Stockland · ASX:SGP
Stockland — Merger or Acquisition (August 2010)
14 slides from Stockland's merger presentation, Aug 2, 2010
Slide 1: Cash offer to acquire Aevum
For personal use only Stockland Cash offer to acquire Aevum 2 August 2010
Slide 2: Executive summary
Executive summary ► Stockland is seeking to substantially grow its Retirement Living business with an attractive offer to For personal use only acquire Aevum, a major retirement living operator, which values all of Aevum’s equity at $266 million • Offer is an all-cash off-market bid at $1.50 per sha
Slide 3: Overview of the Offer
Overview of the Offer For personal use only Stockland has announced a compelling all-cash offer to acquire the outstanding share capital of Aevum • Off-market cash offer of $1.50 per share, valuing all of Aevum’s equity at $266 million Compelling • Implied enterprise value of $358 million 1 Offer •
Slide 4: Accelerates growth and diversification of Stockland's Retirement Living business
Accelerates growth and diversification of Stockland’s Retirement Living business For personal use only 1. Strong strategic fit – Meets Stockland’s strategic filters (portfolio fit and securityholder value creation) – Asset quality and market positioning well aligned with Stockland portfolio – Cultur
Slide 5: Transaction meets Stockland's financial criteria
Transaction meets Stockland’s financial criteria For personal use only ► Expected to be EPS neutral in FY11 and ~2% EPS accretive1 in FY12 Value impact ► Almost doubles revenue and delivers economies of scale ► Accelerates growth and delivers some cost synergies ► Enhanced cash flow profile from inc
Slide 6: Aevum is the largest ASX-listed pure Retirement Living company
Aevum is the largest ASX-listed pure Retirement Living company For personal use only Established Retirement Retirement Living Aged Care Living Villages Development Pipeline c5% of Net Assets2 c80% of Net Assets c15% of Net Assets1 ► Owns and manages 29 ► 9 major development sites ► Exposure limited
Slide 7: Favourable impact on operational metrics; Stockland will become a top 3 operator
Favourable impact on operational metrics; Stockland will become a top 3 Retirement Living operator For personal use only Before1 After1 Change 3,974 units 7,082 units +78% Portfolio Size ► Nearly doubles portfolio size 24 villages 53 villages +29 villages National #4 #3 +1 ranking ► Clear #3 in the
Slide 8: Geographic and development diversification and critical mass
78% 78% 96% 96% 100% 100% Geographic and development diversification and critical mass For personal use only Geographic diversification 22% Development diversification 22% (% of portfolio by number of living units) (% of development pipeline living units) 4% 4% SGP AVE Combined SGP AVE Combined 6% 3
Slide 9: Compelling offer for Aevum shareholders
Compelling offer for Aevum shareholders For personal use only The cash offer provides Aevum shareholders with a ... and allows IOR shareholders to realise substantial premium and certainty of value… a substantial premium on their Aevum shares 2.00 Premium Premium Premium Premium 37.6% 40.2% 32.7% 4.
Slide 10: Summary and indicative timetable
Summary and indicative timetable For personal use only ► Stockland has announced an attractive offer to acquire the 84% of Aevum it does not already own via an off- market cash offer of $1.50 per share ► This transaction would substantially grow Stockland’s Retirement Living business delivering an e
Slide 11: Annexures
For personal use only Annexures
Slide 12: Geographic spread of Aevum retirement villages
Geographic spread of Aevum retirement villages Geographic footprint For personal use only Existing ILUs, SAs & Aged Care2 63% of Aevum’s Retirement Bunbury & Mandurah WA Living units are in 17 villages Villages ILUs SAs AC beds in NSW with the remainder 3 121 0 0 spread across 12 villages in Perth V
Slide 13: Recap: Why Retirement Living is a good investment for Stockland
Recap: Why Retirement Living is a good investment for Stockland ► For personal use only Retirement Living is a genuine megatrend • 65+ age group will grow to c.20% of the total population 1 by 2030 • At the current take-up rate2, demand is expected for c.$30 billion of new property over the next 20
Slide 14: Legal notice
Stockland Corporation Limited LEGAL NOTICE ACN 000 181 733 The material in this presentation is a summary of the proposed takeover offer (“Offer”) for Aevum Limited (ABN 80 087 648 691) Stockland Trust Management Limited (“Aevum”) by Stockland Development Pty Limited (ABN 71 000 064 835)(as trustee