GOODMAN GROUP — AGM Information 2008

Nov 16, 2008

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17 November 2008

The Manager Company Notices Section ASX Limited Exchange Centre 20 Bridge Street SYDNEY NSW 2000

Dear Sir

GOODMAN GROUP (“GOODMAN”) ANNUAL GENERAL MEETING – CHAIRMAN’S ADDRESS

Please find attached the Chairman’s and Group Chief Executive Officer’s address along with a presentation for Goodman’s Annual General Meeting being held today.

A live webcast of the Annual General Meeting will be available on the Goodman website (www.goodman.com).

Yours sincerely

Carl Bicego Company Secretary

Level 10, 60 Castlereagh Street Sydney NSW 2000 | GPO Box 4703, Sydney NSW 2001 Australia Tel +61 2 9230 7400 | Fax +61 2 9230 7444 | info-au@goodman.com | www.goodman.com Goodman International Limited ABN 69 000 123 071 Goodman Funds Management Limited ABN 48 067 796 641 AFSL Number 223621 as responsible entity for Goodman Industrial Trust ARSN 091 213 839

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Chairman’s Address Goodman Group – Annual General Meeting 17 November 2008 at 10:00 am Sheraton on the Park, Sydney

Good morning ladies and gentlemen and welcome to the 2008 Annual General Meeting of Goodman Group.

My name is Ian Ferrier and I will chair today’s meeting.

Thank you for taking the time to join us here today.

Unfortunately your Chairman David Clarke is quite sick today and has been hospitalised. David and the board asked me to act in his role.

Before I introduce your directors let me make the point that while you can read full details of their background in the annual report, each director brings long experience across a range of industries and professions that together add up to give securityholders a strong and diverse board.

Your directors have an average of 35 years’ business experience.

Let me now formally introduce your Directors.

On my left is our Company Secretary Carl Bicego, on his left is our Group Chief Executive Officer, Greg Goodman, and to his left are the independent directors Diane Grady, John Harkness, Anne Keating and Jim Sloman and next to Jim are the non-executive directors Patrick Goodman and James Hodgkinson.

Also on stage is our Chief Financial Officer, Anthony Rozic.

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The rest of our senior management team is in the audience today and I know they would be happy to meet you after the meeting and discuss our company.

Also here today is a representative of our external auditors, Mr John Teer of KPMG.

If you have not been issued with a voting, non-voting or visitors registration card, please see the representatives of Computershare Investor Services at the registration desk.

Today’s meeting has been convened in accordance with the Corporations Act and the Listing Rules of the ASX.

I have been informed by Computershare Investor Services, the scrutineers for today’s proceedings, that a quorum is present and I therefore formally declare the meeting open.

I propose, unless there are any objections, that the Notice of Meetings dated 15 October 2008 be taken as read.

There are three parts to this morning’s meeting.

1. I will start by talking about how we see the global economic environment and how that has impacted Goodman and our performance during the year.

2. Greg will then discuss our business in the context of the current market conditions, our financial results in more detail and talk about our outlook for the rest of the financial year.

3. Then I will take questions and cover those issues securityholders have asked us to address and then we will discuss and vote on the eight items of business.

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Global economic environment

The impact of the global financial crisis, the subsequent lower appetite for risk and significant reduction in available credit is seeing many countries heading into recession.

Global growth is slowing sharply.

Already in the first six months of this calendar year, global growth had slowed to 3.75 per cent on an annualised basis, which is down from 5 per cent in 2007. Next year, the predictions are for just over 2 per cent in 2009, with the downturn led by advanced economies.

A major contributing factor to the financial crisis was the disproportionate amount of risk assumed by the global financial system through unsound lending practices.

As a result, attitudes to risk and borrowings have dramatically changed.

The reality is that markets are tolerating less risk and credit will continue to be scarce.

The effects on stock markets worldwide, property values, financial institutions and the economies of countries like the USA and the UK are obvious.

It is also clear that markets, including currencies, will continue to be very volatile.

On the other hand, the International Monetary Fund and other independent bodies are predicting continuing but slower growth in Asia and the Middle East, particularly in China and to some extent India.

We do see growth in Australia slowing considerably from current levels and remaining low for this year and next.

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Further to this reduction in growth, a major impact on the Australian economy has been the recent, rapid depreciation of the dollar.

The Australian dollar has been one of the world’s weakest performing currencies over the last three months.

As you know, our policy is to naturally hedge our borrowings to avoid exposure to currency risk.

This means that we borrow in the same currency as we make investments.

So, for instance, if we are investing in a property in the United Kingdom we borrow in pounds. If we are investing in Europe we borrow in Euros.

This chart demonstrates the recent impact of the euro and pound on the Australian dollar.

This table is an illustration of the approximate impact of the foreign exchange shift on gearing in October 2008.

As you can see we have around 40 per cent of our assets in overseas currencies. We match this with debt in the same currencies, this gives us a full net asset hedge.

As the Australian Dollar fell 20 per cent, the value of our foreign assets and debt increased. As a result our net asset position was unchanged, but it meant our gearing became higher.

We manage this risk by having appropriate gearing capacity in place.

By undertaking the measures we have subsequently taken, we have restored our capacity. It is worth noting that the Australian dollar has since stabilised.

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It has always been part of our strategy to maintain a strong balance sheet with appropriate gearing.

However, the perception of what is considered conservative has changed over the past 12 months and our response over this period has been to lower our gearing through asset sales and retiring debt in line with the market’s changed perception of risk.

Given the unprecedented volatility, particularly the further deterioration during October, we believed it was prudent to raise equity to accelerate our initiatives to reduce our gearing levels and ensure that we are well positioned to manage the current market volatility.

To achieve this, we successfully raised $833 million through the issue of new securities at $0.90 under an institutional placement and the institutional component of the entitlement offer.

Many existing institutional securityholders took up the offer. We protected the rights of our retail investors whose holdings would have been diluted by offering them the opportunity to take up securities at the same price as the institutions on an entitlement basis.

It is anticipated that the retail component of the entitlement offer will raise approximately $122 million giving a total raising of $955 million.

Now I know some shareholders have asked why we priced the capital raising at 90 cents. From October 2007 to October 2008, the S&P ASX 200 index has dropped 40 per cent.

While the property sector tracked this decline, it was exacerbated by market concerns in December 2007 that some companies were too highly leveraged and that the sub prime crisis was making it very difficult to obtain debt particularly for those companies with a heavy exposure to the US.

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In September it was clear that sentiment was turning more rapidly against listed property companies than the general market. In early October the Goodman security price went under two dollars and towards the last week of October it dipped under one dollar.

But the following two slides show how Goodman has performed relative to the listed Australian and global real estate investment trust sectors, since the start of the 2008 calendar year.

The first slide shows that Goodman’s security price has fallen broadly in line with the other Australian listed property groups.

Our security price has also performed broadly in line with global listed property companies.

Now I understand that this does little to make up for the drop in value, but I do want to demonstrate that in making the decisions we have, they have been made with the interests of securityholders in mind. While we have no direct control over the price of our securities we do take actions that we believe will protect and enhance the long term value of the Group.

The other issue is the change in our distribution. While Greg will take you through this in more detail, given the turmoil going on in debt and equity markets, the board believed it was prudent to revise our earnings outlook and distribution to 19.3 cents per security on a fully diluted basis.

This reflects a very conservative base case approach that only takes into account revenue we know we will receive for the remainder of the 2009 financial year.

Apart from the equity raising, we also took a very active approach to the rest of our capital management.

We refinanced $2.5 billion of debt through asset sales and raised $3.2 billion of new credit facilities to mitigate the risks associated with maturing facilities.

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As a result of these and other initiatives the Group’s average weighted debt maturity profile improved to 3.9 years at year end.

We currently have:

1. $1.5 billion of available liquidity;

2. A pro forma headline gearing ratio of 35 per cent, after taking into account foreign exchange movements and completed asset sales.

This should improve with the benefits of expected asset sales of approximately $350 million.

Customer service model

We remain focused on the fundamentals of our integrated property business.

We continue to own, develop and manage industrial property and business space, and work hard to achieve outstanding levels of customer satisfaction.

This in turn drives high occupancy and retention rates, which are key to delivering value for our investors.

This underpins our position as one of the world’s leading providers of industrial property and business space solutions.

We employ more than 1,200 people, servicing over 1,300 customers across 371 properties in 39 cities in Asia Pacific and Europe.

Our customers include companies such as Amazon, Coca-Cola Amatil, Coles, Linfox, Toll, Unilever and Woolworths.

So we are diversified by geography and earnings and characterised by a blue chip international customer list.

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Financial highlights

As you have seen, we are in a sound position.

In 2008, that translated into an operating profit of $567.1 million for the year and growth in operating earnings of 8 per cent.

We increased distributions by 8 per cent to 34 cents a security.

Total assets under management rose by 9 per cent to $18.6 billion, after excluding those assets we transferred with the sale of Goodman Property Investors and our Singaporean interests.

Earnings

While it is difficult to provide earnings guidance in the current environment, the Board and management undertook a detailed review of the Group’s outlook in October.

Given the volatility and further recent deterioration in conditions, we decided to take a base case approach to future earnings.

What we did was only take into account those transactions, rental income and base management fees that we know are in place for the balance of the 2009 financial year.

With that cautious approach we see that earnings per security would be 19.3 cents taking into account the equity raising and capital management initiatives which we intend to distribute.

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Conclusion

Before I hand over to Greg let me make the following points.

In a time of unprecedented turmoil and volatility Greg and his management team are focusing on our core business of owning, developing and managing industrial property and business space.

They have positioned the group financially and operationally to deal with the current economic environment and to take advantage of growth opportunities.

Once Greg has spoken to you I will talk about the issues securityholders have raised.

We will then move to the formal items of business.

I would now like to introduce our Group Chief Executive Officer, Greg Goodman.

Group CEO’s address

Thank you Ian and good morning ladies and gentlemen.

This morning I will discuss four key topics:

• • How we see the current environment
• • How it has affected Goodman and how we have responded
• • The strength of our business and
• • Finally our results and outlook for the year ahead.

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Market overview

Turning to the current economic environment, what started off as a crisis in the financial system has moved into the rest of the world economy creating a fall in both debt and equity markets. The large northern hemisphere economies are in recession, Asian growth has slowed as has the Australian economy.

This is presenting significant issues and challenges for every asset class and every economy around the world.

Impact on property sector globally

The property sector globally has been particularly hard hit and has experienced a severe crisis of confidence. Extremely tight credit conditions resulting in a lack of liquidity and access to capital has significantly lowered the tolerance for risk.

We are seeing ongoing fears of a global recession affecting the market’s view of the property sector in the form of lower valuations in many markets, reduced development activity and higher perceptions of risk.

Impact on Goodman

These factors are continuing to be the major drivers of the value in our securities, which as you are all painfully aware has declined significantly over the past several months.

The loss of value is disappointing and concerning for all securityholders, including the Goodman management team and employees. But I would like to demonstrate that the fundamentals of our business remain sound.

I believe that we will eventually move through this cycle and enter a new world order. There will be no going back and there will be new attitudes to risk and regulation.

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What is clear is that financial strength and liquidity are and will continue to be critical.

We believe Goodman has acted early and decisively to put ourselves in the best possible position to ride out this part of the cycle while continuing to focus on longterm growth.

Over the past 12 months, we have taken a number of actions.

• • Firstly, Goodman Group successfully raised new facilities of $3.2 billion. We also raised equity capital of $126 million from the DRP and $327 million from our hybrid issue during a period of unprecedented volatility.
• • Secondly, we focused even more strongly on our core business. We sold two non-core operations: Goodman Property Investors in the UK for $220 million, and the joint venture with Ascendas in Singapore for $219 million.
• • At the same time, we strengthened core parts of our operations, such as our funds platform. Because of our relationships with our banks and investment partners, we were able to raise $900 million in equity capital and $4.6 billion of debt.

We are examining every aspect of our operations to reduce costs, maximise efficiencies and set Goodman up for a strong future.

However as Ian outlined, since we reported our financial results in August the instability in the equity and debt markets accelerated. The further tightening of liquidity hit the property sector both globally and domestically very hard. As a result we again carefully examined our level of gearing and development activity.

In October when the Australian dollar dropped so dramatically we took the decision to raise additional capital through a fully underwritten placement of $230 million of securities to institutional investors, and a further $725 million to be raised through a non-renounceable entitlement offer.

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We also announced that we had completed $160 million of asset sales since 30 June 2008, with the proceeds used to retire debt. As part of our normal operating model we expect to complete a further $350 million of asset sales by the end of December this year. This will come from a variety of activities and geographies.

Current financial position

So, the bottom line is, we are in a strong financial position.

We have $1.5 billion of available liquidity. We have reduced our Group gearing to 35 per cent and we are continuing to work hard to reduce this further in the longterm.

Business model

Now, let me talk a little bit more about our business model. Goodman is an integrated business that owns, develops and manages industrial property and business space globally.

We invest in office parks and industrial real estate. We also offer a range of property funds, giving investment partners access to our specialist services and property assets.

Our investment partners are major global institutions and sovereign wealth funds.

Remaining focused on that strategy has helped us become one of the world’s leading providers of industrial property and business space solutions.

From a customer perspective, this integrated business enables us to provide superior solutions for our customers, who rely on us for the logistics and business facilities that are central to their supply chains and operations.

An essential part of our approach is to retain the best people and, through them, form lasting relationships with our customers.

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This enables us to achieve high occupancy rates and customer retention, consistent rental growth and attractive, long-term returns for investors.

One of the unique features of our business model that set us apart is diversity. We operate in 19 countries around the world.

We have a long list of blue chip customers but no one customer accounts for more than 4 per cent of net rental income.

Asian platform

When we announced the measures to strengthen our balance sheet we also said that we would restructure and strengthen our Asian platform. We did that through the acquisition of Macquarie’s 50 per cent interest in Macquarie Goodman Asia, excluding Japan.

Asia continues to enjoy higher growth rates than western economies. The acquisition of the remaining 50 per cent of Macquarie Goodman Asia gives us the ability to streamline our Asian platform and use Hong Kong as the hub for our China and other Asian operations.

Annual results

Let me give you a few highlights from the Group’s result for the year.

Goodman has performed well despite the difficult environment by remaining focused on our core business and strategy.

• • Operating income was up 11 per cent to $567.1 million and operating earnings per security growth was up 8 per cent.
• • We achieved strong growth across all of our operations. Operating earnings before interest and tax were up 18 per cent.

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Looking at the highlights from each of our operating areas:

For investments:

• • Investment income was up 11 per cent
• • Our total investment portfolio increased by 6 per cent to $5.6 billion and benefited from strong property fundamentals.
• • Our direct property portfolio delivered 98 per cent occupancy rates across the portfolio with strong leasing demand culminating in income growth of 3.3 per cent.
• • These fundamentals have continued to hold up for the first quarter of the 2009 financial year and are expected to continue for the balance of this calendar year.
• • During the year we booked a net valuation loss of $382.5 million. This was mainly non cash and in the context of total assets of $9.6 billion.

Our management services business performed well with:

• • Income up 16 per cent
• • Total assets under management increased by 9 per cent to $18.6 billion, while assets under management in our funds grew 22 per cent to $14.3 billion.

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Our development business performed strongly with:

• • Profits growing by 43 per cent.
• • We completed $2.4 billion of new developments for the Group’s direct property portfolio and funds.
• • The Group’s managed funds increased their level of participation in developments during the year, with 71 per cent of projects being developed inside the funds platform.
• • I think it’s important to point out that before we begin projects we have customer pre commitments of 75 per cent of the total value of those projects. We undertake very little speculative development.

This trend will continue with more developments being undertaken in our funds moving forward.

Our focus on sound capital management during the year meant we acted decisively to mitigate the risks associated with our expiring debt maturities. We raised additional debt and equity of $1.2 billion to meet our working capital requirements.

Overall, we believe this was a good result given the particularly tough market conditions.

Outlook

Let me finish up by talking about how we see the year ahead.

Clearly we are now facing a new world order which is more risk averse and an environment which is particularly challenging.

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Given the turmoil going on in debt and equity markets, the board believed it was prudent to revise our earnings outlook to 19.3 cents per security. This is on a fully diluted basis, that is, after taking into account the $955 million capital raising.

We have done this by taking a base case approach. In other words we have only taken into account known transactions, rental income and base management fees that we know we will receive for the remainder of the financial year to 30 June 2009.

Despite the changes to our Distribution Policy announced in August, Goodman intends to distribute 19.3 cents per security. Any incremental earnings will be retained.

As a result of all of the initiatives we have undertaken Goodman is now in a stronger financial and strategic position. We will only do the best projects at the very best margins, pre-leased and pre-sold, without carrying a lot of development inventory.

The dislocation of markets has created an environment of diminished competition and at the same time should present opportunities for the future.

We have a proven business and a solid long term strategy. We have quality people and a sound infrastructure. We are in a position of financial strength. We have strong investment partners and this is a major plus for our businesses around the world.

We are positioned well not only for the current economic conditions but also for the future.

Today, I also wish to announce that one of our long serving senior executives, David van Aanholt, has resigned from the Group. He has been on sabbatical since August this year and I would like to thank him for his contribution to the Group during his 10 years with us.

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Finally, thank you for your ongoing support. We fully understand the challenges that we face and the strategies we need to deploy to remain focused on the growth of our core business and to deliver consistent long-term returns for our securityholders.

Thank you.

Items raised by securityholders

Thank you Greg. Let me now move to items that have been raised by securityholders.

Events post annual report

The first one relates to the market events that took place between the release of the annual report and the announcement of the capital management initiatives and earnings update.

The snowball that became the global credit avalanche really started taking hold in October.

We saw global equities markets such as the Dow Jones, FTSE and also the S&P ASX200 sustain significant falls.

And as I mentioned earlier the Australian dollar fell to near 60 cents against the US dollar during October.

Given the market turmoil we believed it was prudent to look at every aspect of our position and so on 28 October we announced the capital management initiatives we are undertaking in response.

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Distribution frequency

The next subject securityholders raised was the move to six monthly distributions.

Quite simply this brings us into line with the majority of our listed property peers and is consistent with a number of steps we have taken to reduce costs.

There are cost savings associated in moving from quarterly to six monthly distributions.

I understand that this is not as satisfactory as quarterly distributions for some securityholders but it is one of those matters we have to balance.

Risk management

Securityholders have also requested further information on how the Risk and Compliance Committee oversees the most important risk factors for the Group.

The Committee itself is Board appointed and operates under a formal charter.

It is made up of a majority of Independent Directors and meets at least quarterly to report on the following:

1. Goodman’s risk profile which comprises the key risks and controls for the Group;

2. Key projects that address the risks identified;

3. Incidents management, which includes occupational health and safety incidents;

4. Licensing and compliance matters;

5. Corporate and property insurance requirements;

6. Business continuity planning and support processes;

7. Risk and compliance frameworks and systems; and

8. Minutes from management committees such as occupational health and safety, environmental and information technology.

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The Committee is chaired by John Harkness and reviews the detailed information and reports to the Board generally, and on an “exceptions” basis, to ensure the Board is aware of the key risks and issues.

Thank you for your support and for attending today’s meeting.

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Welcome Goodman Group Annual General Meeting – 17 November 2008

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Introduction
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Directors and executives

Mr Ian Ferrier Independent Director

Mr Carl Bicego Company Secretary

Ms Anne Keating Independent Director Mr Jim Sloman Independent Director

Mr Gregory Goodman Group Chief Executive Officer Ms Diane Grady Independent Director

Mr Patrick Goodman Non-Executive Director

Mr James Hodgkinson Non-Executive Director

Mr John Harkness Independent Director

Mr Anthony Rozic Group Chief Financial Officer

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Notice of meetings

• Global economic environment and impact on Goodman + Group Chief Executive Officer’s address + Formal business

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Global economic environment

• • Impact of the global economic environment is seeing many countries head into recession
• • Growth has slowed to 3.75% (annualised) in the first six months of the calendar year, down from 5% in 2007
• • Growth for 2009 is predicted at approximately 2%, with the downturn led by advanced economies
• • Attitudes to risk and borrowing have changed dramatically
• • Markets and currencies will continue to be volatile

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Asia Pacific economies

• • Continued growth expected in Asia[1] , particularly China and India
• • Growth slowing considerably in Australia
• • Major impact from the recent rapid depreciation of the Australian dollar
• • Australian dollar has been one of the world’s weakest performers over the last three months

• Source: International Monetary Fund

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Currency impact

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Foreign exchange impact

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Strategy

• • Maintain a strong balance sheet with appropriate gearing levels
• • Gearing reduced during the year through assets sales and retiring debt
• • Recent equity raising accelerated our initiatives to reduce gearing
• • Well positioned to manage the current market volatility

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Equity raising

• • Successfully raised $833 million through the issue of securities at $0.90 to institutional investors
• • All eligible investors were offered the opportunity to take up securities at the same issue price
• • Anticipate that the retail component of the entitlement offer will raise approximately $122 million giving a total raising of $955 million

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Equity raising issue price

• • From October 2007 to October 2008, the S&P ASX200 index has dropped 40%
• • Property sector tracked this decline and was further exacerbated by market concerns in December 2007 making it difficult to obtain debt
• • In September, sentiment was turning more rapidly against listed property companies than the general market
• • In early October, our security price went under $2 and towards the last week of October, dipped under $1

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Security price versus A-REIT index

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Security price versus global real estate index

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Capital management

As at June 2008:

• Refinanced $2.5 billion of debt through asset sales

• • Raised $3.2 billion of new credit facilities
• • Average weighted debt maturity profile improved to 3.9 years

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Capital management

As at November 2008:

• • Available liquidity of $1.5 billion
• • Proforma headline gearing ratio of 35%[1]
• • Should improve further after expected asset sales of $350 million

• After foreign exchange movements and completed asset sales

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Customer service model – back to basics

• • Remain focused on fundamentals of our integrated property business
• • We own+develop+manage industrial property and business space
• • Continue to work hard to achieve outstanding levels of customer satisfaction
• • This drives high occupancy and retention rates which are key in delivering value for investors

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Customer service model

• • One of the world’s leading providers of industrial property and business space solutions
• • Team of 1,240 people
• • Customer base of 1,358
• • 371 business space properties under management
• • Offices in 39 cities across Asia Pacific and Europe

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As at 30 June 2008

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Top 20 customers

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Financial highlights

As at 30 June 2008:

• • Operating profit of $567.1 million
• • Growth in operating earnings of 8%
• • Increased distributions per security by 8% to 34 cents
• • Total assets under management rose by 9% to $18.6 billion (excluding GPI and Singapore)

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Earnings

• • Base case approach to future earnings, given the volatility and further recent deterioration in conditions
• • Taking into account those transactions, rental income and base management fees that are known to be in place for the balance of the financial year:
• • Earnings per security is estimated at 19.3 cents
• • Distribution per security is estimated at 19.3 cents

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Conclusion

• • We are focused on our core business
• • The Group is well positioned:
• • Financially and operationally to deal with the current economic environment
• • To take advantage of growth opportunities

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Group Chief Executive Officer’s address Gregory Goodman

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Introduction

• • How we see the current environment
• • How it has affected Goodman and how we have responded
• • Strength of our business
• • Results and outlook for the year ahead

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Market overview

• • Crisis in the financial system moved into the world economy creating a fall in both debt and equity markets
• • Large northern hemisphere economies are in recession
• • Growth in Asian and Australian economies has slowed
• • Presents significant issues and challenges for every asset class and every economy

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Impact on property sector globally

• • Property sector globally particularly affected
• • Tight credit conditions resulting in lack of liquidity and access to capital has lowered tolerance for risk
• • Ongoing fears of global recession affecting the sector in the form of:
• • Lower valuations in many markets
• • Reduced development activity
• • Higher perception of risk

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Impact on Goodman

• • These factors continue to be the major drivers of value in our securities
• • However, the fundamentals of our business remain sound
• • We will eventually move through this cycle and enter a new world order
• • There will be new attitudes to risk and regulation
• • Financial strength and liquidity are, and will continue to be, critical
• • Goodman acted early ensuring it was in the best possible position to ride out this part of the cycle while continuing to focus on long-term growth

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Response to the market

• • Over the past 12 months, we have taken a number of actions:
• • Raised new facilities of $3.2 billion and equity capital of $126 million from the DRP and $327 million from our hybrid issue
• • Focused strongly on our core business and sold two non-core businesses in the UK and Singapore
• • Strengthened core parts of our operations such as our fund platform
• • Due to our strong relationships, we raised $900 million in equity capital and $4.6 billion of debt

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Response to the market

• • Post financial results, the instability in the equity and debt markets accelerated
• • In October, we announced a fully underwritten institutional placement and non-renounceable entitlement offer to raise $955 million
• • Completed $160 million of asset sales since 30 June 2008, with the proceeds used to retire debt
• • A further $350 million of asset sales expected by the end of December

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Current financial position

• • We are in a strong financial position
• • Available liquidity of $1.5 billion

• Reduced Group gearing to 35%

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Business model

• • Integrated property group that owns, develops and manages industrial property and business space globally
• • Invests in business parks, office parks, industrial estates and warehouse and distribution centres
• • Offers a range of property funds, giving investment partners access to our specialist services and property assets
• • One of the world’s leading providers of industrial property and business space solutions

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Business model

• • Integrated model enables us to provide superior customer service
• • Customers rely on us for logistics and business facilities
• • Retain the best people who form lasting relationships with customers
• • This enables us to achieve:
• • High occupancy and customer retention rates
• • Consistent rental growth
• • Attractive long-term returns for investors

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Business model

• • Operate in 39 cities across 19 countries
• • Large base of blue chip customers
• • No customer accounts for more than 4% of net rental income

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Asian platform

• • Restructured our Asian platform through the acquisition of Macquarie’s 50% interest in Macquarie Goodman Asia (excluding Japan)
• • Asia continues to enjoy higher growth than western economies
• • Acquisition streamlines our Asian platform and use Hong Kong as the hub for our China and other Asian operations

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Annual results

• • Performed well by focusing on our core business and strategy
• • Operating income up 11% to $567.1 million
• • Operating earning per security up 8%
• • Operating earnings before interest and tax up 18%

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Annual results

• Investments:

• Investment income up 11% + Total investment portfolio up 6% to $5.6 billion

• • Direct property portfolio delivered 98% occupancy rate
• • Strong leasing demand and income growth of 3.3%
• • A net valuation loss of $382.5 million

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Annual results

• Management services:

• • Investment income up 16%
• • Total assets under management up 9% to $18.6 billion
• • Assets under management in our funds up 22% to $14.3 billion

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Annual results

• Developments:

• • Development profits up 43%
• • $2.4 billion of new developments completed
• • 71% of projects developed inside the funds, with customer precommitments representing 75% of total project value

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Annual results

• Capital management:

• • Focused on sound capital management
• • Acted decisively to mitigate risks associated with our expiring debt maturities
• • Raised additional debt and equity of $1.2 billion

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Outlook
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Outlook

• • Board believed it prudent to revise earnings per security to 19.3 cents
• • Earnings take into account known transactions, rental income and base management fees for the remainder of 2009
• • Distribution per security revised to 19.3 cents or 100% of earnings
• • Any incremental earnings to be retained

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Outlook

• • We are in a stronger financial and strategic position
• • We will only undertake the best projects at the best margins that are preleased or presold
• • We have a proven business and a solid long-term strategy
• • We have quality people and a sound infrastructure
• • We are well positioned not only for the current economic conditions but also for the future
• • We remain focused on the growth of our core business and to delivering consistent long-term returns for our securityholders

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Items raised by Securityholders

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Events post annual report

• • Global credit avalanche started taking hold in October
• • Global equities markets such as the Dow Jones, FTSE and the S&P ASX200 sustained significant falls
• • Australian dollar fell to near US$0.60 during October
• • Reviewed our position and announced the recent capital management initiatives

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Distribution frequency

• • Change in distribution frequency to six monthly
• • Brings us into line with the majority of our listed property peers
• • Consistent with a number of steps we have taken to reduce costs

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Risk management

• • Board appointed Risk and Compliance Committee operates under a formal charter
• • Made up of a majority of Independent Directors and meets at least quarterly
• • Committee chaired by John Harkness
• • Reports to the Board to ensure it is aware of the key risks and issues across the Group

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Thank+you

Important Notice This presentation has been prepared by Goodman Group (Goodman International Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641; AFSL Number 223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839)). It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor. These should be considered, with professional advice, when deciding if an investment is appropriate. This presentation is not an offer or invitation for subscription or purchase of securities or other financial products. It does not constitute an offer of securities in the United States. Securities may not be offered or sold in the United States unless they are registered under the US Securities Act of 1933 or an exemption from registration is available. This presentation contains certain “forward-looking statements”. The words “anticipate”, “believe”, “expect”, “project”, “forecast”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan” and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forwardlooking statements. Due care and attention have been used in the preparation of forecast information. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Goodman Group, that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. All values are expressed in Australian currency unless otherwise stated. November 2008.