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GOODMAN GROUP Interim / Quarterly Report 2012

Feb 15, 2012

64998_rns_2012-02-15_1ed1bee3-6660-4dc7-bef8-39f2dcb76aca.pdf

Interim / Quarterly Report

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Goodman Group Results for the half-year ended 31 December 2011 16 February 2012

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  • building the future

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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 Half Year 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

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  • Section 1 Highlights + Section 2 Results overview

    • Section 3 Operational performance
    • Section 4 Outlook and summary
    • Appendices

  • Capital restructure proposal

  • Results analysis

  • Investment

  • Development

  • Management

  • Capital management

3

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Section 1+
Highlights
Interlink, Hong Kong
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4

Highlights

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+ Focused strategy delivering:

  • Operating profit after tax of $229 million, up 34% on 1HFY2011

  • Fully diluted operating EPS of 3.05[1] cents, up 17% on 1HFY2011

  • Distribution per security of 1.80 cents, up 20% on 1HFY2011

  • Forecast FY2012 fully diluted operating EPS of 6.1[2] cents, up 8% on FY2011

+ Capital and customer partnering approach to funds, developments and new markets:

  • Evaluation of new markets undertaken in conjunction with capital partners

  • Existing and new capital partners attracted to the Group’s development capabilities, global brand, size and scale

  • – Raised $0.6 billion in new third party equity

+ Low growth and capital constrained environment highlights the strength of the Group’s business strategy and competitive position:

  • Development capital difficult to secure however available to best-in-class

  • Debt capital markets open to prudent operators - $2.0 billion of new facilities signed

  • Reduced cost base and focus on cost control

  • Selective, pre-committed and pre-sold approach to development activities – 85% of all developments pre-sold

  • Maintained gearing of 24.5%[3] , $1.1 billion of liquidity covering debt maturities to FY2015

+ Proactive capital management initiatives to adopt a more efficient global operating platform:

  • Proposed new capital structure supports Goodman’s strategy to be a global owner, developer and manager of industrial property

  • Consolidation improves marketability and attractiveness of investing in Goodman

  • Including Hong Kong company improves operating efficiency given growth in offshore markets

  • 3.05 cents on a fully diluted basis adjusted for the CIC hybrid and LTIP securities – this equates to 3.11 cents on an undiluted basis

  • On a fully diluted basis adjusted for the CIC hybrid and LTIP securities

  • Calculated as total interest bearing liabilities over total assets, both net of cash and fair values of cross currency swaps used to hedge foreign debt capital market issuances equating to $136 million - refer to Note 8 of the Interim Financial Statements

5

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Highlights

+ High occupancy maintained at 96%
+ Retention rate of 75% and WALE of 5.2 years
Own + Leased ~0.9 million sqm across the Group and managed funds platform equating to $92 million of property
income
+ Positive stabilised property valuations driven by rental growth
+ WIP at $2.1 billion across 58 projects in 13 countries with a forecast yield on cost of 8.9%
+ Development commitments of $0.9 billion in the half year with 86% pre-committed and 72% pre-sold to funds
or third parties
Develop + Benefiting from China and Japan land bank strategy, new Asian development commitments expected to
exceed $500 million in the short term
+ European operations commenced over 1 million sqm of developments in CY2011
+ In January 2012 practical completion was achieved at Interlink with occupancy now at 99%
+ External assets under management (AUM) increased to $15.3 billion (up 3.6% on FY11 on a constant
currency basis)
Manage + Equity markets remain open to managed funds
+ Raised $0.6 billion of new third party equity for GCLH, GELF, GAIF, GTA and GMT
+ Grew operating profit by 34% and maintained gearing at 24.51% (37.5% look through)
+ ICR 5.0x (2.8x look through)
Corporate + Debt markets remain open to the Group and managed funds
+ Established new debt facilities of $2.0 billion with an average term of 4.9 years across the Group and
managed funds
+ Evaluating new markets in conjunction with capital partners
  1. Calculated as total interest bearing liabilities over total assets, both net of cash and fair values of cross currency swaps used to hedge foreign debt capital market issuances equating to $136 million – refer to Note 8 of the Interim Financial Statements

6

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Section 2+
Results
overview
M7 Business Hub, Australia
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7

Results overview

+ Underlying fundamentals are on target:

  • Performance on track to exceed previous full year EPS guidance

  • Maintained liquidity and low gearing

  • Fund capital raisings and development commitments a positive lead indicator into 2013 performance

    • Investment EBIT contributing 62% of earnings, 38% Development and Management:

  • 69% Investment and 31% Development and Management on a look through basis

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1H FY12
Operating profit ($M) 229.2
Statutory accounting profit ($M) 200.0
Operating earnings per security (cents)1
Operating earnings per security (fully diluted)
(cents)2		 3.11
3.05
Distribution per security (cents) 1.80
As at
31 Dec 2011
NTA $0.50
Gearing (balance sheet)3 24.5%
Available liquidity ($B) $1.1
WACR (look through) 7.8%

  1. Operating earnings and operating EPS excludes unrealised gains on property revaluations, AIFRS and other non-cash adjustments and calculated based on weighted average securities of 7,373.3 million and excludes treasury (ESAP) securities

  2. Calculated based on weighted average fully diluted securities of 7,723.7 million and excludes treasury (ESAP) securities

  3. Calculated as total interest bearing liabilities over total assets, both net of cash and fair values of cross currency swaps used to hedge foreign debt capital market issuances equating to $136 million – refer to Note 8 of the Interim Financial Statements

8

Profit and loss

    • Half year operating profit of $229.2 million:

  • Foreign EBIT reduced by weighted average AUD appreciation of 6% compared to 1H FY2011

    • Offset by currency hedges included in interest expense

  • Investments continue to trend up on increasing rents with ROA of ~7% meeting benchmarks

  • Increased scale improving management margins to 62% at no increase to investors’ MER

  • Development volumes driving ROA of 11%

  • Out of the money swaps continue to be amortised through interest expense

  • Statutory profit of $200 million includes property, development, intangibles, derivative mark-to-markets and other non-cash or non-recurring items

    • Operating EPS of 3.11 cents per security (3.05 cents fully diluted)
    • DPS of 1.80 cents per security up 20% on 1HFY2011

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31 December 2011 income statement

1H FY11
$m		 1H FY12
$m
Investment (look through) 224.5 239.0
Management 30.6 36.0
Development
Unallocated operating expenses
Operating EBITDA (look through)		 35.7
(13.5)
277.3		 71.0
(17.2)
328.8
Operating EBIT (look through) 274.6 325.7
Look through interest and tax adjustment1 (59.7) (67.9)
Operating EBIT
Net borrowing costs		 214.9
(2.4)		 257.8
0.9
Tax expense (5.9) (4.6)
Operating PAT (pre minorities) 206.6 254.1
Minorities2 (36.1) (24.9)
Operating PAT (post minorities) 170.5 229.2
Weighted average securities (undiluted) (million) 6,353.3 7,373.3
Operating EPS (cps) 2.7 3.1
Non operating items3
Property valuations (4.6) 1.3
Non-property related impairments (9.5) (9.3)
Derivative and foreign currency mark to market 77.4 (1.6)
Other non-cash or non-recurring items (7.8) (19.6)
Statutory profit/(loss) 226.0 200.0
  1. Reflects adjustment to GMG proportionate share of managed funds’ interest and tax 2. Includes Goodman PLUS and CIC Hybrid Securities 3. Refer Appendix 2 slide 33 9

Balance sheet

    • Strong balance sheet maintained:

  • Selective approach to pre-committed and pre-sold developments

  • Managed fund equity raisings and asset recycling

    • Stabilised asset and fund cornerstone valuations up on the back of increasing rents. Overall cap rates stable:

  • Devaluations primarily on UK and Spain land banks

    • Development holdings increasing on the back of increased activity in Japan and China
    • Increase in other assets driven by mark to market of cross currency swaps
    • Net interest bearing liabilities normalised following cash injection from Interlink sale on 30 June 2011
    • $1.1 billion of liquidity covering maturities to FY2015
    • Resulting in the following key metrics:

  • Gearing of 24.5%[3] (37.5% look through)

  • NTA of $0.50 per security[2]

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31 December 2011 balance sheet

30 Jun 2011 31 Dec 2011
$m $m
Stabilised assets 2,409 2,421
Fund cornerstones1 2,632 2,740
Development holdings 1,251 1,328
Intangibles 828 802
Cash 228 296
Other assets 217 366
Total assets 7,565 7,953
Interest bearing liabilities
Other liabilities		 (1,914)
(637)		 (2,273)
(584)
Total liabilities (2,551) (2,857)
Minorities (573) (423)
Net assets (post minorities) 4,441 4,673
Net asset value (cps) 60 61
Net tangible assets (cps)2
Balance sheet gearing		 49
23.0		 50
24.53

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

  2. Undiluted for CIC Hybrid and LTIP securities based on 7,699.5 million securities on issue

  3. Gearing calculated as total interest bearing liabilities over total assets, both net of cash and fair values of cross currency swaps used to hedge foreign debt capital market issuances equating to $136 million - refer to Note 8 of the Interim Financial Statements

10

Group liquidity position

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    • Cash and available lines of credit of over $1.1 billion at 31 December 2011:

Debt maturity profile

  • $296 million cash

  • $852 million available lines

    • Significant covenant headroom maintained
    • Average Debt Maturity profile of 5.2 years
    • ICR at 5.0 times (2.8 times look through)
    • Positive rating movements – S&P’s BBB rating moved from negative outlook to stable while Moody’s Baa3 rating remains on positive outlook
    • Debt markets remain open to the Group and managed funds:

  • $0.3 billion through debt capital markets with an average expiry of 10.2 years

  • $1.7 billion of bank facilities with an average expiry of 4.0 years

  • Calculated as total interest bearing liabilities over total assets, both net of cash and fair values of cross currency swaps used to hedge foreign debt capital market issuances equating to $136 million – refer to Note 8 of the Interim Financial Statements

11

Highbrook Business Park, New Zealand 12

Investment

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

  • Occupancy maintained at 96% from June 2011 and up 1% from the previous corresponding period

  • Retention remains high at 75%

  • Like for like rental growth of ~3%

    • Cornerstone investments growing in line with the Group’s pro-rata interest in the development work book
    • Rental growth translating into positive revaluations while cap rates remain stable

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Investment ($m) 1H FY11 1H FY12
Direct 81.7 84.1
Cornerstones 142.8 154.9
Look through EBITDA 224.5 239.0
Key metrics1 1H FY11 1H FY12
WACR (%)
WALE (yrs)
Customer retention (%)
Occupancy (%)		 7.8
5.5
72
95		 7.8
5.2
75
96
  1. Key metrics shown in the above table relate to Goodman and managed fund properties

13

Development

+ Active developments in all markets:

  • Japan development fund in due diligence on back of Osaka site

  • Strong pipeline of potential sites and customer precommitments in Japan and China

  • On target to deliver more than 500,000 sqm in China in the short term

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

  • $0.9 billion of new commitments at 8.4% yield on cost

  • 86% of new developments pre-committed

  • 85% of developments pre-sold or pre-funded

    • WIP maintained at $2 billion with developments undertaken in all markets:

  • Despite difficult macro environment Europe commenced over 1.0 million sqm of developments in CY2011

    • China strategy focused on securing strategic land sites:

  • Additional 1 million sqm of land secured in the half increasing end value of development sites to $343 million

  • Land now available for draw down for industrial use at Langfang

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Development ($m)
Revenue		 1H FY11
48.7		 1H FY12
86.0
EBITDA 35.7 71.0
Key metrics 1H FY11 1H FY12
Work in progress ($B) 1.5 2.1
Work in progress (M sqm)
Number of developments
Development for Third Parties or Funds (%)		 0.9
33
77		 1.6
58
85
Pre-commitment (%) 76 87
Yield (%) 9.0 8.9
Work in progress (end value) $B
Opening (June 2011) 1.8
Completions
Commitments
FX		 (0.7)
0.9
0.1
Closing (December 2011) 2.1
    • Capital partners remain attracted to prudent operators with a strong brand and development capabilities:

  • Development capabilities key to entering new markets

14

Development projects

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+ Major development project commencements

Germany – Pforzheim and Koblenz

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Customer Amazon
Area 222,152 sqm [Insert
image]
Lease term 10 years
Contracted owner GMG
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UK – Thurrock Commercial Park

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Customer Co-op / Daily Mail
Area 29,345 sqm
Lease term 14 years / n/a
GMG / Third
Contracted owner
party
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China – Kunshan Jinxi Logistics Centre

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Customer Schenker
Area 46,693 sqm
[Insert
Lease term 3 years image]
Contracted owner GMG
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Belgium – Tessenderlo

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Customer Stanley Black
and Decker
Area 62,494 sqm
Lease term n/a
Contracted owner Third party
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UK – Hatfield Business Park

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Aria Foods / PCL
Customer
Logistics
Area 21,544 sqm
Lease term 15 years
Contracted owner ABPP
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Australia – Chullora

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Customer Masters
Area 13,528 sqm
Lease term 20 years
Contracted owner GAIF
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Note: Artist’s impressions may be subject to change

15

Development projects

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+ Major development project completions

Germany – Graben and Rheinberg

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Customer Amazon
Area 215,070 sqm [Insert
image]
Lease term 10 years
Contracted owner GELF / GPHL
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Japan – Moriya

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Customer Nippon Express
Area 33,000 sqm
Lease term 10 years
Development
Contracted owner
fund
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Australia – Oakdale Industrial Estate

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Customer DHL / J&J
Area 36,165 sqm
Lease term 10 years
GAIF / Third
Contracted owner
party
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Germany – Leipzig

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Customer Schenker
Area 62,951 sqm
Lease term 7 years
Contracted owner GELF
Australia – Interchangge Business Park
Customer Ingram Micro
Area 38,618 sqm
Lease term 10 years
Contracted owner GTA
Australia – Bungaribee
Customer Metcash – Stage
1
Area 47,664 sqm
Lease term 15 years
Contracted owner GAIF / GADF
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Australia – Interchangge Business Park

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16

Management

    • External Assets Under Management (AUM) of $15.3 billion increased 3.6% on a constant currency basis
    • Size and scale has resulted in improved margins across the management business at no increase to investors’ MER:

  • MER remains below 50 bps of AUM

  • Transactional activities a key driver of revenue growth

    • Raised $0.6 billion in new third party equity for the half:

  • New and existing capital partners in due diligence across 4 markets

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Management ($m)
Fund management fees
Property service fees
Revenue1		 1H FY11
30.3
29.5
59.8		 1H FY12
36.3
30.7
67.0
EBITDA 30.6 36.0
Key metrics 1H FY11 1H FY12
Number of funds 11 13
External AUM (end of period)
($bn)		 11.6 15.3

  1. Includes gross up of property outgoings of $8.6 million (2011: $9.2 million)

    • Global customers and investors supportive of assessing new markets:

  3. Global capital available to partner in new markets

    • Development completions organically growing AUM

17

Management - AUM

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    • Major new initiatives completed during the half include:

  • GELF completes €351 million rights issue and secures new €800 million debt package

  • GAIF completes US$300 million unsecured note issue with 10 and 12 year maturities

  • GCLH increases its equity commitment to US$500 million and secures new US$100 million 5 year facility from 2 European banks

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18

Management platform

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Goodman’s six largest funds Goodman’s six largest funds Goodman’s six largest funds Goodman’s six largest funds Goodman’s six largest funds Goodman’s six largest funds
GAIF GTA GELF ABPP GHKLF GMT1
Total assets $4.7bn $2.7bn $2.2bn $1.7bn $1.5bn $1.3bn
GMG co-investment 43.3% 19.9% 29.5% 35.7% 20.0% 17.2%2
GMG co-investment $1.1bn $0.3bn $0.4bn $0.3bn $0.2bn $0.1bn2
Number of properties4 131 61 89 26 14 22
Occupancy 98% 98% 97% 90% 99% 96%
Weighted average lease
expiry		 6.5 yrs 4.1 yrs 4.8 yrs3 6.6 yrs3 2.1 yrs 5.4 yrs
Gearing 39.0% 38.4% 38.6% 46.9% 26.1% 35.9%
Weighted average debt
expiry		 4.5 yrs 3.6 yrs 3.6 yrs 1.4 yrs 3.0 yrs 3.5 yrs
WACR 8.2% 8.3% 7.6% 7.8% 6.2% 8.6%

  1. As at 30 September 2011 (as disclosed to the New Zealand stock exchange in November 2011) 2. As at 31 December 2011

  2. WALE of leased portfolio to next break as at 31 December 2011

  3. Includes stabilised and development properties

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

+ Maintain position as a strong global industrial property and business partner in all markets we operate
+ Entering new markets adopting a low risk and capital partnering approach
Strategy + Expanding relationships with major investment partners to capture opportunities in existing and new markets
+ Ensuring we have size and scale in all markets we operate
+ Development capabilities and global customer relationships critical advantage
+ Further positive equity commitments for core real estate assets in all markets, including new sources
+ Western European development demand exceeding expectations
Outlook + Growing commitment to Greater China and Japan with increasing development starts on the back of a strong
pipeline and customer pre-commitments
+ Development demand continues to be driven by e-commerce, flowing through to 3PL operators and all
elements of supply chain
+ Proposed capital restructure to adopt a more efficient global operating platform (see Appendix 1)
Capital
management		 + Maintain gearing at current levels and pursue further diversification of funding sources
+ Continued mitigation of take-out and funding risk via pre-sales, development JVs and turn-key projects
+ Proven capability, global operating platform, extensive relationships with investment partners and customers,
provides leading market position, strong platform for growth and ability to explore high quality opportunities
Summary + Benefiting from global capital partners investing with specialised property operating businesses
+ Well positioned for opportunities in new markets and next stage of growth
+ Full year earnings guidance of 6.11 cents per security, up 8% on FY2011
  1. On a fully diluted basis adjusted for the CIC hybrid and LTIP securities

21

22

Capital restructure proposal

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+ To ensure that Goodman’s corporate and capital structure supports Goodman’s strategy
Purpose to be a global owner, developer and manager of industrial property
+ Ability to pass on franking credits to investors
For consideration at 30 March 2012 Extraordinary General Meeting:
+ Approve consolidation of securities on a five for one basis
Resolutions + Approve the Restructure by adding a Hong Kong incorporated company to the existing
Goodman stapled structure
+ Approve amendments to the Company and Trust Constitutions to implement the
Restructure

23

Restructure

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    • After the Restructure Securityholders will have the same economic interest in Goodman Group

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24

Why

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+ Need for Restructure arises because of the:

  • Evolution of the business resulting in more active (management) income relative to passive (rental) income

  • Growth in offshore markets increasing international earnings

  • Inability to distribute franking credits

+ Change ensures we operate an optimal corporate structure with:

  • Continued use of a tax flow through trust structure

  • Regulatory and tax efficiency

  • Corporate presence in the markets we operate

  • Position Goodman Limited for growth and profitability

  • Ability to pass on franking credits to investors

+ Access to global debt and equity capital markets

  • Near term debt capital markets, eg Renminbi (Dim Sum) bonds

  • Increases profile in Asia

25

Other capital structure initiatives

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Consolidation:

    • A five into one stapled security consolidation[1]

  • Improves marketability and attractiveness of investing in Goodman

  • Reduces volatility in GMG’s security price due to a higher per security market price (reduces the bid-ask spread as a proportion of the security price)

  • Some institutional investor mandates may prevent investment in securities with a market price below $1.00

Register optimisation:

    • Security Purchase Plan for up to an additional $2,000 of securities at a small discount to the ten day VWAP ended 15 February 2012 for those Securityholders wanting to increase their holding[2]
    • Small holding divestment facility to sell unmarketable parcels below $500[2]

  • As at 8 February 2012 ~ 1,600 holders with unmarketable parcels relating to ~300,000 securities

  • Where a fractional entitlement occurs, securities will be rounded up to the nearest whole security 2. Securityholders electing either option will be exempt from brokerage

26

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Indicative timetable

EVENT DATE1,2
Record Date to determine Small Holdings 7.00pm 8 February
Record Date to identify eligibility to participate in SPP 7.00pm 15 February
Notice of EGM with IM dispatched and SPP offer period commences 22 February 2012
SPP offer period closes 5.00pm 23 March
Time and date for determining entitlement to vote at the EGM 7.00pm 28 March 2012
EGM to approve Consolidation and Capital Restructure 10.00am 30 March 2012
Expiry of 6 week Divestiture Notice period. Last day for Small Securityholders to opt out of Divestment 5.00pm 30 March 2012
Goodman issues and allots securities under SPP 2 April 2012
Last day for trading of Stapled Securities on a pre-consolidation basis 3 April 2012
Goodman arranges for sale of small holdings on ASX under Divestment process 3 April 2012
Deferred trading of Stapled Securities on a post-consolidation basis commences 4 April 2012
Record date for Consolidation 12 April 2012
Last day for trading of post-consolidation Stapled Securities on a deferred settlement basis 12 April 2012
Implementation of Consolidation 13 April 2012
Payment of proceeds to small Securityholders under divestment process Expected by 19 April 2012
Timing of implementation of restructure to depend on satisfaction of any outstanding conditions precedent (such as
receipt of any consents)		 To be confirmed
  1. Dates subject to change 2. All times are Sydney, Australia

27

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A endix 2+
pp
Results analysis
Kobe, Japan
28
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Profit and loss

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29

Profit and loss (cont)

GMG results Half Year ended Half Year ended Increase /
31 Dec 2010 31 Dec 2011 (decrease)
$M $M $M
Property investment1 164.8 171.1 6.3
Management services 50.6 58.4 7.8
Development 48.7 86.0 37.3
Operating earnings net of property expenses 264.1 315.5 51.4
Unrealised gains/(losses) on investment properties and derivatives 5.8 (13.4) (19.2)
Other non-cash or non-recurringitems (1.4) (8.0) (6.6)
Total income 268.5 294.1 25.6
Expenses from operations (55.6) (69.3) (13.7)
Impairment losses (16.0) (44.1) (28.1)
Net finance income 71.1 48.8 (22.3)
Income tax expense (5.9) (4.6) 1.3
Minorityinterests (36.1) (24.9) 11.2
Profit after tax attributable to Securityholders 226.0 200.0 (26.0)
Add net loss from fair value adjustments on investment properties 2.9 2.6 (0.3)
Add unrealised (gain) / loss included in share of net results of equity accounted (8.7) 10.8 19.5
investments
Add impairment losses 16.0 44.1 28.1
Unrealised gains on fair value of derivatives (73.5) (109.4) (35.9)
Unrealised foreign exchange losses - 61.5 61.5
Straight-ling of rent and amortisation of lease incentives (0.6) 3.1 3.7
Employee LTIP 6.4 11.6 5.2
Other non-recurringitems2 2.0 4.9 2.9
Operating profit available for distribution 170.5 229.2 58.7
Operating basic earnings per security (cents) 2.68 3.11 0.43
Operating basic earnings per security (cents) – diluted 2.60 3.05 0.45
Distributionper security (cents) 1.50 1.80 0.30
Weighted average number of securities – EPS3 (million) 6,353.3 7,373.3 1,019.9
Weighted average number of securities – EPS3 (million)– diluted 7,248.0 7,723.7 475.7

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  1. Excludes straight-lining of rent and amortisation of lease incentives

  2. Refer to slide 33 for further information for 1H FY2012

  3. Excludes treasury (ESAP) securities on issue

30

Profit and loss (cont)

+ Total income by business segment for the half year ended 31 December 2011

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Category
Total
Investment
Manageme
nt
Developme
nt
Unallocated
Non-cash /
non-
recurring
items1		 Category
Total
Investment
Manageme
nt
Developme
nt
Unallocated
Non-cash /
non-
recurring
items1		 Category
Total
Investment
Manageme
nt
Developme
nt
Unallocated
Non-cash /
non-
recurring
items1		 Category
Total
Investment
Manageme
nt
Developme
nt
Unallocated
Non-cash /
non-
recurring
items1		 Category
Total
Investment
Manageme
nt
Developme
nt
Unallocated
Non-cash /
non-
recurring
items1		 Category
Total
Investment
Manageme
nt
Developme
nt
Unallocated
Non-cash /
non-
recurring
items1		 Category
Total
Investment
Manageme
nt
Developme
nt
Unallocated
Non-cash /
non-
recurring
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 / (loss) on disposal of equity investments		 111.3
36.4
30.7
119.3
40.6
11.5
(2.6)
0.6
27.2
71.8
20.5		 114.4
11.5
75.5		 36.1
30.7
0.2		 0.3
119.3
40.6
0.6
27.2
4.3
28.0		 (3.1)
(2.6)
(8.2)2
(7.5)
Total income 467.3 201.4 67.0 220.3 (21.4)
Development and property expenses and inventory cost of sales
Operating expenses
Impairment losses		 (164.6)
(77.9)
(44.1)		 (30.3) (31.0) (134.3)
(15.0)		 (20.3) (11.6)
(44.1)
EBIT 180.7 171.1 36.0 71.0 (20.3) (77.1)
Look through NPI adjustment (Goodman share of interest and tax
within its fund investments)		 67.9
Look through operating EBIT 239.0 36.0 71.0 (20.3)

  1. For reconciliation of non-operating and non-cash items refer to slide 33

  2. Includes share of associate and JVE property valuation gains of $38.7 million, share of associate and JVE unrealised derivative losses of $(49.5) million and share of reversal of provisions for business 31 acquisition related costs within associates of $2.6 million

Profit and loss (cont) Profit and loss (cont) Profit and loss (cont) Profit and loss (cont) Profit and loss (cont) Profit and loss (cont) Profit and loss (cont)
Category Total
Investment
Management
Developme
nt
Unallocated
Non-
operating
items1
$M
$M
$M
$M
$M
$M
EBIT – per statutory accounts 180.7 171.1 36.0 71.0 (20.3) (77.1)
Net loss from fair value adjustments on investment
properties
Share of net loss 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		 2.6
10.8
44.1
3.1
11.6
4.9		 2.6
10.8
44.1
3.1
11.6
4.9
Operating EBIT 257.8 171.1 36.0 71.0 (20.3) -
Net financing income (statutory)
Add: fair value adjustments on derivative instruments
Add: foreign exchange loss
Net financing income (operating)
Income tax expense
Minorities		 48.8
(109.4)
61.5
0.9
(4.6)
(24.9)
Operating profit available for distribution 229.2
Net cash provided by operating activities2 140.0

Profit and loss (cont)

  1. For reconciliation of non-operating items refer to slide 33

  2. Difference between operating profit pre-minorities and cash provided by operating activities of $114.1 million relates to:

  3. $47.3 million of accrued development income and payment for developments

  4. $21.3 million non-cash share of equity accounted income

  5. $33.2 million of prepaid interest, derivative maturities and capitalised interest

  6. $12.3 million of working capital movements

32

Reconciliation non-operating items

Non-operating Items in statutory profit & loss Notes Half Year
ended
$M 31 Dec 2011
$M
Property valuations
Net loss from fair value adjustments on investment properties 1 (2.6)
Share of net gain from fair value adjustments on investment properties in associates 1 32.5
Share of net gain from fair value adjustments on investment properties in joint 1 6.2
ventures
Subtotal 36.1
Impairment losses
Impairment – inventories 1 (26.4)
Impairment – receivables 1 (4.9)
Impairment – other financial assets 1,2 (8.3)
Impairment – intangible assets 2 (4.5)
Subtotal (44.1)
Derivative and foreign currency mark to market
Fair value adjustments on derivative instruments – GMG 109.4
Unrealised foreign exchange loss (61.5)
Fair value adjustments on derivative instruments – associates (49.1)
Fair value adjustments on derivative instruments –joint ventures (0.4)
Subtotal (1.6)
Other non-cash or non-recurring items
Share of reversal of provision for business acquisition related costs within associates 3 2.6
Straight-lining rental income (3.1)
Share based payment expense (11.6)
Capital losses not distributed 3 (7.5)
Subtotal (19.6)
TOTAL (29.2)

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  1. Property valuation gains totalling $1.3 million (refer to slide 9). Of the ($8.3) million of Impairments of other financial assets, ($3.5) million relates to GEBPF property valuations, the remaining ($4.8) million relates to non-property related impairments (see note 2 below)

  2. Non-property related impairments totalling ($9.3) million (refer to slide 9). Of the ($8.3) million of Impairments of other financial assets, ($4.8) million relates to non property related impairments (see note 1 above)

  3. Total ($4.9) million other non-recurring items (refer to slides 30 and 32)

33

Financial position

As at 31 December 2011
Direct
Assets
$M
Investments
$M
Development
s
$M
Other
$M
Total
$M		 As at 31 December 2011
Direct
Assets
$M
Investments
$M
Development
s
$M
Other
$M
Total
$M
Cash
296.4		 296.4
Receivables
25.9
195.9
338.3		 560.1
Inventories
652.6		 652.6
Investment properties
2,421.4
394.6		 2,816.0
Investments accounted for using equity
method
2,695.5
15.6		 2,711.1
Other financial assets
18.2		 18.2
Intangibles
802.3		 802.3
Other assets
69.6
27.1		 96.7
Total assets
2,421.4
2,739.6
1,328.3
1,464.1		 7,953.4
Interest bearing liabilities
2,273.1		 2,273.1
Other liabilities
584.4		 584.4
Total liabilities
2,857.5		 2,857.5
Net assets/(liabilities) 5,095.9
Gearing1 24.5%
NTA (per security)2 $0.50

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  1. Calculated as total interest bearing liabilities over total assets, both net of cash and fair values of cross currency swaps used to hedge foreign debt capital market issuances equating to $136 million – refer to Note 8 of the Interim Financial Statements

  2. Calculated based on 7,735.8 million number securities on issue less 36.3 million Treasury securities

34

Property valuations

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    • Overall property valuations stable with liquidity in all markets
    • Devaluations primarily on UK and Spain land banks
    • Marginal tightening in WACR to 7.8%
    • Revaluations driven primarily by increasing rents
    • Strong investor demand continues for prime investment assets

31 December 2011 property valuations (look through)

WACR movement
Book value Movement WACR since June 2011
(GMG exposure) since
June 2011
$M $M % %
Australia 5,045 31 8.2 -
New Zealand 278 - 8.6 -
Hong Kong 268 11 6.2 0.1
China 140 2 8.9 0.2
Japan 294 6 5.7 (0.2)
UK 1,319 (36) 7.9 0.1
Continental Europe 987 (13) 7.7 -
Total / Average 8,331 1 7.8 (0.1)

35

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A endix 3+
pp
Investment
ParkWest Industrial Estate, Australia
36
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Leasing

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Across the Group and Funds platform:

    • ~0.9 million sqm leased during the first half
    • Reversions flat on new leasing deals, with like for like NPI growing at ~3%
    • Occupancy maintained at 96% from June 2011 and up 1% from the previous corresponding period
Division Leasing area (sqm) Net annual rent (A$M) Average lease term Occupancy at 31 Dec 2011
(years) (%)
Australia – Direct 110,354 13.4 3.5 96
Australia – GAIF 244,650 26.4 3.5 98
Australia – GTA 113,526 15.6 2.7 98
New Zealand – GMT1 46,409 4.9 4.9 96
Hong Kong – GHKLF 90,106 9.9 2.3 99
UK – ABPP 8,579 2.8 7.9 90
Europe – GELF 208,782 12.0 1.5 97
Other 60,175 6.5 2.7 93
Total 882,581 91.5 3.1 96
  1. As at 30 September 2011 (as disclosed to the New Zealand stock exchange in November 2011)

37

Customers

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

38

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Direct portfolio detail - Australia

Key metrics

Portfolio snapshot

Total assets A$2.1 billion
Customers 230
Number of properties 32
Occupancy 96%
Weighted average cap rate 8.0%
    • 32 properties with a total value of $2.1 billion located across key Australian markets
    • Leasing deals remain strong across the portfolio:

  • 110,354 sqm ($13.4 million net annual rental) of existing space leased

  • customer retention 68% (rolling 12 months)

  • average portfolio valuation cap rate of 8.0%

    • 96% occupancy and a weighted average lease expiry of 4.0 years

Long-dated WALE of 4.0 years (by net income)

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Top 10 customers make up 30.5% of portfolio income

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39

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Direct portfolio detail - UK

Key metrics

Portfolio snapshot

Total assets A$0.3 billion
Customers 12
Number of properties 11
Occupancy 87%
Weighted average cap rate 8.0%
    • Occupancy at 87%
    • Strong WALE of 5.0 years
    • Active enquiry on vacant properties
    • Cap rates stable with current WACR of 8.0%

Long-dated WALE of 5.0 years (by net income) Top 10 customers make up 83.0% of portfolio income

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40

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A endix 4+
pp
Development
Belleville Logistics Centre, France41
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Developments

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1HFY12 Developments
Completions
Commitments
Work in progress
Value ($M)
713
938
2,078
Area (m sqm)
0.6
0.9
1.6
Yield (%)
8.2
8.4
8.9
Pre-committed (%)
99
86
87
Weighted Average Lease Term (years)
9.9
8.6
8.2
Development for Third Parties or Funds (%)
100
72
85
Asia Pacific (%)
51
39
64
UK/Europe (%)
49
61
36
Work in progress
by region
On balance sheet
end value
$M
Third party funds
end value
$M
Total end value
$M
Third party funds
% of total
Asia Pacific
57
1,268
1,325
96
Europe
246
507
753
67
Total
303
1,775
2,078
85

42

Developments (cont)

+ Maintained development pipeline in excess of $10 billion

  • $0.3 billion of development pipeline committed in 1H12

  • Development pipeline restocked (China and Japan landbanks), in excess of $10 billion

  • Forecast GLA over 6 million sqm

  • Development pipeline allocated as Asia Pacific 43% and Europe 57%

+ The Group’s development future cash commitments

Commitments as at 31 December 2011 $M
Gross GMG cost to complete 283
Less pre-sold1cost to complete (61)
Net GMG cost to complete 222
Net GMG managed funds cost to complete 719
  1. Pre-sold projects are reimbursed by instalments throughout the project or at practical completion of the project

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43

44

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Global platform

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45

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Goodman Australia Industrial Fund

Key events

Key metrics

Total assets A$4.7 billion
Interest bearing liabilities A$1.8 billion
Gearing1 39.0%
Customers 383
Number of properties2 131
Occupancy 98%
Weighted average lease expiry2 6.5 years
Weighted average cap rate 8.2%
GMG co-investment 43.3%
GMG co-investment A$1.1 billion
1.
Calculated as debt / total assets
2.
Including development assets
    • Portfolio occupancy increased to 98%
    • Total leasing of approx 244,650 sqm for the half.
    • Approval of four development projects with an estimated end value of $118 million.
    • Completed inaugural US$300 million US Private Placement (USPP) issuance, increasing the Fund’s debt maturity profile from 3.9 years to 4.6 years.
    • In addition, secured one new bilateral debt facility (~$100 million) with a term to maturity of ~5 years

Debt maturity profile

46

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Goodman Trust Australia

Key metrics

Key events

Total assets A$2.7 billion
Interest bearing liabilities A$1.1 billion
Gearing1 38.4%
Customers 216
Number of properties2 61
Occupancy 98%
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
    • Portfolio occupancy increased to 98%
    • Successfully renegotiated margins down for the $1.1 billion Australian debt facility
    • Extended first tranche of Australian debt that expired in March 2013 for three years
    • Development completions of 55,000 sqm at Interchange Business Park secured by Ingram Micro and Goodyear for 10 years
    • Pre-committed 22,500 sqm of development at Moorebank Business Park on an average lease term of 10 years

  • Calculated as debt / total assets

  • Including development assets

Debt maturity profile

47

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Goodman European Logistics Fund

Key metrics

Key events

Total assets1 A$2.2 billion
Interest bearing liabilities A$1.0 billion
Gearing2 38.6%
Customers 80
Number of properties4 89
Occupancy 97 %
Weighted average lease expiry3 4.8 years
Weighted average cap rate 7.6%
GMG co-investment 29.5%
GMG co-investment A$0.4 billion
    • Completed a €351 million equity raise. Underwritten by:

  • Dutch asset managers, APG (€150 million) and PGGM (€50 million)

  • Goodman for €145 million

    • Signed and completed €800 million of bank facilities with a consortium of 4 banks.
    • Agreed acquisition of 7 GMG developments (c. €136 million)
    • Leased approximately 208,782 sqm of space during the half (excluding developments)
    • Current fixed price developments and at risk developments totalling 248,800 sqm

  • Includes called unpaid equity

  • Calculated as net debt/total assets less cash, including called unpaid equity 3. WALE of leased portfolio to next break

  • Includes development assets

Debt maturity profile

48

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Arlington Business Parks Partnership

Key metrics

Key events

Total assets A$1.7 billion
Interest bearing liabilities A$0.8 billion
Gearing1 46.9%
Customers 156
Number of active business parks2 22
Occupancy 90%
Weighted average lease expiry3 6.6 years
Weighted average cap rate 7.8%
GMG co-investment 35.7%
GMG co-investment A$0.3 billion
1.
Calculated as net debt / total assets less cash
    • Leasing activity (completed and exchanged) of 8,579 sqm ($2.7 million net annual rental) over the half (including re-gearing of 2012 onwards lease expiries)
    • Sale of Verizon at Reading International for £140m, which completed in October 2011
    • Continue to pursue land sales at highest and best use:

  • current terms agreed at Birmingham Business Park, Aberdeen and Oxford Business Park (circa £17m)

  • The fund holds 22 active business parks and 4 standalone properties

    • Risk mitigated development pipeline – £45.4 million development pipeline 100% pre-committed:

  • WALE of leased portfolio to next break as at 31 December 2011

Debt maturity profile

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

  • Aria Foods / PCL Logistics for a 21,544 sqm prelet at Hatfield Business Park (15 year term)

    • Strong 12 month rolling retention rate of 72% with no customer failures

49

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Goodman Hong Kong Logistics Fund

Key events

Key metrics

Total assets A$1.5 billion
Interest bearing liabilities A$0.4 billion
Gearing1 26.1%
Customers 191
Number of properties3 14
Occupancy 99%
Weighted average lease expiry 2.1 years
Weighted average cap rate2 6.2%
GMG co-investment 20%
GMG co-investment A$0.2 billion
    • An ongoing focus on customer relationship and favourable market conditions has maintained strength in operational performance, with occupancy remaining high at 99%
    • A total of 90,106 sqm of new leasing and renewals completed during the half:

  • average rental uplift of 14% achieved on the new leases contributing to further growth in portfolio NPI

+ Interlink development:

  • reached practical completion in January 2012

  • Calculated as total debt / (total assets less JV loan receivable) 2. Stabilised portfolio only

  • Includes development assets

  • further leasing success with pre-commitment of 99% of GLA achieved prior to completion

Debt maturity profile

50

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Goodman Property Trust

Key metrics[1]

Key events

Total assets A$1.3 billion
Interest bearing liabilities A$0.5 billion
Gearing2 35.9%
Customers 227
Number of properties 22
Occupancy 96%
Weighted average lease expiry 5.4 years
Weighted average cap rate3 8.6%
GMG co-investment 17.2%4
GMG co-investment A$0.1 billion
    • Active portfolio management:

  • Over 46,000 sqm of space leased to new or existing customers, equating to NZ$5.5 million during the 6 months ended 30 September 2011

  • WALE of 5.4 years and 96% occupancy rate

    • Capital management programme:

  • Renewed and extended NZ$80.0 million of the Trust’s syndicated facility

  • Distribution policy of around 80% payout ratio

  • As at 30 September 2011 (as disclosed to the New Zealand stock exchange in November 2011)

    • 35.9% LVR consistent with target range of 35% to 40% and weighted average term to expiry across all debt facilities of 3.5 years

  • Calculated as net debt / property assets (includes GMT’s proportionate share of jointly controlled entities and total borrowings is net of cash

  • As at 31 March 2011

  • As at 31 December 2011

    • New development commitments include:

Debt maturity profile[1]

  • Super Cheap Auto - 20,530 sqm

  • Scalzo Food Industries - 4,950 sqm

  • Panasonic New Zealand - 7,500 sqm

51

52

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% 32.2% 22.8%
Interest cover ratio EBITDA to interest expense at least 2.0x 2.0x 5.0x 3.0x
Secured debt as a percentage of total tangible assets is
Priority debt not more than 5% (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% 62.4% 37.6%
development WIP and land bank)
Unencumbered assets Unsecured debt as a percentage of unencumbered
assets is not more than 66.6%		 66.6% 31.5% 35.1%
  1. Net liabilities = total liabilities less cash and excludes trade payables, mark to market derivatives, deferred tax liabilities and provisions for Securityholder distributions

53

Currency mix

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54

Financial risk management

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Financial risk management in line with Group Board policy

+ Interest risk management:

  • 91% hedged over next 12 months

  • Weighted average hedge maturity of 4.0 years

  • Weighted average hedge rate of 4.59%[1] vs spot 1.78%[2]

  • Current “all in” net WACD 3.61%[3]

+ Foreign currency risk management:

  • 81% hedged as at 31 December 2011, of which 71% is debt and liabilities and 29% is derivatives

  • Weighted average maturity of derivatives 4.5 years

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

  • Spot refers 4 year swap market rate as at 15 February 2012

  • Includes the AUD receiver leg from the cross currency swaps

55

Financial risk management (cont)

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Interest rate

    • Interest rates are hedged to 91% over next 12 months
    • Weighted average hedge rate of 4.59%[1] vs spot 1.78%[2]

  • NZD – (hedge 6.24%, spot 3.32%)

  • JPY – (hedge 1.21%, spot 0.39%)

  • HKD – (hedge 2.62%, spot 0.80%)

  • GBP – (hedge 8.41%[3] , spot 1.40%)

  • Euro – (hedge 2.60%, spot 1.37%)

    • Weighted average maturity of 4.0 years

==> picture [368 x 254] intentionally omitted <==

    • “All in” net WACD of 3.61%[4]

  • Includes the 10 year EMTN £250 million at 9.75% fixed rate 2. Spot refers 4 year swap market rate as at 15 February 2011 3. Includes the 10 year EMTN £250 million at 9.75% fixed rate 4. Includes the AUD receiver leg from the cross currency swaps

56

Financial risk management (cont)

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Interest rate hedging profile

Euro payable
GBP payable
HKD payable
NZD payable
JPY payable
As at Dec €M
Fixed
rate
%
£M
Fixed1
rate
%
HK$M
Fixed
rate
%
NZ$M
Fixed rate
%
¥M
Fixed
rate
%
2012 (713.1)
2.62
(425.0)
8.20
(1,245.1)
3.83
(190.0)
6.33
(11,200.0)
0.74
2013 (688.9)
2.62
(425.0)
8.20
(1,049.2)
2.49
(190.0)
6.33
(11,200.0)
0.74
2014 (478.8)
2.46
(430.9)
8.13
(894.8)
1.92
(165.0)
6.29
(9,615.1)
0.81
2015 (365.6)
2.41
(431.7)
7.90
(500.0)
1.87
(50.0)
5.75
(4,700.0)
1.35
2016 (50.0)
4.50
(338.4)
8.72
(483.6)
1.87
(41.0)
5.75
(3,848.9)
1.50
2017 (8.1)
4.50
(282.0)
9.28
-
-
-
-
(1,200.0)
3.32
2018 -
-
(138.4)
9.66
-
-
-
-
(1,200.0)
3.32
2019 -
-
-
-
-
-
-
-
(1,200.0)
3.32
2020 -
-
-
-
-
-
-
-
(1,200.0)
3.32
2021 -
-
-
-
-
-
-
-
(1,200.0)
3.32
  1. Includes the 10 year EMTN £250 million at 9.75% fixed rate

57

Financial risk management (cont)

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Currency hedging profile

Amount Amount
Maturing in Hedge rate payable Hedge rate payable
year ending June
HK$M NZ$M
2012 7.4975 (630.0) 1.1774 (5.1)]
2013 4.9077 (62.6) 1.1932 (5.0)

Foreign currency denominated balance sheet hedging maturity profile

Currency Maturity Weighted average Amount receivable1 Amount payable1
exchange rate
NZ$M 2013 / 2017 1.2677 A$161.9M NZ$205.0M
HK$M 2015/2016 7.8870 A$184.7M HK$1,450.0M
¥M 2016 87.3694 A$97.3M ¥8,500.0M
£ 2023 131.5400 ¥11,300.0M £85.9M
€M 2015/2016/2017 0.7160 A$448.1M €320.0M
US$M 2020/2021 0.6182 US$290M £179.3M
US$M 2020/2021 0.7067 US$535M €378.1M
  1. Floating rates apply for the payable and receivable legs for the cross currency swaps except for the US$825M and ¥11,300M cross currency where the receivable is at a fixed rate

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Exchange rates

    • Statement of Financial Position – exchange rates as at 31 December 2011

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– AUDGBP – 0.6534 (31 December 2010 : 0.6585) – AUDEUR – 0.7813 (31 December 2010 : 0.7647) – AUDHKD – 7.9675 (31 December 2010 : 7.9512) – AUDSGD – 1.3297 (31 December 2010 : 1.3126) – AUDNZD – 1.3132 (31 December 2010 : 1.3171) – AUDUSD – 1.0101 (31 December 2010 : 1.0163) – AUDJPY – 78.5500 (31 December 2010 : 82.8300) – AUDCNY – 6.4617 (31 December 2010 : 6.7413)

  • Statement of Financial Performance – average exchange rates for the 6 months to 31 December 2011

– AUDGBP – 0.6478 (31 December 2010 : 0.6038) – AUDEUR – 0.7466 (31 December 2010 : 0.7137) – AUDHKD – 8.0320 (31 December 2010 : 7.3526) – AUDSGD – 1.2947 (31 December 2010 : 1.2567) – AUDNZD – 1.2822 (31 December 2010 : 1.2812) – AUDUSD – 1.0307 (31 December 2010 : 0.9454) – AUDJPY – 79.9609 (31 December 2010 : 79.5325) – AUDCNY – 6.5904 (31 December 2010 : 6.3518)

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thank+ you

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Important Notice This document has been prepared by Goodman Group (Goodman International Limited (ABN 69 000 123 071) and Goodman Funds Management Limited (ABN 48 067 796 641)
(AFSL223621) as the Responsible Entity for Goodman Industrial Trust (ARSN 091 213 839)). The details in this presentation provide general information only. It is not intended as investment or
financial advice and must not be relied upon as such. You should obtain independent professional advice prior to making any decision. 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 of securities in the United States. Securities may not be offered of sold in the United States unless they
are registered under the US Securities Act of 1933 or an exemption from registration is available. Past performance is no indication of future performance. All values are expressed in Australian
currency unless otherwise stated. February 2012.
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