FINBAR GROUP LIMITED — Earnings Release 2013

Sep 1, 2013

==> picture [596 x 114] intentionally omitted <==

ASX MARKET & MEDIA ANNOUNCEMENT

30 August 2013

FINBAR REPORTS $31.2 MILLION RECORD PROFIT IN FY13

Key Points:

• Record net profit after tax up 10% to $31.2 million.

• FY13 represents 7[th] consecutive year of profit growth.

• $35.6 million cash position to fund working capital and future growth.

• Pelago, Adagio and Lime Projects contributed to the majority of FY13 earnings.

• 6 new major metropolitan projects secured with an end value of $618 million.

• FY14 profit anticipated to be similar to FY13 with potential for further growth.

Perth, 30 August 2013: Finbar Group Limited (ASX: FRI) ( Finbar or the Company ) has delivered a record net profit after tax of $31.2 million for the full year ended 30 June 2013 after releasing its audited results today. This profit represents Finbar’s seventh consecutive year of earnings growth with a 10% increase over the previous corresponding period.

The biggest contributor to Finbar’s earnings this year were profits from the Company’s wholly owned Pelago West project in Karratha, and joint venture projects Adagio in East Perth and Lime in East Victoria Park.

Rental income for the group also doubled as income from Finbar’s Fairlanes office building and Pelago West commercial began to flow through to investment earnings, supplementing investment income already being generated from the Monadelphous building in Victoria Park.

Finbar Managing Director Darren Pateman said, “We have secured some excellent sites this year that meet our strict land price modelling. Some of these have also been by way of JVs with land owner partners which allows us to leverage our development returns very efficiently. I have a high level of confidence that the sites we have secured will continue to enhance the returns we generate for our shareholders as these projects move through the development cycle.”

==> picture [596 x 57] intentionally omitted <==

Finbar has achieved strong sales across all metropolitan projects this past year achieving sold out projects at Ecco, St Marks, and Lime, with 147 sales in the 188 unit Spring View Towers project where construction has recently commenced. In the same period, Finbar have secured six new major metropolitan projects which will result in the future development of an additional 1,225 apartments with an end value of approximately $618 million. In addition, a project in Port Hedland is still being touted subject to a scheme amendment which is currently being considered by statutory authorities.

Commenting on regional developments, Mr Pateman said, “Whilst our Pelago project was our biggest individual contributor to this year’s profits, the current sales activity has slowed as a result of the negative sentiment surrounding the resources sector at present. In spite of this, the financial aspects of our Pelago project remain very attractive. On completion of Pelago East in approximately three months’ time, we will settle an additional 81 sales worth approximately $50 million which will generate attractive profit margins and provide us with sufficient revenue to retire the project finance debt.”

“We will then have approximately $85 million worth of Karratha apartments, currently with 95% occupancy rates at the completed Pelago West, which are anticipated to produce annual rental income of approximately $6.6 million on a fully leased basis. This additional rental income will underpin a solid return on investment until such time as the sector improves and the property is sold. At that point in time, we can then recycle the capital back into the regional sector to allow further engagement in the growth of Pilbara Cities,” Mr Pateman added.

Finbar established a $35.6 million cash position in FY13 which was attributable to strong cashflows generated from projects completed during the period. This enhanced cash position has reinforced the balance sheet and enables the Company to seek new joint venture opportunities while remaining focused on only those projects offering the best returns for shareholders.

The coming financial year will witness the completion of Knightsgate, St Marks, Pelago East, and Ecco apartment projects, with the completion of the Au project currently forecast for the end of the financial year. Finbar is anticipating similar profit levels in FY14 in the absence of any contribution from the Au project. If the Au project were to finish and settle in FY14, then the Company will provide further guidance as the additional revenues will likely result in a material increase in profits.

- ENDS -

For further information, please visit www.finbar.com.au or contact:

Darren Pateman Professional Public Relations Managing Director James Harris Finbar Group Limited Tel: 08 9388 0944 Email: darren@finbar.com.au Email: james.harris@ppr.com.au

==> picture [596 x 56] intentionally omitted <==

Finbar Group Limited, its controlled entities and its jointly controlled entities, is a property development company whose core business lies in the development of medium to high density residential apartments and commercial property within the Perth Metropolitan Area and the Pilbara within the State of Western Australia.

==> picture [596 x 56] intentionally omitted <==