Goodman Group · ASX:GMG
Goodman — Shareholder Meeting (November 2019)
30 slides from Goodman's shareholder meeting presentation, Nov 20, 2019
Slide 1: ASX cover letter: Chairman's and CEO's presentations
20 November 2019 Market Announcements Office ASX Limited Via ASX Online Dear Sir / Madam GOODMAN GROUP (GOODMAN) ANNUAL GENERAL MEETINGS – CHAIRMAN’S AND CEO’S PRESENTATIONS Please find attached the Chairman’s presentation and Group Chief Executive Officer’s presentation and written address for Good
Slide 2: Goodman Group 2019 Annual General Meetings
GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS 20 November 2019 SPACE FOR THE WORLD’S GRE ATEST AMBITIONS
Slide 3: Directors and Executives
2 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS DIRECTORS AND EXECUTIVES Ian Ferrier AM Danny Peeters Independent Chairman Executive Director Greg Goodman Phillip Pryke Group Chief Executive Officer Independent Director Chris Green Anthony Rozic Independent Director Executive Director Stephen Johns Penn
Slide 4: Agenda
3 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS AGENDA Chairman’s address Group strategy video Group CEO’s address Formal business
Slide 5: Chairman's Address
4 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS CHAIRMAN’S ADDRESS
Slide 6: Financial Overview
5 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS FINANCIAL OVERVIEW Goodman Qingpu Centre, Shanghai, China.
Slide 7: Financial overview
6 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS Financial overview Goodman performed very well in FY19 Operating profit ($M) FY15 654 + Operating profit of $942 million, FY16 715 up 11.4% on FY18 FY17 776 FY18 846 + Statutory profit of $1,628 million, FY19 942 up 48% on FY18 Statutory profit ($M) + Operati
Slide 8: Securityholder return
7 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS Securityholder return Growth in premium to NTA ($M) 8,928 Total Securityholder return relative performance 3.5 3.0 2.5 2,300 2.0 1,200 1,300 400 1.5 1.0 FY15 FY16 FY17 FY18 FY19 0.5 S&P/ASX 20 index S&P/ASX 100 index S&P/ASX 200 A–REIT index Goodman + A c
Slide 9: Aligning interests
8 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS Aligning interests + Remuneration framework: FY19 remuneration mix All employees (excluding executive KMP) – designed to attract and retain high-quality professionals O STI and LTI O Fixed remuneration with local expertise who are integral to delivering 4
Slide 10: Stakeholder engagement
9 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS Stakeholder engagement Following last year’s strike, the Board asked the Chairman and Head of the Remuneration Committee to meet with a large number of local and international investors, proxy advisors and other key stakeholders. + Three main areas were d
Slide 11: Stakeholder engagement continued
10 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS Stakeholder engagement continued + This resulted in changes to both performance measures and time frames. – now 3 years with a 6-9% cumulative increase over this longer period + This approach was clearly welcomed, in view of the favourable response recei
Slide 12: 2030 Sustainability Strategy
11 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS 2030 SUSTAINABILITY STRATEGY Goodman’s 2030 Sustainability Strategy is structured around three pillars. + These are linked to a set of material issues, with each pillar backed by short and long-term environmental, social and governance (ESG) targets. PRO
Slide 13: 2019 Sustainability Progress
12 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS 2019 SUSTAINABILITY PROGRESS PEOPLE AND CORPORATE PROPERTY CULTURE PERFORMANCE Target Progress Target Progress Target Progress 100% renewable Increased use of, Zero workforce Implemented safety Retain investment Credit rating maintained energy use and co
Slide 14: Board Renewal
13 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS BOARD RENEWAL + New appointments – Chris Green, April 2019 + Directors standing for re-election – Phillip Pryke – Anthony Rozic + Chair succession – Ian Ferrier retiring end 2020 – Replacement to be announced early 2020.
Slide 15: CEO's Address
14 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS CEO’S ADDRESS
Slide 16: Structural change providing opportunity
15 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS STRUCTURAL CHANGE PROVIDING OPPORTUNITY + Urbanisation + Growth in e-commerce + Consumer convenience.
Slide 17: Strategic locations delivering results
16 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS STRATEGIC LOCATIONS DELIVERING RESULTS Assets under management ($B) 48.2 46.2 + Assets under management $48.2 billion* + Development work in progress $4.2 billion* + Occupancy 98%* 38.3 + Partnership return average 16%. *As at 30 September 2019 34.6 34.1
Slide 18: Our Customers
17 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS OUR CUSTOMERS Images clockwise from top left: Rheinberg Logistics Centre (DHL), Rheinberg, Germany; Highbrook Business Park, Auckland, New Zealand; Grossbeeren Logistics Centre (Kuehne+Nagel), Großbeeren, Germany; Centenary Distribution Centre, Sydney, A
Slide 19: Growth of E-commerce
18 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS GROWTH OF E-COMMERCE Worldwide e-commerce share of retail sales 2015–2023 25% 22% 20% 19.3% 20% UK 18.1% 16.1% 14.1% 15% 12.2% 10.4% 10.7% 8.6% US 10% 7.4% 6.3% AUS 5% FY15 FY16 FY17 FY18 FY19 FY20* FY21* FY22* FY23* *Estimates Sources: eMarketer, Austra
Slide 20: Global Strategy
19 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS GLOBAL STRATEGY Images clockwise from top left: Goodman Commerce Center Eastvale, Los Angeles, USA; Goodman Tsuen Wan West – Building 1, Hong Kong, Greater China; Leicester Commercial Park, Leicester, United Kingdom; Highbrook Business Park, Auckland, Ne
Slide 21: Australia continuing to innovate
20 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS AUSTRALIA CONTINUING TO INNOVATE Port Botany, Sydney, Australia. Sydney CBD Sydney Airport Port Botany
Slide 22: Culture and Values
21 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS CULTURE AND VALUES open+ fair performance+ team+ drive respect customer+ focus innovative+ dynamic
Slide 23: FY20 Outlook
22 GOODMAN GROUP 2019 ANNUAL GENERAL MEETINGS FY20 OUTLOOK + Structural trends continuing unabated + Reaffirm guidance – Earning per security 56.3 cents – Up 9% on FY19.
Slide 24: CEO's Address (written)
CEO’S ADDRESS GOODMAN GROUP – ANNUAL GENERAL MEETINGS 20 NOVEMBER 2019 AT 10:00AM Thank you Ian, and good morning. ----- Urbanisation, the growth of e-commerce, and the increased need for consumer convenience in the major cities around the world, has given, and is giving your company Goodman Group,
Slide 25: Strategic focus on high-consumption locations
Given this ever-changing world, Goodman has over the last 10 years been consciously and strategically focusing our real estate on locations where consumerism is at its highest. These structural changes, have led to the growth in your company and the continued opportunities we are witnessing around t
Slide 26: Customer base and e-commerce growth
We have a customer base which we are very proud to work alongside to help deliver their ambitions. Our customers are some of the biggest e-commerce, third-party logistics companies and retailers globally. -- In a world where global growth is slowing, there is a constant increase in people’s preferen
Slide 27: Online retail share and portfolio growth
In the UK, around 19% of retail spend is online. In the US, it’s currently around 11%, while we’re about 6% here in Australia. Last week in China, Alibaba and JD.com, the two major online retailers, recorded 26 and 28 per cent growth in sales as part of the Double Eleven or Singles Day shopping even
Slide 28: Regional update: Americas, Asia, New Zealand, Europe
In the Americas we’re continuing to build on our major city strategy by acquiring key sites in New Jersey (to service the market in New York) and Los Angeles. Our US portfolio, has a built-out value approaching $6 billion and is expected to grow. In Asia, we’re continuing our success, as we complete
Slide 29: Australia focus and long-term approach
In Australia we are continuing to concentrate on the primary markets of Sydney and Melbourne, where more than 90 per cent of our properties are. We are buying infill sites and continually looking to innovate by exploring multi-story and brownfield developments that intensify the use of land holdings
Slide 30: Closing remarks and FY20 forecast
At Goodman, we don’t allow ourselves to become complacent, rather we are looking ahead to ensure our strategy continues to deliver now and remain relevant in the future. __ In closing, we had a strong FY19 and the first quarter of FY20 continued this trend. Looking ahead, we see the structural trend