Slide 2: Goodman Group Annual General Meetings 2015
GOODMAN GROUP ANNUAL GENERAL MEETINGS–2015 next
Slide 3: Directors and Executives
DIRECTORS AND EXECUTIVES MR IAN FERRIER MR PHILIP PEARCE INDEPENDENT CHAIRMAN EXECUTIVE DIRECTOR M R G R E G O RY G O O D M A N MR DANNY PEETERS GROUP CHIEF EXECUTIVE OFFICER EXECUTIVE DIRECTOR M S A N N E K E AT I N G M R P H I L L I P P RY K E INDEPENDENT DIRECTOR INDEPENDENT DIRECTOR M R P H I L
Slide 4: Highlights Video
HIGHLIGHTS VIDEO 3 | GOODMAN GROUP ANNUAL GENERAL MEETINGS – 2015 back next
Slide 5: Agenda
AGENDA CHAIRMAN’S ADDRESS GROUP CEO’S ADDRESS FORMAL BUSINESS 4 | GOODMAN GROUP ANNUAL GENERAL MEETINGS – 2015 back next
Slide 6: Chairman's Address
CHAIRMAN’S ADDRESS 5 | GOODMAN GROUP ANNUAL GENERAL MEETINGS – 2015 back next
Slide 7: Financial Overview
FINANCIAL OVERVIEW ATL Logistics Centre, Hong Kong 6 | GOODMAN GROUP ANNUAL GENERAL MEETINGS – 2015 back next
Slide 8: Financial Overview
FINANCIAL OVERVIEW S U S TA I N A B I L I T Y + Total GMG Securityholder return of 30% + Operating profit of $653 million, a 9% for FY15, with average TSR of 20% over increase on FY2014 the last five years + Statutory profit of $1,208 million, including + Strong financial position maintained with $7
Slide 9: Sustainable Growth
S U S TA I N A B L E G R O W T H Operating EPS (¢) Development work in progress ($B) Total assets under management ($B) 30.5 32.4 34.8 37.2 39.4 1.8 1.9 2.3 2.6 3.1 18.0 20.0 23.4 26.8 30.3 p.a. p.a . p.a . R6.6% % % CAG 4.6 3.9 G R1 G R1 CA CA FY12 FY13 FY14 FY15 FY16 FY11 FY12 FY13 FY14 FY15 FY11
Slide 10: Expansion
E X PA N S I O N + Expansion and strengthening of business across all markets + Growth in development workbook + Asset recycling to fund development of higher grade, modern assets Oakdale Industrial Estate, Australia 9 | GOODMAN GROUP ANNUAL GENERAL MEETINGS – 2015 back next
Slide 11: Expansion: Urban Renewal
E X PA N S I O N URBAN RENEWAL + Realisations are emerging with sites to the value of $1.1 billion conditionally contracted as at 30 June 2015. Now $1.8bn to date + Identified urban renewal sites of more than 35,000 apartments + Significant source of capital to fund future expansion and growth of th
Slide 12: Expansion: The Americas, North America
E X PA N S I O N – T H E A M E R I C A S NORTH AMERICA + Team of 32 people + Development pipeline of A$2 billion across 12 sites + During the year, CPPIB increased equity commitment to Goodman North America Partnership by US$500 million to a total of $US1 billion Goodman Logistics Center Rancho Cuca
Slide 13: Expansion: The Americas, Brazil
E X PA N S I O N – T H E A M E R I C A S BRAZIL + Prudent, low risk approach + Team of 25 people + Development pipeline of $1.3 billion across four sites, with Goodman’s capital commitment limited to $160 million Campo Grande, Brazil 12 | GOODMAN GROUP ANNUAL GENERAL MEETINGS – 2015 back next
Slide 14: A Sustainable and Prudent Company
A S U S TA I N A B L E A N D P R U D E N T C O M PA N Y + Despite the Group’s growth and expansion, Goodman remains a prudently managed company, seeking to provide competitive and sustainable returns for all stakeholders + Efficient allocation of world class human and financial resources to deliver
Slide 15: A Sustainable and Prudent Company
A S U S TA I N A B L E A N D P R U D E N T C O M PA N Y + One of our major global investors, BlackRock, wrote to us highlighting the risks of a “ short-termist phenomenon” that sees companies “underinvesting in innovation, skilled workforces or essential capital necessary to sustain long-term growth
Slide 16: A Sustainable and Prudent Company
A S U S TA I N A B L E A N D P R U D E N T C O M PA N Y + Sustainability is a core theme for + The uplift from the Group’s statutory profit Goodman’s strategy, starting with setting to $1,208 million will be re- invested to fund competitive but realistic and sustainable the Group’s future growth and
Slide 17: A Sustainable and Prudent Company
A S U S TA I N A B L E A N D P R U D E N T C O M PA N Y + For FY2015, the Group had operating earnings of $653 million and made a cash distribution of 22.2 cents per distribution, which totalled $388.3 million, in the form of a trust distribution + A trust is not subject to tax in Australia as long
Slide 18: Remuneration Policy
R E M U N E R AT I O N P O L I C Y + Goodman is a global business operating + The remuneration policies have been in 16 countries with offshore earnings designed to encourage and reward superior contributing 55% of operating EBIT performance that is aligned with the + The remuneration policy is focu
Slide 19: Remuneration
R E M U N E R AT I O N + The Board also considers that a significant component of total remuneration should be delivered through equity plans. This encourages long term decision making and promotes strong alignment between the interests of Securityholders and employees + Every Goodman staff member a
Slide 20: Board Re-election
BOARD RE-ELECTION + Directors standing for re-election to Goodman Limited: – Ms Rebecca McGrath – Mr Jim Sloman – Mr Philip Pearce MS REBECCA MCGRATH INDEPENDENT DIRECTOR, APPOINTED 3 APRIL 2012 MR PHILIP PEARCE M A N A G I N G D I R E C T O R , G R E AT E R C H I N A , APPOINTED 1 JANUARY 2013 MR J
Slide 21: The Best Performing CEOs in the World
THE BEST PERFORMING CEOs IN THE WORLD H A R VA R D B U S I N E S S R E V I E W + “The knock on most business leaders is that they don’t take the long view – that they’re fixated on achieving short term goals to lift their pay” + HBR undertook a study to determine “which global CEOs actually delivere
Slide 22: The Best Performing CEOs in the World
THE BEST PERFORMING CEOs IN THE WORLD H A R VA R D B U S I N E S S R E V I E W TSR CEO OVERALL START TSR OVER RANK COMPANY RANK YEAR TENURE (%) 1 2 Leslie Wexner L Brands Warren Buffett 11 101 1963 1970 549,253 318,407 It makes sense: 3 Berkshire Hathaway Rodney Sacks 121 1990 89,645 To earn the rig
Slide 23: Group CEO's Address
GROUP CEO’S ADDRESS 22 | GOODMAN GROUP ANNUAL GENERAL MEETINGS – 2015 back next
Slide 24: A Business for the Future
A BUSINESS FOR THE FUTURE + Evolution of warehousing being driven by: – Globalisation of e-commerce – More speed and efficiency in global consumer markets + Presenting an exciting opportunity for Goodman Goodman Wuqing E-Commerce Park, China 23 | GOODMAN GROUP ANNUAL GENERAL MEETINGS – 2015 back nex
Slide 25: Operating Results
O P E R AT I N G R E S U LT S As at 30 September 2015: + Over $32 billion of assets under management + 96% occupancy + $3.4 billion of development work in progress + $2.5 billion of asset sales completed (exc. urban renewal sites ) since start of FY15 – financing Goodman’s development activities + F
Slide 26: Global Business
GLOBAL BUSINESS + Goodman services major gateway cities around the world LONDON FRANKFURT PARIS NEW YORK TOKYO LOS ANGELES SHANGHAI HONG KONG SYDNEY AUCKLAND 25 | GOODMAN GROUP ANNUAL GENERAL MEETINGS – 2015 back next
Slide 27: Long-term Value from Urban Renewal
L O N G - T E R M VA L U E F R O M U R B A N R E N E WA L + Industrial sites bought 20 years ago are creating significant future value + Industrial property is one of the most attractive institutional grade investments today + $1.8 billion of urban renewal sites completed and contracted to date + Fu
Slide 28: Leading Provider of Warehouse Space
L E A D I N G P R O V I D E R O F WA R E H O U S E S PA C E + Goodman ranked #1 developer in Europe for 4th consecutive year + A leader in its other operating markets around the world + Strong foundations being laid in the US – Current development and investment pipeline primarily in Los Angeles and
Slide 29: Long-term Relationships and a Skilled Team
LONG-TERM REL ATIONSHIPS AND A SKILLED TEAM + Goodman has: – Partners not investors – Customers not tenants + Reflects the value of the long-term relationships that have been built + Thank you to Goodman’s team for their efforts in the ongoing execution of the long-term plan 28 | GOODMAN GROUP ANNUA
Slide 30: Outlook and Summary
OUTLOOK AND SUMMARY + Focused on the future, the further evolution + FY16 full year earnings guidance reaffirmed of Goodman’s global business and evolution – Operating earnings per security of 39.4 of the warehouse sector cents, up 6% on FY15 + Operating activities are performing strongly – Full yea
Slide 31: Thank You
GOODMAN GROUP ANNUAL GENERAL MEETINGS–2015 THANK YOU 30 | GOODMAN GROUP ANNUAL GENERAL MEETINGS – 2015 back next
Slide 32: CEO's Address (written)
CEO’s ADDRESS GOODMAN GROUP – ANNUAL GENERAL MEETING 25 NOVEMBER 2015 AT 10:00AM THE WESTIN SYDNEY Thank you Ian and good morning ladies and gentlemen. Goodman is truly a business for the future. The increasing globalisation of online shopping and the need for greater speed and efficiency in global
Slide 33: CEO's Address (written), continued
urban renewal sites, which in turn is financing our growing development activities. Our focus is not on being the biggest, but the best at what we do around the world, by striving to own the best assets in the best locations. Goodman is a truly global business, servicing the major gateway cities of
Slide 34: CEO's Address (written), continued
Goodman has completed and contracted $1.8 billion of urban renewal sales to date, over sites for approximately 10,000 apartments. Significantly, we retain a pipeline of 35,000 apartments, which will provide tremendous value spanning the next decade. This provides a significant long-term source of ca
Slide 35: CEO's Address (written), continued
At Goodman we refer to our investors as partners and our tenants as customers, reflecting the value of the long-term nature of the relationships that we build together over many years. The ongoing execution of Goodman’s long-term plan is underpinned by our skilled and dedicated team of people across
Slide 36: CEO's Address (written), conclusion
On that note, we are pleased to reaffirm our operating earnings per security guidance for FY16 of 39.4 cents, up 6% on last year. Importantly for investors, our forecast full year distribution is 23.8 cents per security, up 7% on last year. In closing, we look forward to the future with excitement a