The St. Joe Company March 2010
Forward Looking Statements e ts This presentation ti contains forward-looking statements t t about future events that are subject to numerous assumptions, risks and uncertainties. As a result, actual results may differ from those forward-looking statements. For additional information and risk factors, please refer to our filings with the Securities and Exchange Commission, including our most recent annual report on Form 10-K and our quarterly reports on Form 10-Q. 2
The St. Joe Company In 1997, after more than half a century of growing trees on its land and making paper, St. Joe began its transformation into one of Florida s largest and most dynamic real estate operating companies. 3
The St. Joe Company Acclaimed regional place-maker with proven development expertise and a strong pipeline of land-use entitlements in hand or in process totaling approximately 31,600 residential units and 11.6 million square feet of commercial space, as well as an additional 646 acres with land-use entitlements for commercial uses Approximately 577,000 acres of low-basis land primarily in Northwest Florida of which about 70% is within 15 miles of the coast of the Gulf of Mexico Strong Balance Sheet As of 12-31-09, cash and cash equivalents of $163.8 million and pledged treasury securities of $27.1 million Debt of only $39.5 million, $27.1 million of which is defeased debt (offset by pledged treasury securities) Significantly reduced SG&A expenses and capital expenditures New Northwest Florida Beaches International Airport under construction on land donated d by St. Joe and in the middle of 71,000 acres of entitled Company land. Expected opening date in May 2010 with service from Southwest Airlines. 4
Extraordinary a Assets St. Joe s Land Holdings Within the 577,000 acres concentrated primarily in Northwest Florida, St. Joe owns miles of frontage on the Gulf of Mexico, bays, rivers and waterways Over 130 miles of frontage along the Gulf of Mexico and several eral bays, including 5.7 miles of sandy beach WindMark Beach An additional 78 miles of frontage along the Intracoastal t Waterway Significant percentage of remaining i coastal land suitable for development WaterSound Beach As of December 31, 2009 5
Extraordinary a Location o and Developments e e Area Shown: Approximately 150 miles As of December 31, 2009 6
Residential Development 7
Commercial Development e e 8
Introduction o to the West Bay Sector The West Bay Sector is the largest master planned project in Florida 50 Year Master Plan 75,000 acres 37 million commercial square feet 27,000 residential units 490 hotel rooms and 2 marinas (800 slips) 39,000 conservation acres Served by the Port of Panama City, a deepwater seaport Rail and Highway links to Atlanta, the Midwest and the Northeast markets Northwest Florida Beaches International Airport opening scheduled May 2010 9
West Bay Sector - Understanding d Scale 10
Northwest Florida Beaches es International a Airport Construction of the new Northwest Florida Beaches International Airport commenced in West Bay in January 2008 on land donated by St. Joe. This is the first U.S. international airport constructed in 16 years and the first built since the Transportation Security Administration was created. 10,000 ft. runway Allows for operations 24/7/365 State-of-the-Art security and design Foreign Trade Zone status (in process) The Airport Authority projects a May 2010 opening. In Q4 2009, St. Joe and Southwest Airlines announced a strategic alliance providing for the commencement of low-fare air service to the airport. Including the non-stop flights between the new airport and Houston, Nashville, Orlando and Baltimore-Washington DC are additional direct or connecting routes to/from Dallas, San Antonio, Chicago, St. Louis, Ft. Lauderdale, Tampa, LaGuardia and Providence. 11
International a Airport to Open May 2010 0 12
West Bay Sector Economic o c Development e e St. Joe is working with regional and national partners to attract economic development projects to the West Bay Sector concentrating on economic clusters expected to have significant growth potential including: Aerospace & Aviation Significant outreach program to site consultants, multinational corporations and suppliers supporting the aerospace and aviation industries along with the strong military presence in the region Defense & Security FL, AL, MS and LA Gulf Coast corridor includes a concentration of U.S. Air Force, Navy and Army aerospace and aviation facilities which have created a cluster of businesses and workforce talent in the region Alternative Energy & Land Uses Ongoing research and development of alternative strategies for timberland including renewable energy plants/initiatives, carbon sequestration and mitigation banks International Trade, Transportation & Logistics Connectivity to the global network by combining the new international airport with the region s under-utilized deepwater seaport and rail system 13
West Bay Sector Development e e Activity ty St. Joe has accelerated predevelopment activity on entitled land adjacent to the new airport Preconstruction activity on approximately 1,000 acres Office, retail, industrial and hotel uses Signed master planning agreements with The Haskell Company and TranSystems Corporation and a sales and marketing agreement with CB Richard Ellis 14
West Bay Sector Development e e Activity ty Phase 1: Horizontal Infrastructure t 2010 2011 2012 Front door to new Airport (west side) ±62 acres; ±$4.7 million Uses include: office, retail, restaurant and limited service hotel Design and permitting to be completed Q2 2010 CBRE has commenced marketing efforts Estimated start of construction in Q2 2010 Completed infrastructure t in 2010 to position the Company to JV, lease or sell parcels to end users this year 15
West Bay Sector Development e e Activity ty Phase 1: Spec Office Building ±50,000sf; ±$8.0 million Design and permitting to be completed Q3 2010 CBRE to commence preleasing Estimated t start t of construction in Q3 2010 Estimated completion of construction in Q2 2011 2010 2011 2012 16
West Bay Sector Development e e Activity ty Phase 2: Flex Building ±35,000sf; ±$2.1 million Design and permitting to be completed Q3 2010 CBRE to commence preleasing Estimated t start t of construction in Q3 2010 Estimated completion of construction in Q4 2010 2010 2011 2012 17
Focus on the Future 18
Positioned o for Growth We have realigned St. Joe with a significantly ifi leaner operating structure focused on: Focus West Bay Sector Regional Economic Development Objective Business development alongside successful airport opening in 2010 Accelerating demand Broad Range of Real Estate Product Offerings Enhancing asset value Strategic Alliances & Ventures Generating recurring revenue 19
Focus on the Future The Beginning i of an Economic Transformation in Northwest t Florida: Unconnected and Inaccessible Constrained Air Service Forgotten Geography Fractured Market Tourism Driven Economy Connected and Accessible Quality, Low Fare Air Service Rediscovered Advantages New National & International Destination Emerging Diverse Economy A diverse, growing economy with a strong demand for all types of real estate. Creating a New National and International Destination 20
The St. Joe Company Great Assets Northwest Florida Development Expertise Strong Balance Sheet New International Airport Served by Southwest Airlines and Opening in May 2010 Poised for Growth 21
The St. Joe Company March 2010
Appendix A 23
Recent Highlights g In Q4 2009, Southwest Airlines announced service to the new Northwest Florida Beaches International ti Airport upon opening in May 2010 Service at the new airport will consist of two daily non-stop flights between the new airport and Houston, Nashville, Orlando and Baltimore-Washington DC Additional direct and connecting routes to the new airport include Dallas, San Antonio, Chicago, St. Louis, Ft. Lauderdale, Tampa, LaGuardia and Providence Accelerating pre-development activity on approximately 1,000 commercially-entitled acres of land in the West Bay Sector adjacent to the new international airport Signed agreements with TranSystems Corp. and The Haskell Company to support the planning, engineering, designing and building of infrastructure and facilities for office, retail, industrial and hotel uses Signed agreement with CB Richard Ellis to market for joint venture, lease or sale the land / improvements within the 1,000 acres adjacent to the new airport Initiated a significant outreach program to site consultants and multinational corporations, as well as their suppliers, within the aerospace, aviation, defense and security economic clusters Hired a vice president economic development to focus on commercial and economic development opportunities within the West Bay Sector Completed the sales of non-strategic assets in Central and Northeast Florida generating significant cash and tax receivables as well as reducing holding costs Extended the maturity date of the Company s revolving credit facility to September 2012 and increased the commitments to $125 million from $100 million 24
Summary Balance Sheet (Dollars in Thousands) Dec. 31, 2009 Dec. 31, 2008 ASSETS Investment in real estate $ 749,500 $ 890,583 Cash and cash equivalents 163,807 115,472 Notes receivable 11,503 50,068 Pledged treasury securities 27,105 28,910 Prepaid pension asset 42,274 41,963 Property, plant and equipment, net 15,269 19,786 Income taxes receivable 62,365 32,308 Other assets 26,290290 39,188 Total assets $ 1,098,113 $ 1,218,278 LIABILITIES AND EQUITY LIABILITIES: Debt $ 39,508 $ 49,560 Accrued liabilities and other 104,954 115,816 Deferred income taxes 58,318 61,501 Total liabilities $ 202,780 $ 226,877 EQUITY: Total equity $ 895,333 $ 991,401 Total liabilities and equity $ 1,098,113 $ 1,218,278 Source: Form 10-K for the period ended December 31, 2009 25
Debt Schedule (Dollars in Thousands) Dec. 31, 2009 Dec. 31, 2008 Non-recourse defeased debt (1) $ 27,105 $ 28,910 Community Development District debt 12,403 11,857 Other - 8,793 Total debt $ 39,508 $ 49,560 (1) Offset by pledged treasury securities Debt maturities subsequent to December 31, 2009 2010 $ 1824 1,824 2011 1,982 2012 2,018 2013 1,586 2014 1507 1,507 Thereafter 30,591 Total $ 39,508 Source: Form 10-K for the period ended d December 31, 2009 26
Liquidity (Dollars in Thousands) Dec. 31, 2009 Dec. 31, 2008 Cash and Cash Equivalents $ 163,807 $ 115,472 Credit Facility Availability (1) 122,498 97,194 Total Liquidity $ 286,305 $ 212,666 (1) $125 million facility less $2.5 million of letters of credit outstanding 27
Total Cash Overhead (Dollars in Millions) Twelve Twelve Months Ended Months Ended Dec. 31, 2009 Dec. 31, 2008 Change % Change Other operating expenses $ 40.0 $ 53.5 Corporate expense 24.3 29.9 Total GAAP overhead $ 64.3 $ 83.4 Plus overhead capitalized 18 1.8 54 5.4 Less non-cash overhead (8.5) (7.1) Total cash overhead $ 57.6 $ 81.7 $ (24.1) -29.5% Cash overhead is a non-gaap financial measure. We believe this information is useful to investors in understanding the underlying operational performance of the Company, it s business and performance trends. Specifically, we believe that the reduction in total cash overhead shows investors the cash savings achieved by management through various restructuring and cost-saving initiatives. Although we believe disclosure of total cash overhead enhances investors understanding of our business and performance, this non-gaap financial measure should not be considered an alternative to GAAP basis financial measures. 28
Appendix B 29
Developing p g the Regional g Economy y 30
Regional Contributions o Land & Donations o St. Joe has conveyed or committed over $600 million of land, land improvements or capital to many municipalities i i and other organizations within Northwest Florida for health care, emergency services, public parks and recreation, schools and other infrastructure all of which benefit the region and provide value creation on our land holdings. WaterColor Fire Station Frank Brown Park Conley Elementary School RiverTown Ball Fields Frank Brown Park Aquatic Center RiverTown Nature Trails 31
Regional Infrastructure Roads & Highways Construction Underway / Completed New Roads / Improvements in Planning, Design & Engineering Phases* Future Planned Road Widening* *Subject to Change Dotted lines represent roads not on St. Joe property 32
Regional Infrastructure Roads & Highways Construction Completed Construction Underway US 98 Walton County SR 79 Bay County Road widened Widening construction underway from US 98 Gulf County West Bay Bridge to SR 20 Road relocated at New Roads / Improvements* in Planning, Design & WindMark Engineering g Phases Capital Circle Leon County SR 79 Washington County Widening construction Design underway from SR 20 to I-10 completed / underway from SR 77 Washington County CR 363 to I-10 Design underway from north of SR 20 to I-10 SR 79 Bay County Road widened to West Bay Bridge from US 98 SR 77 Bay County Road widened to north of SR 20 from Panama City CR 388 Bay County New Airport access road 12 miles to be widened and re-aligned from SR 77 to SR 79 Bay / Walton Parkway SR 79 to US 98 New Parkway from West Bay to WaterSound Gulf Coast Parkway Re-aligned / new road bypass to connect New Airport to Port St. Joe Environmental Impact Study phase being performed by FDOT & FHA Gulf to Bay Highway Permitting and design underway for a reliever road to US 98 in Gulf and Bay County US 98 Relocated at WindMark * Subject to change 33
Regional Infrastructure Health & Education Health Care New Walton County hospital (Sacred Heart) opened in January 2003 on land donated by St. Joe Sacred Heart Hospital on the Gulf in Port St. Joe grand opening scheduled for March 15, 2010 New Sacred Heart medical outpatient facility in Panama City Beach office park developed by St. Joe Education and the Arts St. Joe has donated land for schools (SouthWood, RiverTown, Breakfast Point and Hawks Landing) St. Joe Community Foundation has donated over $14.5 million in local grants for education, community health, the arts, local preservation and other projects SouthWood Schools Sacred Heart SouthWood Schools 34
The St. Joe Company March 2010