Stockland · ASX:SGP
Stockland — Investor Presentation (November 2006)
58 slides from Stockland's investor presentation, Nov 16, 2006
Slide 1: Overview Victoria Operations
OVERVIEW VICTORIA OPERATIONS November 2006 Stockland HCN
Slide 2: Denis Hickey: Business Overview
DENIS HICKEY CEO Development Division 6) Stockland Business Overview * Overview of Victorian Operation + Market Research Update + Project Overview
Slide 3: Strategic Direction
STRATEGIC DIRECTION Strategy of product leadership for our residential communities business. —diversily of product: (geographically, product Segment and price point) unlock growth through the value chain on long dated projects Deliver on our Apartment business pipeline Deliver retirement living init
Slide 4: Growth Drivers
GROWTH DRIVERS QO Stockland Short Term Marketing campaigns New product launches Projects moving through their life ecycle (creating their own revenue growth) Long Term Land bank — unlocking our pipeline KPI 3 year profit coverage on target Leverage mixed use opportunities Profit from our apartments
Slide 5: Sustainability and Performance
SUSTAINABILITY AND PERFORMANCE Q Stockland Economic conditions ~Mixed across the country Current indicators in the State business FYO7 on target with internal forecast —-NSW is softer then we anticipated, other states are performing in line or better than expectations
Slide 6: Cameron Alderson: Business Overview
CAMERON ALDERSON ~O. General Manager - VIC Stockland Business Overview Overview of Victorian Operatio Market Research Update Project Overview
Slide 7: History - July 2001
HISTORY — JULY 2001 O Stockland VIC nol a focus Growth mandate Good timing Early. Downturn ANC, Downturn
Slide 8: History - October 2003
HISTORY — OCTOBER 2003 ‘The Parks. ao... ‘een Pane Stockland Cash payment before cycle peak Delivery focus Barly: Downturn: Downturn
Slide 9: Recent acquisitions via options
Point Lonsdale: Berwick Springs Sth © Stockland Recent acquisitions via options Combination of cash and options acquisitions ‘Barly Downturn: Late Downturn
Slide 10: Projects Controlled, Total Assets, Market Share
Ee, Stockland Cy i Ey — _ — —Y — Se Projecis Controlled —a & © © ul We wd © me ~ - xr iE s oO td &g Total Assets Market Share
Slide 11: Capability
CAPABILITY © Stockland Scalable Protit focused Slable, diverse Drives strategy ca
Slide 12: Customer Focus: Service Commitment
Stockland ice commitment Increase sales at cheaper rate (word of mouth) Customer service team and whole of off Widen distribution from word of mouth Simplify selection of house then land a © a as S £ 2 © a ‘Ss ie) oO © c co .S) ® © c — ® & 2 Q — © — Po : — STRATEGIC DIRECTION Customer Focus
Slide 13: Strategic Direction: Customer Focus
STRATEGIC DIRECTION Customer Focus © Stockland Customer need One framework Tailored solutions Family and friends Government fit
Slide 14: Diversity and Cohesion
ity Stockland iversi 100% Cohesion 0%D — iversity D — nom 2 — © ae) © a —l ~~ oO =) ao) ) be oO o _e O WI ES ie 0 © uw 3 a wo 0% Cohesion 100%
Slide 15: 100% Cohesion
100% COHESION Stockland ve) LD Le gy Syesoes uy ag - a Boy y a i S J HP oes Le a : : : Thos.
Slide 16: Strategic Direction: Product Leadership
STRATEGIC DIRECTION ‘6) Product Leadership Stockland
Slide 17: Strategic Direction: Product Partners
STRATEGIC DIRECTION Product Partners 6) Stockland B2B commitment Simpler buying New product Wider distribution Lower cost of sale
Slide 18: Strategic Direction: Growth
STRATEGIC DIRECTION Growth Own & partner Delivery excellence Brand upside Research strength © Stockland
Slide 19: Marketing Initiatives and Campaigns
Stockland oe oo So ign ing Initiatives igns FYO/ on track February 06 campaign November 0/7 campa Future Campa lu O a <f = a co) LL. - a Lu 6. ”) Wu wd <f 2) Market | —
Slide 20: Rob Ellis: Business Overview
ROB ELLIS a a re) General Manager - Research Stockland Business Overview Overview of Victorian Operation Project Overview
Slide 21: State Final Demand
Stockland Western ‘Austealia Australia Queensiand State Final Demand Output June Quarter 2006 Mictorig: NSW. —— South Australia a o £ o ° Q © £ cS ae ao) c © © w i s D £ — 3) a & a e o & D < = £12) o = (ot a o 2 g = (Os = 2 G pe a o pee > = ° c 5 3 © & = £ & > Victoria second largest state alter NSW
Slide 22: Employment
Stockland Employment Ot 7 r 1 i t i Ape Jul Oct Jan Apr Jul Jang Jan01 Jan02 Jan03 Jen04 Jan06 Jan0é OS 05 06 06 06 06 Source. ABS. Source: ABS. Consumer demand has eased back through the year Strength of demand for labour has been surprisingly robust Slower economic output will occur — the only iss
Slide 23: Australia: Building Approvals and Mortgage Rates
AUSTRALIA Overview Stockland Building Approvals and Mortgage Interest Rates vy 20000 - 2d0% Approvals (hs) Rates (plus 12mths & inverted) 30% 18000 4 “20% 16000 4 f 10% 14000 4 id J 70% ¥ : 109 42000 4 { oe / i ‘ 20% 40000 4 30% 8000 +-+-+-+ tot A0% wan00 Juns4 Jun68 Jun 92 Jun 96 Jun 00 Jun 04 High
Slide 24: Victoria: Current Activity
ri Stockland Victoria Employment Australia ‘Source: DataStroam: SAO Ws ce a = Vicioria Australia Jan03 dan04 . Jan 05. Jan 06: Victorian Retail Turnover Jan 02 dan01 2 @ 2 oO 2 oO 2 & = OQ 2 8 a ) @ a) 2 gS 2) = oO 5 i) QO 2 > o E ~ 2 a a = S SS ~ oO Ss © = © = ~ & oO 5 2 a = Q ¢ =) = 2 co) <= E 52)
Slide 25: Victoria: Building Activity
_ Building Activity Stockland Victoria Bullding Approvals & Mortgage interest Rate % yoy 3500 3000 2500 2000: pprovals (6 MLN average) - Ibs Mortgage Rate (pits 42 months inverted): 4000 44 f eee Dec 80 Dec 84 Dec88 Dec 92 Dec 96 Dec 00 Dec 04 Victorla building approvals have been in a trend decline
Slide 26: Affordability convergence
Stockland oe Sydney == == Melbourne « ae « Brisbane remus Porth 0 1983 (986 1989 1992 1995 (998 2001 2004 Affordability convergence Less of a draw card to move inter-state Melbourne affordability relatively stable since the start of 2004 Source: DataStream, Stockland, REIA, Residex
Slide 27: Victoria Population Growth
" Stockland oo Pe Po Nel Inersiate Migralian Victoria Population WNgtutal Increase Net Overseas Migtalon Source: ABS Population Growth Oo 2 a Ta ° j@ = = cc £ a Oo se Ss 2 © a E QD g w S io35 2 Oo g s oO c ce Oy pa oO pea cd oO < Ss 2 ig & > & wo wD oO D oO > (o) OY (ay oo — wm Victoria Population g
Slide 28: Victoria Outlook
VICTORIA Outlook Stockland The Victorian economy has held up well: CHALLENGES: Victoria has no mining sector base, therefore reaps non of the benefits Manufacturing sector absorbing higher ‘resource’ inpul costs Population growth Is strongest in the mining states, which will underpin demand for hous
Slide 29: Cameron Alderson: Business Overview
CAMERON ALDERSON 6) General Manager - VIC Stockland Business Overview Overview of Victorian Operation Market Research Update
Slide 30: Metropolitan Melbourne Context
METROPOLITAN MELBOURNE CONTEXT 6) Stockland Yarra / Bay Dandenongs Monash Freeway Western Ring Growth Corridors Inner City Living
Slide 31: Slide 31
Slide 32: Geelong
GEELONG © Stockland Government support Bypass Proximity CBD Coast access Target area
Slide 33: Essence
s oa “ESSENCE fla
Slide 34: South West
SOUTH WEST 4 Est 3 Years supply 2g ” O Stockland Melton Undersupply zoned land UGB change west Deer Park bypass Target area Werribee / Point Cook * Oversupply FHB land * Undersupply 2/3B land
Slide 35: Essence / Hidden Grove
A "ESSENCE HIBDEN GROVE Pe Ried
Slide 36: North West
NORTH WEST ‘6) Stockland Craigieburn SGP zoned land strength Bypass open Mickelham Road upgrade Rail electrification DiaMaria land expansion Sunbury * 400 lots p.a. * Boutique opportunities
Slide 37: Slide 37
Slide 38: North East
NORTH EAST Mirvac $477k/ha © Stockland First mover advantage Large holdings Highly competitive North is the new East Road infrastructure gap Consolidation opportunities
Slide 39: Essence
PAESSENCE
Slide 40: South East
SOUTH EAST QO Stockland Cardinia Est 8 Years supply FHB market Price sensitive Pakenham Bypass Will evolve Strategic late entry i Est 4 Years supply total q : Casey § Est 3 years in BSS region Fi _ « 15/2°¢/3'¢ home buyers * Massive undersupply * High demand
Slide 41: Inner Melbourne
INNER MELBOURNE Surrounding high value O Stockland Tooronga « Limited competing supply * Scale and amenity « Stageable Docklands / Southbank « ~Zyr more over supply Other * Owner occupier results « Brown field sites generally
Slide 42: Stockland Disclaimer of Liability
Stockland Corporation/ Responsible Entity Stockland Corporation Limited ACN 000 181 /33 Stockland Trust Management Limited ACN 001 900 744 160 Floor 167 Liverpool Street SYDNEY NSW 2000 Disclaimer of Liability: While every effort is made to provide accurate and complete information, Stockland docs n
Slide 43: Tooronga Village
TOORONGA VILLAGE November 2006 oe . : es a Lo ae . ; i wage as 2 a
Slide 44: Matthew Belford: Apartments Victoria
MATTHEW BELFORD Manager, Apartments - Victoria © Stockland * Acquisition strategy * Planning strategy and outcome * World class mixed-use project
Slide 45: The Site
— — —— = — <r SITE “ Stockland ‘Blue 8 vern & Camberwell 4 amongst some of Melbourne Hawthorn 7km south of the CBD, 6ha site, suburbs 10 Mal including Toorak, a Ribbon its current state for over 20 years ingered in i ite but has li IC 3! Strateg QD ® D = & ® ea © a fo © E is pos s a = DQ x 2 iy & 5
Slide 46: The Site
THE SITE O Stockland os
Slide 47: Matthew Belford: Apartments Victoria
MATTHEW BELFORD Manager, Apartments - Victoria O Stockland Planning strategy and outcome World class mixed-use project
Slide 48: Acquisition Strategy
Stockland Acquire sites with limited competing supply, high amenity and with the ability to stage to optimise market liming Stockland selected by CML for mixed-use capability and strong corporate relationship Transaction developed that took into account the complexities of the planning process and t
Slide 49: Matthew Belford: Apartments Victoria
MATTHEW BELFORD Manager, Apartments - Victoria © Stockland * Acquisition strategy * World class mixed-use project
Slide 50: Planning Strategy
PLANNING STRATEGY. Stockland Work collaboratively with the Council, the State Government and the community to develop a masterplan for the site site of State and Regional Significance Priority Development Zone
Slide 51: Planning Outcome
Stockland —No requirement for Development Plan prior to Planning Permits —8,000 sqm retail, 4,000 sqm office and 600 dwellings —Minister to remain the Responsible Authority —Support for Stockland s consultation process Support for proposed uses and yield 0) a oO a3 <2 ® 6 Oo sa tea Ys os 2 & os D (a
Slide 52: Matthew Belford: Apartments Victoria
MATTHEW BELFORD Manager, Apartments - Victoria ‘S) Stockland « Acquisition strategy * Planning strategy and outcome orld class mixed-use projec
Slide 53: World Class Mixed-Use Project
WORLD CLASS MIXED-USE PROJECT | | 6) Stockland
Slide 54: World Class Mixed-Use Project
WORLD CLASS IXED-USE PROJECT 6) Stockland ig ss ee — a us a
Slide 55: World Class Mixed-Use Project
WORLD CLASS MIXED-US PROJECT Stockland / We
Slide 56: World Class Mixed-Use Project
: WORLD CLASS MIXED-USE PROJECT Stockland Partnering with CML to deliver a flagship shopping centre « Sustainability Initiatives being targeted: —Stretch targets set for eneray ratings eg 6 star —Reduce potabie water use by 46% —Minimum of 60% of construction waste to be recycled Grey waler recyclin
Slide 57: Indicative program
Stockland id to late 2007 — fon mM ISS — —Commence sales and markeling early 2008 G > © Oo x o oo c o cc & = £ o aS) ® Q Cc ® & = e) 7 ~First settlements late 2009 Project completion 2013 Indicative program:
Slide 58: Stockland Disclaimer of Liability
Stockland Corporation/ Responsible Entity Stockland Corporation Limited ACN 000 181 /33 Stockland Trust Management Limited ACN 001 900 744 160 Floor 167 Liverpool Street SYDNEY NSW 2000 Disclaimer of Liability: While every effort is made to provide accurate and complete information, Stockland docs n