FINBAR GROUP LIMITED — Earnings Release 2014

Aug 28, 2014

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ASX MARKET & MEDIA ANNOUNCEMENT

29 August 2014

FINBAR REPORTS $36.5 MILLION RECORD PROFIT IN FY14

Key Points:

• Record net profit after tax up 17% to $36.5 million.

• FY14 represents 8[th] consecutive year of profit growth.

• $61 million cash position to fund working capital and future growth.

• St Marks, Pelago, Ecco, and Au projects contributed largely to FY14 earnings.

• 7 new major metropolitan projects secured with an end value of ~$883 million.

• Refreshed $1.8 billion pipeline to meet medium and long term profit growth.

Perth, 29 August 2014: Finbar Group Limited (ASX: FRI) ( Finbar or the Company ) has delivered a record net profit after tax of $36.5 million for the full year ended 30 June 2014 after releasing its audited results today. This profit represents Finbar’s eighth consecutive year of earnings growth with a 17% increase over the previous corresponding period.

The biggest contributor to Finbar’s earnings in FY14 were profits from the Company’s wholly owned St Marks and Pelago projects, along with joint venture projects at Ecco and Au.

Rental income for the group also increased as a result of additional income from leased apartments at Pelago in Karratha, which are now 89% leased and currently generating an annual income of approximately $5.4 million, supplementing the investment income already being received from the Monadelphous building in Victoria Park and Fairlanes in East Perth.

Finbar has achieved strong sales across all metropolitan projects this past year, particularly at Spring View Towers, Toccata, Subi Strand, and Norwood where construction is underway. Furthermore, the Company sold 80 apartments worth approximately $65 million in the opening week of marketing this month at the 38 level Concerto project in East Perth.

Finbar Managing Director Darren Pateman said, “We have had a busy and successful year across our portfolio with a reasonably robust apartment sales market supporting construction commencements for major projects. We also secured some terrific sites that we are confident will drive our sales growth as they move through the development process, which is becoming even more efficient as Finbar and the apartment market continues to mature.”

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Finbar secured seven new major metropolitan projects during FY14 which will result in the future development of an additional 1,300 apartments with an end value of approximately $883 million. In addition, a mixed-use project in Port Hedland is still being considered if market conditions in the Pilbara become more favourable.

Strong cashflows generated from projects completed during the period contributed to a record $61 million cash position for Finbar in FY14. This enhanced cash position has reinforced the balance sheet and enabled the Company to adequately fund its existing project acquisitions and commencements as well as secure Finbar’s single largest project to date with the recent deal completed on the iconic Civic Triangle Site in South Perth.

FY15 will witness the completion of Spring View Towers during the first half of the financial year and the likely completion of Toccata and Subi Strand in the second half. Additional revenues from the sale and settlement of residual stock in Au, Adagio and Pelago are also expected to occur during FY15 with all three projects contributing towards another successful year for the Company.

In terms of our FY15 financial performance and beyond, Finbar is mindful that the timing of our project completions and settlements will ultimately impact on each financial year’s profitability as it is at the point of construction completion and hand-over of the end product that the Company can account for revenue from pre-sales. As projects become larger, so too can the time gap for receipt of sales revenue increase and sometimes this may not fall perfectly in a reporting period to enable continued and steady reported growth. As a result, Finbar will provide profit guidance for FY15 closer to the end of the financial year.

The Company remains confident that the existing and recently refreshed $1.8 billion project pipeline (excluding Port Hedland) is consistent to meet the group’s medium and long term profit growth targets as Finbar continues to benefit from its unique cost advantages, robust sales across multiple projects and industry leading profit margins.

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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

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.

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