The Group’s FY16 financial reports will be released on 16 August 2016 and to assist investors during this transition period, Mirvac has restated historical financial information relating to the financial year ended 30 June 2015 (“FY15”) and half year ended 31 December 2015 (“1H16”) for the revised business segments in the Annexure attached*.
Mirvac undertook a review of its management structure in 2015 to deliver greater accountability and reduce complexity. The review established three sector-focused groups, with an accountable leader for each group reporting directly to the CEO & Managing Director.
The Group’s segment reporting will now reflect this structure and will be comprised of the following segments:
As previously flagged at the Group’s interim results in February, and to reflect the new segment structure, Mirvac has implemented a cost allocation framework for allocating corporate costs directly attributable to the operating divisions.
The revised segment reporting structure also provides Funds from Operations (“FFO”) reporting alongside operating profit, to ensure consistent reporting of both metrics^.
Summary of changes:
The expected outcomes and benefits of the new segment reporting structure include:
Including the corporate cost re-allocation noted above, Mirvac reaffirms that it expects to achieve a Development ROIC of over 12 per cent by 30 June 2016, one year ahead of its original target.
Mirvac also reaffirms its FY16 operating earnings guidance of 12.9 to 13.0 cents per stapled security (“cpss”) and FY16 distribution guidance of 9.9 cpss.