1 Redefine pre-close investor roadshow for the year ending 31 August 2020
Our conversation 2 Strategic overview 1 Strategic overview 2 Our response to COVID-19 Our response to COVID-19 3 Property asset platform 4 Financial insights Property asset platform Financial insights Redefine pre-close investor roadshow for the year ending 31 August 2020
Strategic overview 3 Strategic overview Section 1 Building today for tomorrow to ensure sustained value creation Our response to COVID-19 Property asset platform Financial insights Redefine pre-close investor roadshow for the year ending 31 August 2020
Our operating context 4 COVID-19 has intensified and sharpened pre-existing challenges Strategic overview Restrictions to contain the virus and save lives has Growth prospects are hindered by structural triggered a global recession and added further constraints and economic fragility prior to the COVID-19 momentum to the deglobalisation trend crisis %y/y Q/Q Y/Y Forecast Q/Q Forecast Y/Y Our response to COVID-19 20.0 The impact on sectors (especially contact-intensive services) and countries (such as export or tourist- 8.0 dependant economies) adds to the uneven pickup in activity -4.0 -16.0 Local lockdown measures and the extension, Property asset platform as well as consumers feeling extremely vulnerable -28.0 is reflected in low levels of business and Source: RMB -40.0 consumer confidence 2015 2017 2019 2021 Given the unprecedented and evolving market conditions Fixing our economy will take a collective effort from property fundamentals are going to be challenged for Financial insights government and business the rest of 2020 and beyond Redefine pre-close investor roadshow for the year ending 31 August 2020
What keeps us awake at night 5 A prolonged recession of the global economy is dominating the World Economic Forum risk perceptions Strategic overview Uncertainty pertaining to long-term impact of geo-political and socio-economic growth factors Impact of disruptive technologies Deteriorating public/state infrastructure and poor administrative delivery locally Inability to sustain business operations and services following a disaster or adverse event Our response to COVID-19 Financial market volatility Inability to effectively manage our reputation Failure to comply with local and international laws and regulations Increased competition for tenants Property asset platform Inability to be environmentally resilient Inability to prevent computer fraud and respond to cyber security attacks Damage to property and security-related threats Long-term impact of failing to transform at an acceptable rate Inability to maintain strong ethical and governance culture Financial insights Elevated top risk Unchanged top risk The above items are extracted from our strategic risk register and reflect our view of inherent risk before application of any mitigating actions Redefine pre-close investor roadshow for the year ending 31 August 2020
Strategy 6 Our purpose-driven strategic approach ensures that we create and manage spaces in a way that changes lives Strategic overview Strategic matters Our response to COVID-19 Grow Invest Optimise Operate Engage Reputation Strategically Capital Efficiently Talent Property asset platform Managing capital in a Operating responsibly Harnessing our Creating sustained people’s skills, Living our purpose constrained and costly in a low growth, rising value for all our environment administered cost abilities and attitude stakeholders context Financial insights Strategic objectives Redefine pre-close investor roadshow for the year ending 31 August 2020
A shift in focus of our 2020 strategic priorities 7 Addressing the lead up to the lockdown and its exit during the second half of 2020 Strategic overview How we will get there during the lockdown exit Anticipated outcome ▪ Deepen communication and collaboration ▪ Build brand loyalty ▪ Remain relevant to stakeholders ▪ Improve stakeholder perceptions ▪ Heighten focus on ESG ▪ Embed sustainable ESG considerations in all aspects of what we do Our response to COVID-19 ▪ Renewed focus on space offering ▪ Improve relevance of local portfolio ▪ Offshore expansion through development activity ▪ Expand offshore logistics platform ▪ Protect value of property assets ▪ Minimise TNAV downside risks ▪ Right-size asset footprint to capital base ▪ Maintain and improve credit metrics ▪ Bolster liquidity ▪ Meet funding commitments and cover short-term liquidity needs Property asset platform ▪ Assess ability to pay a dividend ▪ Lower LTV ratio ▪ Support tenants through rental relief ▪ Secure sustainability of tenants ▪ Proactive utilities management and re-prioritise ▪ Mitigate impact of lower revenue discretionary expenditure ▪ Unlock procurement and operational expenditure efficiencies ▪ Eliminate non-recurring income Financial insights ▪ Instil a culture of innovation and learning ▪ Keep staff engaged and motivated ▪ Accelerate transformation ▪ Improve representivity across all levels ▪ Refresh organisational structures ▪ Position management for the new normal Redefine pre-close investor roadshow for the year ending 31 August 2020
Environmental, Social and Governance 8 The creation of a more inclusive, sustainable and resilient operating context demands more emphasis on ESG Environmental Social Governance Strategic overview Submitted 26 buildings for Benefits offered to David Rice to remain in Existing Building employees to help support office until the CFO is Performance Green Star SA their physical, financial and appointed to ensure Our response to COVID-19 certifications which will be emotional well-being during business continuity certified by 2020 financial the socio-economic lockdown year end Rolling year-on-year target Awareness campaigns Filling the CFO role is an to reduce Scope 1 and 2 regarding COVID-19 health opportunity to improve Property asset platform emissions per square metre and safety protocols have diversity at executive of gross lettable are (GLA) been communicated with our level by 5% key stakeholders Increased our renewable We are committed to Appointment of Diane Radley energy capacity to measuring our impact against as independent Financial insights 25 915 kWp in 2020 the Ten Principles of the UN non-executive director Global Compact to bolster board skills Redefine pre-close investor roadshow for the year ending 31 August 2020
Our strategic focus for the recovery phase 9 Life beyond the lockdown demands an agile and adaptable shift in focus Strategic overview How we will get there in the recovery phase Anticipated outcome ▪ Restore stakeholder confidence ▪ Stakeholder confidence back to pre-COVID-19 levels ▪ Be who we say we are ▪ Entrench Redefine brand ▪ Invest in our stakeholders ▪ Strong stakeholder relationships Our response to COVID-19 ▪ Re- evaluate every property asset’s capital growth prospects ▪ Position asset platform for organic capital growth ▪ Focus on opportunities to expand income base ▪ Build sustainable revenue growth platform ▪ Create spaces for people to live, work and socialise sustainably ▪ Attract and retain quality tenants ▪ Optimise funding model ▪ Create sustainable capital base ▪ Broaden funding sources ▪ Reduce liquidity risk ▪ Maintain a healthy balance sheet ▪ Improve access to and cost of capital Property asset platform ▪ Optimise operational efficiency ▪ Position Redefine to succeed in competitive leasing environment ▪ Seek sustainable income earning opportunities ▪ Core assets delivering to their full potential ▪ Harness technology ▪ Achieve operational excellence in all aspects of what we do ▪ Build a resilient workforce ▪ Move away from linear thinking and embrace change Financial insights ▪ Be adaptable to a fluid working environment and working ▪ Fastrack flexible workforce policies in an agile way ▪ Embed inclusive decision-making and a culture of trust ▪ Embed diversity into culture and transparency Redefine pre-close investor roadshow for the year ending 31 August 2020
Our response to COVID-19 10 10 Strategic overview Section 2 COVID-19 will have lasting effects on how people live, work and play Our response to COVID-19 Property asset platform Financial insights Redefine pre-close investor roadshow for the year ending 31 August 2020
The pandemic has provided us with an inflection point 11 The opportunity to reset our business model to live our purpose and remain relevant Strategic overview COVID-19 exposed as a company underlying fragilities around our capital allocation strategy and funding model As a society it has exacerbated economic resiliency, public health infrastructure, and racial and social divides Our response to COVID-19 However it has also acted as a positive catalyst, we are: ▪ Connecting more with each other to keep our people engaged and motivated ▪ Supporting the operational sustainability of our tenants and service providers ▪ Collaborating as an industry on an unprecedented scale to deal with providing relief and assistance to our tenants Property asset platform ▪ Securing support from our debt funders ▪ Working with regulators to collectively resolve unintended consequences of the situation we find ourselves in Creating sustained value will increasingly rely on how well we can manage the competing concerns of all our stakeholders Financial insights Redefine pre-close investor roadshow for the year ending 31 August 2020
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