MAKING
SPACE
FOR SHARED
SUCCESS
Chairman's LETTER
Ian Ferrier AM
Goodman performed very well in FY18 and we are positive, too, about the outlook and sustainability of our operating platform. Our financial highlights include:
- Operating profit of $845.9 million, up 9% on FY17
- Statutory profit of $1,098.2 million
- $639 million in property valuation gains, contributing to 10% year-on-year growth in net tangible assets to $4.64 per security
- Operating earnings per security (EPS) of 46.7 cents, up 8.3% on FY17
- Distribution per security (DPS) of 28.0 cents, up 8.1% on FY17
- Maintaining a strong financial position with balance sheet gearing stable at 5.1%, down from 5.9% in FY17
- Group liquidity at $3.4 billion
- Total Securityholder return of 26% over one year, 69.5% over three years and 135.2% over five years.
Culture is key
These financial results directly reflect the successful execution of Goodman's long-term strategy. While the numbers are strong, I'm equally proud of the performance of our people. Goodman's culture is characterised by quality across all aspects of the business - our people, our products and our service.
In the last three years, Goodman has run an internal programme to instil the importance of the Group's values in our global team. We want everyone to understand our values and the behaviours needed to support our long-term success. Management has put significant focus across all our markets in creating the right culture and equipping our teams to act in our stakeholders' best interests.
We have scrutinised both our work culture and professional behaviour and continue to strive for strong ethics and corporate governance. We encourage a disciplined approach, with management leading by example in being transparent and modest in their dealings.
We are satisfied we're in a healthy position that supports our business long term. Yet even so, we never lose sight of how important it is to have the right team to foster the right culture at a local and global level.
OPERATING EPS (¢)
- 0
- 0
- 0
- 0
- 0
statutory profit ($m)
- 0
- 0
- 0
- 0
- 0
operating profit ($m)
- 0
- 0
- 0
- 0
- 0
Gearing (%)
- 0
- 0
- 0
- 0
- 0
TOTAL SECURITYHOLDER
HOLDER RETURN [TSR] (%)
- 0
- 0
- 0
- 0
- 0
- 0
GMG Total Return %
ASX100 Total Return %
Sustaining success
Delivering on the Group's long-term strategy is contingent on creating a culture that aligns the interests of our people and our Securityholders. In a highly competitive environment, with a business reliant upon having the best people to deliver the strategy, the Group has outperformed the ASX100 largely due to its ability to motivate, focus and retain its people.
Goodman's remuneration strategy ensures the balance between fixed pay and performance-based remuneration is aligned to Securityholders' long-term interests; that is, sustainable long-term EPS growth and, ultimately, investment returns. Securityholders and Goodman team members are mutually impacted by our performance, with Securityholders' interests met before short-term incentive awards are paid or long-term incentives vest. There is significant emphasis on long-term incentives for all team members, which are at risk with a three-year testing period and vesting over three-to-five years.
Both Securityholders and our people have benefited from Goodman's sustained strong growth. In an era when employees expect companies to develop their skills as well as provide opportunities for people to share in the company's success, Goodman's global incentive scheme is a crucial offering. It offers significant performance-based rewards to all, as opposed to a few. We believe this has been a key point of difference in creating a collaborative culture focused on sustained success.
In this Stakeholder Review, we show how we are continuing to build a sustainable business by delivering a strong financial result while striving to make a positive impact on people and the planet.
This includes supporting communities and charities in the markets we operate in, creating a culture in which our people are developing to their fullest capacity, and ensuring our buildings are energy efficient and environmentally sustainable.
Board changes
There have been some changes to the Goodman Board.
We welcome Ms Penny Winn to the Board as an Independent Director of Goodman Limited and Goodman Funds Management Limited and a member of the Risk and Compliance and Audit Committees. We also welcome Mr David Collins as an Independent Director of Goodman Logistics (HK) Limited.
After more than 12 years serving on the Board through the good and also the challenging times, Mr Jim Sloman, OAM, will be retiring. I thank him for his significant contribution to Goodman.
Thank you
I would like to acknowledge Goodman's strong and committed team for the execution of our strategy and contribution to FY18's outstanding results. The team is delivering a sustainable business into the future and I would like to thank them, our Partners, investors and our customers for their continued support.
Mr Ian Ferrier AM
Independent Chairman
