Slide 1: 1H11 Results Presentation
For personal use only 1H11 Results Presentation FEBRUARY 2011
Slide 2: Group business model
Group business model PEET LIMITED For personal use only Development Funds Management / JVs » 35 properties » 35 properties » 29 funds/syndicates » $2.8bn pipeline end value » $4.1bn pipeline » 2 joint ventures » 15,792 lots end value » $0.1bn capital employed » $0.6bn capital employed » 21,307 lots
Slide 3: Key messages
Key messages For personal use only » Solid operating performance achieved » Increased contribution from higher margin company owned projects » Improved EBIT across both funds management and development divisions » Continuing to benefit from well located projects in key growth corridors » Balance she
Slide 4: Operational highlights
Operational highlights For personal use only » Business performance » Group EBIT of $41m, up 7% over previous corresponding period » Weighted average sales prices of lots sold increased by 7% » Including a 14.5% increase in the average price of Company‐owned lots » Value of contracts on hand increas
Slide 5: Group key financial highlights
Group key financial highlights For personal use only » Group revenue of $98.7m $m 1H11 1H10 Var (%) Revenue 98.7 98.4 0% » Operating EBITDA of $41.3m – an increase of 7% EBITDA 41.3 38.5 7% compared with 1H10 Net EBITDA margin 42% 39% 3% » Operating NPAT of $22.2m – an increase of 2% Operating NPAT
Slide 6: Group operating performance
Group operating performance Key operating statistics 1H11 EBITDA composition by business type For personal use only 1H11 1H10 Var (%) 1H10 Lot sales 1,179 1,407 (16)% 36% 37% Lot settlements 1,125 1,292 (13)% 52% No. of contracts on hand 5% 1 248 1,248 1 172 1,172 6% 4% 54% as at 31 Dec 7% 5% Value
Slide 7: Division performance
For personal use only Division performance
Slide 8: FM operating performance
FM operating performance For personal use only Key performance statistics HY11 FM revenue composition by type $m 1H11 1H10 Var (%) 8% 1H10 Revenue 22.1 18.7 18% Operating expenses (7.0) (4.5) (56)% 24% 8% EBITDA 15.1 14.2 6% 30% Net EBITDA margin 68% 76% (8)% 68% 62% Key operating statistics Project
Slide 9: JV operating performance
JV operating performance Key performance statistics For personal use only $m 1H11 1H10 Var (%) » Lot sales from joint venture projects were lower primarily due to delays in Revenue 8.5 9.4 (10)% development approvals for Quattro Operating expenses (5.8) (7.4) 22% joint venture EBITDA 2.7 2.0 35% » S
Slide 10: Composition of FM and JV managed pipeline
Composition of FM and JV managed pipeline For personal use only » Funds management business is well positioned Geographic composition of land bank by value » Growth in revenue to come from: » Launch of up to 5 syndicates and joint 9% venture projects during 2H11 » Increased p profit shares on more r
Slide 11: Development operating performance
Development operating performance Key performance statistics 1H11 revenue composition by geography For personal use only $m 1H11 1H10 Var (%) R Revenue 66 1 66.1 68 8 68.8 (4)% 11% 1H10 Operating expenses1 (44.5) (48.0) 7% 12% 33% 7% EBITDA 21.6 20.8 4% Net EBITDA margin 33% 30% 3% 77% 60% Key opera
Slide 12: Composition of development pipeline
Composition of development pipeline For personal use only Geographic composition of » Targeted towards affordable home‐ buyer market Company‐owned land bank by value » Land bank located in strong markets » Strong presence in Vic and WA 21% » Pipeline has been strategically repositioned towards easte
Slide 13: Settlements and contracts on hand
Settlements and contracts on hand For personal use only Contracts on hand » Value of contracts on hand up by 7% 1 500 1,500 $3111 $350 compared to 30 June 10 1,270 $2921 1,248 $300 » Value of contracts on $250 1,000 hand represent $200 approximately 50% of Value ($m) Lots $150 target revenue for 2H1
Slide 14: Pipeline and land bank
For personal use only Pipeline and land bank
Slide 15: Pipeline mix
Pipeline mix For personal use only » In excess of 37,0001 lots under management with end value of $6.9 billion2 » Pipeline weighted towards strongest markets (Vic and WA) » Focus remains on the affordable market segment » Strong diversification with 70 Company‐owned, syndicated and managed projects
Slide 16: Project Pipeline - Western Australia
Project Pipeline ‐ Western Australia For personal use only New projects launching in 2H11 Yanchep h (1,492 ( l ) lots) Avon Ridge, Brigadoon (214 lots) 16
Slide 17: Project Pipeline - Victoria
Project Pipeline ‐ Victoria For personal use only New projects launching in 2H11 Craigieburn b ( (1,949 l ) lots) Cranbourne Central (926 lots) Quarters, Cranbourne (914 lots) Melton (592 lots) 17
Slide 18: Project Pipeline - Queensland
Project Pipeline ‐ Queensland For personal use only Queensland New projects launching in 2H11 Riverbank,, Caboolture ((1,269 , lots)) 18
Slide 19: Capital management
For personal use only Capital management
Slide 20: Capital management
Capital management » Executed new syndicated facility with term of 3 years and maturity date of October 2013 For personal use only » New bank joined syndicate » Gearing reduced d d to 28.7% » DRP for 1H11 dividend – 4.0 cents per share fully franked 31 Dec 10 31 Dec 09 Weighted average debt maturity
Slide 21: Cash flow analysis
Cash flow analysis For personal use only » Solid operating cash flow influenced by a continued (60.2) focus on » Working capital – (9.2) g tighter inventoryy 113.3 management (8.1) resulting in release of (16.5) capital 35.8 » Increase in average 19.3 sales prices Revenue Operating and Interest and
Slide 22: Market overview
For personal use only Market overview
Slide 23: Geographic positioning - residential
Geographic positioning ‐ residential Victorian market strong, Western Australian market stabilising For personal use only Victoria Western Australia Pipeline by geography (lots)1 » Market stabilising, however » Continues to perform well with strong sales momentum sentiment remains cautious; expected
Slide 24: FHB still active, upgrader and investor activity improving
FHB still active, upgrader and investor activity improving For personal use only First Home Buyer (FHB) » FHB market segment has trended back to longer term average of 20% ‐ 25% of total market » FHBFHB’ss impacted by affordability constraints – product innovation a key focus » Victoria remains stro
Slide 25: Peet strategy and outlook
For personal use only Peet strategy and outlook
Slide 26: Strategy
Strategy For personal use only Peet will continue to actively manage its project pipeline to maximise shareholder returns » Peet’s strategic priorities remain » Focused businesses of residential land development and funds management » Improve market share in existing and new growth corridors » Conti
Slide 27: Outlook
Outlook Positive outlook based on program of new project launches in 2H11, in conjunction For personal use only with existing solid project and funds management platform » Contracts on hand » Value of contracts on hand1 represent approximately 50% of target revenue for 2H11 » Contract value up 7% wi
Slide 28: For personal use only
For personal use only
Slide 29: 1H11 annexures
For personal use only 1H11 annexures
Slide 30: Summary income statement
Summary income statement For personal use only $m 1H11 1H10 Var (%) Funds management 22.1 18.7 18% Development 66.1 68.8 (4)% Other1 10.5 10.9 (4)% Revenue 98.7 98.4 0% EBITDA 41.3 38.5 7% Finance costs2 (8.5) (5.9) (44)% Depreciation and amortisation (0.8) (0.6) (33)% NPBT 32 0 32.0 32 0 32.0 0% In
Slide 31: Summary balance sheet
Summary balance sheet $m 31 Dec 10 31 Dec 09 For personal use only Assets Cash 28.3 42.8 Receivables 61.4 53.0 Inventories 421.9 409.3 Investments accounted for using the equity method 32.1 32.1 Other 13.2 24.4 Asset classified as held for sale 103.6 ‐ Total assets 660.5 561.6 Liabilities Trade and
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 whic