Slide 1: Peet Limited 2007 Full Year Results
For personal use only PEET LIMITED 2007 Full Year Results August 2007 Contents » Group Performance Highlights 2 » Group Financial Performance 5 » Strategic Growth Model and Initiatives 13 » Landbank 16 » Funds Management 22 » Retirement, Commercial and Residential 25 » Market Conditions and Outlook
Slide 2: Group Performance Highlights
Group Performance Highlights For personal use only Peet achieved earnings growth of 23.6% for FY07; full year dividend up 14.7% to 19.5 cents per share fully franked » Full year net profit after tax of $45.5 million (FY06: $36.8 million) » Final dividend of 10.5 cents per share fully franked – up 11
Slide 3: Group Financial Highlights
Group Financial Performance For personal use only Enriching lives since 1895 | www.peet.com.au Group Financial Highlights Peet’s performance has been solid, driven by a strong business model and a quality landbank FY07 FY06 Revenue $129.1M 13.6 % ▲ $113.6M Net profit after tax $45.5M 23.6 % ▲ $36.8M
Slide 4: EBIT Composition
EBIT Composition For personal use only High quality earnings stream, weighted to funds management » Vic and Qld contributed 54% of FY07 EBIT » Overall improvement in operating margins » Three syndicate capital raisings completed totalling $57M » Growing contribution from retirement and residential b
Slide 5: Financial Performance
Financial Performance For personal use only Peet has recorded and continues to target solid earnings growth » Four years historical NPAT of 23.9% (CAGR) » Overall improvement in EBIT margin to 51.6% » Up to eight new owned and syndicated projects commencing development during FY08 Historical Revenue
Slide 6: Strong Shareholder Returns
Strong Shareholder Returns For personal use only Peet has delivered solid fully franked dividend yield and growth which has driven strong TSR performance since listing Earnings per share Dividends 30 27.9 22 10.4% 4 year CAGR 18.2% 4 year CAGR 21.4 28 20 26 24.3 18.4 24 8.4 18 22 16 14.4 14.8 20 19.
Slide 7: Strategic Growth Model
Strategic Growth Model and Initiatives For personal use only Enriching lives since 1895 | www.peet.com.au Strategic Growth Model Peet’s strategic objective is to deliver EPS growth and TSR out-performance » Funds and asset management underpinned by Australia’s third largest landbank (ASX) and an est
Slide 8: Key Drivers to Growth
Key Drivers to Growth For personal use only Peet has an established and scalable business model and future earnings growth will be driven by leveraging existing platform » Continue to bring new projects to market (approx. 38,000* lot potential pipeline) » Increase scale of funds management business
Slide 9: Landbank and Market Position
Landbank and Market Position For personal use only Significant landbank with an on-completion value of approximately $6.13 billion1 » Australia’s third largest landbank amongst ASX listed entities » Existing controlled lots stand at approximately 33,800 with a further pipeline of 4,200 lots under co
Slide 10: Landbank
Landbank For personal use only » Peet has established a quality national landbank that provides a diversified production profile » Strong exposure to improving east coast property market QLD 9 Projects » Estimated on-completion value 4,370 Lots approx. $6.13 billion WA 13% 30 Projects 14,256 Lots 42
Slide 11: Owned Project Pipeline
Owned Project Pipeline For personal use only Over 17,404 lots owned with a combined estimated completion value of $2.68 billion » Owned projects contributing to profits projected to increase from seven in FY07 to 14 in FY08 » Number of owned projects have historically low cost base No. of On-complet
Slide 12: Syndicate Capital Raising and Distribution
Syndicate Capital Raising and Distribution For personal use only Distribution network of 4,000 active investors; strong repeat investment in excess of 65% » A further 6,000 prospective investors who receive information » $57M raised from three land syndications in FY07 – Botanic, Mundijong and Beach
Slide 13: Retirement - Senior Living
Retirement, Commercial and Residential For personal use only Enriching lives since 1895 | www.peet.com.au Retirement - Senior Living » Demographics point to major growth opportunity » Priority is organic growth – adding value to Peet land estates » Solid pipeline of developments already identified »
Slide 14: Retirement - Senior Living (continued)
Retirement - Senior Living (continued) For personal use only Lattitude Lakelands » Within Lakelands Estate, Mandurah » 194 unit retirement village » Construction underway » Stage 1 (31 units) 60% sold » First completions May/June 2008 » 3 year project » Project value $70 million 27 Commercial and Re
Slide 15: Carramar and Grand 56
Carramar For personal use only Syndicate Project Carramar Neighbourhood Centre, Carramar, WA Project Type Shopping No. of retail units 16 Current Status Development approval received and construction commences in October 2007. Process managed by Peet Limited. Expected October 2008 Completion Date De
Slide 16: The Village at Wellard
The Village at Wellard For personal use only Owned Project The Village at Wellard, WA Project Type 2 Phase Project - Apartments and Tow nhouses No. of residential 60 Apartment s and Tow nhouses Units Current Status Construction commencing April 2008 Expected September 2009 Completion Date Descriptio
Slide 17: Fusion Ashton Heights
Fusion Ashton Heights For personal use only Owned Project Fusion Ashton Heights, WA Project Type Gat ed Villa Development No. of residential 27 villas Units Current Status Sales complet e by November 2007 Expected December 2008 Completion Date Description Fusion is Peet ' s innovat ive resort living
Slide 18: Market Overview
Market Overview For personal use only Positive Outlook » Unemployment rate at an all time low » Residential rents growing strongly » Strong population growth » Planning restrictions affecting availability » Historically low interest rate environment of new supply » Residential vacancies near all tim
Slide 19: Housing Commencements
Housing Commencements For personal use only Equivalent to underlying demand running at 3,175 dwellings per week Underlying demand (dwellings) Dwelling Annual average Commencements 1996/97-2000/01 2001/02-2005/06 2006/07-2010/11 2006/07 WA 17,500 19,000 21,300 25,158 Vic 33,700 37,700 38,600 38,430 Q
Slide 20: Housing Demand has Driven Strong Population Growth
Housing Demand has Driven Strong Population Growth For personal use only » Population growth in the three key States of Vic, WA and Qld has been strong. » After some years of below Australian average population growth, Victoria has rebounded with solid population growth. 2.5% 2.0% Population Growth
Slide 21: Population, ageing, migration
Population, ageing, migration For personal use only Source of Population: Inter-state migration » WA population continues to grow Queensland (Dec Qtr) Queensland (Dec Qtr) Interstate : 8,273 Interstate : 8,273 International : 6,301 International : 6,301 Natural Increase: 7,034 Natural Increase: 7,03
Slide 22: Record Low Vacancy Rates
Record Low Vacancy Rates For personal use only All key states experiencing record low vacancy rates » A tightening rental market is expected to see rents rise which may also drive prices further. % 9 8 MELB BRIS 7 PERTH AUS Qtr’ly Vacancy Rate AVG (AUS) Tightening rental market 6 5 4 3 2 Record low
Slide 23: Australian Land Supply
Australian Land Supply For personal use only » There is currently a land supply deficiency - driving up land prices and distorting demand for land » Land supply is now a national issue due to: » Mobility of labour markets » High levels of interstate migration » Growth in household wealth generating
Slide 24: Peet's Growth Strategy and Outlook
Peet’s Growth Strategy For personal use only Clear platform for growth from existing businesses » Continue to optimise our core business » Continue to unlock further development opportunities within our existing landbank — retirement, retail, commercial and industrial developments » Increase scale o
Slide 25: About Peet: Appendix: Existing Projects
About Peet For personal use only 49 Appendix: Existing Projects 25
Slide 26: Lakelands Private Estate
Lakelands Private Estate For personal use only Syndicated Project Location Mandurah, 60km South of CBD Awards Projected Gross Revenue $419 million » Urban Development Institute of Australia Award ‘2005 Environmental’ Total Area 281.9 ha Purchase Date 1994 » Western Australian Environment Award 2005
Slide 27: Burns Beach
Burns Beach For personal use only Syndicated Project Location 28km North of CBD Projected Gross Revenue $963 million Total Area 290.0 ha Purchase Date 1969 Commencement Completion Estimated Timing 2005 2013 Sold Remaining Total Number of Lots 353 1,114 1,467 53 Carramar Golf Course Estate Syndicated
Slide 28: The Ridge
The Ridge For personal use only Syndicated Project Location 42km south of CBD Projected Gross Revenue $53 million Total Area 39.0 ha Purchase Date 1994 Commencement Completion Estimated Timing 2004 2007 Sold Remaining Total Number of Lots 334 36 370 55 Ashton Heights Owned Project Location 28km Nort
Slide 29: Greenvale
Greenvale For personal use only Owned Project Location 20km North of CBD Projected Gross Revenue $500 million Total Area 357.0 ha Purchase Date 2003 Commencement Completion Estimated Timing 2004 2021 Sold Remaining Total Number of Lots 229 2,098 2,327 57 Innisfail Owned Project Location 22km West of
Slide 30: Brimbank Gardens
Brimbank Gardens For personal use only Syndicated Project Location 18km West of CBD Projected Gross Revenue $259 million Total Area 203.0 ha Purchase Date 2001 Commencement Completion Estimated Timing 2002 2015 Sold Remaining Total Number of Lots 1068 1001 2069 59 Tarneit Gardens Tarneit Gardens Syn
Slide 31: Cardinia Lakes
Cardinia Lakes For personal use only Syndicated Project Location 55km South East of CBD Projected Gross Revenue $115 million Total Area 90 ha Purchase Date 2003 Commencement Completion Estimated Timing 2005 2013 Sold Remaining Total Number of Lots 171 593 764 61 Warner Lakes Syndicated Project Locat
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