The St. Joe Company November 2009
Forward Looking Statements e ts This presentation contains forward-looking statements about future events that are subject to numerous assumptions, risks and uncertainties. As a result, actual results may differ from those forward-looking statements. For additional information and risk factors, please refer to our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q. 2
No ood Ordinary ayjoe In 1997, after more than half a century of growing trees on its land and making paper, St. Joe began its transformation into one of Florida s largest and most dynamic real estate operating companies. 3
The St. Joe Company Acclaimed regional place-maker with proven development expertise and a strong pipeline of land-use entitlements in hand or in process totaling approximately 43,000 residential units and 13.5 million square feet of commercial space, as well as an additional 646 acres with land-use entitlements for commercial uses Approximately 580,000 acres of low-basis land primarily in Northwest Florida of which about 70% is within 15 miles of the coast of the Gulf of Mexico Strong Balance Sheet As of 9-30-09, cash and cash equivalents of $156.6 million and pledged treasury securities of $27.5 million Debt of only $43.3 million, $27.5 million of which is defeased debt (offset by pledged treasury securities) Significantly reduced SG&A expenses and capital expenditures New Northwest Florida - Panama City International Airport under construction on land donated d by St. Joe and in the middle of 71,000 acres of entitled Company land. Expected completion date May 2010 with service from Southwest Airlines. 4
Extraordinary a Assets St. Joe s Land Holdings Within the 580,000 acres concentrated primarily in Northwest Florida, St. Joe owns miles of frontage on the Gulf of Mexico, bays, rivers and waterways Over 140 miles of frontage along the Gulf of Mexico and several eral bays, including 5.7 miles of sandy beach WindMark Beach An additional 78 miles of frontage along the Intracoastal t Waterway Significant percentage of remaining i coastal land suitable for development WaterSound Beach As of September 30, 2009 5
Extraordinary a Location o and Developments e e Area Shown: Approximately 150 miles As of September 30, 2009 6
Residential Development 7
Commercial Development e e 8
Developing the Regional Economy 9
Regional Contributions o Land & Donations o St. Joe has conveyed or committed over $600 million of land and other donations to cities, i counties, the FL Department of Transportation, fire and police authorities, local school boards and many other municipalities and organizations within Northwest Florida for the benefit of the region and value creation on our land holdings. WaterColor Fire Station Frank Brown Park Conley Elementary School RiverTown Ball Fields Frank Brown Park Aquatic Center RiverTown Nature Trails 10
Regional Infrastructure Roads & Highways Construction Underway / Completed New Roads / Improvements in Planning, Design & Engineering Phases* Future Planned Road Widening* *Subject to Change Dotted lines represent roads not on St. Joe property 11
Regional Infrastructure Roads & Highways Construction Underway Construction Completed SR 79 Bay County US 98 Walton County Widening construction underway from West Road widened Bay Bridge to SR 20 US 98 Gulf County New Roads / Improvements* in Planning, Design & Road relocated at WindMark Engineering Phases Capital Circle Leon County SR 79 Washington County Widening construction Design underway from SR 20 to I-10 completed / underway from SR 77 Washington County CR 363 to I-10 Design underway from north of SR 20 to I-10 SR 79 Bay County CR 388 Bay County Road widened from US 98 to New Airport access road 12 miles to be widened and West Bay Bridge re-aligned from SR 77 to SR 79 SR 77 Bay County Bay / Walton Parkway Road widened from Panama SR 79 to US 98 New Parkway from West Bay City to north of SR 20 to WaterSound Gulf Coast Parkway Re-aligned / new road bypass to connect New Airport to Port St. Joe Environmental Impact Study phase being performed by FDOT & FHA Gulf to Bay Highway Permitting and design underway for a reliever road to US 98 in Gulf and Bay County St. James Island Parkway Franklin County US 98 Relocated at WindMark US 98 to be realigned - under study at FDOT * Subject to change 12
Regional Infrastructure Health & Education Health Care New Walton County hospital (Sacred Heart) opened on land donated by St. Joe Construction underway on Port St. Joe hospital (Sacred Heart) New Sacred Heart medical outpatient facility in Panama City Beach office park developed by St. Joe Education and the Arts St. Joe has donated land for schools (SouthWood, RiverTown, Breakfast Point and Hawks Landing) St. Joe Community Foundation has donated over $14.5 million in local grants for education, community health, the arts, local preservation and other projects SouthWood Schools Sacred Heart SouthWood Schools 13
The Port of Panama City The Port of Panama City is the closest U.S. Gulf seaport to: Panama Canal Western South America U.S. Midwest U.S. Northeast Under-utilized deepwater seaport Short segment to deep water Northernmost t U.S. Gulf port Significant growth potential 14
Rail and Highway Linked Genesee & Wyoming Railroad Connected to Atlanta, t the Midwest and the Northeast t markets via national railroad operators and Federal Highways to Chicago to New York 15
The West Bay Sector 16
Introduction to the West Bay Sector The West Bay Sector is the largest master planned project in Florida 75,000 acres 37 million commercial square feet 27,000 residential units 490 hotel rooms and 2 marinas (800 slips) p) 41,000 conservation acres Served by the Port of Panama City, a deepwater seaport Rail and Highway links to Atlanta, the Midwest and the Northeast markets Northwest Florida - Panama City International Airport under construction On October 21, 2009, Southwest Airlines announced service at the new airport with at least two daily non-stop flights to/from each of four destinations 17
West Bay Sector - Understanding Scale 18
West Bay Sector Economic Development St. Joe and other organizations within the region are currently working to attract economic development projects to the West Bay Sector by targeting the following economic clusters: Aerospace & Aviation Significant outreach program to site consultants, multinational corporations and suppliers supporting the aerospace and aviation industries and the strong military presence in the region Defense & Security FL, AL and MS Gulf Coast corridor includes a concentration of U.S. Air Force, Navy and Army aerospace and aviation facilities which have created a cluster of businesses and workforce talent in the region Alternative ti Energy & Environment Ongoing research and development of alternative strategies for timberland including renewable energy plants/initiatives, carbon sequestration and mitigation banks International Trade, Transportation & Logistics Connectivity to the global network by combining the new international airport with the region s under-utilized deepwater seaport and rail system St. Joe is working with Florida s Great Northwest, Workforce Florida, Inc., Gulf Power Company and Gulf Coast Community College to address emerging workforce training needs of the prospective users within the economic clusters above. 19
The New Northwest Florida Panama City International ti Airport The Northwest Florida - Panama City International Airport and Industrial District (Airport Authority) commenced construction of the new airport in West Bay in January 2008 on land donated by St. Joe. This is the first U.S. international airport constructed in 16 years and the first built since the Transportation ti Security Administration i ti was created. Airport Authority projects a May 2010 opening. On October 21, 2009, St. Joe and Southwest Airlines announced a strategic alliance providing for the commencement of low-fare air service to the airport. Southwest Airlines service will consist of at least two daily non-stop flights from Northwest Florida to each of four destinations for a total of eight daily non-stop flights. St. Joe is working with regional and national partners to attract economic development projects to the West Bay Sector concentrating on economic clusters expected to have significant growth potential. 20
The Northwest Florida - Panama City International ti Airport Under Construction ti A World-Class International Airport 4,000 acre airport site 1,500 acre Phase One under construction Free-Trade Zone ready State-of-the-Art security and design Unpopulated approaches Ability to operate without restrictions 24/7/365 Designed to claim unofficial title of America s Greenest Airport 21
International Airport Under Construction 22
International Airport Under Construction 23
West Bay Sector Development Activity St. Joe has accelerated preconstruction development activity on entitled land adjacent to the new airport Preconstruction activity on 1,000 acres Office, retail and industrial uses Signed master planning agreements with The Haskell Company and TranSystems Corporation Planning and positioning the initial parcels to be revenue-ready Initiated t a significant ifi outreach program to site consultants and multinational corporations, as well as their suppliers, within the aerospace, aviation, defense and security economic clusters 24
Focus on the Future 25
Positioned for Growth We have realigned St. Joe with a significantly ifi leaner operating structure focused on: Focus West Bay Sector Regional Economic Development Objective Business development alongside successful airport opening in 2010 Accelerating demand Broad Range of Real Estate Product Offerings Enhancing asset value Strategic Alliances & Ventures Generating recurring revenue 26
Focus on the Future The Beginning i of an Economic Transformation in Northwest t Florida: Unconnected and Inaccessible Constrained Air Service Forgotten Geography Fractured Market Tourism Driven Economy Connected and Accessible Quality, Low Cost Air Service Rediscovered Advantages New National & International Destination Emerging Diverse Economy A diverse, growing economy with a strong demand for all types of real estate. Creating a New National and International Destination 27
The St. Joe Company Great Assets Northwest Florida Development Expertise Strong Balance Sheet New International Airport Served by Southwest Airlines and Opening in May 2010 Poised for Growth 28
Appendix 29
Recent Highlights On October 21 st, Southwest Airlines announced service to the Northwest Florida Panama City International Airport at airport opening in May 2010 Service at the new airport will consist of at least two daily non-stop flights from Northwest Florida to each of four destinations for a total of eight daily non-stop flights The non-stop flight destinations will be announced in early December Accelerating preconstruction development activity on approximately 1,000 commerciallyentitled acres of land in the West Bay Sector adjacent to the new international airport Signed master planning agreements with The Haskell Company and TranSystems Corporation Initiated a significant outreach program to site consultants and multinational corporations, as well as their suppliers, within the aerospace, aviation, defense and security economic clusters Planning and positioning i the initial iti office, retail and industrial i parcels near the airport to be revenue-ready Hired a vice president economic development to focus on commercial and economic development opportunities within the West Bay Sector Experienced continued recent up tick in residential sales with 41 total closings in Q2 and 47 total closings in Q3, including substantially all of the remaining units at Artisan Park Sold 5.6 acres of commercial land for $2.1 million, or over $350,000 per acre Extended the maturity date of the Company s $100 million revolving credit facility to September 19, 2012 30
Summary Balance Sheet (Dollars in Thousands) Sept. 30, 2009 Dec. 31, 2008 ASSETS Investment in real estate $ 844,911 $ 890,583 Cash and cash equivalents 156,554 115,472 Notes receivable 25,268 50,068 Pledged d treasury securities 27,547 28,910 Prepaid pension asset 42,193 41,963 Property, plant and equipment, net 16,899 19,786 Income taxes receivable 27,881 32,308 Other assets 28,754 39,188 Total assets $ 1,170,007 $ 1,218,278 LIABILITIES AND EQUITY LIABILITIES: Debt $ 43,292 $ 49,560 Accrued liabilities and other 113,768 115,816 Deferred income taxes 61,575 61,501 Total liabilities $ 218,635 $ 226,877 EQUITY: Total equity $ 951,372 $ 991,401 Total liabilities and equity $ 1,170,007 $ 1,218,278 Source: Form 10-Q for the period ended September 30, 2009 31
Debt Schedule (Dollars in Thousands) Sept. 30, 2009 Dec. 31, 2008 Non-recourse defeased debt (1) $ 27,547 $ 28,910 Community Development District debt 12,296 11,857 Other 3,449 8,793 Total debt $ 43,292 $ 49,560 (1) Offset by pledged treasury securities Debt maturities subsequent to September 30, 2009 2009 $ 114 2010 470 2011 3,948 2012 523 2013 558 Thereafter 37,679 Total $ 43,292 Source: Form 10-Q for the period ended September 30, 2009 32
Liquidity (Dollars in Thousands) Sept. 30, 2009 Dec. 31, 2008 Cash and Cash Equivalents $ 156,554 $ 115,472 Credit Facility Availability (1) 97,213 97,194 Total Liquidity $ 253,767 $ 212,666 (1) $100 million facility less $2.8 million of letters of credit outstanding 33
Total Cash Overhead (Dollars in Millions) Nine Nine Months Ended Months Ended Sept. 30, 2009 Sept. 30, 2008 Change % Change Other operating expenses $ 32.1 $ 43.1 Corporate expense 19.1 26.0 Total GAAP overhead $ 51.2 $ 69.1 Plus overhead capitalized 1.5 4.6 Less non-cash overhead (7.2) (7.9) Total cash overhead $ 45.5 $ 65.8 $ (20.3) -31% Cash overhead is a non-gaap financial measure. We believe this information is useful to investors in understanding the underlying operational performance of the Company, it s business and performance trends. Specifically, we believe that the reduction in total cash overhead shows investors the cash savings achieved by management through various restructuring and cost-saving initiatives. Although we believe disclosure of total cash overhead enhances investors understanding of our business and performance, this non-gaap financial measure should not be considered an alternative to GAAP basis financial measures. 34
The St. Joe Company November 2009