Mirvac Group · ASX:MGR
Mirvac — Shareholder Meeting (November 2005)
58 slides from Mirvac's shareholder meeting presentation, Nov 10, 2005
Slide 1: Annual General Meeting cover letter to ASX
10 November 2005 Company Announcements Office Australian Stock Exchange Limited Level 4, 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam ANNUAL GENERAL MEETING In accordance with Listing Rule 3.13.3 | attach the Chairman’s Address and presentation slides to be delivered to this morning’s Annual Gene
Slide 2: Chairman's Address: Financial Results
CHAIRMAN’S ADDRESS MIRVAC AGM — 10 NOVEMBER 2005 FINANCIAL RESULTS THE 2005 FINANCIAL YEAR REPRESENTED A DIFFICULT YEAR FOR THE PROPERTY INDUSTRY AND MIRVAC’S PROFIT AFTER TAX WAS $233.3. MILLION, COMPARED TO $252.7 MILLION IN 2003/04. SECURITYHOLDERS RECEIVED TOTAL DISTRIBUTIONS OF 33.8 CENTS PER S
Slide 3: Board Composition
BOARD COMPOSITION THERE WERE A NUMBER OF CHANGES TO THE BOARD DURING THE YEAR WITH ROBERT WEBSTER, BARRY NEIL AND ANNA BUDULS RETIRING. AS PART OF THE BUSINESS OF THE MEETING, TWO OF YOUR DIRECTORS WILL BE SEEKING ELECTION —- MR JAMES MACKENZIE AND MR RICHARD TURNER. ALSO, AS ANNOUNCED PREVIOUSLY TO
Slide 4: Generational change and appointment of Greg Paramor
A CRITICAL PART OF THIS GENERATIONAL CHANGE IS THE APPOINTMENT OF GREG PARAMOR, WHO FOUNDED JAMES FIELDING GROUP, TO SUCCEED BOB HAMILTON AS MANAGING DIRECTOR OF MIRVAC. FOLLOWING THE AGREEMENT OF JAMES FIELDING SECURITYHOLDERS, MIRVAC’S ACQUISITION OF JAMES FIELDING GROUP WAS COMPLETED IN JANUARY T
Slide 5: Employee Incentive Scheme
EMPLOYEE INCENTIVE SCHEME AS PART OF THE FORMAL PROCEEDINGS OF THE MEETING WE WILL ASK YOU TO VOTE ON FIVE IMPORTANT RESOLUTIONS. YOU WILL ALSO HAVE THE OPPORTUNITY TO ASK QUESTIONS PRIOR TO EACH RESOLUTION BEING PUT TO THE MEETING. THE FINAL RESOLUTION TODAY WILL SEEK YOUR APPROVAL IN THE PARTICIPA
Slide 6: Executive reward and move to formal proceedings
COMPETITIVE, AND REWARD EXECUTIVES ON BOTH A LONG AND SHORT TERM BASIS. WE BELIEVE THEREFORE WE HAVE THE RIGHT BALANCE OF REWARD TO PERFORMANCE AND WHICH FIRMLY ALIGNS EXECUTIVE GOALS WITH THOSE OF SECURITYHOLDERS. | WOULD NOW LIKE TO MOVE TO THE FORMAL PROCEEDINGS OF THE MEETING.
Slide 7: James Mackenzie Address to Mirvac Securityholders
JAMES MACKENZIE ADDRESS TO MIRVAC SECURITYHOLDERS THANKYOU ADRIAN. FIRST, | WOULD LIKE TO THANK ALL SECURITYHOLDERS FOR ELECTING ME AS A DIRECTOR ON THE MIRVAC BOARD TODAY. SECOND, !| WOULD LIKE TO THANK ADRIAN ON BEHALF OF ALL SECURITYHOLDERS FOR HIS GUIDANCE, WISE COUNSEL AND LEADERSHIP OF THE MIR
Slide 8: 2005 Annual General Meetings of Mirvac Group
per MIRVAC: 2005 Annual General Meetings of Mirvac Group 10 November
Slide 9: Ray
es Ray 8 in & iad Rey pe. ha ¥ 4 C i ( e€ ian Lan Adr AO Miller
Slide 10: Political Contributions
Political Contri In the last financial year (2004/5) th to political parties, contributed as fo low * Liberal/National $66,000 * Labor $88,500 * Independent $1,000
Slide 11: Items of business
* [tem 1: Statutory Accounts and Reports * ltem 2: Remuneration Report « item 3: Mirvac Limited — Election of Directors James Mackenzie Richard Turner « item 4: Approval of replacement Deed of Co-operation « tem 5: Issue of Stapled Securities to Greg Paramor — Managing Director
Slide 12: Item 1: Statutory Accounts and Reports
Item 1: miRvAC fi Statutory Accounts and Reports - 33 To receive and consider the Financial Reports of Mirvac Group, Mirvac Limited and Mirvac Property Trust, and the Reports of the Directors and of the Auditors for each entity for the year ended 30 June 2005. ANNUAL,
Slide 13: Item 2: Remuneration Report Resolution
ltem 2: Remuneration Repc Resolution 1 To consider and, if thought fit, to pass the following as an ordinary resolution of Mirvac Limited: “That Mirvac Limited’s Remuneration Report for the financial year ended 30 June 2005 be approved.”
Slide 14: Remuneration Report Proxy Votes
Remuneration Rep Proxy Votes Votes Total number of valid proxy votes received: 494,677,918 Votes in favour of the resolution: 385,078,691 Votes abstaining on the resolution: 42,572,943 ANNUAL of which, were at Chairman’s discretion: 15,789,129 There were no Stapled Securities excluded from voting on
Slide 15: Item 3: Election of Directors - James Mackenzie
Item 3: Mirvac Limited — Election Resolution 2 — James MacKenzi To consider and, if thought fit, to pass the following as an ordinary resolution of Mirvac Limited: “That Mr James Mackenzie be elected as a director of Mirvac Limited.”
Slide 16: Election of James Mackenzie Proxy Votes
Resolutio Election of James Proxy Votes Votes Total number of valid proxy votes received: 494,677,918 Votes in favour of the resolution: 450,141,206 ~ Votes against the resolution: 26,880,575 Votes abstaining on the resolution: 524,738 Votes at the proxy’s discretion: 17,131,399 of which, were at Ch
Slide 17: Item 3: Election of Directors - Richard Turner
Item 3: Mirvac Limited — Election Resolution 3 — Richard Turner” To consider and, if thought fit, to pass the following as an ordinary resolution of Mirvac Limited: “That Mr Richard Turner be elected as a director of Mirvac Limited.”
Slide 18: Election of Richard Turner Proxy Votes
Resolution Election of Richard Tt Proxy Votes Votes % Total number of valid proxy votes received: 494,677,918 100. Votes in favour of the resolution: 476,605,935 96 ~ Votes against the resolution: 2,083,886 4 Votes abstaining on the resolution: 490,248 - Votes at the proxy’s discretion: 15,497,849.
Slide 19: Item 4: Approval of Replacement Deed of Co-operation
Bai MIRVAC ANNUAL. Item 4: Approval of replacement De Resolution 4 To consider and, if thought fit, to pass the following as an ordinary resolution of each of Mirvac Limited and Mirvac Property Trust: “That Mirvac Limited (“Mirvac”) and Mirvac Funds Limited (“MFL”) as responsible entity of Mirvac Pr
Slide 20: Approval of Replacement Deed Proxy Votes
Approval of Replacement Deec Proxy Votes Votes Votes in favour of the resolution: 469,228,108 ~ Votes against the resolution: 812,929 Votes abstaining on the resolution: 7,270,854 Votes at the proxy’s discretion: 17,366,027 ANNUAL of which, were at Chairman’s discretion: 16,004,300 There were no Sta
Slide 21: Item 5: Issue of Stapled Securities to Greg Paramor
: Item. Issue of Stapled Securities to Greg | Resolution 5 To consider and, if thought fit, to pass the following as an ordinary resolution of each of Mirvac Limited and Mirvac Property Trust: “That the participation in the Employee Incentive Scheme (“EIS”) by the issue of stapled securities to a va
Slide 22: Issue of Stapled Securities Proxy Votes
Resolutio Issue of Stapled Securities to Greg Pi are Votes % Total number of valid proxy votes received: 483,058,534 100- Votes in favour of the resolution: 285,283,963 59 ~ Votes against the resolution: 188,753,087 a) Votes abstaining on the resolution: 2,394,604 4 z Votes at the proxy’s discretion
Slide 23: i ( é€ i is a s N = ~ A ss Q Nd
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Slide 24: Greg Paramor
ani iii i Greg Paramor
Slide 25: Key highlights of the year
The acquisition of James Fielding Group successfully completed Challenging period as residential market slowed Premium brand in residential projects Strong residential & non-residential development pipeline Expanding recurrent earnings through investmenis and funds management Experienced management
Slide 26: Platform for Growth
Bai MIRVAC Platform for G OW -Property Trust(s): —_ Commercial industrial Retail Hotels Car parks Portfolio value - $2.9bn investment ~ Residential (18,697 lots under controf} - Retail - Commercial ~ Industrial - Hotels Residential pipeline $8.5bn Non-rest pipeline of $2.36n - 3owned: - The Como ~ S
Slide 27: Financial Highlights
Bai MIRVAC Financial High ° Net profit of $233.3m - $2.3m above the May 05 guidance ° Distribution of 33.80 cents - 5% increase from FY04 ° Retained profits - currently $127.7m ie Increase in total assets from $4.3bn to $5.5bn ° Asset revaluation of $59.3m across the investment portfolio . NTA is $3
Slide 28: Sustainability
Sustainabilit Commitment to be a leader ° Introduction of new technologies and practical measures: - reduce greenhouse gas emissions - promote best practice in energy and water savings * Key sustainable achievements for 2005 included: — investment: introduced software to reduce energy consumption; l
Slide 29: Investment Division
Holden HQ, Victoria Investment Division
Slide 30: Investment Division Highlights
MIRVAC I Highlights - a * Investment division net profit after tax of $151.4m', an 11.6% increase on FY04 (budget FY06 $159.9m - 5% increase) * Investment portfolio grown to $2.9bn through acquisition of James Fielding, internal developments and revaluations * Acquisitions completed during the year:
Slide 31: Sector and Geographic Diversification
Hotel/ LPT/ Car Infra Parking 6% 3% ee Retail =— 26% 4 ae os = NSW oe 56% ce a to) 3. Indust/Other Office : 55% Z 10% <—f Sector Diversification Geographic Diversification t. Geographic diversification chart excludes LPT/infrastructure
Slide 32: Nexus Industry Park and Darling Island
Nexus Industry Park, Liverpool - 15 year pre-commitment to Atlas Holdings for 13,000 sqm — construction commenced - Commitments from major users likely to fill Park in the near term Darling Island, Pyrmont - Interest from corporate tenants seeking large floor plates at competitive rents increasing a
Slide 33: Retail expansion and development
nsion | development and 4 nning- Waverley Gardens * Stage 1 completed * Stage 2 commenced for new Big W and specialties » Total area - 35,605 sqm Hinkler Central * Construction well advanced with opening due mid 2006 * 70% leased * Total area ~ 22,000 sqm Ballina Central * Construction and leasing c
Slide 34: Retail development highlights
nt Highli Orion Town Centre (Stage 1) * Piling works commenced * Leasing commenced with scheduled opening Easter 2007 * Total area ~ 35,000 sqm Stanhope Gardens (Stage 2) * DA lodged for new discount department store and specialties Fag ANNUAL GE * Total area ~ 7,800 sqrn St Marys Village « Refurbis
Slide 35: Significant Current and Future Development Projects
PNMOE STM EN TS Significant Current and Future Dev Projects Est. Value ($m) Waverley Gardens | 62 Waverley Gardens II 25 Hinkler Central - Bundaberg ~ 42 Orion Town Centre Stage 1(66%) 4410 Ballina Central 43 St Marys Village 3 Total Retail» 275 Darling Island 1 410 Total Commercial. 416 Nexus Indus
Slide 36: Investment Outlook
Outloo S Portfolio in very good shape e Weighted average lease expiry: commercial 3.9 years, retail - 6.1 years, industrial - 5.0 years * Significant development projects — retail, commercial and industrial — in place over next 5 years s identified asset sales to commence prior to Jan 2006 to improv
Slide 37: Hotels Division
Hotels Division
Slide 38: Hotels Division Highlights
° Profit after tax increase of 31% to $11.8m « Mirvac Hotels and Resorts awarded Best Accommodation Chain in Australia, New Zealand and South Pacific! « Additions to management portfolio: Quay West Resort Bunker Bay, WA - Sea Temple Resort & Spa Palm Cove, QLD - The Sebel Maroochydore, QLD ¢ Acquire
Slide 39: Hotels Outlook
aon “SA OTELS HOTELS rn MIRVAC « Continue to expand hotels under management from 2,750 to more than 2,990 rooms * Open The Sebel Trinity Wharf Tauranga (NZ), Sea Temple Resort & Spa Port Douglas, The Sebel Harbour Lights Cairns, and Quay West Resort Magenta Shores. « Refurbish Quay Grand Suites Sydn
Slide 40: SSS
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Slide 41: Funds Management Highlights
= < te: ANNUAL, Net profit after tax of $5.1m (6 months to June 2005) Funds under management increased by 66% to $2.5bn' JF Meridian Trust assets increased by 41% to $924m Launched: ~ JF US Industrial Trust ~ James Fielding Infrastructure Growth Fund - JF AQUA Income and High Income Funds Acquired T
Slide 42: Funds Under Management
Bn di MIRVAC ANNUAL.GENERALM “ey Funds Under Mana . JF Direct Domaine PFA 3% 10% 7% PJF2 9% ARF 1% eesetieaatll | JFM 38% 1. After adjusting for joint venture interests — 2. Sold post 30 June JFUSIT 5% JF Capital 4% HCP 13% JF Infra 10%
Slide 43: Funds under management forecast to increase to $3.5bn
Funds under management forecast to increase to $3.5bn Continue to launch selected new funds in areas of infrastructure, property debt and unlisted property funds Provide new sources of third party capital for Mirvac Facilitate new investment/development opportunities for Mirvac Leverage off enhanced
Slide 44: Residential Development
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Slide 45: Major Developments
ANNUAL GE Major Developmen Pacific Place, Chatswood Acquired: Aug 1998 Total project value: $424m Project period: 2003 ~ 2009 Total lots: 565 Developed: 434 To be developed: 131 Cambridge Apartments Magenta Shores, Magenta Acquired: Oct 2001 Total project value: $530m Project period: 2004 ~ 2010 Tot
Slide 46: Major Developments
Waterline, Bulimba Acquired: July 2002 Total project value: $133m Project period: 2004 ~ 2008 Total lots: 142 Ephraim Island, Gold Coast! Acquired: Nov 2002 Total project value: $545m Project period: 2003 — 2008 Total lots: 383 ENERAL Tennyson Riverside Development Acquired June 2005 Total project v
Slide 47: Major Developments
Beacon Cove, Port Melbourne’ Acquired: 1995 Total project value: $130m (Stage 8) Project period: 2003 — 2006 (Stage 8) Total lots: 108 (Stage 8) Yarra’s Edge, Docklands Acquired: 1997 Total project value: approx. $1.45bn Project period: 1997 ~ 2015 Lots developed: 756 Lots to be developed: 850 ~ 1,0
Slide 48: Major Developments
Major Developments Peninsula, Burswood! Acquired: Apr 2003 Total project value: $800m+ Project period: 2002 ~ 2015 Total lots: 1,000+ Mandurah Estates Acquired: Aug 2003 Total project value: $688m Project period: 2003 ~ 2007 Total lots: 3,797 eee He Ze Hollywood & Swanbourne High Schools! Nedlands &
Slide 49: Major Developments
Mornington, Holsworthy Acquired: Feb 2003 Total project value: $93m Project period: 2004 — 2007 Total lots: 255 Glenfield Road, Casula Acquired: Jun 2001 Total project value: $250m Project period: 2001 ~ 2008 Total lots: 615 ENERAL Edgewood, Woodcroft! Acquired: Apr 2003 Total project value: $118m P
Slide 50: Residential development focus
* Focus on major integrated developments « Expand number of lifestyle developments « Residential sales pipeline - exchanged contacts of $877 million (at 30 June) *« Expanded non-residential development team with mandate to acquire development opportunities primarily in commercial and industrial
Slide 51: Ze Ly
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Slide 52: Macro Environment
Macro Environmen « Interest rates ~ low but upward bias ¢ International migration — close to record high « Labour market ~- Unemployment low (5.1%) - Participation rate high - Wages growth strong (5% to 6%) e Economy to accelerate in 2005/6 « Business investment a key driver for FY05/06
Slide 53: Residential market conditions
ANNUAL. 2 Dwelling approvals on trend — 156,000 past twelve months - Supply/demand in balance overall - NSW the weakest sub-market - WA, QLD buoyant - VIC and SA housing improving - Docklands — still a way to go First-home buyers returning to the market Rental markets remain tight - Localised and te
Slide 54: Non-Residential Conditions
Non-Residential - Conditio Retail — Investment demand to remain strong - Retail turnover back to trend — 3% to 4% PA Office sector recovering - Diverse market cycles but overall positive absorption Hotels strong - Domestic business and tourism rising - International visitor numbers back on trend Com
Slide 55: Mirvac will continue to grow recurrent earnings
Mirvac will continue to grow recurrent earnings Leverage off our integrated property platform Maintain our position as the leading residential brand in Australia Continue to optimise Mirvac Property Trust’s portfolio Continue to develop our management team to remain industry leaders Strong diversifi
Slide 56: Mirvac's first employee
Mirvac’s first employee Over 30 years contribution Helped build Mirvac into one of Australia’s leading property investment & development groups Executive Director since 1987
Slide 57: Robert Hamilton
Robert Hamiltc * Co-Founded Mirvac Group 1972 * Over 30 years contribution * Passion for adopting highest quality standards * Helped build Mirvac into one of Australia’s leading property investment and development groups
Slide 58: 2005 Annual General Meetings of Mirvac Group
A 2005 Annual General Meetings of Mirvac Group 10 November MIRVAG