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GOODMAN GROUP Annual Report 2011

Aug 17, 2011

64998_rns_2011-08-17_6c41afbf-a4aa-41ad-9abe-489292a758e4.pdf

Annual Report

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Goodman Group Results for the year ended 30 June 2011+

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18 August 2011

building momentum + delivering opportunities

Important notice and disclaimer

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    • This document has been prepared by Goodman Group (Goodman 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)). This document is a presentation of general background information about the Group’s activities current at the date of the presentation. It is information in a summary form and does not purport to be complete. It is to be read in conjunction with the Goodman Limited Annual Financial Report lodged with the Australian Securities and Investments Commission and Australian Securities Exchange (ASX) and Goodman Group’s other announcements released to the ASX (available at www.asx.com.au). 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. This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in the United States or to any “US person” (as defined in Regulation S under the US Securities Act of 1933, as amended (Securities Act) (US Person)). Securities may not be offered or sold in the United States or to US Persons absent registration or an exemption from registration. The stapled securities of Goodman Group have not been, and will not be, registered under the Securities Act or the securities laws of any state or jurisdiction of the United States.
    • This announcement 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 forward-looking statements. Due care and attention has 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 the 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.

2

Contents

  • Section 1

  • Section 1 Highlights + Section 2 Results overview + Section 3 Operational performance + Section 4 Outlook and summary

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+ Appendices

  • Results analysis

  • Investment

  • Development

  • Management

  • Capital management

3

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Section 1+
Highlights
M7 Business Hub, Australia
4
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Highlights

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+ Focused strategy delivering:

  • Operating profit after tax of $384 million up 24% on FY2010

  • Fully diluted operating EPS of 5.66[1] cents up 8% on FY2010

  • Statutory accounting profit of $392 million – including revaluations and other non-operating items

  • Distribution per security of 3.5 cents, up 3% on FY2010

  • Investment EBIT contributing 64% of earnings, 36% from Development and Management

  • Offshore operations contributed 45% of EBIT, with Asia and Continental Europe key growth drivers for FY2012 and beyond

+ Strategic focus driving competitive strength:

  • Ownership of core industrial assets in proven locations – 96% occupancy across the Group and managed funds

  • Selective, pre-committed and pre-sold approach to development activities – 91% of all developments pre-sold

  • Actively managing third party capital – raised $1.8 billion in new third party equity

  • Global operating platform provides scale, diversification and the ability to pursue a broad range of opportunities

  • Prudent capital management – continue to diversify funding sources with gearing decreased to 23%, $1.3 billion of liquidity maintained covering maturities to FY2015 and a weighted debt maturity of 5.6 years

+ Positioned to deliver FY2012 operating profit after tax of $460 million, equating to a fully diluted operating EPS of 6.0[2] cents (up 6% on FY2011)

  1. 5.66 cents on a fully diluted basis adjusted for the CIC hybrid securities - this equates to 5.77 cents on an undiluted basis 2. On a fully diluted basis adjusted for the CIC hybrid securities

5

Highlights

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+ Occupancy increased to 96% (93% at June 2010)
Own + Retention at 76% and WALE of 5.3 years
+ Leased ~1.9 million sqm across the Group and managed funds platform, generating a reversion of +2.3%
+ Development activity across all core markets providing global diversification
+ WIP at $1.8 billion across 42 projects in 12 countries with a forecast yield on cost of 8.7%
Develop + $10 billion development pipeline maintained
+ Development commitments of $1.4 billion with 82% pre-committed and 91% pre-sold to funds or third parties
+ External assets under management (AUM) increased to $14.4 billion (up 22% on FY2010 on a constant
currency basis)
Manage + Completed successful acquisition of ING Industrial Fund (IIF) to form Goodman Trust Australia
+ Raised $1.8 billion of new third party equity
+ Strength of capital partner relationships further demonstrated through 50% sale of Interlink
+ Grew operating profit by 24% while reducing gearing to 23% (36% look through)
+ ICR 4.5x (2.6x look through)
+ Established new debt facilities of $4.8 billion with an average term of 5.1 years across the Group and managed
Corporate funds – GMG’s weighted debt maturity profile extended to 5.6 years (from 3.3 years)
+ Diversified sources of drawn funding – raised $0.9 billion in debt capital markets (capital markets now
represent 69% of the Group’s debt funding)
+ IIF and Moorabbin acquisitions fully integrated into the business

6

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Section 2+
Results
overview
Andover Business Park, UK
7
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Results overview

    • Underlying fundamentals robust across all business activities:

  • Operating performance above guidance

  • Credit metrics and liquidity improved

  • Fund capital raisings have reduced gearing, Goodman trending to 20% participation

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FY2011
Operating earnings ($M) 383.9
Operating earnings per security (cents)1 5.77
Operating earnings per security (fully diluted)
(cents)1, 2		 5.66
Distribution per security (cents) 3.50
Payout ratio (%) 61
  • Development contribution increasing while capital allocated to the Development business held constant

+ Investment EBIT contributing 64% of earnings, 36% from Development and Management:

  • 71% Investment and 29% Development and Management on a look through basis

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As at
30 Jun 2011
External assets under management ($B) 14.4
Total assets on balance sheet ($B) 7.6
NTA ($)3 0.49
Gearing (balance sheet) (%)4 23.0
Available liquidity ($B) 1.3
WACR (look through) (%) 7.9

  1. Operating earnings and EPS excludes unrealised gains on property revaluations, AIFRS and other non-cash adjustments and calculated based on weighted average securities of 6,651.6 million

  2. Calculated based on weighted fully diluted average securities of 7,270.3 million and excludes treasury (ESAP) securities

  3. Diluted for CIC hybrid securities

  4. Calculated as net debt less cash/total assets less cash

8

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FY2011 results – profit and loss

30 June 2011 income statement

+ Full year operating profit of $383.9 million

FY2010 FY2011
$M $M
Investment (look through) 448.5 443.2
Management 53.7 62.6
Development 41.7 121.6
Unallocated operating expenses (33.2) (37.3)
Operating EBITDA (look through) 510.7 590.1
Operating EBIT (look through) 502.2 584.3
Look through interest and tax adjustment1 (119.3) (113.7)
Operating EBIT 382.9 470.6
Net borrowing costs (19.6) (16.9)
Tax benefit/(expense) (1.0) (8.8)
Operating PAT (pre minorities) 362.3 444.9
Minorities2 (52.3) (61.0)
Operating PAT (post minorities) 310.0 383.9
Weighted average securities (undiluted)
(million)		 5,558.6 6,651.6
Operating EPS (cps) 5.6 5.8
Non operating items3
Valuation movements4 (643.8) (41.1)
Derivative mark to market (75.4) 66.0
Non-operating and non-cash items (127.8) (16.8)
Statutory profit/(loss) (537.0) 392.0

  • Statutory profit of $392.0 million due to stabilising valuations

  • Investment ROA of 7%, rental income up on a constant currency and same property basis

    • Services margin ~60%

  • Development margins for work in progress >15% ROC and segment ROA ~10%

  • 12% movement in A$ offset by hedges in this financial year equating to $26 million of EBIT

    • Represents operating EPS of 5.77 cents per security (5.66 cents fully diluted)
    • DPS of 3.5 cents per security up 3% on FY2010

  • Reflects adjustment to GMG proportionate share of Fund interest and tax

  • Includes Goodman PLUS and CIC hybrid securities

  • Refer Appendix 1 slide 26

  • Includes impairments and fair value adjustments on derivative instruments in associates and joint ventures

9

FY11 results – balance sheet

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    • Strong balance sheet maintained through prudent capital management initiatives

  • Actively recycling development holdings, third party capital utilisation and monetising land

    • Property valuations have remained stable with prime yields firming over the period
    • Weighted average cap rate stable at 7.9%
    • FX movements of 14% have also resulted in net assets reducing by $0.01 per security
    • $1.3 billion of available liquidity covering maturities to FY2015
    • Resulted in the following key metrics:

  • Gearing of 23% (36% look through)

  • NTA of $0.49 per security[3]

30 June 2011 balance sheet

30 Jun 2010 30 Jun 2011
$M $M
Stabilised assets
Fund cornerstones1		 2,310
2,397		 2,409
2,632
Development holdings 1,245 1,251
Intangibles 929 828
Cash 515 228
Other assets 227 217
Total assets
Interest bearing liabilities		 7,623
(2,276)		 7,565
(1,914)
Other liabilities (600) (637)
Total liabilities (2,876) (2,551)
Minorities (798) (573)
Net assets (post minorities)
Net asset value (cps)		 3,949
0.62		 4,441
0.60
Net tangible assets (cps)2 0.48 0.49
Net tangible assets (cps) – diluted3 0.46 0.49
Balance sheet gearing (%)4 24.8 23.0

  1. Includes Goodman’s investments in its managed funds and other investments

  2. Diluted for CIC Hybrid securities based on 7,358.3 million securities and excludes treasury (ESAP) securities

  3. Calculated based on fully diluted securities of 7,977.0 million and excludes treasury (ESAP) securities 4. Calculated as net debt less cash/total assets less cash

10

Group liquidity position

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    • Cash and available lines of credit of $1,301.3 million:

  • $227.8 million available cash

  • $1,073.5 million available lines

    • Headline gearing reduced to 23.0%
    • Average debt maturity profile of 5.6 years
    • ICR increased to 4.5x (2.6x look through)
    • Successful completion of debt initiatives in FY2011:

  • US$825 million of debt capital market issuance in US144A/Reg S, maturing over 10 years

  • ¥12.5 billion of private placement, maturing over 12 years

  • $720 million of new bank facilities, maturing over 5 years

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11

Highbrook Business Park, New Zealand 12

Investment

    • Property fundamentals remain robust reflecting quality of the portfolio and customers:

  • Occupancy increased to 96% (93% at June 2010)

  • Retention rate at 76%

  • Like on like rental growth of ~3%

    • Global platform creating opportunities with active cross border enquiry
    • Investments (direct or in Funds) will grow organically through development work book

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Investment ($m) FY10 FY11
Direct 176.4 166.6
Fund cornerstones 272.1 276.6
Look through EBITDA 448.5 443.2
Key metrics1 FY10 FY11
WACR (%)
WALE (yrs)		 7.9
5.5		 7.9
5.3
Customer retention (%) 75 76
Occupancy (%) 93 96
  1. Key metrics shown in the above table relate to Goodman and managed fund properties

13

Development

    • Development demand driven by shortage of prime assets:

  • WIP increased to $1.8 billion (from $1.3 billion as at 30 June 2010)

    • Prudent low risk strategy focused on pre-sold and pre-committed developments:

  • $1.4 billion of new commitments at 8.6% yield on cost

  • 82% of new commitments leased for in excess of 10 years

  • 91% of developments pre-sold and pre-funded

    • Prime core assets remain difficult to source in the open market:

  • Capital partners attracted to prudent operators with a strong brand and development capabilities

  • Competitive pressure decreasing due to fewer small operators

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Development ($M) FY10 FY11
Net revenue 72.7 157.6
EBITDA 41.7 121.6
Key metrics
Commitments ($M)
Number of developments		 FY10
1,182
23		 FY11
1,418
42
Balance sheet development (%) 29 9
Pre-commitment (%) 66 82
Yield (%) 9.4 8.6
Work in progress (end value) $B
Opening (June 2010) 1.3
FX
Completions		 (0.1)
(0.8)
Commitments 1.4
Closing (June 2011) 1.8

14

Development

    • 5 year average development workbook running at ~A$2 billion

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    • Disciplined approach to prime developments with appropriate risk/returns

Australia + New Zealand

    • 41 development sites
    • 2.6m sqm of developable GLA

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Australia - Banfield Distribution Centre

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Continental Europe

    • 29 development sites
    • 1.6m sqm of developable GLA

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Belgium - Puurs – Duvel[1]

Asia

    • 10 development sites
    • 0.8m sqm of developable GLA

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China - Kunshan Lujia Logistics Centre

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UK

  • 39 development sites

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  • 2.4m sqm of developable GLA

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UK - Oxford Business Park – Centrica[1]

15

  1. Artist’s impressions may be subject to change

Management

    • $14.4 billion of external assets under management, up 14% (22% on a constant currency basis):

  • IIF business fully integrated

  • Ability to pursue large scale transactions like PEPR

    • Support from capital partners investing with operating businesses remains strong:

  • Raised $1.8 billion in new third party equity

  • $2.2 billion in undrawn debt lines and equity[1]

  • Portfolio opportunities continue to present themselves in all markets, demonstrating the strength of the brand

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Management ($M) FY2010 FY2011
Fund management fees 69.8 64.1
Property service fees 55.8 56.9
Revenue2 125.6 121.0
EBITDA 53.7 62.6
Key metrics
Number of funds
Third party AUM (end of period)
($B)		 FY2010
11
12.6		 FY2011
13
14.4
    • Size and scale enables Goodman to offer competitive pricing while improving margins:

  • MER <50 bps of AUM

  • Undrawn debt as at 30 June 2011. Uncalled equity includes GADF, GHKLF, GCLH, Princeton Lux and Princeton Jersey on a fully drawn basis. Investments are subject to Investment Committee approval 2.Includes the gross up of property outgoings of $16.4 million (2010: $17.3 million)

16

Management - AUM

+ Major new initiatives during the year:

  • Completed €300 million GELF capital raising

  • Successful privatisation of IIF and launch of Goodman Trust Australia

  • Sale of Goodman’s 50% interest in Interlink to CPPIB

  • GAIF inaugural $175 million Australian Medium Term Note issue, following the assignment of a ‘BBB’ credit rating by Standard & Poor’s

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17

Management platform

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7.6%
1.5 yrs
36.9%
4.9 yrs3
98%
85
$0.3bn
27.9%
$2.0bn
GELF
7.6%
2.1 yrs
50.3%
7.4 yrs3
92%4
27
$0.3bn
35.7%
$1.9bn
ABPP
GMT1
GHKLF
GTA
GAIF
8.6%
3.4 yrs
36.7%
5.6 yrs
97%
22
$0.1bn2
16.7%2
$1.2bn
13
61
106
Number of properties
20.3%
39.5%
37.9%
Gearing
3.5 yrs
3.8 yrs
3.9 yrs
Weighted average debt expiry
Total assets
$4.3bn
$2.6bn
$1.5bn
GMG co-investment
43.7%
19.9%
20.0%
GMG co-investment
$1.1bn
$0.3bn
$0.2bn
Occupancy
97%
97%
99%
Weighted average lease expiry
6.5 yrs
4.1 yrs
2.4 yrs
WACR
8.3%
8.3%
6.5%
Goodman’s six largest funds		 7.6%
1.5 yrs
36.9%
4.9 yrs3
98%
85
$0.3bn
27.9%
$2.0bn
GELF
7.6%
2.1 yrs
50.3%
7.4 yrs3
92%4
27
$0.3bn
35.7%
$1.9bn
ABPP
GMT1
GHKLF
GTA
GAIF
8.6%
3.4 yrs
36.7%
5.6 yrs
97%
22
$0.1bn2
16.7%2
$1.2bn
13
61
106
Number of properties
20.3%
39.5%
37.9%
Gearing
3.5 yrs
3.8 yrs
3.9 yrs
Weighted average debt expiry
Total assets
$4.3bn
$2.6bn
$1.5bn
GMG co-investment
43.7%
19.9%
20.0%
GMG co-investment
$1.1bn
$0.3bn
$0.2bn
Occupancy
97%
97%
99%
Weighted average lease expiry
6.5 yrs
4.1 yrs
2.4 yrs
WACR
8.3%
8.3%
6.5%
Goodman’s six largest funds		 7.6%
1.5 yrs
36.9%
4.9 yrs3
98%
85
$0.3bn
27.9%
$2.0bn
GELF
7.6%
2.1 yrs
50.3%
7.4 yrs3
92%4
27
$0.3bn
35.7%
$1.9bn
ABPP
GMT1
GHKLF
GTA
GAIF
8.6%
3.4 yrs
36.7%
5.6 yrs
97%
22
$0.1bn2
16.7%2
$1.2bn
13
61
106
Number of properties
20.3%
39.5%
37.9%
Gearing
3.5 yrs
3.8 yrs
3.9 yrs
Weighted average debt expiry
Total assets
$4.3bn
$2.6bn
$1.5bn
GMG co-investment
43.7%
19.9%
20.0%
GMG co-investment
$1.1bn
$0.3bn
$0.2bn
Occupancy
97%
97%
99%
Weighted average lease expiry
6.5 yrs
4.1 yrs
2.4 yrs
WACR
8.3%
8.3%
6.5%
Goodman’s six largest funds		 7.6%
1.5 yrs
36.9%
4.9 yrs3
98%
85
$0.3bn
27.9%
$2.0bn
GELF
7.6%
2.1 yrs
50.3%
7.4 yrs3
92%4
27
$0.3bn
35.7%
$1.9bn
ABPP
GMT1
GHKLF
GTA
GAIF
8.6%
3.4 yrs
36.7%
5.6 yrs
97%
22
$0.1bn2
16.7%2
$1.2bn
13
61
106
Number of properties
20.3%
39.5%
37.9%
Gearing
3.5 yrs
3.8 yrs
3.9 yrs
Weighted average debt expiry
Total assets
$4.3bn
$2.6bn
$1.5bn
GMG co-investment
43.7%
19.9%
20.0%
GMG co-investment
$1.1bn
$0.3bn
$0.2bn
Occupancy
97%
97%
99%
Weighted average lease expiry
6.5 yrs
4.1 yrs
2.4 yrs
WACR
8.3%
8.3%
6.5%
Goodman’s six largest funds		 7.6%
1.5 yrs
36.9%
4.9 yrs3
98%
85
$0.3bn
27.9%
$2.0bn
GELF
7.6%
2.1 yrs
50.3%
7.4 yrs3
92%4
27
$0.3bn
35.7%
$1.9bn
ABPP
GMT1
GHKLF
GTA
GAIF
8.6%
3.4 yrs
36.7%
5.6 yrs
97%
22
$0.1bn2
16.7%2
$1.2bn
13
61
106
Number of properties
20.3%
39.5%
37.9%
Gearing
3.5 yrs
3.8 yrs
3.9 yrs
Weighted average debt expiry
Total assets
$4.3bn
$2.6bn
$1.5bn
GMG co-investment
43.7%
19.9%
20.0%
GMG co-investment
$1.1bn
$0.3bn
$0.2bn
Occupancy
97%
97%
99%
Weighted average lease expiry
6.5 yrs
4.1 yrs
2.4 yrs
WACR
8.3%
8.3%
6.5%
Goodman’s six largest funds		 7.6%
1.5 yrs
36.9%
4.9 yrs3
98%
85
$0.3bn
27.9%
$2.0bn
GELF
7.6%
2.1 yrs
50.3%
7.4 yrs3
92%4
27
$0.3bn
35.7%
$1.9bn
ABPP
GMT1
GHKLF
GTA
GAIF
8.6%
3.4 yrs
36.7%
5.6 yrs
97%
22
$0.1bn2
16.7%2
$1.2bn
13
61
106
Number of properties
20.3%
39.5%
37.9%
Gearing
3.5 yrs
3.8 yrs
3.9 yrs
Weighted average debt expiry
Total assets
$4.3bn
$2.6bn
$1.5bn
GMG co-investment
43.7%
19.9%
20.0%
GMG co-investment
$1.1bn
$0.3bn
$0.2bn
Occupancy
97%
97%
99%
Weighted average lease expiry
6.5 yrs
4.1 yrs
2.4 yrs
WACR
8.3%
8.3%
6.5%
Goodman’s six largest funds		 7.6%
1.5 yrs
36.9%
4.9 yrs3
98%
85
$0.3bn
27.9%
$2.0bn
GELF
7.6%
2.1 yrs
50.3%
7.4 yrs3
92%4
27
$0.3bn
35.7%
$1.9bn
ABPP
GMT1
GHKLF
GTA
GAIF
8.6%
3.4 yrs
36.7%
5.6 yrs
97%
22
$0.1bn2
16.7%2
$1.2bn
13
61
106
Number of properties
20.3%
39.5%
37.9%
Gearing
3.5 yrs
3.8 yrs
3.9 yrs
Weighted average debt expiry
Total assets
$4.3bn
$2.6bn
$1.5bn
GMG co-investment
43.7%
19.9%
20.0%
GMG co-investment
$1.1bn
$0.3bn
$0.2bn
Occupancy
97%
97%
99%
Weighted average lease expiry
6.5 yrs
4.1 yrs
2.4 yrs
WACR
8.3%
8.3%
6.5%
Goodman’s six largest funds
Goodman’s six largest funds
GAIF GTA GELF ABPP GHKLF GMT1
Total assets $4.3bn $2.6bn $2.0bn $1.9bn $1.5bn $1.2bn
GMG co-investment 43.7% 19.9% 27.9% 35.7% 20.0% 16.7%2
GMG co-investment $1.1bn $0.3bn $0.3bn $0.3bn $0.2bn $0.1bn2
Number of properties 106 61 85 27 13 22
Occupancy 97% 97% 98% 92%4 99% 97%
Weighted average lease expiry 6.5 yrs 4.1 yrs 4.9 yrs3 7.4 yrs3 2.4 yrs 5.6 yrs
Gearing 37.9% 39.5% 36.9% 50.3% 20.3% 36.7%
Weighted average debt expiry 3.9 yrs 3.8 yrs 1.5 yrs 2.1 yrs 3.5 yrs 3.4 yrs
WACR 8.3% 8.3% 7.6% 7.6% 6.5% 8.6%

  1. As at 31 March 2011 (as disclosed to the New Zealand stock exchange in May 2011) 2. As at 30 June 2011

  2. WALE of leased portfolio to next break as at 30 June 2011

  3. Includes leases currently with solicitors, excluding these leases occupancy is 91%

18

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Section 4+
Outlook and
summary
Keylink Industrial Estate, Australia
19
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Outlook and summary

+ Maintain position as a leading industrial property and business partner in all the markets we operate in
+ Focus on higher and better use to maximise returns
Own
+ Recycle assets on balance sheet and within managed funds
+ Pro-rata equity in funds trending toward 20% over time
+ Retain low risk strategy of focusing on pre-sold and pre-committed developments
+ Remain prudent in pursuing only prime developments with appropriate margins
Develop
+ Capable of delivering 800,000 sqm across Asian development sites
+ Lack of supply expected to continue, given market funding constraints and reduced competition
+ Strong investor appetite to drive growth in assets under management
+ Evaluating opportunities in new and existing markets in conjunction with capital partners
Manage
+ Capital flows for prime real estate remains strong
+ Size, scale and diversification enhances Goodman’s competitive position
+ Development and management activities growing to 40-50% of EBIT contribution in the short-term
+ Offshore businesses major growth drivers moving forward, in particular Asia and Europe
+ Maintain gearing at current low level and continue to pursue diversification of funding sources across
Summary the Group and managed funds
+ FY2012 earnings guidance at 6.01 cents per security - equates to operating profit after tax of $460
million to be driven by growth in ‘active business’
+ Maintain distribution policy to pay the higher of 60% of operating EPS and taxable income

20

  1. Fully diluted for CIC hybrid securities

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A endix 1+
pp
Results analysis
Interlink, Hong Kong
21
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Profit and loss

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22

Profit and loss (cont)

GMG results Year ended Year ended Increase /
30 Jun 2010 30 Jun 2011 (decrease)
$M $M $M
Property investment1 329.2 329.5 0.3
Management services 108.3 104.6 (3.7)
Development 72.7 157.6 84.9
Operating revenue net of property expenses 510.2 591.7 81.5
Unrealised (losses)/gains on investment properties and derivatives (498.4) 6.1 504.5
Non-operating income (63.3) (5.9) 57.4
Total income (51.5) 591.9 643.4
Expenses from operations (132.7) (133.3) (0.6)
Impairment losses (145.4) (47.2) 98.2
Net interest (expense)/income (154.1) 49.1 203.2
Income tax (expense) – current (1.0) (7.5) (6.5)
Minority interests (52.3) (61.0) (8.7)
Profit after tax attributable to Securityholders (537.0) 392.0 929.0
Add net loss from fair value adjustments on investment properties 210.0 26.4 (183.6)
Add unrealised property and derivative loss/(gain) included in share of net results of equity 288.4 (32.5) (320.9)
accounted investments
Add impairment loss on investments 145.4 47.2 (98.2)
Unrealised losses/(gains) on fair value of derivatives 75.4 (66.0) (141.4)
Non-operating borrowing costs 59.1 - (59.1)
Straight-lining of rent and amortisation of lease incentives (1.2) 0.1 1.3
Employee LTIP 5.4 12.2 6.8
Other non-operating items2 64.5 5.8 (58.7)
Deferred tax expense (property revaluations) - (1.3) (1.3)
Operating profit available for distribution 310.0 383.9 73.9
Operating basic earnings per security (cents) 5.60 5.77 0.17
Operating basic earnings per security (cents) – diluted 5.25 5.66 0.41
Distribution per security (cents) 3.40 3.50 0.10
Weighted average number of securities – EPS3 (million) 5,558.6 6,651.6 1,093.0
Weighted average number of securities – EPS3 (million) – diluted 6,638.7 7,270.3 631.6

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  1. Excludes straight-lining of rent and amortisation of lease incentives (non-operating item)

  2. Refer to slide 26 for further information

  3. Excludes weighted average number of treasury (ESAP) securities on issue

23

Profit and loss (cont)

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+ Total income by business segment for year ended 30 June 2011

Category
Total
Investment
Management
Development
Unallocated
Non-
operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-
operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-
operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-
operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-
operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-
operating
items1		 Category
Total
Investment
Management
Development
Unallocated
Non-
operating
items1
$M
$M
$M
$M
$M
$M
Gross property income
Fund management income
Property services income
Development income
Income from disposal of inventories
Distributions from investments
Net loss from fair value adjustments on investment properties
Net gain on disposal of investment properties
Net gain on disposal of controlled entities
Share of net results of equity accounted investments
Net gain on disposal of equity investments		 225.1
64.0
56.9
210.5
112.8
27.1
(26.4)
0.8
17.9
174.5
66.6		 225.2
27.1
135.8		 63.9
56.9
0.2		 0.1
210.5
112.8
0.8
17.9
20.8
57.6		 (0.1)
(26.4)
17.72
9.0
Total income 929.8 388.1 121.0 420.5 - 0.2
Development and property expenses and inventory cost of
sales
Operating expenses
Impairment losses		 (321.5)
(149.7)
(47.2)		 (58.6) (58.4) (262.9)
(36.0)		 (43.1) (12.2)
(47.2)
EBIT 411.4 329.5 62.6 121.6 (43.1) (59.2)
Look through NPI adjustment (Goodman share of interest and
tax within its fund investments)		 113.7
Look through operating EBIT 443.2 62.6 121.6 (43.1) (59.2)
  1. For reconciliation of non-operating and non-cash items refer to slide 26 2. Includes share of associates and JVEs property valuation gains of $63.4 million, share of associates and JVEs unrealised derivative losses of $30.9 million, share of JVEs impairment losses and non-cash items of $14.8 million

24

Profit and loss (cont)

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Category Total
Investment
Management
Development
Unallocated
Non-
operating
items1		 Total
Investment
Management
Development
Unallocated
Non-
operating
items1		 Total
Investment
Management
Development
Unallocated
Non-
operating
items1		 Total
Investment
Management
Development
Unallocated
Non-
operating
items1		 Total
Investment
Management
Development
Unallocated
Non-
operating
items1		 Total
Investment
Management
Development
Unallocated
Non-
operating
items1
$M
$M
$M
$M
$M
$M
EBIT – per statutory accounts 411.4 329.5 62.6 121.6 (43.1) (59.2)
Net loss from fair value adjustments on investment
properties
Share of net gain from fair value adjustments on
investment properties and fair value adjustments on
interest rate swaps in associates and JVEs
Impairment losses
Straight-lining of rent and amortisation of lease
incentives
Share based payment expense
Other non-operating items1		 26.4
(32.5)
47.2
0.1
12.2
5.8		 26.4
(32.5)
47.2
0.1
12.2
5.8
Operating EBIT 470.6 329.5 62.6 121.6 (43.1) -
Income tax expense
Net financing income (statutory)
Add: fair value adjustments on derivative instruments
Net financing costs (operating)
Deferred tax expense (property revaluations)
Minorities		 49.1
(66.0)
(7.5)
(16.9)
(1.3)
(61.0)
Operating profit available for distribution 383.9
Net cash provided by operating activities2 294.4

  1. For reconciliation of non-operating items refer to slide 26

  2. Difference between operating profit and cash provided by operating activities of $89.5 million primarily relates to non-cash share of equity income of $31.5 million and development cash flows included in investing activities of $58.0 million

25

Reconciliation non-operating items

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Non-operating items in statutory profit and loss Notes 30 Jun 2011
$M $M
Property valuation
Net (loss) from fair value adjustments on investment properties (26.4)
Share of net gain from fair value adjustments on investment properties in associates 55.8
Share of net gain from fair value adjustments on investment properties in joint 7.6
ventures
Subtotal 37.0
Impairment losses
Impairment – inventories (14.9)
Impairment – receivables (6.1)
Impairment – other financial assets (7.2)
Impairment – intangible assets (19.0)
Subtotal (47.2)
Mark to market derivatives and debt restructuring
Fair value adjustments on derivative instruments – GMG 66.0
Fair value adjustments on derivative instruments – associates and joint ventures (30.9)
Subtotal 35.1
Other non-cash/non-operating items
Impairment and business acquisition costs incurred in GTA 1 (14.6)
Loss on dilution of investment in associate 1 (3.8)
Non-cash items impacting distributable income in associate 1 (0.2)
Straight-lining rental income (0.1)
Share based payment expense (12.2)
Deferred tax expense (property valuations) 1.3
Capital profits not distributed 1 12.8
Subtotal (16.8)
TOTAL 8.1
  1. Total $5.8 million other non-operating items (refer to slides 23 and 25)

26

Financial position

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+ Headline gearing of 23.0%

$0.49
NTA (per security) – diluted2
23.0%
Gearing1
2,408.5
2,408.5
Direct
assets
$M
1,251.2
32.3
12.6
516.2
484.9
205.2
Developments
$M
2,631.6
25.7
2,584.8
21.1
Investments
$M
2,597.4
Investments accounted for using equity
method
2,924.7
Investment properties
484.9
Inventories
412.5
186.2
Receivables
227.8
227.8
Cash
As at 30 June 2011
Other
$M
Total
$M
Other financial assets
25.7
Intangibles
827.9
827.9
Other assets
31.7
64.0
Total assets
1,273.6
7,564.9
Interest bearing liabilities
1,913.8
1,913.8
Other liabilities
637.2
637.2
Total liabilities
2,551.0
2,551.0
Net assets/(liabilities)
5,013.9		 $0.49
NTA (per security) – diluted2
23.0%
Gearing1
2,408.5
2,408.5
Direct
assets
$M
1,251.2
32.3
12.6
516.2
484.9
205.2
Developments
$M
2,631.6
25.7
2,584.8
21.1
Investments
$M
2,597.4
Investments accounted for using equity
method
2,924.7
Investment properties
484.9
Inventories
412.5
186.2
Receivables
227.8
227.8
Cash
As at 30 June 2011
Other
$M
Total
$M
Other financial assets
25.7
Intangibles
827.9
827.9
Other assets
31.7
64.0
Total assets
1,273.6
7,564.9
Interest bearing liabilities
1,913.8
1,913.8
Other liabilities
637.2
637.2
Total liabilities
2,551.0
2,551.0
Net assets/(liabilities)
5,013.9
227.8
Cash		 227.8
205.2
21.1
186.2
Receivables		 412.5
484.9
Inventories		 484.9
2,408.5
516.2
Investment properties		 2,924.7
12.6
2,584.8
Investments accounted for using equity
method		 2,597.4
25.7
Other financial assets		 25.7
Intangibles
827.9		 827.9
32.3
Other assets
31.7		 64.0
2,408.5
1,251.2
2,631.6
Total assets
1,273.6		 7,564.9
Interest bearing liabilities
1,913.8		 1,913.8
Other liabilities
637.2		 637.2
Total liabilities
2,551.0		 2,551.0
Net assets/(liabilities) 5,013.9
Gearing1 23.0%
NTA (per security) – diluted2 $0.49

  1. Gearing calculation based on debt (net of cash) over total assets (net of cash)

  2. Calculated based on 7,977.0 million number securities on issue less 36.3 million treasury securities

27

Property valuations

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    • Property valuations have remained stable with prime yields firming over the period
    • WACR stable at 7.9%
    • Funding and investor appetite for prime real estate remains strong with limited opportunities available

30 June 2011 property valuations (look through)

Book value Movement WACR WACR movement
(GMG exposure) FY2011 since June 2010
$M $M % %
Australia 4,891 64 8.2 -
New Zealand 273 (3) 8.6 -
Hong Kong 234 44 6.1 (0.8)
China 106 (8) 8.7 (0.5)
Japan 208 8 5.9 (0.2)
UK 1,393 (40) 7.8 -
Continental Europe 929 (14) 7.7 (0.2)
Total / Average 8,034 51 7.9 -

28

Net tangible assets

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+ Movement in net tangible assets for the year ended 30 June 2011

Net tangible asset reconciliation $M
$M
Per security
Total equity at 1 July 2010 4,746.6
0.75
Valuation of non-current assets during the year
Valuation of investments properties
Valuation of investments properties in associates
Valuation of investments
Impairment of intangibles, inventory and other assets
Equity issues (net of issue costs and effect of ESAP and additional securities)
Movement in retained earnings, reserves (and other AIFRS adjustments)
Change in fair value of derivatives
Foreign exchange
Attributable to minority interests (includes Goodman PLUS and CIC hybrid)		 (26.4)
32.5
14.3
(47.2)
(26.8)
-
466.7
(0.04)
208.3
0.03
78.6
0.01
(173.5)
(0.03)
(286.0)
(0.04)
Total equity as at 30 June 2011 5,013.9
0.68
Less Minorities
Less Intangibles		 (573.1)
(0.08)
(827.9)
(0.11)
Net tangible assets at 30 June 20111 3,612.9
0.49
Net tangible assets at 30 June 2011 – diluted2 3,887.9
0.49

  1. Calculated on 7,358.3 million securities being closing securities on issue of 7,394.6 million less 36.3 million securities related to ESAP

  2. Diluted for CIC hybrid securities, calculation based on fully diluted securities of 7,977.0 million

29

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+
Appendix 2
Investment
Kobe, Japan
30
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Own: Leasing

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Across the Group and Funds platform:

    • ~1.9 million sqm leased
    • Reversion of +2.3% on new leasing deals
    • Like for like NPI growing at ~3%
    • Occupancy increased to 96% across all markets – up 3% from June 2010
Division Leasing area (sqm) Net annual rent (A$M) Average lease term (yrs) Occupancy at Occupancy at
30 June 2011 (%)
Australia – Direct 208,067 24.8 4.1 97
Australia – GAIF 420,727 46.4 4.4 97
New Zealand – GMT 140,378 16.1 4.7 972
Hong Kong – GHKLF 412,281 39.2 2.1 99
UK – ABPP 34,099 11.9 7.8 923
Europe – GELF 448,481 25.8 4.2 98
Other 215,162 17.8 3.9 87
Total1 1,879,195 182.0 4.1 96

  1. Excludes ‘Australia – GTA’

  2. As at 31 March 2011 (as disclosed to the New Zealand stock exchange in May 2011)

  3. Includes leases currently with solicitors, excluding these leases occupancy is 91%

31

Customers

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  1. Includes customers of Goodman Group direct portfolio and its managed funds and is based on income

32

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Direct portfolio detail – Australia

Portfolio snapshot

Key metrics[1]

Total assets A$2.1 billion
Customers 231
Number of properties 29
Occupancy 97%
Weighted average cap rate 8.0%
    • 29 properties with a total value of $2.1 billion located across key Australian markets
    • Leasing deals remain strong across the portfolio:

  • 208,067 sqm ($24.8 million net annual rental) of existing space leased

  • customer retention 71% (rolling 12 months)

  • average portfolio valuation cap rate of 8.0%

    • 97% occupancy and a weighted average lease expiry of 4.1 years

WALE of 4.1 years (by income)[1]

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Top 10 customers make up 30.0% of portfolio income[1]

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  1. As at 30 June 2011

33

Direct portfolio detail – UK

Portfolio snapshot

Key metrics[1]

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    • 70% of properties located in the core South East and Midlands markets
    • Weighted average lease expiry of 5.5 years
    • Cap rates stabilised - with current WACR of 8.2%
Total assets A$0.3 billion
Customers 11
Number of properties 11
Occupancy 81%
Weighted average cap rate 8.2%
    • Vacancy across 3 assets with active enquiry across all vacancies

WALE of 5.5 years (by income)[1]

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Top 10 customers make up 80.0% of portfolio income[1]

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  1. As at 30 June 2011

34

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+
Appendix 3
Development
Interlink, Hong Kong
35
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Developments

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FY2011 Developments Completions Commitments Work in progress
Value ($M) 773 1,418 1,817
Area (m sqm) 0.5 1.2 1.3
Yield (%) 8.9 8.6 8.7
Pre-committed (%) 96 82 86
Weighted Average Lease Term (years)
12.7		 10.2 8.5
Development for Third Parties or Funds (%)
94		 91 91
Asia Pacific (%) 43 59 69
UK/Europe (%) 57 41 31
Work In progress On balance sheet Third party funds Total end value Third party funds
by region end value end value % of total
$M $M $M
Asia Pacific 29 1,218 1,247 98
Europe 143 427 570 75
Total 172 1,645 1,817 91

36

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Developments

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+ Maintained development pipeline at $10 billion:

  • $0.6 billion of development pipeline committed in FY11

  • Development pipeline restocked (Moorabbin, land options), in excess of $10 billion

  • Forecast GLA over 6.8 million sqm

  • Development pipeline allocated as Asia Pacific 37% and Europe 63%

+ The Group’s development future cash commitments

Commitments as at 30 June 2011 $M
Gross GMG cost to complete 175
Less pre-sold1cost to complete (50)
Net GMG cost to complete 125
Net GMG managed funds cost to complete 715

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  1. Pre-sold projects are reimbursed by instalments throughout the project or at practical completion of the project

37

Belleville Logistics Centre, France 38

Global platform

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As at 30 June 2011 (Australian currency)
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39

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Goodman Australia Industrial Fund

Key metrics[1]

Key events

Total assets A$4.3 billion
Interest bearing liabilities A$1.7 billion
Gearing2 37.9%
Customers 367
Number of properties 106
Occupancy 97%
Weighted average lease expiry3 6.5 years
Weighted average cap rate 8.3%
GMG co-investment 43.7%
GMG co-investment A$1.1 billion
Weighted average debt expiry 3.9 years
WACR at covenant 10.2%
Cap rate expansion to breach 1.9%
    • Total leasing of approximately 420,727 sqm
    • Approximately 218,000 sqm of development precommitments secured providing a total end value of $274 million
    • Refinanced $1.5 billion and moved to a senior unsecured debt structure
    • Completion of inaugural unsecured debt capital markets issue:

  • Senior unsecured five year notes

  • A$175 million face value

Covenant compliance[1,4]

    • Gearing covenant[4]

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Debt maturity profile[1]

    • ICR covenant[5,6]

  • As at 30 June 2011

  • Calculated as debt/total assets

  • Including development assets

  • Based on Fund covenants that are currently most capable of triggering an event of default in the Fund, excluding 5 small single-asset non-recourse facilities

  • Covenant increases to ≥1.75x from 1 July 2011

  • 30 June 2011 position adjusted for net cash and committed capital expenditure

40

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Goodman Trust Australia

Key events

Key metrics[1]

    • GTA launched 29 March 2011 following successful IIF Unitholder vote and scheme approval
Total assets A$2.6 billion
Interest bearing liabilities A$1.0 billion
Gearing2 39.5%
Customers 201
Number of properties 61
Occupancy 97%
Weighted average lease expiry 4.1 years
Weighted average cap rate 8.3%
GMG co-investment 19.9%
GMG co-investment A$0.3 billion
Weighted average debt expiry 3.8 years
WACR at covenant 11.8%
Cap rate expansion to breach 3.5%
    • Portfolio comprises $2.6 billion of high quality industrial logistics:

  • Funded via $1.4 billion private wholesale equity and new $1.1 billion debt facility

  • Australia: 41 stabilised properties valued at A$2.1 billion and 4 development assets valued at A$0.2 billion

  • Europe: 16 stabilised properties valued at A$0.3 billion

    • Commencement of 3 Western Sydney development projects with a total end value of $113 million

Covenant compliance[1]

    • Gearing covenant[2]

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Debt maturity profile[1]

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    • ICR covenant

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  1. As at 30 June 2011 2. Calculated as Australian debt/total assets

41

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Goodman European Logistics Fund

Key metrics[1]

Key events

Total assets A$2.0 billion
Interest bearing liabilities A$0.7 billion
Gearing2 36.9%
Customers 70
Number of properties 85
Occupancy 98 %
Weighted average lease expiry3 4.9 years
Weighted average cap rate 7.6%
GMG co-investment 27.9%
GMG co-investment A$0.3 billion
Weighted average debt expiry 1.5 years
WACR at covenant 11.3%
Cap rate expansion to breach 3.7%
    • Completed €300 million rights issue:

  • Dutch asset managers APG (€150 million) and PGGM (€100 million) received their full subscription

  • Goodman subscribed for €20 million (less than the €50 million maximum underwrite)

  • Demand from existing Unitholders totalled €30 million

    • Leased approximately 448,481 sqm of space (excluding developments) with a WALE of 4.2 years to next break
    • Entered into fixed price developments of 310,000 sqm
    • Commenced developments on balance sheet of 72,000 sqm

Covenant compliance[4]

    • Gearing covenant[5]

Debt maturity profile[1]

    • ICR Covenant[6]

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  1. As at 30 June 2011

  2. Calculated as debt/(property assets + cash + JV investments and loans) 3. WALE of leased portfolio to next break

  3. Based on Fund covenants that are currently most capable of triggering an event of default in the Fund

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  1. As at 30 June 2011, adjusted for cash on balance sheet, development capex and committed but uncalled equity 6. 12 month forward looking for leases with average break date > 3.0 years

42

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Arlington Business Parks Partnership

Key metrics[1]

Key events

Total assets Total assets A$1.9 billion
Interest bearin liabilities A$09 billion
g .
70%
Ge~~a~~ring2		 63.4%
50.3%
ring
50%
~~60%~~
Cus		 tomers 145
40%
Nu		 36.6%
~~m~~ber of active business parks3		 23
~~20%~~
30%
Oc~~c~~		 ~~u~~pancy5 92%
10%

Wei		 ghted average lease expiry4 7.4 years
0%
We~~i~~		 ~~2014~~
~~7.6%~~
~~2012~~
~~ghted average cap rate~~
GMG co-investment 35.7%
GMG co-investment A$0.3 billion
Weighted average debt expiry 2.1 years
WACR at covenant 11.0%
Cap rate expansion to breach 3.4%
    • Total leasing of 34,099 sqm (£7.4 million) during FY2011 (including extensions of 2012 onwards lease expiries) – reducing vacancy to 8%
    • Continue to pursue land sales at highest and best use - Hammersmith and Aberdeen disposals of £88.4 million
    • Risk mitigated developments – £120.1 million developments 100% pre-committed:

  • Recent transaction with British gas for a 7,525 sqm pre-let at Oxford Business Park (17 year term)

    • Strong 12 month rolling retention rate of 93%

Covenant compliance[1]

    • Gearing covenant

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Debt maturity profile[1]

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    • ICR covenant[6]

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  1. As at 30 June 2011

  2. Calculated as net debt/total assets less cash

  3. Comprise 23 active business parks and 4 standalone properties

  4. WALE of portfolio to next break as at 30 June 2011

  5. Includes a further 2,314 sqm currently with solicitors reducing the vacancy from 9.1% to 8.5%

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Goodman Hong Kong Logistics Fund

Key events

Key metrics[1]

    • Strategically located and diversified portfolio benefited from strong economic recovery to achieve 99% occupancy (highest occupancy since December 2008)
Total assets A$1.5 billion
Interest bearing liabilities A$0.3billion
Gearing 20.3%
Customers 184
Number of properties 13
Occupancy 99%
Weighted average lease expiry 2.4 years
Weighted average cap rate3 6.5%
GMG co-investment 20%
GMG co-investment A$0.2 billion
Weighted average debt expiry 3.5 years
WACR at covenant 10.3%
Cap rate expansion to breach 3.8%
    • Successfully completed a series of capital management initiatives to position the Fund in strong capital position with gearing at 20.3%

+ Interlink development:

  • Construction progressing well and remains on budget with 6 months of construction remaining

  • Pre-leasing commitment of 81% with strong enquiry on remaining space

Covenant compliance[1]

    • Gearing covenant[2]

Debt maturity profile[1]

    • ICR covenant

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  1. As at 30 June 2011

  2. Calculated as senior debt/stabilised investment properties

  3. Stabilised portfolio only

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Goodman Property Trust

Key metrics[1]

Key events[1]

Total assets $A1.2 billion
Interest bearing liabilities $A0.5 billion
Gearing2 36.7%
Customers 223
Number of properties 22
Occupancy 97%
Weighted average lease expiry 5.6 years
Weighted average cap rate 8.6%
GMG co-investment3 16.7%
GMG co-investment3 $A0.1 billion
Weighted average debt expiry 3.4 years
WACR at covenant Not disclosed
Cap rate expansion to breach Not disclosed

+ Active portfolio management:

  • Over 140,378 sqm of space leased to new and existing customers, equating to NZ$20.8 million (16.5%) of portfolio income

  • WALE of 5.6 years

  • 97% occupancy rate

    • Capital management programme executed:

  • NZ$487.0 million of refinancing completed

  • NZ$45.0 million, seven year wholesale bond issue (assigned an investment grade rating of BBB+ by Standard & Poor’s)

  • NZ$66.0 million of equity raised through operation of DRP and asset for equity swap

  • Distribution policy revised to 80% payout ratio

    • 36.7% gearing consistent with target range of 35% to 40% and weighted average term to expiry across all debt facilities of 3.4 years

Debt maturity profile[3]

    • New development commitments from Bridgestone, Downer, Plytech and PMP New Zealand totalling almost 12,000 sqm with a weighted average term of 10.7 years

  • As at 31 March 2011 (as disclosed to the New Zealand stock exchange on 18 May 2011) 2. Calculated as net debt/property assets 3. As at 30 June 2011

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Capital
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Uxbridge, United Kingdom
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Group financial covenants

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Covenants Test Covenant Result Headroom
Gearing ratio Net liabilities1 as a percentage of net tangible assets is
not more than 55.0%		 55.0% 29.9% 25.1%
Interest cover ratio EBITDA to interest expense at least 2.0x 2.0x 4.5x 2.5x
Secured debt as a percentage of total tangible assets is
Priority debt not more than 5.0% (however specific permitted uses
where ratio is either 2.5% or up to 7.5% over the short		 5.0% 0% 5.0%
term)
Net unsecured debt (total unsecured debt less
Unencumbered real
property assets		 unrestricted cash) to be not more than 100% of the
amount of unencumbered real property assets (all
unencumbered direct assets including stabilised assets,		 100% 55.2% 44.8%
development WIP and land bank)
Unencumbered assets Unsecured debt as a percentage of unencumbered
assets is not more than 66.6%		 66.7% 28.9% 37.8%
  1. Net liabilities = total liabilities less cash and excludes trade payables, mark to market derivatives, deferred tax liabilities and provisions for Securityholder distributions

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Currency mix

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Financial risk management

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Financial risk management in line with Group Board policy

+ Interest risk management:

  • 89% hedged over next 12 months

  • Weighted average hedge maturity of 4.4 years

  • Weighted average hedge rate of 5.13%[1] vs spot[2] 2.31%

  • Current “all in” net WACD 3.84%[3]

+ Foreign currency risk management:

  • 78% hedged as at 30 June 2011, of which 72% is debt and liabilities and 28% is derivatives

  • Weighted average maturity of derivatives 3.8 years

  1. Includes the 10 year EMTN £250 million at 9.75% fixed rate and the AUD fixed rate receiver leg from the cross currency swaps

  1. Spot refers 5 year swap market rate as at 15 August 2011

  2. Includes the AUD receiver leg from the cross currency swaps

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Financial risk management

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Interest rate

    • Interest rates are hedged to 89% over next 12 months
    • Weighted average hedge rate of 5.13%[1] vs spot[2] 2.31%:

  • NZD – (hedge 8.14%, spot 4.20%)

  • JPY – (hedge 3.32%, spot 0.47%)

  • HKD – (hedge 2.70%, spot 1.15%)

  • GBP – (hedge 8.40%[3] , spot 1.80%)

  • Euro – (hedge 3.18%, spot 2.18%)

    • Weighted average maturity of 4.4 years

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    • “All in” net WACD of 3.84%[4]

  1. Includes the 10 year EMTN £250 million at 9.75% fixed rate and the AUD fixed rate receiver leg from the cross currency swaps

  2. Spot refers 5 year swap market rate as at 15 August 2010

  3. Includes the 10 year EMTN £250 million at 9.75% fixed rate

  4. Includes the AUD receiver leg from the cross currency swaps

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Financial risk management

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Interest rate hedging profile

Euro payable
GBP payable
HKD payable
NZD payable
JPY payable
As at June €M
Fixed
rate
%
£M
Fixed1
rate
%
HK$M
Fixed
rate
%
NZ$M
Fixed rate
%
¥M
Fixed
rate
%
2012 (538.0)
3.24
(425.0)
8.20
(1,750.0)
2.90
(110.0)
8.79
(1,200.0)
3.32
2013 (505.0)
3.16
(425.0)
8.20
(1,406.0)
2.76
(110.0)
8.79
(1,200.0)
3.32
2014 (391.0)
3.15
(425.0)
8.20
(760.0)
2.27
(110.0)
8.79
(1,200.0)
3.32
2015 (250.0)
2.86
(437.6)
7.96
(122.0)
1.98
(69.0)
7.30
(1,200.0)
3.32
2016 (108.0)
3.39
(388.7)
8.23
-
-
(50.0)
5.75
(1,200.0)
3.32
2017 (33.0)
4.50
(307.2)
9.03
-
-
(16.0)
5.75
(1,200.0)
3.32
2018 -
-
(266.0)
9.50
-
-
-
-
(1,200.0)
3.32
2019 -
-
(11.0)
9.75
-
-
-
-
(1,200.0)
3.32
2020 3.32
(1,200.0)
-
-
-
-
-
-
-
-
  1. Includes the 10 year EMTN £250 million at 9.75% fixed rate

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Financial risk management

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Foreign currency denominated balance sheet hedging maturity profile

Currency Maturity Weighted average Amount receivable1 Amount payable1
exchange rate
NZ$M 2012 / 2013 1.2413 A$150.7M NZ$187M
HK$M 2014 /2015 / 2016 7.3167 A$294.8M HK$2,150M
¥M 2016 87.9200 A$79.6M ¥7,000M
£ 2023 131.54 ¥11,300M £85.9M
€M 2015/2016 0.6858 A$248.2M €170M
US$M 2020 / 2021 0.6182 US$290M £179.3M
US$M 2020 / 2021 0.7068 US$535M €378.1M
  1. Floating rates apply for the payable and receivable legs for the cross currency swaps except for the US$825M, ¥11,300M and NZ$102M cross currency where the receivable is at a fixed rate

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Exchange rates

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    • Statement of Financial Position – exchange rates as at 30 June 2011

  • AUDGBP – 0.6667 (30 June 2010 : 0.5666)

  • AUDEUR – 0.7405 (30 June 2010 : 0.7050)

  • AUDHKD – 8.3336 (30 June 2010 : 6.5923)

  • – AUDSGD – 1.3156 (30 June 2010 : 1.1831) – AUDNZD – 1.2953 (30 June 2010 : 1.2321) – AUDUSD – 1.0739 (30 June 2010 : 0.8523) – AUDJPY – 86.3300 (30 June 2010 : 76.720) – AUDCNY – 6.9228 (30 June 2010: 5.7415)

    • Statement of Financial Performance – average exchange rates for the 12 months to 30 June 2011

  • AUDGBP – 0.6214 (30 June 2010 : 0.5588)

  • – AUDEUR – 0.7249 (30 June 2010 : 0.6359) – AUDHKD – 7.6968 (30 June 2010 : 6.8469) – AUDSGD – 1.2783 (30 June 2010 : 1.2404) – AUDNZD – 1.3048 (30 June 2010 : 1.2554) – AUDUSD – 0.9892 (30 June 2010 : 0.8822) – AUDJPY – 82.0961 (30 June 2010 : 80.7539) – AUDCNY – 6.5548 (30 June 2010: 6.0235)

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thank+ you

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