1. myplace training CREATING GREAT PLACES FOR LIFE May 2014 Mirvac FY14 Performance and Pay Review – May 2014

2. Agenda Myperformance  Process, purpose & expectations  Key Dates  Completing the performance review process  Performance and Development planning  Discussions  Using myplace for performance Mypay  Pay principles & elements of pay  Pay review process  Fixed pay and STI  Key Dates  Using mypay for pay reviews Mirvac FY14 Performance and Pay Review – May 2014

3. myperformance

4. Performance Management: The Mirvac Way Performance and Development Planning / Review Performance & Development Review Performance & Development Planning Pay Discussion Mid-Year Review Mirvac FY14 Performance and Pay Review – May 2014 Ongoing feedback & Support

5. Performance Timelines 26 May myperformance opens 20 JuneEmployee self-assessments due 04 JulyManager Reviews due 7 July to 16 JulyCalibration sessions 18 JulyELT approval of ratings by 14 SeptemberManager releases review to employee FY 14 Year End Performance Reviews by 15 AugustEmployee creates Performance and Development plan by 14 SeptemberManager meets with employee to discuss by 30 SeptemberManager approves Performance and Development plan FY 15 Planning and Development Mirvac FY14 Performance and Pay Review – May 2014

6. FY14 performance review

7. Mirvac FY14 Performance and Pay Review – May 2014 FY14 Performance & Development Review Review  Employee and manager make comments based on performance and development objectives (including Values, behaviours, technical and job-related skills) in myplace; Rate  Manager provides an overall rating, which is validated through calibration sessions and approved by ELT; Discuss  A one-on-one discussion of the current year’s Performance and Development accomplishments takes place; and Close  Employee acknowledges the discussion has occurred and the review process is finalised.

8. Ratings Definitions RatingDefinition 5 – Exceptional (EX)Highly effective in meeting all job requirements and made additional valued contributions; and Achieved identified stretch outcomes for most KPI’s; and Modelled Company values/behaviours and seen as a benchmark relative to peers; and Performance and outcomes seen as a benchmark relative to peers 4 – Exceeds Expectations (EE)Highly effective in meeting job requirements; and Exceeded some KPIs; and Demonstrated Company values/behaviours and often illustrated the spirit of Mirvac’s values; and Frequently exceeds performance relative to peers 3 – Meets Expectations (ME)Effectively met job requirements; and Achieved all KPI’s; and Demonstrated Company values/behaviours; and Achieved solid performance relative to peers 2 – Below Expectations (BE)Not all job requirements met; or Not all KPI’s achieved; or Did not consistently demonstrate Company values/behaviours; or Displayed inconsistent performance relative to peers 1 – Unsatisfactory (U)Did not meet job requirements; or Did not achieve KPI’s; or Did not demonstrate Company values/behaviours; or Immediate and sustained improvement required 0 – Not Rated (NR)Been in the role for less than 3 months; Worked less than 3 months in the performance year Mirvac FY14 Performance and Pay Review – May 2014

9. Calibration Sessions The practice of performance calibration refers to the steps taken to ensure that managers apply a consistent set of standards in determining performance ratings.  Multiple managers come together to discuss employees’ performance ratings;  Objective assessments are made based on past performance and in relation to other employees in similar job families or on projects;  Opportunity for managers to use the same language and develop an understanding of what performance means at Mirvac; and  Brings equity into the pay for performance equation. Mirvac FY14 Performance and Pay Review – May 2014

10. Purpose of the Review Conversation Focus on Results Clear Accountability Gain Commitment Deal with Differences Directly Build and Maintain Trust Mirvac FY14 Performance and Pay Review – May 2014 Links individual objectives to organisational goals Encourages transparency between performance, reward and recognition Improves communication & planning Fosters employee engagement A dual focus on performance/results (the What) and on behaviours (the How) An opportunity for coaching conversations

11. Performance Review Workflow – in myplace Major changes include:  Only Summary Comments & Overall Rating are mandatory;  All comments and ratings must be entered before submitting for approval/calibration;  Submitting for approval does not release the review to the employee;  Weightings removed ( Note: Values is no longer weighted 25% but the principle remains, if an employee does not behave in line with Mirvac Values, they should receive a performance rating of 2. )  2 nd level systems approval activated by HR, not by individual’s 2 nd level manager;  You decide when to release the review to the employee (post calibration); For a full list of changes refer to the Major Changes document on the intranet.Major Changes Hub sites > Human Resources > Performance Management > Training Resources & Useful materials Mirvac FY14 Performance and Pay Review – May 2014 Calibration (outside of system)

12. For 2up Managers – Viewing your Team in myplace Mirvac FY14 Performance and Pay Review – May 2014 View your direct and indirect reports: Current and past reviews Current and past plans

13. Mirvac FY14 Performance and Pay Review – May 2014 FY15 performance plan

14. “ Coaching is the single most important part of expanding others’ capabilities … (It) is the difference between giving orders and teaching people how to get things done. Good leaders regard every encounter as an opportunity to coach.” Bossidy & R Charan, 2002 When an individual creates their Performance and Development Plan in myplace:  Individual objectives should be in line with Mirvac’s organisational goals and indicate key success milestones;  A Values objective should be included as in previous reviews; and  Development requirements are defined to support performance and demonstrate behaviours. These objectives should then be discussed in a one-on-one meeting with you, their Manager. Mirvac FY14 Performance and Pay Review – May 2014 FY15 Performance and Development Planning

15. Performance and Development Discussion Guidelines  Majority of discussion should focus on the development plan as opposed to past performance.  Use past performance and the performance plan to forecast the development needs.  This conversation is future focussed and about identifying further learning and development needs, with specific reference to the skills and knowledge the employee will need to be successful and ensure the achievement of the KPI’s for the next period.  Ask what ideas they have and what they will do to ensure development needs are met (develops their ownership).  Ask what support they need from you (demonstrates your commitment).  Discuss how you will both informally review progress against the development plan.  **Note: ratings given on performance reviews do not include the achievement of development objectives. Development objectives are likely to have a longer time horizon than performance objectives. Mirvac FY14 Performance and Pay Review – May 2014

16. Performance Planning Major changes to the Planning form include: 1.One form for Performance and Development Planning; 2.Simplification through the removal of:  Progress bars  Status drop down  Weightings ( Note: Values is no longer weighted 25% but the principle remains, if an employee does not behave in line with Mirvac Values, they should receive a performance rating of 2. )  Checkbox for critical objective 3.Single screen approach – add your KPIs into the Strategic Driver, Values & Development fields;  Resolves previous printing issues 4.We no longer ‘cascade’ our objectives, rather we create them in agreement with our employees. For a full list of major changes refer to the intranet.major changes ** Note: for this year only, employees will not be able to copy from their previous plan, as we transition to the new form Mirvac FY14 Performance and Pay Review – May 2014

17. myperformance Learning Objectives https://myplace.mirvac.com/Taleologin.aspx Login and Navigation Completing your Employee Review (as a manager) Releasing the Review to your employee Generating a soft-copy to email or print Looking up previous review forms, or multiple direct/indirect reports Creating a Performance & Development Plan (as an employee) Mirvac FY14 Performance and Pay Review – May 2014

18. Need help? All training and user materials are located on the Performance Management intranet page, and the myplace Quick Learn Tutorials page.intranetQuick Learn Tutorials Hub sites > Human Resources > Performance Management > Training Resources & Useful materials Myplace > my performance support guides Contact the myplace helpdesk via email myplace@mirvac.com or phone (02) 9080 8855myplace@mirvac.com Mirvac FY14 Performance and Pay Review – May 2014

19. mypay Mirvac FY14 Performance and Pay Review – May 2014

20. Elements of Pay Mirvac FY14 Performance and Pay Review – May 2014 Elements of PayPurposePayment Form TypeEligibilityMarket Positioning Total Fixed PayTFPActs as a base level reward for a competent level of contribution in the role CashFixedAll employees 50 th percentile, with the ability to work within a range around the median Short-Term Incentive STIUsed to motivate and reward employees for contributing to the delivery of annual business performance CashVariable / At Risk All permanent employees Up to 75 th percentile in the event that both the individual and the business achieve stretch targets Long-Term Incentive LTIFacilitates executive security ownership Equity - Performance Rights Variable / At Risk Senior Executives (Level 6 and above) Employee Exemption Plan EEPSecurity ownershipEquity - Securities with 3 year holding lock Benefit – up to $1,000 worth of securities Permanent employees > 12 months service Note: FY14 is the first year all permanent employees are eligible for STI. A significant increase in budget. A direct link to company and individual performance

21. Pay Review @ Mirvac  On an annual basis through Pay Review process conducted from July – September.  Elements of pay reviewed are:  Total Fixed Pay  forward looking – pay for new financial year from 1 July onwards  Short-Term Incentive reward for performance in past financial year How is pay reviewed at Mirvac? JanFebAugJulAprMayJunMarSeptOctNovDec End of Year Perf Review TFP & STI Review EEP offerLTP offer TFP & STI Payment 20 Mirvac FY14 Performance and Pay Review – May 2014

22. Eligibility and Decision making guidelines Total Fixed Pay Eligibility for review of TFP:  Commenced employment before 1 April 2014  Permanent employee  TFP increases to be based on considerations such as:  Diversity considerations should also be taken into account such as whether males/females are being equivalently compensated for the same role i.e. Is there gender pay parity in your team. Short-term Incentives Eligibility for STI :  Commenced employment before 1 April 2014  Permanent employee (not on Sales Commission or EBAs)  Qualifying period – to be eligible for consideration for a STI payment, employees must have completed a minimum of three months of active service in the performance year to which the STI payment relates excluding any periods of paid or unpaid leave.  Employed at date of STI payment.  STI outcomes are directly related to performance through the individual STI multiplier: 21 RatingIndividual STI multiplier (% of target) 5.125-150% 4.100-125% 3.50-100% 1 or 20% Mirvac FY14 Performance and Pay Review – May 2014

23. Key dates for FY14 Pay Review 22 #ActivityDates (2014) 1.ELT meeting to approve final performance ratings.18 July 2.Mypay system – Go Live for managers to make pay recommendations for : 1.Total Fixed Pay; and 2.Short-Term Incentives (STI). 23 July – 5 Aug 3.HRC meeting to approve FY14 STI multipliers and ELT Fixed Pay and STI recommendations. 7 August 4.ELT meeting to approve FY14 Pay Review outcomes.14 August 5.Mirvac Full Year Results.21 August 6.FY14 Pay Review letters distributed to managers for discussions with employees. 25 August 7.Managers communicate and discuss Pay Review outcomes with employees.25 August – 14 Sep 8.Total Fixed Pay adjustments made (effective 1 July 2014).15 September 9.Short-Term Incentives payments made.19 September Mirvac FY14 Performance and Pay Review – May 2014

24. mypay Learning Objectives 23 Mirvac FY14 Performance and Pay Review – May 2014 As a mypay manager, you can: Review your budget Make your Fixed Pay recommendations for eligible employees Make your STI recommendations for eligible employees Make any special comments to support your recommendations Save and Submit Run your reports

25. mypay – Review your budget Mirvac FY14 Performance and Pay Review – May 2014

26. mypay – Fixed Pay and STI recommendations Mirvac FY14 Performance and Pay Review – May 2014

27. mypay – Fixed Pay History Mirvac FY14 Performance and Pay Review – May 2014

28. Mypay – STI history and comments Mirvac FY14 Performance and Pay Review – May 2014

29. mypay - Reports Mirvac FY14 Performance and Pay Review – May 2014

30. Useful contacts and links mypay Intranet page Our People > mypay > Useful Links >Here you can find detailed information around all aspects of the FY14 Pay Review and the mypay review system including the following materials: >Manager User Guide >Manager Cheat sheet >Glossary >Pay Review Discussion guide 29 Mirvac FY14 Performance and Pay Review – May 2014

31. THANK YOU