Peet Limited · ASX:PPC
Peet — Shareholder Meeting (November 2010)
38 slides from Peet's shareholder meeting presentation, Nov 16, 2010
Slide 1: Chairman's address to 2010 Annual General Meeting
Perth www.peet.com.au asx release Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au For personal use only 16 November 2010 Chairman’s address to 2010 Peet Limited Annual General Meeting Introduction Ladies and gentlemen. Thank y
Slide 2: Chairman's address (continued): dividend and project highlights
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au Our after tax earnings per share grew to 14.1 cents per share and the Directors are very pleased to have declared a final fully franked dividend for the yea
Slide 3: Peet Yanchep Land Syndicate and the year ahead
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au New Peet Land Syndicate for investors: Peet Yanchep Land Syndicate For personal use only I hope you have all had the opportunity to familiarise yourselves w
Slide 4: Thank you to shareholders and Peet team
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au In short, we are looking forward to another busy and very positive year ahead. Thank you - Shareholders and Peet team For personal use only Before I conclud
Slide 5: The Board
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au The Board For personal use only Similarly, I commend the work of my Board colleagues. The business and our shareholders benefit from strong and strategic di
Slide 6: Peet Limited Annual General Meeting November 2010
For personal use only PEET LIMITED Annual General Meeting NOVEMBER 2010
Slide 7: Key messages
Key messages For personal use only » Strong earnings growth achieved over FY10 » Improved EBIT margins across both funds management and development divisions » Solid balance sheet – reduced gearing to lower end of target range » Disciplined assessment of growth opportunities » 2H10 dividend of 4.5¢
Slide 8: FY10 operational highlights
FY10 operational highlights For personal use only Peet achieved operating earnings growth of 35% for FY10; full year dividend of 8.5 cents per share fully franked » Fullll year operating i net profit fi after f tax off $ $42.1 2 million illi ((FY09: 09 $3 $31.2 2 million) illi ) » Lot sales of 2,567
Slide 9: FY10 operational highlights - continued
FY10 operational highlights ‐ continued For personal use only » Performance driven by » Solid underlying drivers in the residential housing market » Peet’s exposure to particularly strong markets for affordable housing in Victoria and WA » Improved operating margins across divisions – Group EBITDA o
Slide 10: Group operating performance
Group operating performance For personal use only » Funds Management earnings continue to grow » Operating earnings weighted towards Victorian market – 5 new Victorian projects to commence development in FY11 and FY12 » WA and Qld expected to increase earnings contribution from FY13 as more projects
Slide 11: Funds management
Funds management For personal use only » Funds management platform continues to perform strongly » 29 syndicate projects under management GDV of $4.0bn » Long project / syndicate duration » Alkimos contributing to profits from FY11 ‐ $1.1bn project GDV » High return on equity to Peet » $ $22m raised
Slide 12: Settlements and contracts on hand
Settlements and contracts on hand For personal use only Contracts on hand increased by 8% since year‐end; contract value up 16% to $340m » Significant increase in number Contracts on hand and value of contracts on hand at year end 1,369 1,500 1,270 $400 $340m » 49% iincrease in i value l off $292m $
Slide 13: Pipeline and land bank
For personal use only Pipeline and land bank
Slide 14: Pipeline mix
Pipeline mix For personal use only » In excess of 34,200 lots under management with end value of $7.5 billion1 » 13 years supply based on current production rates » Pipeline weighted towards strongest markets (Vic and WA) » Focus remains on the affordable market segment » Strong diversification with
Slide 15: Western Australia
Western Australia For personal use only New projects commencing development next two years » YYanchep h » Avon Ridge » The Chase » Big Grove 10
Slide 16: Shorehaven at Alkimos - syndicated
Shorehaven at Alkimos ‐ syndicated For personal use only » Peet’s largest managed fund » Will comprise approximately 3,300 3 300 dwellings » Est. end land sales of $1.1bn (today’ss $) over 11 yrs (today » Over 240 sales achieved to date » Record p price achieved for 2010 Telethon home » To provide l
Slide 17: Yanchep - syndicated
Yanchep ‐ syndicated For personal use only » Peet’s newest syndicate » Will comprise approximately 1 500 dwellings 1,500 d lli » Est. end land sales of $0.5bn (today’s $) over 12 yrs » Development to commence mid 2011 with sales expected from December 2011 » The Property is already zoned for residen
Slide 18: Avon Ridge - owned
Avon Ridge ‐ owned For personal use only » Located 30kms from the Perth CBD at the top of the Swan Valley overlooking “Bells Rapids” p with view to the cityy skyline » Will comprise approximately 215 rural residential lots » Est. end land sales of $130m (today's $) over 5 years » Stage 1 pre‐sales h
Slide 19: Victoria
Victoria For personal use only New projects commencing development next two years » Greenvale G l Rise Ri » Craigieburn » Cranbourne Central » Cranbourne West (Quarters) » Melton 14
Slide 20: Greenvale - owned
Greenvale ‐ owned For personal use only » Significant master planned community in major growth corridor ‐ 25kms north of Melbourne CBD » Greenvale projects will comprise approximately 2,600 residential dwellings » Est. end land sales of $ $0.7bn over 12 years » Includes neighbourhood shopping centre
Slide 21: Craigieburn - owned
Craigieburn ‐ owned For personal use only » Significant master planned community in major growth corridor 28km’s 28km s north west from Melbourne CBD » Will comprise approximately 1,700 residential dwellings » Est. end land sales of $0.4bn over 9 years » Proposed state school and shopping centre » P
Slide 22: Cranbourne Central - syndicated
Cranbourne Central ‐ syndicated For personal use only » Large master planned community in the major South Eastern growth corridor » 45km from Melbourne CBD » Will comprise approximately 825 residential dwellings » Est. end land sales of $0.2bn over 5 years » Development to commence mid 2011 » Close
Slide 23: Queensland
Queensland For personal use only Queensland New projects commencing next 2 years » Riverbank,, Caboolture » Vantage, Gladstone 18
Slide 24: Caboolture - Joint Venture
Caboolture – Joint Venture For personal use only » Located on the Caboolture River approx 1km from the Caboolture town centre, close to retail and commercial and access to rail and bus public transport » Joint venture project » Will comprise approximately 1,300 dwellings » Est. end land sales of $0
Slide 25: Vantage - Gladstone
Vantage ‐ Gladstone For personal use only » Will comprise approximately 560 residential dwellings » Est. end land sales of $120m over 4 years » Sales underway with strong demand » Strong exposure to Queensland resource hub 20
Slide 26: Embedded value within existing land bank
Embedded value within existing land bank For personal use only » Leveraging community infrastructure and amenity to improve underlying residential land values » Greater market appeal » Employment driver » Competitive advantage Land Uses Number of Current Indicative Yields Opportunities 6 Retaill / C
Slide 27: Wellard town centre
Wellard town centre For personal use only » Neighbourhood shopping centre » Masterplan approved » 2,500 sqm supermarket » 23 specialty shops comprising 3,220 sqm q » 426 high density residential living » 207 retirement village units » Planning well underway 22
Slide 28: Market overview
For personal use only Market overview
Slide 29: Demand side factor: Population growth
Demand side factor: Population growth National Housing Supply Council ‐ State of Supply Report 2010 For personal use only » Demand for housing is projected to grow further over the next 20 years » The “medium medium case” case projection of underlying demand is 3.2 3 2 million additional households
Slide 30: Geographic positioning - residential
Geographic positioning ‐ residential Strong market position especially in metropolitan growth corridors in Victoria and WA For personal use only Victoria Western Australia » Continues to perform well Pipeline by geography (lots)1 » Sentiment expected to with strong sales momentum improve following r
Slide 31: Residential - market outlook
Residential – market outlook Key drivers for residential remain positive – major undersupply Australian housing market balance For personal use only of housing & low unemployment 400 » Housing undersupply due to supply constraints and 350 population growth 300 Numbeer of dwellings ('000) » Construct
Slide 32: 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 » Victoria remains strong with state grant increased to $20k until June 2011 Upgraders » Volumes increasin
Slide 33: Peet strategy and outlook
For personal use only Peet strategy and outlook
Slide 34: Strategy
Strategy For personal use only Peet will continue to responsibly identify and explore growth opportunities in line with strategic objectives, building on a quality asset base » Peet’s strategic priorities remain » Continuing expansion of syndication platform nationally » Improve market share in exis
Slide 35: Outlook
Outlook Subject to the continuation of current market conditions, Peet remains optimistic on the outlook For personal use only given its pipeline mix, level of pre‐sales and underlying earnings provided through its funds management platform » Pipeline mix » Pipeline weighted towards strongest market
Slide 36: Outlook - continued: capital management
Outlook ‐ continued For personal use only » Capital management » Since year year‐end end net debt reduced to c.$170m with gearing down c. 28% » Advanced discussions to extend current debt term 31
Slide 37: For personal use only
For personal use only
Slide 38: 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