Valad Property Group Mergers, acquisitions, takeovers
2008-10-30 09:12:00+10:00
c Spa ic acif 07 P 7, 2 e 20 , St Hwy stra , Au SW s, N nard Leo lia Annual General Meeting 30 October 2008 1 Introduction Gol lfred 1A se, Hou lds dfie e ydn et, S Stre , Au SW y, N lia stra Trevor Gerber Independent Chairman 2 Agenda Addressing market concerns - Trevor Gerber, Independent Chairman: Security price Credit conditions Earnings and distribution Remuneration Business Review Peter Hurley, Managing Director Balance sheet capital position Business line overview Property Ownership Development Funds Management Valad Capital Services (VCS) Outlook and Strategy Q&A Ordinary Business 3 Credit Conditions, Earnings & Distributions Credit conditions Credit scarcity has impacted earnings: fewer potential buyers for development and trading assets Addressing Market Concerns dramatic slow down in demand for residential property has had an adverse impact on domestic VCS business falling property values means lower AUM in managed funds, lower aggregate base management fees Property market conditions do not support the investment of available capacity in managed funds Credit scarcity has meant we have had to worked hard on our capital position raised A$200m in February 2008 via convertible note to Kimco sold non-core assets, including Kennards Self Storage portfolio interest will continue program in year ahead virtually no debt expiring in FY09; sufficient funds to cover all business and debt commitments in FY09 Earnings and distribution FY09 earnings guidance withdrawn on October 13th due to changing and unstable external market conditions FY09 forecast free cash flow supports payment of final distribution; will assess position closer to the time 4 Remuneration Recently appointed Managing Director, Peter Hurley, has elected to: freeze his FY08 base salary forgo his FY08 LTI entitlements, and withdraw resolution 6 waive guarantees of cash-based short term incentive (STI) payments in FY09 waive long term incentive (LTI) entitlements in FY09 Addressing Market Concerns Executive Director, Stephen Day, has elected to: forgo his FY08 LTI entitlements, and withdraw resolution 5 waive guarantees of cash-based short term incentive (STI) payments in FY09 waive long term incentive (LTI) entitlements in FY09 Non-executive directors have elected to freeze directors fees at FY08 levels Senior executive remuneration structure is under review 5 Valad Property Group has issued similar announcements seven times before, most recently about 0 minutes ago on Friday 26 September 2008. The announcement 'AGM 2008 Presentation' was issued to the ASX on Thursday 30 October 2008. The share price for Valad Property Group was $0.077 trending up at the time of the announcement. [Notice Type: Mergers, acquisitions, takeovers]

AGM 2008 Presentation
Thursday 30 Oct 2008

c Spa

ic acif 07 P 7, 2 e 20

, St Hwy

stra , Au SW s, N nard Leo

lia

Annual General Meeting

30 October 2008

1

Introduction
Gol lfred 1A se, Hou lds dfie e ydn et, S Stre , Au SW y, N lia stra

Trevor Gerber Independent Chairman

2

Agenda
Addressing market concerns - Trevor Gerber, Independent Chairman: ­ Security price ­ Credit conditions ­ Earnings and distribution ­ Remuneration Business Review – Peter Hurley, Managing Director ­ Balance sheet – capital position ­ Business line overview ­ ­ ­ ­ Property Ownership Development Funds Management Valad Capital Services (VCS)

Outlook and Strategy Q&A Ordinary Business

3

Credit Conditions, Earnings & Distributions
Credit conditions
­ Credit scarcity has impacted earnings: ­ ­ ­ ­ ­ ­ ­ fewer potential buyers for development and trading assets

Addressing Market Concerns

dramatic slow down in demand for residential property has had an adverse impact on domestic VCS business falling property values means lower AUM in managed funds, lower aggregate base management fees Property market conditions do not support the investment of available capacity in managed funds

­ Credit scarcity has meant we have had to worked hard on our capital position raised A$200m in February 2008 via convertible note to Kimco sold non-core assets, including Kennards Self Storage portfolio interest – will continue program in year ahead virtually no debt expiring in FY09; sufficient funds to cover all business and debt commitments in FY09

Earnings and distribution
­ FY09 earnings guidance withdrawn on October 13th due to changing and unstable external market conditions ­ FY09 forecast free cash flow supports payment of final distribution; will assess position closer to the time

4

Remuneration
Recently appointed Managing Director, Peter Hurley, has elected to: ­ freeze his FY08 base salary ­ forgo his FY08 LTI entitlements, and withdraw resolution 6 ­ waive guarantees of cash-based short term incentive (STI) payments in FY09 ­ waive long term incentive (LTI) entitlements in FY09

Addressing Market Concerns

Executive Director, Stephen Day, has elected to: ­ forgo his FY08 LTI entitlements, and withdraw resolution 5 ­ waive guarantees of cash-based short term incentive (STI) payments in FY09 ­ waive long term incentive (LTI) entitlements in FY09

Non-executive directors have elected to freeze directors’ fees at FY08 levels

Senior executive remuneration structure is under review

5