Analyst Presentation
March 2007
Agenda
• Company snapshot• Recent highlights• The Leighton Holdings investment• Overview of financials• Senior executive team• Landmark projects• Outlook• Questions and discussion
Devine Limited – Company snapshot• Brisbane-based, listed company (ASX:DVN)• More than $2 billion projects nationally (value when fully developed
and sold)• Land bank of 3,814 lots at 31/12/06 – on track to exceed 10,000 lots
by mid 2010• Operations – housing, land development, high-rise residential units,
commercial and in-house construction division• Operations in Qld, Vic and SA• Since listing in November 1993, Devine has developed more than
15,700 homes and 2,745 units• In the past two years Devine has established an in-house
construction division, commercial division and a funds management capability
Land Owned / Controlled
0500
1000150020002500300035004000
FY03 FY04 FY 05 FY06 HY07
QLD VIC NSW SA
Devine Limited – Recent highlights
• Leighton Holdings Limited’s announcement to acquire 40 per cent of Devine on 1 February 07
• The injection of $95.6 million of new equity will allow Devine to fast track its diversification program
• Strong share price growth: current share price $1.48, a year ago 89 cents
Devine Limited – Recent highlights
Devine Limited – Recent highlights
• Sale of First Permanent to Merrill Lynch: to generate $3 million before tax profit in June half 2007
• Announcement of $425 million luxury hotel and apartment complex in Brisbane’s CBD on the just acquired “Carrington” project
Devine Limited – Recent highlights
• Acquisition of third land parcel for “Hamilton Harbour” project in Brisbane. End value of proposed mixed-use development: $350 million - $400 million
• Entry into North Queensland: purchase of 72 hectare Townsville site for $28 million, expected yield: 900 lots
Devine Limited – Recent highlights
• Green light to “Hideaway @ Currumbin” on Queensland’s Gold Coast on 28 November 2006. End value: $500 million. Expected to commence construction late 2007
• Devine Construction Division continues to deliver cost and delivery advantages: “Charlotte Towers” 4.5 months ahead of schedule and costs below budget
• Settlements on 416-unit “Charlotte Towers” in Brisbane’s CBD due to commence April 07. End value: $172.6 million
Devine Limited – Recent highlights
• Presale of management rights of “Charlotte Towers” to Oaks Hotels and Resorts Limited for $7 million
• 333 Ann Street office tower, presold to Domaine Property Trust for $119.5 million, construction commenced January 07
• Current team of 219 employees (post sale of First Permanent) in three states. Recruiting nationally for staff to join Brisbane, Melbourne and Townsville offices
• Recent appointment of key people in Town Planning, Commercial / Industrial Division and Land Development
Devine Limited – Leighton’s investment
• Shareholders to vote on proposed transaction at General Meeting on 26 April 2007
• Devine to issue 94.7 million new shares at price of $1.009 to result in $95.6 million equity injection
• Leighton has the right to nominate two Directors to Devine board
• The composition of the Devine board to remain constant for 4 years – two Leighton nominated Directors plus the current seven Devine Directors (or their replacements)
Devine Limited – Leighton’s investment
• Leighton’s investment subject to a ‘stand still’ clause for a minimum 3.5 years
• Devine and Leighton to explore joint venture development opportunities
• Vote of confidence in Devine’s strategic direction and management
• Equity injection allows Devine to fast-track its diversification and acquisition program
• Will reduce gearing levels
Devine Limited – Financial• Current shares on issue = 142.1 million
– Post Leighton Holdings investment = 236.8 million• Results – on track to exceed 2005/06 full year net profit
of $18.9 million – Full year dividend 8c per share fully franked to be
maintained– Majority of profits will be reported in the June half
2007 – Reported net profit of $6.987 million for Dec half 2006
Devine Limited – Financial
RevenueOperating profit after taxNet profit after tax Net assetsEPS – basic Interim dividend per share(fully franked)
Dec 2006 Dec 2005$241.28m $244.71m$10.21m $15.44m$6.98m $10.69m
$72.53m $65.55m5.1 c 8.4 c4.0 c 4.0 c
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Board of DirectorsDevine Limited
National Management CommitteeDavid DevineKen WoodleyViv Grayson
National Manager Commerical DivisionJim Watson
National Advertising ManagerJim Shapcott
Marketing DirectorKen Woodley
National Marketing Director
Property Development ManagerBrett Gillan
Manager Devine ConstructionsTony McSwaine
Unit & Townhouses ExecutiveManagement Group
David Devine andViv Grayson
Group Finance ManagerScott Taylor
Chief Financial OfficerViv Grayson
State ManagerQLD
Scott McIntosh
State ManagerSA
Steve Weightman
National Construction ManagerRoss Grant
National Land Acquistions ManagerLuke Hartman
National General ManagerHousing & Land & Acting Victorian Manager
Paul Nash
Managing DirectorDavid Devine
Devine - Senior Executive Team
Devine Limited: Landmark projects
Victoria Point Docklands, Melbourne
Devine Limited: Landmark projects
Festival Towers, Brisbane CBD
Devine Limited: Landmark projects
Charlotte Towers, Brisbane CBD
Devine Limited: Landmark projects
333 Ann Street Brisbane CBD
Devine Limited: Landmark projects
Hamilton Harbour, Inner Brisbane
Devine Limited: Landmark projects
Hideaway @ Currumbin, Gold Coast
Devine Limited: Landmark projects
Carrington, Alice Street Brisbane CBD
Devine Limited: Landmark projects
Edgewater, Coomera, Northern Gold Coast
Devine Limited: Landmark projects
Adelaide, Maclaren
Devine Limited - Outlook• Remain on track to exceed $18.9 million net profit
recorded in 2005/06 and to pay full year dividend of 8 cents per share fully franked
• Subject to Shareholder approval, expect to issue new shares to Leighton Holdings on 3 May 07
• Escalating pressure on national housing supply – low vacancy rates / tight rental market
Devine Limited - Outlook• A number of exciting potential future development sites
are currently being assessed• Ongoing diversification by sector and location• Commitment to attract and retain leading talent in the
property sector