Slide 1: FY11 Results Presentation
For personal use only Glenmore Ridge, NSW FY11 Results Presentation - 10 August 2011 www.stockland.com
Slide 2: Agenda
Agenda For personal use only FY11 Results and key achievements Our response to current market conditions and other challenges Strategy and Outlook -1-
Slide 3: Agenda
Agenda For personal use only FY11 Results and key achievements Our response to current market conditions and other challenges Strategy and Outlook -2-
Slide 4: Upgraded earnings growth delivered despite weaker market conditions
Upgraded earnings growth delivered despite weaker market conditions For personal use only FY11 FY10 Statutory Profit $754.6m 57.7% $478.4m Underlying Profit1 $752.4m 8.7% $692.3m Underlying Earnings per Security1 31.6 cents 8.6% 29.1 cents Distribution per Security 23.7 cents 8.7% 21.8 cents
Slide 5: FY11 - key achievements
FY11 - key achievements Significant progress in wind down of Apartments business - circa $350m net cash For personal use only inflow in FY11 for reinvestment in Communities Residential 27,000 future Communities lots secured on capital efficient terms, total 90,000 lots now owned or controlled
Slide 6: Metrics - Residential Communities
FY11 Results and key metrics - Residential Communities FY11 settlement volumes slightly down, Strong profit growth post global financial crisis For personal use only but price per sqm significantly up $m # contracts $ price per sqm 350 7,000 500 302 307 447 278 +12% 405 403 300 274 6,000 350 362 400
Slide 7: Metrics - Commercial Property
FY11 Results and key metrics - Commercial Property Strong growth in Retail NOI, Strong and consistent Retail comparable growth; For personal use only Office NOI down due to asset sales Office & Industrial improving but more volatile $m Net Operating Income (NOI) % Comparable NOI growth 350 Retail 10
Slide 8: Metrics - Retirement Living
FY11 Results and key metrics - Retirement Living Retirement Living is now making a Aevum acquisition was business transformational For personal use only meaningful profit contribution No of Units Established Units $m % 8000 60 8 7000 7 50 +47% 6000 53 6 40 5000 5 4000 7,535 30 36 4 3000 32 3 20 2000
Slide 9: Metrics - financial management
FY11 Results and key metrics - financial management Maintaining conservative gearing in Low average interest cost through active For personal use only response to global credit concerns1 debt management and hedging ICR and net debt D/TTA 6 35% 14% 29% 5.3x 5 30% 12% 22% 25% 10% 4 20% 8% 3 7.0% 15% 6
Slide 10: Agenda
Agenda For personal use only FY11 Results and key achievements Our response to current market conditions and other challenges Strategy and Outlook -9-
Slide 11: Consumer confidence and household savings
Consumer confidence and household savings Consumer confidence is weak - households are saving more For personal use only • Households were naturally cautious post global 140 16% financial crisis 120 12% 100 Consumer confidence neutral • This caution has been amplified by global market 80 8% 10 year
Slide 12: Housing market - currently weak but it's a cycle, not structural
Housing market - currently weak but it’s a cycle, not structural The short-term issue - weak market conditions For personal use only Market conditions Monthly detached house approvals are well below trend for Qld and WA • The housing market has softened during 2011 4,000 • In our view, it is a cycle
Slide 13: Impact of online retailing on traditional bricks and mortar
Impact of online retailing on traditional bricks and mortar Online is a threat to traditional shopping but building less new space provides a natural ‘shock absorber’ For personal use only % % of total retail sales made online1 sqm Australian retail floor space per capita2 Impact of 8 population gro
Slide 14: Carbon price - we are well prepared; minimal initial impact
Carbon price - we are well prepared; minimal initial impact Carbon emissions performance For personal use only • We are not liable to purchase carbon credits Office GHG Intensity2 Retail GHG Intensity2 • Our current GHG emissions total 166,000 tonnes1, FY11 89.9 FY06-11 FY11 74.6 FY06-11 mainly from
Slide 15: Agenda
Agenda For personal use only FY11 Results and key achievements Our response Strategy to andcurrent market Outlook conditions and other challenges - 14 -
Slide 16: Vision, strategy and competitive advantages
Vision, strategy and competitive advantages Our Vision For personal use only • To be a trusted partner with government to deliver vibrant and sustainable communities, retail centres and social hubs • To deliver our customers ‘a better way to live’ • To be Australia’s preeminent greenfield community
Slide 17: How do we measure success?
How do we measure success? For personal use only Target financial outcomes • 60%-80% of group earnings from recurring rents and deferred management fees • 20%-40% of group earnings from development profits • High visibility of future development profits by controlling an extensive land bank with eff
Slide 18: FY12 guidance and key assumptions
FY12 guidance and key assumptions For personal use only Earnings outlook • FY12 EPS expected to be around the same as FY11 Key assumptions we are making • No further rises in interest rates in the short-term • No material flow-on impact to the underlying Australian economy from recent global market
Slide 19: Stockland contact details and disclaimer
For personal use only Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 741 25th Floor 133 Castlereagh Street SYDNEY NSW 2000 DISCLAIMER OF LIABILITY While every effort is made to provide accurate and complete information, Stockland does not warrant or repr