The St. Joe Company Raymond James Institutional Investors Conference March 10, 2009
Forward Looking Statements 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 periodic filings with the Securities and Exchange Commission, including our most recent Form 10-K. 2
No Ordinary JOE In 1997, after half a century of growing trees on its land and making paper, JOE began its transformation into Florida s largest, most dynamic real estate operating company. 3
This is JOE Acclaimed regional place-maker with proven entitlements expertise and a strong pipeline of 45,000 residential units and 13.8 million square feet of commercial space Approximately 586,000 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; cash and pledged treasury securities of $144.4 million, compared to debt of $49.6 million, which includes $28.9 million of defeased debt Significantly reduced SG&A expenses and capital expenditures New Panama City Bay County International Airport under construction and expected to be completed by May 2010 4
Extraordinary Assets JOE s Land Holdings Within the 586,000 acres concentrated primarily in Northwest Florida, 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 bays, including 5.7 miles of sandy beach WaterSound Beach An additional 78 miles of frontage along the Intracoastal Waterway Significant percentage of remaining coastal land suitable for development As of December 31, 2008 5
Extraordinary Location and Developments Area Shown: Approximately 150 miles As of December 31, 2008 6
Residential Development 7
Commercial Development 8
Developing the Regional Economy 9
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 JOE property 10
Regional Infrastructure Roads & Highways Regional Road Improvements Construction Completed US 98 Walton County Road widened US 98 Gulf County Road relocated at WindMark Capital Circle Leon County Widening construction completed / underway from CR 363 to I-10 SR 79 Bay County Road widened from US 98 to WestBay Bridge SR 77 Bay County Road widened from Panama City to north of SR 20 US 98 Relocated at WindMark Construction Underway SR 79 Bay County Widening construction underway from WestBay Bridge to SR 20 New Roads / Improvements* in Planning, Design & Engineering Phases SR 79 Washington County Design underway from SR 20 to I-10 SR 77 Washington County Design underway from north of SR 20 to I-10 CR 388 Bay County New Airport access road 12 miles to be widened and re-aligned from SR 77 to SR 79 Bay / Walton Parkway SR 79 to US 98 New Parkway from WestBay 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 to be realigned - under study at FDOT * Subject to change 11
Regional Infrastructure Health & Education Health Care New Walton County hospital (Sacred Heart) opened on land donated by JOE Construction underway on Port St. Joe hospital (Sacred Heart) New Sacred Heart medical outpatient facility in Panama City Beach office park developed by JOE Education and the Arts JOE has donated land for schools (SouthWood, RiverTown, Breakfast Point and Hawks Landing) St. Joe Community Foundation has donated over $14.3 million in local grants for education, community health, the arts, local preservation and other projects SouthWood Schools Sacred Heart SouthWood Schools 12
Introduction to WestBay The WestBay 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) 41,000 conservation acres Served by a deepwater seaport Rail service to Atlanta, Northeast and Midwest Panama City Bay County International Airport under construction 13
WestBay - Understanding Scale 14
WestBay - Understanding Scale 15
WestBay Connections Air, Land & Sea The Port of Panama City Rail and Highway links to Atlanta, Midwest and Northeast The new Panama City Bay County International Airport Industrial and commercial sites integrated in and adjacent to airport complex Proposed 16
The Port of Panama City The Port of Panama City is the closest U.S. Gulf seaport to: Panama Canal Western South America US Midwest US Northeast 17
The Port of Panama City A deepwater seaport with significant growth potential Short segment to deep water Northernmost gulf port 18
Rail and Highway Linked Genesee & Wyoming Railroad Rail connections to: Atlanta Northeast Midwest Proposed Intermodal Center Intermodal inland port - Distribution - Industrial 19
Rail and Highway Linked to Chicago to New York 20
The New Panama City Bay County International Airport The Panama City Bay County International Airport and Industrial District (Airport Authority) commenced construction of the new airport in WestBay on land donated by JOE. This is the first US international airport constructed in 15 years and the first since 9/11. Airport Authority projects a May 2010 opening. JOE is working with regional and national partners to attract economic development projects to WestBay concentrating on economic clusters expected to have significant growth potential. JOE is also working with business groups in Northwest Florida to attract additional air service to the new airport. 21
The New Panama City Bay County International Airport Under Construction A World-Class International Airport 4,000 acre airport site 1,500 acre Phase One under construction State-of-the art security and design Unpopulated approaches Access to Gulf of Mexico range 22
International Airport Under Construction 23
International Airport Under Construction 24
International Airport Under Construction 25
WestBay - Target Economic Clusters SRI Research: Need to target primary industry clusters which import and create wealth in a region and tend to be focused where transportation channels converge. Targeting the following economic clusters: Aerospace & Defense Security expected to be a top global growth business Alternative Energy & Environment Renewable energy and environmental sustainability mandates International Trade, Transportation & Logistics World trade expected to grow over the long term Health Care As it gains focus from the new national agenda 26
Focus on the Future 27
Positioning JOE for Growth We have realigned JOE with a significantly leaner operating structure focused on: Focus WestBay Strategic Alliances & Ventures Objective Business development alongside successful airport opening in 2010 Generating recurring revenue Land Use Entitlements Enhancing asset value Regional Economic Development Accelerating demand 28
Focus on the Future Toward the Beginning of an Economic Transformation in Northwest 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 Knowledge-Based Economy A diverse, growing economy with a strong demand for all types of real estate. Creating a New National and International Destination 29
This is JOE Great Assets Florida Entitlements Expertise Virtually Debt Free New International Airport Opening 2010 Poised for Growth 30
Appendix
Recent Highlights Recent Highlights Entered into new $100 million revolving credit facility with BB&T Maturity date of September 19, 2011 LIBOR + (0.75% to 1.75%) depending on leverage ratio Nothing drawn as of December 31, 2008 Cash and cash equivalents of $115.5 million and $28.9 million of pledged treasury securities as of December 31, 2008 Airport Authority reports that almost half of the site infrastructure work, including 75% of the primary runway, has been completed and projects a May 2010 opening Signed a Memorandum of Understanding with Workforce Florida, Inc., Gulf Power Company and Gulf Coast Community College to address emerging workforce training needs spurred by the development of the new airport Signed leases with The Port Authority of Port St. Joe, FL on 88 acres which provides the Port Authority with the opportunity to resume port operations for the first time since the port was shuttered in 1998 Entered into lease agreement with Genesee & Wyoming to operate the Apalachicola Northern Railroad, a 92-mile railroad connecting the Port of Port St. Joe with the national rail system in Chattahoochee, FL 32
Summary Balance Sheet (Dollars in Thousands) December 31, 2008 December 31, 2007 (Dollars in thousands) ASSETS Investment in real estate, net $ 890,583 $ 944,529 Cash and cash equivalents 115,472 24,265 Notes receivable 50,068 56,346 Pledged treasury securities 28,910 30,671 Prepaid pension asset 41,963 109,270 Property, plant and equipment, net 19,786 23,693 Goodwill, net - 18,991 Other intangible assets, net 1,777 2,317 Income tax receivable 32,308 - Other assets 33,422 45,793 Assets held for sale 3,989 8,091 $ 1,218,278 $ 1,263,966 33
Summary Balance Sheet (continued) (Dollars in Thousands) December 31, 2008 December 31, 2007 (Dollars in thousands) LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Debt $ 49,560 $ 541,181 Accounts payable and other 22,594 32,082 Accrued liabilities 92,636 112,165 Income tax payable - 8,058 Deferred income taxes 61,501 83,535 Liabilities associated with assets held for sale 586 328 Total liabilities 226,877 777,349 Minority interst in consolidated subsidiaries 2,772 6,276 STOCKHOLDERS' EQUITY Common stock, no par value 914,456 321,505 Retained earnings 1,046,000 1,081,883 Accumulated other comprehensive income (42,660) 3,275 Treasury stock at cost (929,167) (926,322) Total stockholders' equity 988,629 480,341 $ 1,218,278 $ 1,263,966 34
Debt Schedule (Dollars in Thousands) December 31, 2008 December 31, 2007 Revolving credit facility $ - $ 132,000 Senior Notes - 240,000 Term Loan - 100,000 1 Non-recourse defeased debt 28,910 30,671 Community Development District Debt 11,857 35,671 Other 8,793 2,839 Total debt $ 49,560 $ 541,181 Note 1: Offset by pledged treasury securities Debt maturities subsequent to December 31, 2008 2009 $ 5,035 2010 2,212 2011 498 2012 523 2013 558 Thereafter 40,734 Total $ 49,560 35
Liquidity December 31, 2008 (In thousands) Cash and Cash Equivalents $115,472 Credit Facility Availability (1) $97,194 Total Liquidity $212,666 (1) $100 million facility less $2.8 million of letters of credit outstanding 36
Total Cash Overhead Three Months ended December 31, Other operating expenses Corporate expense Total GAAP overhead Plus capitalized overhead Less non-cash overhead Total cash overhead 2008 2007 Change %Change (In millions) $10.4 $18.0 8.1 6.7 $18.5 $24.7 0.7 4.0 (3.2) (4.0) $16.0 $24.7 ($8.7) (35%) 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 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. 37
The St. Joe Company END March 10, 2009