Goodman Group · ASX:GMG
Goodman — Shareholder Meeting (November 2012)
35 slides from Goodman's shareholder meeting presentation, Nov 16, 2012
Slide 1: Chairman's Address cover letter to ASX
16 November 2012 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 ADDRESS Please find attached the Chairman’s and Group Chief Executive Officer’s presentations and the CEO’s written
Slide 2: Goodman Group Annual General Meetings
Goodman Group Annual General Meetings 16 November 2012 Westin Hotel, Sydney Global partner + Global platform
Slide 3: Directors and Executives
Directors and Executives Mr Ian Ferrier Mr Phillip Pryke Independent Chairman Independent Director Mr Gregory Goodman Ms Rebecca McGrath Group Chief Executive Officer Independent Director Mr John Harkness Mr Philip Fan Independent Director Independent Director Ms Anne Keating Mr Philip Pearce Indepe
Slide 4: Agenda
Agenda + Chairman’s Address + Group CEO’s Address + Formal Business 3
Slide 5: Chairman's address
Chairman’s address Overview Zalando development, Germany 4
Slide 6: Overview
Overview + Achieved strong financial result and remained committed to our strategy – Operating profit of $463 million – Statutory profit of $408 million – Debt maturities are fully covered to [FY2016] with significant liquidity – Average debt maturity of 5.9 years – Fully diluted EPS of 30.5¹ cents,
Slide 7: Overview
Overview + Achieved strong financial result and remained committed to our strategy – Successfully completed $400 million fully underwritten institutional placement at $4.25 per security to fund identified long term growth opportunities in a sustainable manner – Launching Security Purchase Plan for u
Slide 8: Overview
Overview + Goodman has expanded its global platform and continues to build a sustainable business – Strong capital partners – Global network expansion into large and high growth markets – Prudent allocation of resources – Global and stable customer base 7
Slide 9: Chairman's address: Sustainability
Chairman’s address Sustainability M20 Business Park, New Zealand 8
Slide 10: Global forces and trends shaping our operation and sustainability
Global forces and trends shaping or impacting our operation and sustainability + Developing economies – Their emergence is reshaping traditional economic world order. – Brazil and China are some of the most dominant and influential economic players. – Have largest populations and some of the fastest
Slide 11: Global forces and trends shaping our operation and sustainability
Global forces and trends shaping or impacting our operation and sustainability + Consumption patterns – Rising middle class. – By 2025 India and China will account for almost half the world’s output with millions lifted out of poverty. – In Brazil over 30 million people have moved into the “ middle
Slide 12: Global forces and trends shaping our operation and sustainability
Global forces and trends shaping or impacting our operation and sustainability + Global connected markets – Shift in the way markets are connected, influencing consumption patterns and the way products are manufactured, purchased and transported. – Positive impact on the services which Goodman provi
Slide 13: Major new initiatives
Chairman’s address Major new initiatives Pudong International Airport Logistics Park, China 12
Slide 14: Major new initiatives
Major new initiatives + Internal Restructure of the Group – March 2012 – Over 600 employees and 41% of earning outside Australia – Added Goodman Logistics (HK) Limited to internal structure to reflect the global nature of the business and growth of operations globally – Improve Group’s profile in As
Slide 15: Major new initiatives
Major new initiatives + Launch into Brazil – November 2012 – Formed joint venture with WTORRE – Develop prime logistics and industrial properties + Japan Consolidation – November 2012 – Privatised Japan business – Agreed commercial terms to consolidate Goodman’s interest in Macquarie Goodman Japan –
Slide 16: Capital management initiatives
Capital management initiatives + Goodman has maintained its commitment to a sound financial position and retained its strong balance sheet over the year with the completion of a number of capital management initiatives that have diversified debt funding sources and extended the maturity profile + Ra
Slide 17: Board renewal
Chairman’s address Board renewal Moorebank Business Park, Australia 16
Slide 18: Board renewal
Board renewal + Given our international focus now taking the opportunity to diversify the skill set of the Board by introducing new members with international experience + Directors standing for election: – Ms Rebecca McGrath; and – Mr Philip Fan + Directors standing for re-election: – Mr James Slom
Slide 19: Board renewal
Board renewal + Board announced the appointment of three new Executive Directors of Goodman Limited from 1 January 2013 – Mr Anthony Rozic – Deputy Chief Executive Officer – Mr Danny Peeters – CEO Continental Europe and WTGoodman Board member – Mr Philip Pearce – Managing Director Greater China and
Slide 20: Group CEO's address
Group CEO’s address Arnstadt Logistics Centre, Germany 19
Slide 21: Opening remarks
Opening remarks + Strong financial performance in FY2012 + Well positioned as a global leader in the sector and to drive sustainable future growth + Selectively and prudently capitalising on customer and investor demand + Pace of growth accelerating across Goodman’s business activities – $2 billion
Slide 22: Expansion of global platform
Expansion of global platform + Entered North American and Brazilian markets 21
Slide 23: Accelerating business activity
Accelerating business activity + Strong and growing presence in Asia – $3 billion in total assets under management – Development pipeline with end value of over $1.5 billion – Team of approx. 400 people working in China, Hong Kong and Japan Artist’s impression: 102,000 sqm facility for Vipshop Artis
Slide 24: Accelerating business activity
Accelerating business activity + Market share growing in Europe – Largest developer of logistics space – $700 million of development projects currently underway + Dominant providers of industrial and business space in Australia and New Zealand – Undersupply of high quality space driving development
Slide 25: Capital partners
Capital partners + Capital partnering remains key to prudently growing business activities + $900 million of third party equity raised in FY2012, with more than $1.5 billion of third party equity initiatives announced since 30 June – $300 million equity commitment from Malaysia’s Employees Provident
Slide 26: Capital management – equity raising
Capital management – equity raising + Committed to maintaining a sound financial position + Completed $400 million institutional placement + Offering Security Purchase Plan and activating Distribution Reinvestment Plan + Initiatives undertaken will: – Help fund the stronger than anticipated business
Slide 27: Outlook
Outlook + Goodman is well positioned and building a quality global brand and reputation + Performing strongly and taking advantage of a wide range of opportunities – Significant customer and investor demand for prime quality industrial space + Long-term growth driven by: – Strength of capital partne
Slide 28: Thank you
thank+you
Slide 29: CEO's Address
CEO’s ADDRESS GOODMAN GROUP – ANNUAL GENERAL MEETING 16 NOVEMBER 2012 AT 10:00AM THE WESTIN, SYDNEY Thank you Ian and good morning ladies and gentlemen. Goodman has performed very well over the last year delivering a full year operating profit of $463 million, operating earnings per security of 30.5
Slide 30: CEO's address (continued)
projects in 10 countries, and our total assets under management which have increased to over $20 billion. We are benefitting from stable property fundamentals. Occupancy remains high across our total portfolio at 96%, and we completed 1.9 million sqm of leasing activity during the year, equating to
Slide 31: CEO's address: Asia
Asia is a very important market for Goodman and we have a strong and growing presence in the region, with operations in China, Hong Kong and Japan and a dedicated local team of around 400 people working in these businesses. We have over $3 billion in assets under management in Asia and a development
Slide 32: CEO's address: Europe, Australia and New Zealand
In Europe, we have grown our market share to become the largest developer of logistics space in that market, delivering over one million sqm of new logistics space in 2012. Development momentum continues to be very strong and is exceeding our expectations in the 2013 financial year to date, with $70
Slide 33: CEO's address: capital partners
into North America, while increasing the capital allocated to our China joint venture. Abu Dhabi Investment Council committed US$250 million of equity via a new Japan Development Partnership with Goodman to help fund our $700 million development pipeline. In Europe, we secured additional equity comm
Slide 34: CEO's address: outlook
Goodman’s key operating markets globally and to provide funding for the Group’s entry into Brazil, while maintaining our sound financial position with long-term gearing stable around 25%. To illustrate some of the initiatives and operating activities we are undertaking, I’d now like to play a short
Slide 35: CEO's address: closing thanks
Finally, I would like to thank all stakeholders for your ongoing support and the Goodman team for your hard work and commitment in helping to drive the performance of our business and ensure we are very well positioned for the future.