Peet Limited · ASX:PPC
Peet — Macquarie Australia Conference 2015
20 slides from Peet's conference presentation, May 6, 2015
Slide 1: Macquarie Australia Conference
Macquarie Australia Conference For personal use only MAY 2015
Slide 2: 1H15 Results Overview
1H15 RESULTS OVERVIEW Strong project performance across all business divisions aided by supportive market conditions For personal use only » Strong improvement in 1H15 operating profit1 after tax of $17.1m, up 18% (in line with statutory profit) » Strong underlying business performance FY14 Result F
Slide 3: Key Achievements for FY15
KEY ACHIEVEMENTS FOR FY15 • Acquired interests in seven high quality strategic residential projects For personal use only – New projects comprise more than 4,000 lots/dwellings with GDV1 of circa $1 billion FY14 Result– Strong investment partners provide the opportunity to leverage and grow the Fund
Slide 4: Key Achievements for FY15
KEY ACHIEVEMENTS FOR FY15 • More than 450 apartments either settled, under construction or in the design phase For personal use only MEDIUM DENSITY • Initial pipeline of approximately 1,700 units/apartments identified across national portfolio FY14 Result FY14 Result • Strong 1H15 net operating cash
Slide 5: Operational update
For personal use only Operational update
Slide 6: 3Q15 Operational Update
3Q15 OPERATIONAL UPDATE Peet remains on track to settle over 3,400 residential lots in FY15, with a total of 2,300 lots settled to date For personal use only » The demand for housing continued to drive solid performance particularly across the east coast with over $450 million contracts on hand as a
Slide 7: Contracts on Hand
CONTRACTS ON HAND CONTRACTS ON HAND BY LOTS » Strong number of contracts on hand1 driven by stable and 2500 For personal use only improving east coast market conditions provides ongoing 2,184 2,232 2,111 momentum into 4Q15 1,990 2000 − Large number of settlements achieved in March 2015 1500 quarter,
Slide 8: New Projects in FY15 - FY17
NEW PROJECTS IN FY15 - FY17 Pipeline of approximately 50,000 lots providing FY15-FY17 PROJECT RELEASE SCHEDULE visibility of future earnings For personal use only Project Project State Segment First Sales Lots Life (Years) » Up to 10 new projects expected to commence Oakford WA Funds 2015 1,060 10yr
Slide 9: Business Strategy
For personal use only Business Strategy
Slide 10: Group Business Model
GROUP BUSINESS MODEL Land Bank Target EBIT Target EBIT Diversification by Capital Sources of Composition Margin Land Bank Employed2 Geography (%)1 Revenue For personal use only 1 1 22 37 35 24 Lots: 12,852 40% – 50% Development 20%-25% GDV ($bn): 2.7 $385m » Development profit EBIT # Projects: 27 40
Slide 11: Capital Management
CAPITAL MANAGEMENT Significant improvement in capital position COMMENTARY CAPITAL EMPLOYED ($M)1 AND ROCE2 For personal use only » Sustained increase in 2,184 ROCE Development Projects Funds Management Total ROCE − Active management of land bank with view to increase ROCE 729 750 744 644 − Increase
Slide 12: Financial Performance
FINANCIAL PERFORMANCE Growth in earnings via improvement in margins and ROCE For personal use only COMMENTARY » Operating Profit After Tax 3-year CAGR of 23.2%, boosted by acquisition of CIC 1,990 1,990 » Ongoing EBITDA margin improvement to be driven by improved gross margin through net price growt
Slide 13: Cash Flow
CASH FLOW CASH FLOW PRE AND POST ACQUISITIONS ($M) For personal use only » Development of existing pipeline to be self-funded through operating cash 73.2 74.2 flows 64.8 69.7 50.0 65.4 » Disciplined execution of capital 36.4 management strategy to reduce cash 37.2 flow needs 32.6 15.9 − Majority of
Slide 14: Market overview and outlook
For personal use only Market overview and outlook
Slide 15: For personal use only
For personal use only MACQUARIE AUSTRALIA CONFERENCE PRESENTATION ǀ MAY 2015 ǀ PAGE 15
Slide 16: Residential Market Overview
RESIDENTIAL MARKET OVERVIEW Monetary policy continues to encourage home building activity although market conditions continue to be mixed COMMENTARY For personal use only WA » Sales volumes moderated in Western Australia during 1H15 % of land bank: FM/JV - 38% − Lower iron ore price Company owned –
Slide 17: Residential Market Overview
RESIDENTIAL MARKET OVERVIEW Monetary policy continues to encourage home building activity although market conditions continue to be mixed For personal use only COMMENTARY NSW/ACT » The ACT and adjoining NSW markets continue to perform well where the Group has a reduced % of land bank: exposure follo
Slide 18: Outlook
OUTLOOK Portfolio well positioned for sustainable long term growth and value creation For personal use only » Outlook supported by market fundamentals − Favourable market conditions across the Melbourne market − WA sales have moderated with sales prices stabilising − Qld results to improve on the ba
Slide 19: Thank you
For personal use only Thank you
Slide 20: Disclaimer
DISCLAIMER While every effort is made to provide accurate and complete information, Peet does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. This presentation contains forward-looking statements, including sta