Slide 1: Peet Limited 1H09 Results Presentation
For personal use only Peet Limited 1H09 Results Presentation February 2009 asset manager land syndicator fund manager asset manager land syndicator fund manager asset manager land syndicator fund manager asset manager Peet Limited | Enriching lives since 1895
Slide 2: Contents
Contents For personal use only » Overview 3 » Financial Performance 5 » Outlook and strategy 14 » Funds management 20 » Development 27 Peet Limited | Enriching lives since 1895 2
Slide 3: Overview
Overview For personal use only » Strong operating performance for 1H09 » Result derived from normal business operations » Earnings not supported by englobo asset sales » Currently managing 81 projects across Australia / 30 projects actively being developed » Solid performance in Victorian affordable
Slide 4: Overview: Promising performance 2H09 year to date
Overview For personal use only » Promising performance 2H09 year to date » First home buyer market continues to perform » Recovery in second home buyer market starting to emerge » FY09 YTD gross sales / settlements volumes tracking slightly below FY08 » Some moderation in margins being experienced »
Slide 5: Financial Performance
For personal use only Financial Performance Peet Limited | Enriching lives since 1895
Slide 6: Group key financial highlights
Group key financial highlights For personal use only » Revenue of $71.2m, an increase of 23% pcp » Operating EBITDA (pre inventory write downs) of $23.1m, an increase of 3% pcp » Operating NPAT of $14.5m, a decrease of 5% pcp » Statutory NPAT of $10.5m, a decrease of 31% pcp » Impacted by pre-tax in
Slide 7: Summary income statement
Summary income statement For personal use only $m 1H09 1H08 Var (%) Funds management 20.2 15.7 Development 48.8 27.8 Other1 2.2 14.3 Revenue 71.2 57.8 23% EBITDA (pre inventory write downs) 23.1 22.5 3% Finance costs (1.9) (0.4) Depreciation and amortisation (0.3) (0.3) NPBT 20.9 21.8 (5)% Income ta
Slide 8: Group operating performance
Group operating performance For personal use only Key performance statistics 1H09 EBITDA composition by business type1 $m 1H09 1H08 Var (%) 4% Revenue 71.2 57.8 23% Operating expenses 48.1 35.3 36% Funds management 40% Development EBITDA 23.1 22.5 3% 56% JVs Net EBITDA margin 32% 39% (18)% Key opera
Slide 9: Summary balance sheet
Summary balance sheet For personal use only $m 1H09 FY08 Assets Cash 26.9 50.3 Receivables 24.4 36.2 Inventories 461.9 447.0 Investments accounted for using the equity method 29.8 26.2 Other 3.9 4.8 Total assets 546.9 564.5 Liabilities Trade and other payables 20.4 27.6 Land vendor liabilities 75.8
Slide 10: Value of owned land bank
Value of owned land bank For personal use only » Owned development land bank on-completion value of $2.8bn » Comprises approximately 17,000 lots across 48 projects » Over the past two months, Peet has internally reviewed its entire portfolio. This process was comprehensive and involved » DCF and com
Slide 11: Capital management
Capital management For personal use only » Compliant with all debt covenants » Gearing covenant based on market value of inventory » No market capitalisation covenant » No debt maturity until March 2010 » Core debt facility of approximately $235m does not mature until December 2010 » Benefit from lo
Slide 12: Capital management: single banking relationship
Capital management For personal use only » Single banking relationship for over 114 years » Capital management initiatives » Reduced payout ratio to 60% » 1H09 DRP – Directors and shareholders have committed to 60% take-up; remainder underwritten by Euroz Securities with the support of other existin
Slide 13: Capital management: increased gearing
Capital management For personal use only » Over the past 12 months increased gearing has been due to » Growth of project pipeline across Victoria and Queensland » Equity position in Alkimos Wholesale Fund » Deferral of retail syndication » The business does not need to make further acquisitions » Co
Slide 14: Outlook and strategy
For personal use only Outlook and strategy Peet Limited | Enriching lives since 1895
Slide 15: Outlook – first home owner stimulus
Outlook – first home owner stimulus For personal use only » First home owner grants providing significant stimulus to the housing market » Comprises both federal and state government initiatives » Federal first home owner grants for January 2009 grew by 15% to 12,853, following a 107% month-on-month
Slide 16: Outlook – stimulus and lower interest rates
Outlook – stimulus and lower interest rates » Owned occupier finance approvals rising strongly; result prior to 100bps cut in February For personal use only » Peet has experienced a solid pick up in activity in 2H09 YTD National – owner occupier finance approvals Victoria – owner occupier finance ap
Slide 17: Outlook – 2H09 year-to-date performance
Outlook – 2H09 year-to-date performance For personal use only » Peet’s core market is first and second home buyers » As at 31 Dec 08, in excess of 930 lots under contract with a gross value of $172m » Lots under contract to contribute to 2H09 earnings » Encouraging start to 2H09 – strong sales resul
Slide 18: Outlook
Outlook For personal use only » Strong fundamentals » Lowest interest rates in 45 years / significantly improved affordability » Significant under-supply of residentially zoned and permitted land » Strong population growth » Government incentives / support of sector » Starting to experience improvem
Slide 19: Strategy
Strategy For personal use only » Peet’s strategic priorities remain to » Focus on core businesses of funds management and residential development » Continue to meet the needs of its core markets – first and second homebuyers – with a range of product at affordable prices » Remain proactive and prude
Slide 20: Funds Management
For personal use only Funds Management Peet Limited | Enriching lives since 1895
Slide 21: FM key highlights
FM key highlights For personal use only » Revenue of $20m, an increase of 29% pcp » Operating EBITDA of $13m, an increase of 15% pcp » EBITDA margin of 65% » Margin remains highly attractive » Moderation in margin given deferral of new syndication product » $27m in retail syndicate equity raised in
Slide 22: FM operating performance
FM operating performance For personal use only Key performance statistics 1H09 revenue composition by type $m 1H09 1H08 Var (%) 5% Project management Revenue 20.2 15.7 29% selling fee 28% Operating expenses 7.0 4.3 63% Management performance fees EBITDA 13.2 11.4 16% 67% Other Net EBITDA margin 65%
Slide 23: JV operating performance
JV operating performance For personal use only Key performance statistics $m 1H09 1H08 Var (%) Revenue 5.5 13.3 (59)% Operating expenses 4.5 10.8 (58)% EBITDA 1.0 2.5 (60)% Net EBITDA margin 18% 19% (5)% Key operating statistics $m 1H09 1H08 Var (%) Lot sales 62 10 520% Lot settlements 39 127 (69)%
Slide 24: FM and JV pipeline
FM and JV pipeline For personal use only » 19,100 lots under management; estimated on-completion value of $4.4 billion1 No. Lots2,3 2009 2010 2011 2012 2013 Botanic Village 761 Brimbank Gardens 733 Brookland Greens 124 Cardinia Lakes 621 VIC Cranbourne Central 706 Cranbourne Syndicate 611 Melton 533
Slide 25: Composition of FM and JV pipeline
Composition of FM and JV pipeline For personal use only » Funds management business is well positioned Geographic composition of land bank by value » Growth in revenues to come from 1% » 17 syndicates contributing to revenue in FY09 21% WA » 19 syndicates contributing to revenue in FY10 35% Vic » In
Slide 26: Peet Alkimos – fund update
Peet Alkimos – fund update For personal use only » Peet’s largest managed fund » Comprises approximately 3,300 dwellings » Est. end value of $1bn (today’s $) over 11 yrs » Peet equity interest approx. $20m / 13% » Institutional partners » Planning and approvals progressing on track » State Gov’t app
Slide 27: Development
For personal use only Development Peet Limited | Enriching lives since 1895
Slide 28: Development key highlights
Development key highlights For personal use only » Revenue of $49m, an increase of 76% pcp » Operating EBITDA (pre write downs) of $9m, a decrease of 2% pcp » EBITDA margin has moderated » Balancing capital replenishment and earnings » Reflects Company’s decision to temporarily defer some developmen
Slide 29: Development operating performance
Development operating performance For personal use only Key performance statistics 1H09 revenue composition by geography $m 1H09 1H08 Var (%) Revenue 48.8 27.8 76% 19% 21% Operating expenses 39.6 18.4 115% WA Vic Qld & NSW EBITDA1 9.2 9.4 (2)% Net EBITDA margin1 19% 34% (44)% 60% Key operating stati
Slide 30: Development pipeline
Development pipeline For personal use only » 17,000 lots owned; estimated on-completion value of $2.8 billion1 » A total of 47 Company owned projects – 31 located across east coast » Number of owned projects have historically low cost base No. Lots2,3 2009 2010 2011 2012 2013 Castlereagh 512 Craigie
Slide 31: Composition of development pipeline
Composition of development pipeline For personal use only » Targeted towards first and second home Geographic composition of land bank by value buyer market » Land bank located in right markets 23% 34% WA » WA, Vic and Qld Vic » Owned development pipeline has been Qld & NSW strategically repositione
Slide 32: Disclaimer
Disclaimer For personal use only 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. Subject to any terms implied by law and which
Slide 33: Asset Manager Land Syndicator Fund Manager
For personal use only Asset Manager Land Syndicator Fund Manager Peet Limited | Enriching lives since 1895 33