FINBAR GROUP LIMITED — Earnings Release 2015

Feb 17, 2015

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ASX MARKET & MEDIA ANNOUNCEMENT

18 February 2015

FINBAR DELIVERS $11 MILLION PROFIT FOR H1 FY15

Key Points:

• Net profit after tax of $11.0 million for H1 FY15.

• Strong cash position of $48.8 million to fund future growth.

• Fully franked H1 FY15 dividend maintained at $0.04 per share.

• Pre-sale contracts valued at $428 million across currently marketed projects.

• Strong margins maintained on current projects under construction.

• Active period of project marketing, commencements and new acquisitions.

• ~$2 billion project pipeline to support future earnings growth in the years ahead.

Perth, 18 February 2015: Western Australia’s leading apartment development company Finbar Group Limited (ASX: FRI) ( Finbar or the Company ) has today announced a net profit after tax of $11.0 million for the first half of the 2015 financial year ( H1 FY15 ).

The majority of earnings in H1 FY15 were generated from the completion of the Spring View Towers project in Rivervale where 164 settlements occurred during the reporting period. As a result of the completion, the Company retired a total of $52.6 million in project specific debt.

Finbar is anticipating that FY15 results will be second half weighted with the anticipated completion of Toccata and Subi Strand in the second half of the financial year.

Finbar has completed H1 FY15 with a strong cash position to fund future capital commitments for land settlements and working capital requirements. This cash position does not take into account the sale of the Gateway Building in Victoria Park which is forecast to realise $20 million in cash for the Company in March 2015.

Sales activity for the financial year to date has been solid with Finbar now holding 630 presales contracts with a total value of $428.1 million across all projects to underpin future profits.

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Robust levels of sales have continued into the second half of the financial year ( H2 FY15 with further sales anticipated following the public marketing launch in March of the $120 million Aurelia mixed used project in South Perth.

Profit margins across all projects currently under construction remain strong with all projects being built in accordance with the Company’s budgets and timelines.

Commenting on the half year results today, Finbar Managing Director Darren Pateman said, “Despite project completion timing not working in our favour this financial year with respect to maintaining our historical trend of consecutive annual profit records, we are still expecting a solid financial year with completion of our Subi Strand and Toccata projects anticipated in the second half.”

“Both these projects are on budget and have pre-sales which, when settled, will improve our financial results in the second half to ensure a respectable profit for FY15, although we do not anticipate a financial result that matches last year’s record profit. At this stage, we are not providing any profit guidance for FY15 as this will be ultimately determined by the number of apartments that are sold and settled for both these significant projects by 30 June 2015.

“Timing of revenue recognition aside, the most important measures for our business are the ability to identify and fund growth projects, achieve the sales, then develop and complete these projects on time and budget to generate strong margins and solid profits, all whilst maintaining a strong, unstressed balance sheet for the business.

“The Board and management team are very happy to report that by these measures, Finbar is in a strong financial position, is continuing to grow with a ~$2 billion project pipeline, and has unconditional pre-sales contracts totalling ~$428 million across all projects currently being marketed. These future projects and settlements will ensure Finbar is very well positioned to secure earnings growth in the years ahead,” Mr Pateman added.

The Board of Directors confirms that it will maintain a fully franked interim dividend of 4.0 cents per share. Further dividend details will be provided by way of a separate announcement to follow.

• ENDS -

For further information, please refer to the Half Year Results & Project Update Slides 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

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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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