Slide 1: Investor day: Welcome and overview
For personal use only EmporiumMelbourne,VIC Investorday 8June2016 Welcome andoverview Angus McNaughton Chadstone,VIC
Slide 2: Agenda; Strategic focus is clear
Investorday Agenda MORNING Welcomeandoverview AFTERNOON Developmentoverview AngusMcNaughtonCEOandManagingDirector MichaelO’BrienChiefInvestmentOfficerandActingEGMDevelopment Page2 Page 43 For personal use only Brandanddigital MandurahForum SimoneCarroll EGMDigital,Marketing,People&Culture JamesFudge
Slide 3: Organisational chart; Group investment principles
Organisationalchart Structuredtosupportstrategyexecution CEOandManagingDirector AngusMcNaughton For personal use only ChiefInvestment EGM EGM ChiefFinancial EGM EGM OfficerandActing Business GeneralCounsel Digital,Marketing, Officer Leasing ShoppingCentres EGMDevelopment Development People&Culture R
Slide 4: Executing on strategy; portfolio enhancement strategy
Executingonstrategy Astrongandactivestartinthefirst12months November March May Rebrand $120mof Executed$926m developments ofdivestmentsand For personal use only completed1 extendeddivestment December programto~$1.5b Reiteratedstrategy, April announced~$750mͲ$1b $350mMandurah divestmentprogram Forumd
Slide 5: Brand and digital
For personal use only Brand anddigital SimoneCarroll ChatswoodChaseSydney,NSW Theroleoftheshoppingcentreinsociety Thegatheringplace AGORA “GATHERINGPLACE” VicinityCentres| Investorday| 8June2016 10
Slide 6: The role of the shopping centre in society; Key trends
Theroleoftheshoppingcentreinsociety Inventionoftheshoppingcentre For personal use only “PROVIDETHENEEDEDPLACEAND OPPORTUNITYFORPARTICIPATIONIN MODERNCOMMUNITYLIFE” Ͳ VICTORGRUEN,INVENTOROFTHESHOPPINGMALL VicinityCentres| Investorday| 8June2016 11 Keytrends CustomerͲcentricity CUSTOMERͲCENTRICITY Vic
Slide 7: Key trends: technology enhanced experiences
Keytrends Technologyenhancedexperiences For personal use only TECHNOLOGYENHANCED EXPERIENCES VicinityCentres| Investorday| 8June2016 13 Keytrends Rapidvalidationandspeedtomarket RAPIDVALIDATIONAND SPEEDTOMARKET VicinityCentres| Investorday| 8June2016 14
Slide 8: Key trends: digital integration and experimentation
Keytrends Integratingdigitalintothefabricoforganisations For personal use only INTEGRATINGDIGITALINTOTHE FABRICOFORGANISATIONS VicinityCentres| Investorday| 8June2016 15 Keytrends Experimentingacrossmultiplehorizons EXPERIMENTINGACROSS MULTIPLEHORIZONS VicinityCentres| Investorday| 8June2016 16
Slide 9: Vision for brand and digital; brand architecture
Visionforbrandanddigital Delivering‘Better,Easier,MoreEnjoyable’experiences For personal use only Consumer(B2C) Peoplewhovisit andexperience TheVicinitybrand “Better,Easier, Customer Vicinity MoreEnjoyable” (B2B) Ourpeople, Ourretail destinations, partners products andservices VicinityCentres| Inves
Slide 10: Consumer-led digital strategy; Digital roadmap
Vicinity’sconsumerͲleddigitalstrategy Enrichingcommunityexperiencesviaafullyintegrateddigitalandpropertyplatform Purpose Enrichingcommunityexperiencesviaafullyintegrateddigitalandpropertyplatform For personal use only TobeAustralia'smostfrequentedandmostlovedretaildestinations Digitalvision throughs
Slide 11: Brand and digital: Enriching community experiences
Brandanddigital Enrichingcommunityexperiences For personal use only 1. Clearbrandstrategy 2. Digitalpathwayset 3. Teamcommittedtoexecutionalexcellence VicinityCentres| Investorday| 8June2016 21 Leasing StuartMacrae EmporiumMelbourne,VIC
Slide 12: A large portfolio with broad potential; leasing approach
Alargeportfoliowithbroadpotential Strongtenantrelationshipsunderpinnedbyaportfoliowithscaleandrelevance 95assetsundermanagementacrosstheretailspectrum anddiversifiedgeographically For personal use only 9,500+ ~3,700 leases tenants Hightenantcommonalityacrosscentretypes Criticalmassofpremiumassetsint
Slide 13: Specialty leasing parameters; strategic leasing plans
Consistentspecialtystoreleasingparameterexpectationsdeliverstrongerresults Settingclearparameterexpectationsenablesatransparentdiscussionwithretailersandnarrowstheleasingnegotiation Specialtystoreleasing parameter Rationale For personal use only 5to6yearterms Providesbalance ofstabilityandflexibilit
Slide 14: Opportunities in a changing retail landscape
Opportunitiesinachangingretaillandscape Anticipatingretailtrendsenablesatimelyandproactiveresponse 9 Increasingdemandforinternationalandluxuryretailers Healthandwellbeing Qualityfoodanddiningout 9 Healthandwellbeingagrowingfocus 9 Increasingdesireforhighqualitycafesandrestaurants For personal use on
Slide 15: Shopping centre management platform
Shoppingcentremanagementplatform Vicinity’sscaleandintensiveassetmanagementapproachprovidessignificantbenefits Significantancillaryincomeopportunities #1 #2 For personal use only Operationalmanagementandprocurementbenefits inSub RegionalandOutletcentres inRegional centres Assetrefurbishmentteamproje
Slide 16: Customising management of centres; PRICE model
Custommanageourcentrestooptimiseperformance Applicationofintensiveassetmanagementtoeveryassetinacosteffectiveway Effectivemanagementofadiverseportfolio Bespokestructure Premiumstructure For personal use only Focusedteamsandknowledgesharing Betterresourceutilisation Similartrendsexperiencedinnearbyas
Slide 17: Income and procurement opportunities
Incomeopportunities Opportunitytogrowancillaryincomestreamsacrosstheportfolio Keycategory Opportunity For personal use only Casualmall • Significantscopetoincreaseoccupancy rate leasing anddriveincome Electricity • Currentlyin57Direct Portfolioassets onͲsell • Opportunitytoimplementinadditional20ass
Slide 18: Improving centre experience
Improvingcentreexperience Assetrefurbishmentteam(ART)projectsenhanceassetqualityandcustomerexperience Smallcapitalinvestmentswithstrongreturns For personal use only Improvingassetqualityandrelevance Providingbettercustomerandretailerexperience Projectsfocusonimprovementsthatdrivefoottraffic, Morning
Slide 19: Outlet Centres overview
OutletCentresoverview OutletsareanattractiveinvestmentpropositionandVicinity’sstrategyistoreinforceitsleadershippositioninthissector PerformanceoffourDFOassetssinceacquisitionin2010to31December2015 LeaderinAustralianOutletCentres For personal use only $1.1bundermanagementacrosssixassets6 +10.1%p.a.
Slide 20: Value-adding recent acquisitions
ValueͲaddingrecentacquisitions FurthersolidifyingVicinity’smarketleadingpositioninOutletCentres DFOPerthAirport $145mgreenfield development1 atPerthAirport 50:50jointventure, Vicinitywillbepropertyanddevelopmentmanager For personal use only 31 year groundlease,with49yearoption Centrallylocatedonmajo
Slide 21: DFO South Wharf
DFOSouthWharf $14mdevelopment1 completedwithminimajorreconfigurationandfoodcourtupgrade FormerAnacondatenancyhasbeenreconfiguredintoaloopmallincorporatinganadditional22specialtystores Projectalsoincludedafoodcourtupgrade OpenedinMarch2016 For personal use only Forecastinitialyieldof>18%andIRRof>25%,
Slide 22: Development overview
For personal use only Development overview MichaelO’Brien HallsHeadCentral,WA Developmentoverview Enhancingthequalityoftheportfolio Ourportfolioandthechangingretaillandscapecreatessignificantdevelopmentopportunities $3.8billion 12projects expandeddevelopmentpipeline1 identifiedpipeline $1.3billion 3
Slide 23: Prioritising projects; development controls
Developmentoverview Prioritisingprojects Acomprehensivesetofcriteriausedtoprioritisedevelopmentsandallocateresourceseffectively Landavailability For personal use only Authorities’support Majors’interest Specialtyretailerdemand Viableplan Expectedfinancialreturnsmeethurdles Riskisacceptablegivenexpec
Slide 24: Expanded development pipeline totalling $3.8b
Developmentoverview Expandeddevelopmentpipelinetotalling$3.8b1 Developmentpipelineprovidessignificantopportunityforvaluecreation $m Vicinityshare Partnershare Total ChadstoneRetailandOffice 333 666 For personal use only WarriewoodSquare 44 87 Current GatewayPlaza 79 MandurahForum 175 350 DFOSouthWha
Slide 25: Mandurah Forum: The opportunity
MandurahForum Theopportunity TransformMandurahForumintooneofWA’sleadingMajorRegionalshoppingcentres Dominant~40,000sqm Regionalcentreinacaptivemarket Perth beingexpandedto64,500sqm MajorRegionalcentre 72km North Locatedin oneofthefastestgrowingcatchmentsinAustralia For personal use only Existingcent
Slide 26: Mandurah Forum: The market and customers
MandurahForum Themarket Leadingmarketpositionintradeareawithstrongpopulationandretailspendinggrowth Leadingmarketposition 19.1%marketshareoftradearea1 For personal use only Strongpopulationgrowth ~95,800peopleintradearea, forecasttogrowat2.8%p.a.throughto2028 Excellenttransportinfrastructure Service
Slide 27: Mandurah Forum floor plans
MandurahForum Predevelopmentfloorplan– ground Existingcentreplanhaspoorcustomeramenityandaccess For personal use only VicinityCentres| Investorday| 8June2016 53 MandurahForum Preandpostdevelopmentfloorplan– ground 80%ofexistingcentrespecialtystoreareatobedemolished Unchanged Demolished New Note:Prop
Slide 28: Mandurah Forum post development plans
MandurahForum Postdevelopmentfloorplan– ground Desirable‘racetrack’configurationwithconvenientaccessandcustomeramenitythroughout For personal use only Note:Plansareindicativeonlyandsubjecttochange. VicinityCentres| Investorday| 8June2016 55 MandurahForum Postdevelopmentprecinctplan– ground Apremiums
Slide 29: Mandurah Forum level 1 plan; David Jones mall
MandurahForum Postdevelopmentfloorplan– level1andmezzanine Newparkingareawith3,000carspaces For personal use only Mezzanine Level1 Note:Plansareindicativeonlyandsubjecttochange. VicinityCentres| Investorday| 8June2016 57 MandurahForum DavidJonesfashionmall Artist’simpression Groundfloor VicinityCent
Slide 30: Mandurah Forum central hub and food court
MandurahForum Centralhub‘heart’andeventspace Artist’simpression For personal use only Groundfloor VicinityCentres| Investorday| 8June2016 59 MandurahForum Foodcourtalfrescoarea Artist’simpression Groundfloor VicinityCentres| Investorday| 8June2016 60
Slide 31: Mandurah Forum alfresco dining
MandurahForum Alfrescocasualdiningprecinct Artist’simpression For personal use only Groundfloor VicinityCentres| Investorday| 8June2016 61 TheGlen BarnabyGiudice
Slide 32: The Glen: The opportunity
TheGlen Theopportunity Assetrepositioningtocapitaliseonhighincometradeareaandcaptureescapedexpenditure Expansionof~60,000sqmMajorRegionalcentreto77,600sqm Locatedinahighlydesirablecatchment Ͳ affluentcustomerbase, withaboveaveragenonͲfoodretailspend For personal use only Lowmarketshareandsalesproduc
Slide 33: The Glen: The market and customers
TheGlen Themarket Welllocatedwithanaffluentcustomerbase Aboveaveragehouseholdincomes $88,294fortradearea1,abovetheMelbourneaverage For personal use only Increasingwealthwithlowlevelsofdebt 31%of~217,000 tradearearesidentshaveamortgage, Melbourneaverageis38% Premiumbrandandfashionfocus Apparelspendin
Slide 34: The Glen: Residential; lower ground plan
TheGlen Residential Centretobenefitfromresidentialdevelopmentwithoutmateriallyaddingrisk Planningapprovalfor500apartments For personal use only Threetowersabovetheretailatthesouthernend ofthecentre Developmenttobeundertakenbymajorresidential developer– Vicinityreceivesvalueforairrights Locationandde
Slide 35: The Glen lower ground plans
TheGlen Postdevelopmentfloorplan– lowerground Freshfoodprecinctincludingthreesupermarkets For personal use only Note:Plansareindicativeonlyandsubjecttochange. VicinityCentres| Investorday| 8June2016 69 TheGlen Postdevelopmentprecinctplan– lowerground Freshfoodprecinctincludingthreesupermarkets Note:
Slide 36: The Glen ground floor plans
TheGlen Predevelopmentfloorplan– ground MallanchoredbyWoolworthstothesouthandupperlevelDavidJonestothenorth For personal use only VicinityCentres| Investorday| 8June2016 71 TheGlen Postdevelopmentfloorplan– ground Desirableracetrackconfiguration Note:Plansareindicativeonlyandsubjecttochange. Vicinit
Slide 37: The Glen precinct plan; level 1 plan
TheGlen Postdevelopmentprecinctplan– ground DavidJones,Target,fashionandinternationaltenantsanddiningarea For personal use only Note:Plansareindicativeonlyandsubjecttochange. VicinityCentres| Investorday| 8June2016 73 TheGlen Predevelopmentfloorplan– level1 Commercialofficeaccessiblevialiftfrommall,
Slide 38: The Glen level 1 plans
TheGlen Postdevelopmentfloorplan– level1 UpperlevelofDavidJonesandalfrescodiningprecinct For personal use only Commercial office Note:Plansareindicativeonlyandsubjecttochange. VicinityCentres| Investorday| 8June2016 75 TheGlen Townsquare,caféandrestaurantprecinct Artist’simpression Groundfloor Vicin
Slide 39: The Glen artist impressions
TheGlen Stylishnewmodernfeel Artist’simpression For personal use only Groundfloor VicinityCentres| Investorday| 8June2016 77 TheGlen Restaurantprecinctwithextendedtradinghours Artist’simpression Level1 VicinityCentres| Investorday| 8June2016 78
Slide 40: The Glen two-level David Jones
TheGlen LatestformattwoͲlevelDavidJones Artist’simpression For personal use only Groundfloor VicinityCentres| Investorday| 8June2016 79 Roselands JonSavell
Slide 41: Roselands: The opportunity
Roselands Theopportunity ReͲestablishRoselandsasatrueMajorRegionalshoppingcentredestination Expansionof~62,000sqmMajorRegionalcentreto95,000sqm Locatedcentrallywithfavourabledemographics • OneofAustralia’smostdenselypopulatedregions For personal use only • OneofthelargesttradeareasforOtherRegionalCe
Slide 42: Roselands: The market and customers
Roselands Themarket Easilyaccessiblecentreindiversetradeareawithpocketsofaffluenceandresidentswhotendtobespenders OneofAustralia’smostdenselypopulatedregions Tradearea1 populationof~472,000, 19%largerthanUrbisaverageforOtherRegionalCentres For personal use only Aboveaveragetradearearetailspendinggro
Slide 43: Roselands lower ground plans
Roselands Floorplan– lowerground Creatingamarketleadingfreshfoodprecinct Existing Proposed For personal use only Supermarket Supermarket Note:Proposedplansareindicativeonlyandsubjecttochange. VicinityCentres| Investorday| 8June2016 85 Roselands Postdevelopmentprecinctplan– lowerground Creatingamarke
Slide 44: Roselands ground floor plans
Roselands Floorplan– ground Newfashionandyouthprecincts Existing Proposed For personal use only Department store Note:Proposedplansareindicativeonlyandsubjecttochange. VicinityCentres| Investorday| 8June2016 87 Roselands Postdevelopmentprecinctplan– ground Newfashionandyouthprecincts Note:Plansarein
Slide 45: Roselands level 1 plans
Roselands Floorplan– level1 Newfoodcourt,entertainmentandleisureprecinct Existing Proposed For personal use only Department store Note:Proposedplansareindicativeonlyandsubjecttochange. VicinityCentres| Investorday| 8June2016 89 Roselands Postdevelopmentprecinctplan– level1 Newfoodcourt,entertainment
Slide 46: Roselands level 2 plan; mall space
Roselands Floorplan– level2 Newcinemaoffertocomplementdiningprecinct Existing Proposed For personal use only Cinema Note:Proposedplansareindicativeonlyandsubjecttochange. VicinityCentres| Investorday| 8June2016 91 Roselands Modernandopenmallspace Artist’simpression Department store Groundfloor Vicin
Slide 47: Roselands retail designs; entertainment complex
Roselands Stylishretaildesigns Artist’simpression Department store For personal use only Groundfloor VicinityCentres| Investorday| 8June2016 93 Roselands Largeentertainmentcomplex Artist’simpression Department store Level1 VicinityCentres| Investorday| 8June2016 94
Slide 48: Roselands dining; Contact details and disclaimer
Roselands Vibrantnewdiningprecinct Artist’simpression Department store For personal use only Level1 VicinityCentres| Investorday| 8June2016 95 Contactdetailsanddisclaimer Forfurtherinformationpleasecontact: PennyBerger TroyDahms HeadofInvestorRelations SeniorInvestorRelationsManager T+61282297760 T+