Goodman Group · ASX:GMG
Goodman — Shareholder Meeting (November 2013)
41 slides from Goodman's shareholder meeting presentation, Nov 22, 2013
Slide 1: ASX cover letter: Chairman's and CEO's presentations
22 November 2013 The Manager Company Notices Section ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Dear Sir 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 present
Slide 2: Goodman Group Annual General Meetings
Goodman Group Annual General Meetings Westin Hotel Sydney | 22 November 2013 Strength in numbers-+ > » Goodman Group NR Development workin progress across 69 projects in 11-countries
Slide 3: Directors and Executives
Directors and Executives Mr Ian Ferrier Mr Jim Sloman Apologies - Independent Chairman Independent Director Mr Philip Fan Independent Director Mr Gregory Goodman Mr Phillip Pryke Group Chief Executive Officer Independent Director Mr Anthony Rozic Executive Director Mr John Harkness Ms Rebecca McGrat
Slide 4: Agenda
Agenda + Chairman’s Address + Group CEO’s Address + Formal Business 3
Slide 5: Introduction
Introduction + Let me take you back to the first slide to give you a broad view of the size and activities of your company. 4
Slide 6: Goodman Group Annual General Meetings
Goodman Group Annual General Meetings Westin Hotel Sydney | 22 November 2013 Strength in numbers-+ > » Goodman Group NR Development workin progress across 69 projects in 11-countries
Slide 7: Strength in numbers
Strength in numbers
Slide 8: Strength in numbers
Strength in numbers \ \ MAAS |
Slide 9: Financial Overview
Financial Overview + Achieved strong financial result and remained committed to our strategy – Operating profit of $544 million, a 17% increase on FY2012 – Statutory profit of $161 million – Balance sheet gearing reduced to 18.5%, interest cover ratio of 5.0x and weighted average debt of 5.4 years –
Slide 10: Capital management initiatives
Capital management initiatives + Goodman has maintained its commitment to a sound financial position and retained its strong balance sheet over the year with the completion of a number of capital management initiatives allowing it to diversify its debt funding sources and lengthen the maturity profi
Slide 11: Strength in numbers: Sustainable growth
Strength in numbers+ Sustainable growth+ w IXY =
Slide 12: Sustainability – Global expansion
Sustainability – Global expansion + An Australian company successfully competing in world market place. – Global network across 36 cities in 18 countries, 1000+ people + Consolidation and prudential expansion into new markets – Recent entry into US and Brazil – A patient investor, entering new marke
Slide 13: Sustainability – Global expansion
Sustainability – Global expansion – Able to capitalise on opportunities with our global capital and customer relationships – Announced today that our Brazilian joint venture, WTGoodman, is in exclusive due diligence over an opportunity to acquire a A$1.5 billion portfolio in Brazil – The transaction
Slide 14: Sustainability – Global growth
Sustainability – Global growth + Mature markets provide ability to add value to existing products – Acquired ATL logistics centre in Hong Kong – largest logistics facility in the world – Adding value through quality and service upgrade on the property, driving higher returns for investors 550,000 sq
Slide 15: Sustainability – Global expansion
Sustainability – Global expansion + Our product continues to be favoured by stable industries including e-retail, logistics and automotive. – Provider of modern, high quality logistics facilities in markets where there is an undersupply Toll, M7 Business Hub, Sydney, Australia Amazon, Koblenz Logist
Slide 16: Strength in numbers: Board renewal
Strength in numbers+ Board renewal+ 4 al
Slide 17: Board renewal
Board renewal + Given our international focus, we are now taking the opportunity to diversify the skill set of the Board by introducing new members with relevant international experience + Independent director standing for re election: – Mr Phillip Pryke + Executive Directors standing for election:
Slide 18: Board renewal
Board renewal + All have more than six years’ experience with the Group across their respective regions + Will complement the functional and strategic direction of the Board + Strategic: Bring insightful and personal expertise to our strategy + Functional: Hands on direct dealings with customers and
Slide 19: Moorebank Business Park, Sydney, Australia
Moorebank Business Park, Sydney, Australia 18
Slide 20: Opening remarks
Opening remarks + Strong FY2013 operating result + Leading brand with size and scale + Operating platform spanning key logistics markets + Benefit of exposure to different economic cycles across different markets 19
Slide 21: Opening remarks
Opening remarks + Goodman’s global business is a key strength 20
Slide 22: Strong operating momentum
Strong operating momentum + FY2014 commenced with strong operating momentum and activity + Reaffirm full year operating profit forecast + Total assets under management now exceed $24 billion + $6 billion of undrawn equity and debt commitments available to fund growth – Raised additional $1.8 billion
Slide 23: Strong operating momentum
Strong operating momentum + Successful leasing activity, generating $270 million of property income – Completed a further $75 million of leasing activity since 30 June + Strong development activity, with work book growing to $2.5 billion currently – Undersupply of prime logistics space and structura
Slide 24: Operational highlights
Operational highlights + Development book in Australia of over $700 million – Including Phase 1 of Redbank Motorway Estate in Brisbane, pre- committed to DB Schenker + Progressing urban renewal strategy – Contracts exchanged for $73 million sale of a second Sydney property Redbank Motorway Estate, B
Slide 25: Operational highlights
Operational highlights + In New Zealand, $190 million of development projects in progress – Including for customers DHL, Bridgestone and Fonterra DHL, Glassworks Industrial Estate, Christchurch Fonterra, Viaduct Precinct, Auckland 24
Slide 26: Operational highlights
Operational highlights + China business growing strongly + Development book currently over $380 million + $370 million of new projects in planning, with land bank capable of delivering a development pipeline of approx. $2 billion BMW, Goodman Citylink, Yanjiao, China 25
Slide 27: Operational highlights
Operational highlights + Development pipeline in Japan exceeds $1 billion + Commenced new $100 million development in Nagoya, with two further projects for a combined value of $300 million to commence at Tokyo Bay + Goodman Sakai, Osaka Bay project to complete in early 2014 Goodman Obu, Nagoya Goodm
Slide 28: Operational highlights
Operational highlights + Goodman European Logistics Fund completed an $800 million (€550 million) equity raising + Expanded relationship with Malaysia’s Employees Provident Fund into Europe, with new $725 million (€500 million) partnership 27
Slide 29: Operational highlights
Operational highlights + Maintaining solid activity levels in Europe, with total development work in progress of over $400 million + Increased activity in UK, in line with improving economic conditions + Major projects underway for Amazon in Poland, and Kuehne + Nagel and Geopost in the UK Amazon, W
Slide 30: Strength in numbers
Strength in numbers
Slide 31: Outlook
Outlook + Goodman is uniquely positioned as one of the largest global industrial property managers and developers + Continue to leverage competitive advantage + Strong growth in managed fund activities, with high quality investment and development opportunities + Reaffirm FY2014 full year earnings g
Slide 32: Strength in numbers
Strength in numbers — a
Slide 33: CEO's Address
CEO’s ADDRESS GOODMAN GROUP – ANNUAL GENERAL MEETING 22 NOVEMBER 2013 AT 10:00AM THE WESTIN, SYDNEY Thank you Ian and good morning ladies and gentlemen. Goodman’s strong operating result for FY2013 of $544 million reflects the quality of our investment and development activities. We are building a l
Slide 34: CEO's address: offshore earnings and competitive advantage
The growth of our business has now seen almost half of the Group’s earnings come from our offshore operations. In turn, we expect to see the benefits of our global business increase significantly in future years, particularly as we continue to build our capabilities in Asia and the Americas. Goodman
Slide 35: CEO's address: investor partnerships and leasing
We continue to work hard to build on our extensive global investor partnerships and Goodman now has $6 billion of undrawn equity and debt commitments available to fund the future growth of its development and investment activities. We have had a very successful first quarter, raising $1.8 billion of
Slide 36: CEO's address: Australian operational activity
Now I would like to highlight some of the operational activity and initiatives we are undertaking around the world; - In Australia, we currently have over $700 million of developments underway. This includes the development of the Redbank Motorway Estate in Brisbane, which has commenced with a $56 m
Slide 37: CEO's address: New Zealand, China and Japan
In New Zealand, Goodman has over $190 million of development projects underway for customers including, DHL, Bridgestone and the world’s largest dairy exporter, Fonterra. - Goodman’s China business continues to grow strongly. Our development book has increased to over $380 million, with projects in
Slide 38: CEO's address: Japan and Europe fund raising
Our Goodman Sakai development at Osaka Bay will complete in early 2014. The facility is now 100% pre-leased, with Nippon Express the major customer, and has an end value of $295 million. - In Europe, Goodman European Logistics Fund recently completed an $800 million equity raising, on the back of st
Slide 39: CEO's address: European activity
We are maintaining solid activity levels in Europe, with customer demand, particularly from the e-commerce, third party logistics and automotive sectors. Highlighting this, we currently have a total of over $400 million of development work in progress. This includes the construction of a $100 millio
Slide 40: CEO's address: the year ahead
Let me now talk about the year ahead. The Group is uniquely positioned as one of the largest global industrial property managers and developers, with over $24 billion in assets under management. Goodman has made a strong start to 2014 with sound property fundamentals and operating momentum across al
Slide 41: CEO's address: FY2014 guidance and close
Accordingly, we reaffirm our FY2014 earnings guidance for a full year operating profit of $594 million, equating to operating earnings per security of 34.3 cents, up 6% and a forecast distribution of 20.7 cents, up 7%. Thank you. -9-