Steve Thomson, Group GM Finance & Technology, Mirvac Presentation for CFO Summit 2019

1. DARE TO CHANGE
Mirvac group
Steve Thomson | March 2019

2. March 2019
MIRVAC IS ...
Residential
• Create, sell and rent with a focus on
apartments, medium density and
masterplanned communities
Retail
• Create, buy and manage retail assets in
densely populated urban areas
Industrial
• Create prime-grade assets to hold over
long term
Office
• Create, buy and invest in prime assets
with a focus on core CBD and CBD fringe
• An integrated property group with 47 years of
experience.
• Top 50 ASX listed company with a market
capitalisation of +$9bn
• Integrated: we leverage our integrated model
to create, own and manage
• Diversified: stable investment income with
development projects across Residential,
Retail and O&I

3. March 2019
NEW URBAN STRATEGY 5 YEARS AGO DEMANDED MORE FROM FINANCE
Office & Industrial
• Overweight in Sydney and Melbourne markets
• Divest Regional and Non-core assets +$3bn
• Development pipeline +$5bn
Retail
• Focus on Urban and Metropolitan markets
• Divest Regional and Non-core assets
• Remix to online-resilient categories
Residential
• At the right time and right price
• Flexibility to launch projects to capitalise on market
cycles
• Restock pipeline at the right time

4. March 2019
• Controlling and backward looking
• Capacity geared towards to transactional activities
• ……aspirations to be strategic and forward looking
focused on business outcomes
THE CASE FOR CHANGE
Mirvac Finance – 5 years ago
10%
50%
10%
30%
Catalyst
Value
Steward
Strategist
Operator
Source: Adapted from Deloitte CFO Advantage Program

5. March 2019
Boris Evelson,
Vice President, Forrester Research
“BI is essential for business growth
and competitive advantage, yet reaping
benefits from BI requires more than
implementing the technology that enables
it. In fact, deploying the technology is the
easiest part of any BI initiative, getting the
personnel and processes right are much
more challenging”.
WHERE TO FIRST?
UserEngagment
Maturity of Analytics Capabilities
CollectiveInsight
Raw
Data
Cleaned
Data
Standard
Reports
Ad Hoc
Reports
& OLAP
Self
Service BI
Agile
Visualization
Generic
Predictive
Analysis
What
happened?
What did it
happen?
What will
happen?
What is
the best that
could happen?
Predictive
Modeling
Optimization

6. March 2019
• New Skills and Capabilities
• Develop Finance Talent
• Internship Program
• …..some tough decisions
• Standardise and Optimise
• Centralise vs Decentralise
• Outsource vs In-house
• …..more tough decisions
• Digital Roadmap
• IT Investments
• Change Management
• …..some big bets
New Organisational Model (2015)
PEOPLE PROCESS TECHNOLOGY
THE MIRVAC STORY

7. March 2019
• Document processes - 500+
• Rationalize, Standardise and
Simplify processes (circa 50%
reduction)
• Operating SLAs and KPIs
• Robots for Manual Repetitive
Tasks
• Real Time Digital Dashboards
• Policy-based governance
• Centres of Excellence –
Business Intelligence
• Predictive Analytics - Data
Driven Insights
• Shift from Transaction
Processors to Value Partners
• Artificial intelligence tools and
assets
• Enhanced Prescriptive
Analytics
• Blockchain Assets
Document & Measure
Benchmark & Deploy
Scale with Data
Predictive Operations
FOUNDATION
STABLE
AUTOMATED
EFFICIENT
SMART
PREDICTIVE
INTELLIGENT
FUTURE READY
Implemented On Going Planned
Source: Adapted from Accenture Intelligent Operations
MIRVAC FINANCE - FROM EFFECTIVE TO PREDICTIVE
Value

8. March 2019
Enhances control
environment with
full audit trail
Reporting
Line Manager
providing daily
oversight
Governance
framework to
maintain ongoing
data integrity
Supplements
exiting systems
and ERP
Developed using
leading RPA
technology
Enhanced
compliance
with built in
validation rules
Flexible and
scalable solution
to manage peak
periods
ROBOTS ACCELERATING CHANGE
• Automate high frequency,
resource intensive processes
• Automation of journal postings
by founding member “Joey”
• Freed-up capacity has funded
new analytical capabilities
Source: Adapted from Accenture RPA Framework

9. March 2019
BICC
Define
BI Vision
Control
Funding
Establish
Standards
Build
Technology
Blueprint
Organise
Methodology
Leadership
Develop
User Skills
Manage
Programs
MIRVAC FINANCE - NEW CAPABILITIES
• Significant investment in new capabilities
• Established a cross functional specialised
team supporting and promoting the
effective use of BI across the business
• Deep understanding of the business
including data, source systems and
business challenges
• Focus on upskilling and leading the
business towards advanced analytics
• Supported by super users throughout
the business
BUSINESS
SKILLS
IT
SKILLS
ANALYTIC
SKILLS
Business needs
Organization and Processes
Business needs
Statistical and Process Skills
Governance, Administration
Tool, Infrastructure, Application, Data

10. March 2019
OFFICE &
INDUSTRIAL
Senior Business
Analyst
Business Analyst
BI Developer
Data Scientist
RESIDENTIAL
Senior Business
Analyst
Business Analyst
BI Developer
Data Scientist
CORPORATE
Senior Business
Analyst
Business Analyst
BI Developer
Data Scientist
BI PLATFORM
Senior Business
Analyst
Tech Lead
Senior Analyst,
BI Data
Other
RETAIL
Senior Business
Analyst
Business Analyst
BI Developer
Data Scientist
MIRVAC BI COE
• Managed centrally but aligned to the
business
• Diverse team and skill sets with in-depth
experience in Microsoft BI stack
• Data Science Certifications
• Talent sourced through Graduate and
Internship Programs

11. March 2019
• BI is not the end game
• Combining digital talent and passion for
the business is key
• Focus on business priorities and
outcomes
• Predictive capabilities aimed at solving
real business challenges
MIRVAC BI – IT’S JUST THE BEGINNING
In-house data analytics capability

12. March 2019
BI USAGE METRICS ACROSS THE PLATFORM – APRIL TO SEPT 18

13. March 2019
Descriptive
Analytics
Diagnostic
Analytics
Predictive
Analytics
Prescriptive
Analytics
MIRVAC VALUE JOURNEY
• BI moving past traditional reporting
analytics
• Solving complex business decisions
using data analytics
• Growing advanced analytical capabilities
across the business
• Discussion has shifted from the present
to the future
• Visibility and confidence spanning
further into the future
Source: Adapted from Gartner Inc Analytic Ascendancy Model
What
happened?
Hindsight
Insight
Foresight
What did it
happen?
What will
happen?
How can we
make it happen?
Value
Difficulty
Information
Optimization

14. March 2019
CULTURE OF VALUE CREATION
• Mirvac’s innovation program
has provided a platform for
enabling innovation at Mirvac
• Mirvac’s internal funding
platform investing in core
business related competitive
advantage projects
• Build A.I. is a JV with a leading
Australian Artificial Intelligence
software development
company that will revolutionise
the way we build

15. March 2019
MIRVAC HATCH TODAY
50 Innovation
Champions
Dedicated
Funding
Full-Time
Resources
12 Mission
Ideas
58 Business
Projects
25% of
Workforce
Trained

16. March 2019
MIRVAC FINANCE TODAY
• Employee engagement score of 90% 1
• New capabilities reshaping workforce
• Transactional activities either automated or outsourced
• Budget and 5 year forecast presentations fully automated and
delivered real time using BI
• Predictive analytics solving real business challenges
• Financial Results delivered to market 2 weeks earlier compared to
3 years ago
• FY19 EPS guidance narrowed from 16.9 to 17.1 cpss
Source : 1. Willis Towers Watson.

17. THANK YOU.