Peet Limited · ASX:PPC
Peet — Goldman Sachs Emerging Companies Conference 2012
20 slides from Peet's conference presentation, May 16, 2012
Slide 1: Goldman Sachs Emerging Companies Conference May 2012
For personal use only Goldman Sachs Emerging Companies Conference May 2012 Success through experience
Slide 2: Key messages
Key messages » Expect FY12 operating profit to be at upper end of guidance of $15‐20 For personal use only million » Contracts on hand of 1,028 lots for $267M as at 30 April 2012 » FY12 settlement risks largely mitigated » Since the release of Peet’s 1H12 results, trading conditions continue to prov
Slide 3: Key messages (continued)
Key messages (continued) For personal use only » Countercyclical repositioning of land bank to longer term growth states of WA and QLD » Growth in land bank driven through Funds Management1, now representing approximately 70% of land bank by GDV and lots » Continued growth of wholesale platform » Si
Slide 4: Land bank by geography (%)
Land bank by geography (%) For personal use only » Countercyclical repositioning of land bank to longer term growth states of 40 17 WA andd QLD 37 » Significant re‐weighting to improving 16 34 21 markets over the past three years 14 37 49 50 42 2009 2010 43 2011 2013 (Forecast) WA Vic QLD 4
Slide 5: Group Business model
Group Business model Target EBIT Target EBIT Land Bank Diversification Land Bank Capital Sources of For personal use only Composition Margin by Geography (%) Employed1 Revenue 22 22 21 44 47 43 Lots: 14,370 40% – 50% EBIT Development 25% ‐35% GDV ($bn): 2.7 $503m » Development profit 32 # Projects:
Slide 6: Significant expansion of funds management business
Significant expansion of funds management business » Recurrent earnings base For personal use only Historical Funds Management EBITDA $m » Delivered on strategy identified three 40 years ago of growing a wholesale funds platform 30 » Have partnered with significant 20 wholesale investors who are inv
Slide 7: Residential market overview
Residential market overview Peet has product with geographic balance and positioned at price points to achieve volume from For personal use only improving markets » The affordable to mid‐market segment is maintaining price stability, whilst the higher end of the market has seen a decline » Rents are
Slide 8: Land bank – key projects
Land bank – key projects Lots1 remaining Project name Location GDV FY12 FY13 FY14 FY15 FY16 (at 31 Dec 11) For personal use only Owned projects Greenvale VIC $402m 1,943 Craigieburn VIC $313m 1,645 Gl d Gladstone Q QLD $ 0 $101m 433 33 Chase WA $87m 506 Brigadoon WA $120m 214 Other $1,721m 9,629 Tot
Slide 9: Key projects underpinning outlook for FY13 and beyond
Key projects underpinning outlook for FY13 and beyond Greenvale Lakes Aston Craigieburn For personal use only Lots remaining: 3,588 GDV: $715m » Located in the strongg Hume growth g » Range g of pproduct types yp and price p points p corridor having broad market appeal » Historical acquisitions – lo
Slide 10: Views from Greenvale Lakes
For personal use only Views from Greenvale Lakes
Slide 11: Key projects underpinning outlook for FY13 and beyond
Key projects underpinning outlook for FY13 and beyond Lots remaining: 13,270 GDV: $1,924m $ For personal use only » Fast‐tracked planning under ULDA » Opportunity to drive long‐term value from a large, integrated master‐planned community » Government assistance with start‐up infrastructure funding »
Slide 12: Key projects underpinning outlook for FY13 and beyond – Funds Management
Key projects underpinning outlook for FY13 and beyond Funds Management For personal use only Shorehaven at Alkimos, WA Yanchep Golf Estate, WA Riverbank Caboolture, QLD Lots remaining: 2,924 GDV: $786m Lots remaining: 1,477 GDV: $345m Lots remaining: 1,320 GDV: $189m » Located in the City of Wannero
Slide 13: Australia has a large and growing shortage of housing
Australia has a large and growing shortage of housing For personal use only ‘Underlying’ demand for and Housing shortage supply of housing 220 '000s 350 '000s 210 'Underlying' demand 200 (change in number 300 of households) Cumulative shortfall between 190 'underlying' demand and 180 250 supply sinc
Slide 14: Excess mortgage repayments
Excess mortgage repayments » Households are saving more by choosing to pay down debt faster than required For personal use only » Borrowers continue to make substantial excess principal repayments » Average excess repayment is currently equivalent to around three‐quarters of the selected total repay
Slide 15: Housing shortage to push rents higher
Housing shortage to push rents higher For personal use only CPI: Rents vs Total Index 1972 = 100 Source: ABS, ANZ 15
Slide 16: Current downturn not structural – undersupply growing
Current downturn not structural – undersupply growing For personal use only Rebound in net overseas migration will Population growth vs. dwelling underpin p housing g demand completions p 500 225 Annual population 450 gain (lhs) 200 400 350 175 300 150 250 200 Annual dwelling 125 completions (rhs) 1
Slide 17: Affordability continues to improve
Affordability continues to improve Mortgage repayments as % of For personal use only » Incomes growing faster than housing prices household income » Resource states most affordable » Renters are tired of renting – they want to own their own home » Costt diff C differential ti l b between t renting t
Slide 18: Outlook
Outlook CY12 to remain challenging with signs that the residential market is approaching the For personal use only bottom of the cycle » Improved cash flow expected over next 18 months which will significantly reduce gearing » Recommencing key projects which will increase revenue, significant capex
Slide 19: Success through experience
For personal use only Success through experience
Slide 20: 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
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