Slide 1: Additional information
For personal use only additional by mirvac information 23 august 2013
Slide 2: Contents
additional information I 23 august 2013 I page 1 Contents by mirvac For personal use only Financial Results Development - Invested capital 2 FY13 statutory to operating profit reconciliation 38 Development invested capital reconciliation *New* 3 FY12 statutory to operating profit reconciliation 40 C
Slide 3: FY13 statutory to operating profit reconciliation
additional information I 23 august 2013 I page 2 FY13 statutory to operating profit reconciliation 1 by mirvac For personal use only Total inc. Investment discontinued Investment Management Development Unallocated Elimination Tax operations June 2013 $m $m $m $m $m $m $m Profit/(loss) attributable t
Slide 4: FY12 statutory to operating profit reconciliation
additional information I 23 august 2013 I page 3 FY12 statutory to operating profit reconciliation 1 by mirvac For personal use only Total inc. Hotel Investment discontinued Investment Management Management Development Unallocated Elimination Tax operations June 2012 $m $m $m $m $m $m $m $m Profit/(
Slide 5: FY13 operating profit by segment
additional information I 23 august 2013 I page 4 FY13 operating profit by segment by mirvac For personal use only Investment Investment Management Development Unallocated Elimination Total June 2013$m $m $m $m $m $m Revenue from continuing operations Investment properties rental revenue 560.8 5.0 —
Slide 6: FY12 operating profit by segment
additional information I 23 august 2013 I page 5 FY12 operating profit by segment by mirvac For personal use only Total inc. Hotel Investment discontinued Discontinued Investment Management Management Development Unallocated Elimination operations operations Total June 2012 $m $m $m $m $m $m $m $m $
Slide 7: Finance costs
additional information I 23 august 2013 I page 6 Finance costs by mirvac For personal use only FY13 ($m) FY12 ($m) % change Interest and finance charges paid/payable net of provision release 113.7 168.4 (32.5) Amount capitalised (62.0) (93.0) (33.3) Interest capitalised in current and prior periods
Slide 8: Group overhead costs
additional information I 23 august 2013 I page 7 Group overhead costs 1 by mirvac For personal use only FY13 ($m) FY12 ($m) % change Employee benefits expenses 92.8 86.6 7.2% Selling and marketing expenses 21.9 28.7 (23.7%) Other expenses 51.0 47.1 8.3% Total overhead expenses 165.7 162.4 2.0% Total
Slide 9: MPT operating EBIT
additional information I 23 august 2013 I page 8 MPT operating EBIT by mirvac For personal use only Detailed breakdown of MPT operating EBIT FY13 ($m) FY12 ($m) Net property income 1 Increase in Net Property Income is due to GE portfolio Office 253.1 242.4 acquisition and leasing at 40 Miller Street
Slide 10: Mirvac statutory income tax calculation
additional information I 23 august 2013 I page 9 Mirvac statutory income tax calculation by mirvac For personal use only FY13 ($m) Profit before tax 116.8 Relates to impairment Less: Trust profit and Group eliminations (442.0) provision on JV investments and loan balances Corporation loss before tax
Slide 11: FY13 contributions to growth
additional information I 23 august 2013 I page 10 FY13 contributions to growth by mirvac For personal use only FY12 to FY13 segmented operating EBIT n FY12 has been restated to remove $475m discontinued operations (sales 465.4 (36.0) of Mirvac Hotel & Resorts and Mirvac Wholesale Hotel Fund) 450 18.
Slide 12: Liquidity profile
additional information I 23 august 2013 I page 11 Liquidity profile 1 by mirvac For personal use only Facility limits Drawn amount Available liquidity Pro forma as at 3 July 2013 ($m) ($m) ($m) Total facilities maturing > 12 months 2,937.9 2 2,260.0 2 677.9 Cash on hand 126.4 2 Total liquidity 804.3
Slide 13: Debt and hedging profile
additional information I 23 august 2013 I page 12 Debt and hedging profile by mirvac For personal use only FY13 breakdown of debt maturities 1 Facility Drawn FY13 hedging and fixed interest profile 2 limit amount $1,500m Fixed Options Swaps Rate Issue / source Maturity date $m $m MTN III March 2015
Slide 14: Commercial
additional information I 23 august 2013 I page 13 For personal use only commercial by mirvac
Slide 15: Commercial market update
additional information I 23 august 2013 I page 14 1 Commercial market update by mirvac For personal use only Office Weighting FY14 Medium term Uncertainties surrounding US monetary policy, Chinese economic growth, a softening in white forecast collar employment and the domestic economy transitioning
Slide 16: Sector and geographic diversification
additional information I 23 august 2013 I page 15 Sector and geographic diversification by mirvac For personal use only Sector diversification 1 n Mirvac increased exposure to the office sector through the 60.4% Office 57.6% GE portfolio acquisition 25.0% n Subsequently the weighting Retail 27.2% to
Slide 17: MPT portfolio snapshot
additional information I 23 august 2013 I page 16 MPT portfolio snapshot by mirvac For personal use only FY13 FY12 MPT – lease expiry profile and variance to 1H13 5 60% Properties owned 1 68 66 NLA 1 1,433,098sqm 1,423,252sqm 50 Book value 2 $6,776.6m $6,002.7m 46.3% WACR 7.48% 7.48% 40 Net property
Slide 18: Top ten tenants by income
additional information I 23 august 2013 I page 17 Top ten tenants by income by mirvac For personal use only Office Retail Rank Tenant Percentage 1 S&P Rating Rank Tenant Percentage 2 S&P Rating 1 Westpac Banking Corporation/St George 18.8% AA- 1 Wesfarmers Limited – Coles 13.3% A- 2 Government 13.3%
Slide 19: MPT weighted average cap rate
additional information I 23 august 2013 I page 18 MPT weighted average cap rate by mirvac For personal use only 9% 8 7.88% 7.74% 7.55% 7.56% 1 7.55% 1 7.49% 1 7.48% 1 7.45% 1 7.48% 1 7.43% 1 7 7.01% 6 5 4 3 2 1 0 1H09 FY09 1H10 FY10 1H11 FY11 1H12 FY12 1H13 FY13 FY13 (ex. GE) 1) Excludes assets held
Slide 20: Office snapshot
additional information I 23 august 2013 I page 19 Office snapshot by mirvac For personal use only FY13 FY12 Office lease expiry profile and variance to 1H13 3 60% Properties owned 32 27 53.6% 50 NLA 695,076sqm 622,495sqm Book value 1 $4,094.1m $3,457.6m 40 WACR 7.52% 7.47% 30 Net property income $25
Slide 21: Office metrics
additional information I 23 august 2013 I page 20 Office metrics by mirvac For personal use only Book value Average passing June 2013 Occupancy 2 gross rent No. of assets $m 1 June 2013 $ per sqm NSW 17 $2,587.6m 96.6% $649 Sydney CBD 9 $1,448.8m 95.2% $774 North Sydney 2 $291.7m 100.0% $751 Sydney
Slide 22: Office development pipeline
additional information I 23 august 2013 I page 21 Office development pipeline by mirvac For personal use only Under construction Fee recognition period and under construction Planning Practical completion Profit recognition profile Construction Project complete Pre-leased Ownership FY14 FY15 FY16 FY
Slide 23: Commercial development hypothetical fund through
additional information I 23 august 2013 I page 22 Commercial development hypothetical fund through by mirvac For personal use only Profile of commercial Indicative generic cashflow profile – commercial development – single commercial tower DMA for JV (MPT and partner) development 80% Cumulative cash
Slide 24: Commercial development hypothetical fund through
additional information I 23 august 2013 I page 23 Commercial development hypothetical fund through by mirvac For personal use only Typical commercial development transaction n Mirvac Development seek lease commitment from anchor tenant n Land acquired and held in MPT sub-trust, 50% interest sold to
Slide 25: Retail snapshot
additional information I 23 august 2013 I page 24 Retail snapshot by mirvac For personal use only Comparable Comparable FY13 FY12 Retail sales Total MAT MAT growth MAT growth by category FY13 $m FY13 % FY12% Properties owned 19 19 Non-food majors $238.9 (0.5%) (1.1%) NLA 390,651sqm 388,865sqm Food m
Slide 26: Retail development pipeline
additional information I 23 august 2013 I page 25 Retail development pipeline by mirvac For personal use only Under construction Planning Project 1 Status FY13 FY14 FY15 FY16+ Kawana Shoppingworld (Stage 4) Redevelopment $63.8m, 8.04% Buddina, QLD (100%) Commenced Jul 12 to Jul 14 Stanhope Village (
Slide 27: Industrial snapshot
additional information I 23 august 2013 I page 26 Industrial snapshot by mirvac For personal use only FY13 FY12 Industrial lease expiry profile and variance to 1H13 3 60% Properties owned 13 16 56.5% NLA 346,972sqm 411,494sqm Book value 1 $452.9m $499.0m 40 WACR 7.93% 8.16% Net property income $36.6
Slide 28: Schedule of acquisitions
additional information I 23 august 2013 I page 27 Schedule of acquisitions by mirvac For personal use only FY13 schedule of acquisitions 1 Acquisition Passing Actual price yield settlement Property State Sector Status Occupancy Grade $m (pre-costs) date Allendale Square, Perth WA Office Settled 93.0
Slide 29: Schedule of disposals
additional information I 23 august 2013 I page 28 Schedule of disposals by mirvac For personal use only FY13 schedule of disposals Previous Gross Proceeds Actual book value sale price above book settlement Property State Sector Status $m $m value $m date None-core asset disposals 64 Biloela Street,
Slide 30: Residential
additional information I 23 august 2013 I page 29 For personal use only residential by mirvac
Slide 31: Residential market outlook
additional information I 23 august 2013 I page 30 Residential market outlook 1 by mirvac For personal use only In response to strong underlying fundamentals both residential property prices and volumes steadily strengthened through the course of 2013. Furthermore, the backdrop of an improvement in h
Slide 32: Project pipeline – Apartments
additional information I 23 august 2013 I page 31 Project pipeline – Apartments by mirvac For personal use only Apartments project pipeline analysis FY13 average price $945k FY13 gross margin 1 20.4% % of total FY14 expected provision lots to settle 15% % of total FY14 expected lots to settle from a
Slide 33: Projects pipeline – Masterplanned communities
additional information I 23 august 2013 I page 32 Projects pipeline – Masterplanned communities by mirvac For personal use only Masterplanned communities project pipeline analysis FY13 average price - house $677k FY13 average price - land $260k FY13 gross margin 1 20.4% % of total FY14 expected prov
Slide 34: FY13 activity detail
additional information I 23 august 2013 I page 33 FY13 activity detail by mirvac For personal use only 1,809 lot settlements consisting of: Total Apartments Masterplanned Communities Settlement by lots Lots % Lots % Lots % NSW 779 43.1% 14 0.8% 765 42.3% VIC 386 21.3% 170 9.4% 216 11.9% WA 364 20.1%
Slide 35: FY13 settlements
**New** additional information I 23 august 2013 I page 34 FY13 settlements by mirvac For personal use only Mirvac’s FY13 settlements Key FY13 settlements by product Product type Lots n 69.8% upgraders/empty nesters and investors Elizabeth Hills, NSW Masterplanned Communities 184 n Mirvac average pri
Slide 36: Pre-sales outlook FY14 – FY17
additional information I 23 august 2013 I page 35 Pre-sales outlook FY14 – FY17 by mirvac For personal use only Settlement Lots Revenue Released Project State Stage Status Ownership period Lots pre-sold $m 1 Rhodes NSW Pinnacle Under construction 20% FY14 233 94.8% 34.9 Chatswood NSW ERA Under c
Slide 37: Diversification of residential lots/revenue
additional information I 23 august 2013 I page 36 Diversification of residential lots/revenue by mirvac For personal use only 30,942 lots under control Forecast future revenue by product Lots under control by structure Mirvac share of forecast revenue by State Masterplanned 100% Mirvac inventory 39.
Slide 38: Pre-sales analysis
additional information I 23 august 2013 I page 37 Pre-sales analysis by mirvac For personal use only Exchanged contracts – by State 1 Age of exchanged pre-sale contracts 1 $791m > 1yr: 56.7% 1 – 2yrs 26.5% < 2yr: 16.8% $193m $13m $8m NSW VIC WA QLD Masterplanned Communities 34.1% Apartments 22.6% Ex
Slide 39: Invested capital – Development reconciliation
**New** additional information I 23 august 2013 I page 38 Invested capital – Development reconciliation by mirvac For personal use only Items excluded Gross Fund through Net from Development Development adjustments Deferred land Development Reconciliation to Development invested capital invested cap
Slide 40: Invested capital – Development reconciliation
additional information I 23 august 2013 I page 39 Invested capital – Development reconciliation by mirvac For personal use only Apartments: 61.8% Development Residential: 87.9% Masterplanned communities: 38.2% invested capital Office: 73.1% $1,483m 1 Commercial: 12.1% Industrial: 25.1% Retail: 1.8%
Slide 41: Capital efficient development projects
additional information I 23 august 2013 I page 40 Capital efficient development projects by mirvac For personal use only Definition Capital relationships with small number of investors for development, with Wholesale development delivery by Mirvac provided for fees and share in equity profits Relati
Slide 42: Gross development margin
additional information I 23 august 2013 I page 41 Gross development margin by mirvac For personal use only Development Cost of property Gross Gross and construction development and development development revenue construction margin margin $m $m $m % FY13 Adjusted for zero margin settlements 534.5 (
Slide 43: Development operating EBIT analysis
**New** additional information I 23 august 2013 I page 42 Development operating ebit analysis by mirvac For personal use only FY13 FY12 $m $m % change COGS (excl. capitalised interest) net of provision release Development and construction revenue - non recharge projects 701.9 788.7 Development manag
Slide 44: FY13 Development earnings model
**New** additional information I 23 august 2013 I page 43 FY13 Development earnings model by mirvac This model has been prepared as a suggested guide for investors and analysts to model Mirvac’s Note this information is For personal use only provided in the analyst development business toolkit in ex
Slide 45: Development historical information (FY09 – FY13)
additional information I 23 august 2013 I page 44 Development historical information (FY09 – FY13) by mirvac For personal use only FY13 FY12 FY11 FY10 FY09 Development and construction revenue 820.8 918.4 958.1 862.2 1,090.8 Gross margin 16.7% 14.3% 14.2% 11.4% 16.5% Gross residential margin (exclud
Slide 46: Capitalised interest
**New** additional information I 23 august 2013 I page 45 Capitalised interest by mirvac For personal use only Capitalised interest profile Operating profit to EBIT ratio $300m $100m 0 250 $28.1m $33.7m 80 20 $230.2m $224.6m 200 6.2% 60 40 150 40 60 100 22.0% 20 80 50 0 0 100% 1H13 Interest COGS FY1
Slide 47: Provisions – roll off
additional information I 23 august 2013 I page 46 1 Provisions – roll off by mirvac For personal use only Provision balance profile Provision release profile $400m $400m 300 300 200 200 100 100 0 0 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Unsold / workout Englobo n Total FY13 provision rele
Slide 48: Provisions – projects update
**New** additional information I 23 august 2013 I page 47 Provisions – projects update by mirvac For personal use only Provision projects update Englobo project sales Product line Status Brendale, QLD Commercial Sold Penrith, NSW Commercial Sold Swanbourne JV, WA Masterplanned Communities Sold Englo
Slide 49: Structural change in housing lifecycle
**New** additional information I 23 august 2013 I page 48 Structural change in housing lifecycle by mirvac For personal use only n Residential markets have experienced a structural change to the housing lifecycle n This structural change has resulted in increased demand for higher density dwellings
Slide 50: Structural change in housing lifecycle
**New** additional information I 23 august 2013 I page 49 Structural change in housing lifecycle by mirvac For personal use only n A snapshot of the housing population in 2011 indicates that the single biggest segment of the market relates to traditional families living in detached housing, but this
Slide 51: Strategy – Mirvac's residential business: create and sell
**New** additional information I 23 august 2013 I page 50 Strategy – Mirvac’s residential business: create and sell by mirvac For personal use only n Mirvac’s unique competitive advantage in apartment projects (inner ring and metropolitan activity centres) and masterplanned community projects (infil
Slide 52: Strategy – residential development new projects
additional information I 23 august 2013 I page 51 Strategy – residential development new projects by mirvac For personal use only n 3,341 new lots n Key growth markets targeted n Profit recognition profile both near and medium term n Price points on strategy n All new projects are under capital effi
Slide 53: Hypothetical profit making development project – treatment of capitalised costs
additional information I 23 august 2013 I page 52 Hypothetical profit making development project – treatment of capitalised costs by mirvac For personal use only Project metrics Total Sales revenue 120 Land (20) Cost of property development and construction (60) Sales & marketing expenses (10) Inter
Slide 54: Hypothetical provisioned development project – treatment of capitalised costs
additional information I 23 august 2013 I page 53 Hypothetical provisioned development project – treatment of capitalised costs by mirvac For personal use only Project Metrics Total Sales revenue 100 Land (25) This is the same project but Cost of property development and construction (50) it has suf
Slide 55: Residential development high density = apartments
additional information I 23 august 2013 I page 54 Residential development high density = apartments by mirvac For personal use only Profile of high density Generic profile — Single stage, 200 unit Apartment projects Month 35 Month 15 n High barriers to entry Month 6 Month 12 Practical DA submitted D
Slide 56: Residential development low density = masterplanned communities
additional information I 23 august 2013 I page 55 Residential development low density = masterplanned communities by mirvac For personal use only Profile of low density Generic profile — multi stage, 1,000 lot Masterplanned Community Month 6 Month 24 Month 36 n Lower capital commitment DA submitted
Slide 57: Our markets
additional information I 23 august 2013 I page 56 Our markets by mirvac For personal use only Sector Description Sub-market Example developments Residential Masterplanned communities > First home buyers > Land subdivision > 2nd/3rd home buyers > Completed housing 1 > Investors > Packaged housing 2 >
Slide 58: Health and safety
additional information I 23 august 2013 I page 57 For personal use only HEALTH and SAFETY by mirvac
Slide 59: Health and safety
additional information I 23 august 2013 I page 58 Health and safety 1 by mirvac For personal use only From FY08 to FY13 average time lost From FY08 to FY13 the number of injuries through injury days has reduced by 77.6% resulting in workers compensation claims has reduced by 87.0% Average time lost
Slide 60: FY14 calendar
additional information I 23 august 2013 I page 59 FY14 calendar 1 by mirvac For personal use only Upcoming conference attendance: Event Location Date Private Roadshow Sydney 26-27 August 2013 Private Roadshow Melbourne 29 August 2013 Private Roadshow Singapore 9 September 2013 Private Roadshow Nethe
Slide 61: Glossary
additional information I 23 august 2013 I page 60 Glossary by mirvac For personal use only Term Meaning Term Meaning 1H First half IRR Internal Rate of Return A-REIT Australian Real Estate Investment Trust JV Joint Venture Bp Basis Points LPT Listed Property Trust CBD Central Business District MAT M
Slide 62: Disclaimer and important notice
additional information I 23 august 2013 I page 61 Disclaimer and important notice by mirvac For personal use only Mirvac Group comprises Mirvac Limited (ABN 92 003 280 699) and Mirvac Property An investment in Mirvac stapled securities is subject to investment and other known and Trust (ARSN 086 780
Slide 63: Thank you
For personal use only Thank you by mirvac Follow us on twitter @MirvacIR Mirvac Mirvac Investor fy13 relations Property website compendium