Residential Communities Stockland WA Business Unit 8 September 2005 Nick Perrignon, General Manager WA
WA Presentation Overview Business Unit Structure WA Economic Overview & Forecasts Business Unit Project Tour 2
WA Business Unit Stockland s Portfolio July 2001 Acquired Taylor Woodrow Business July 2005 4,800 lots under control 9 projects 3
Stockland s Cross Functional Structure Established Cross Functional Structure DEVELOPMENT DIVISION PROFIT CENTRES W.A Residential Communities VIC Residential Communities NSW Residential Communities QLD Residential Communities Apartments Retirement Living Marketing & Design Finance Business Development Human Resources Focus on leveraging skills Lower overhead structure / no silos, (can respond faster to market downturns / upswings) Retain core value enhancing skills avoid production based overheads 4
Risk Management & Value Add Stockland Wave PHASES FINANCIAL AND RISK MANAGEMENT ACQUISITION DESIGN DELIVERY STAGES STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 STAGE 6 STAGE 7 STAGE 8 STAGE 9 STAGE 10 STAGE 11 Strategic site identification Acquisition approval (AA) Acquisition handover to Development team Vision Workshop Planning and Design Internal Design Approval (IDA)* Marketing and Sales Plan Authority to Commence (ATC)* Project Launch Project Delivery Project Completion (PC) Unique Stockland Way of managing our business Clearly defined operating platform and process Focussed training and development programmes to maximise performance Efficient mix of in-house and external resources 5
WA Organisation Chart General Manager Nick Perrignon BUSINESS DEVELOPMENT & ACQUISITIONS DEVELOPMENT MARKETING SALES FINANCE & ADMINISTRATION INTEGRATED LIVING Jarrod Rendell Graham McArthur Loretta Sivwright Rob Vis John Ford Max Pirone 5 17 4 11 11 2 Staff Staff Staff Staff Staff Staff 6
Perth s Growth Corridors Historical growth lineal to coast 4 main corridors of growth Infrastructure planning leads development front Network City 7
Stockland - Acquisition Strategy Strong presence in South East Corridor & South West Corridor Active investigations in North Corridor Focus on consolidation around established projects 8
WA Presentation Overview Business Unit Structure WA Economic Overview & Forecasts Business Unit Project Tour 9
WA Economic Performance 7.0% 6.0% 5.0% 4.0% Australia v WA - Economic Performance 2000-2006 Forecast % Growth 3.0% 2.0% 1.0% 0.0% -1.0% -2.0% Australia Real GDP WA GSP 2000 2001 2002 2003 2004 2005 2006 Source: OECD & WA Department of Treasury & Finance Future Drivers Population Growth Capital Investment Employment 10
WA Investment $20,000 Total Public Capital Formation & Business Investment Western Australia Annual Total ($million) $19,000 $18,000 $17,000 $16,000 $15,000 $14,000 $13,000 $12,000 $11,000 $10,000 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Calendar Year Source: ABS Cat 5206 Table 104: Total Public Gross Fixed Capital Formation + Total Business 11
Mining/Resource Projects Current Projects 2005/06 CAPEX $Million Potential Projects 2006/07 Commencement CAPEX $Million Enfield Area Development 1,500 The Telfer Project 1,400 Ravensthorpe Nickel Project 1,400 Dampier Port Upgrade 880 Rapid Growth Project 2 750 Burrup Ammonia Project 630 Alcoa Pinjarra Alumina refinery Upgrade 440 Brownfields Mine Expansion 372 John Brookes Development 275 Worsley Alumina Development Capital Projects 265 Yandicoogina Mine Expansion 255 Total 8,167 Source: Jones Lang Lasalle Gorgon Gas and Condensate Field 11,000 Hope Downs Iron Ore 2,100 Fortescue Mine and Pellet Plant 2,000 LNG Train-5 Project 2,000 Pilbara Iron Ore Mine and Port Development 2,000 Alcoa Wagerup Alumina Refinery Unit 3 Expansion Boddington Gold Mine Wandoo Expansion Project 1,500 1,000 Worsley Efficiency & Growth Project 900 Southdown Magentite Iron Ore Project 520 South West Interconnected System (Stage 2) 500 Total 23,520 12
WA Mining/Resources Project Scenarios 2006/07 Pessimistic Scenario Basecase Scenario Optimistic Scenario WA Mining/ Resource Project Spending $5.4b $8.2b $12.7b Total WA Employment generated 56,664 85,508 153,563 Total WA White-Collar Employment generated (11.7%) White Collar Employment generated in Perth CBD (27.1%) 6,630 10,004 17,966 1,797 2,711 4,869 Average Workspace Ratio (sqm per worker) 18 18 18 Office Absorption in Perth CBD (sqm) 32 339 48 801 87 643 Calculations based on a study undertaken by Dr Ye Queng 1999 and ABS Census (2001) Source: Jones Lang Lasalle 13
5,000 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 - WA Employment Employment Trends ANZ Job Ads (Seasonally adjusted series) Newspapers, WA 50% 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% 9 8 7 6 5 Apr-97 Oct-97 Apr-98 Oct-98 Apr-99 Oct-99 Apr-00 Oct-00 Apr-01 Oct-01 Apr-02 Oct-02 Apr-03 Oct-03 Apr-04 Oct-04 Apr-05 14 No. of Newspaper Advertisements Annualised Growth (%) 4 3 Jul-01 Sep-01 Nov-01 Jan-02 Mar-02 May-02 Jul-02 Sep-02 Nov-02 Jan-03 Mar-03 May-03 Jul-03 Sep-03 Nov-03 Jan-04 Mar-04 May-04 Jul-04 Sep-04 Nov-04 Jan-05 Mar-05 May-05 Unemployment Rate (%) Jul-05 Chg (RHS) Number of ads (LHS) 69 68 67 Participation Rate (%) Unemployment Rate & Participation Rate Western Australia ABS Cat. 6291.0.55.001 Unemployment Rate Participation Rate Very low unemployment, wages growth Shortage of skilled labour, both in housing construction and mining 66 65 64 63 62
WA Population Growth - Annual Population Growth by Category 1997-2004, Western Australia 35,000 Number of persons by category 30,000 25,000 20,000 15,000 10,000 5,000 - (5,000) (10,000) 1997 1998 1999 2000 2001 2002 2003 2004 Net Interstate Migration Natural Increase Net Overseas Migration Source: ABS Cat. 3101 15
Dwelling Commencements No. of Dwellings 25,000 22,500 20,000 17,500 15,000 12,500 Dwelling Commencements Western Australia 22355 15324 14923 18400 17312 22998 13869 20328 19242 22483 10,000 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 Historical Commencements 10 Yr Average Source: ABS CAT 875003 (Seasonally Adjusted), HIA June 2005, HIFG April 2005 16
Dwelling Commencements Dwelling Commencements Western Australia No. of Dwellings 25,000 22,500 20,000 17,500 15,000 22355 15324 14923 17312 18400 22998 13869 19242 20328 22483 22000 19500 19890 20690 12,500 10,000 1994/95 1995/96 1996/97 1997/98 1998/99 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 HIA Forecast HIFG Forecast Historical Commencements 10 Yr Average Source: ABS CAT 875003 (Seasonally Adjusted), HIA June 2005, HIFG April 2005 17
Purchaser Types 0.8 Purchaser Types (Market Split) Percentage of Total Value Finance Commitments 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Jan.2000 Jul.2000 Jan.2001 Jul.2001 Jan.2002 Jul.2002 Jan.2003 Jul.2003 Jan.2004 Jul.2004 Jan.2005 Source: ABS Cat. 56710C6, 560909B First Home Buyers Investors Upgrading Purchasers Driven by owner-occupiers, establishing family home Steady investor activity last three years, low market % First home buyer segment set to increase market share 18
Market Conditions Median price ($000's) $600 $500 $400 $300 $200 $100 $0 Median House Prices Selected Capital Cities* Sydney Melbourne Brisbane Perth 4Q Moving Average Vacancy Rates 8% 7% 6% 5% 4% 3% 2% 1% 0% Residential Vacancy Rates Perth & Weighted Capital City Average* Perth 6-city Weighted Ave. Jun-84 Jun-85 Jun-86 Jun-87 Jun-88 Jun-89 Jun-90 Jun-91 Jun-92 Jun-93 Jun-94 Jun-95 Jun-96 Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-91 Jun-92 Jun-93 Jun-94 Jun-95 Jun-96 Jun-97 Jun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Source: REIA * - Note data for June Quarter not yet available for NSW, VIC & QLD Source: REIA - *Other Capital City data not yet available for June Qtr 2005 Vacancy rate will remain low, construction timeframes for single residential now extended from 26 weeks to 35 weeks average Housing affordability in WA remains a strategic advantage Perth median house price now $300k, at Brisbane levels Still 40% below Sydney prices 19
WA Presentation Overview Business Unit Structure WA Economic Overview & Forecasts Business Unit Project Tour 20
WA Business Unit Project Tour Critical Mass in a Corridor The Boardwalk Newhaven Vertu Private Estate Urban Infill The Sanctuary Masterplanned Community Settlers Hills Urban Renewal South Beach 21
Critical Mass In A Corridor - South-East Corridor 22
Development Front Expansion - 1998 CANNING VALE Ranford Road SOUTHERN RIVER Nicholson Road FORRESTDALE Tonkin Highway Legend Stockland Estates Land with Development Potential Already Developed Industrial Primary Regional Roads Parks & Recreation Public Purposes 23
Development Front Expansion 2004/05 CANNING VALE Ranford Road SOUTHERN RIVER Nicholson Road FORRESTDALE Tonkin Highway Legend Stockland Estates Land with Development Potential Already Developed Industrial Primary Regional Roads Parks & Recreation Public Purposes 24
Development Front Expansion - 2007 CANNING VALE Ranford Road SOUTHERN RIVER Nicholson Road FORRESTDALE Tonkin Highway Legend Stockland Estates Land with Development Potential Already Developed Industrial Primary Regional Roads Parks & Recreation Public Purposes 25
Urban Infill: The Sanctuary 26
Masterplanned Community: Settlers Hills 27
Urban Renewal: South Beach 28
Disclaimer Corporation/ Responsible Entity Stockland Corporation Limited ACN 000 181 733 Stockland Trust Management Limited ACN 001 900 741 16 th Floor 157 Liverpool Street SYDNEY NSW 2000 Disclaimer of Liability: While every effort is made to provide accurate and complete information, Stockland does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. Subject to any terms implied by law and which cannot be excluded, Stockland accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information in this presentation. All information in this presentation is subject to change without notice. 29