Slide 1: Peet Limited 2008 Half Year Results Briefing
For personal use only PEET LIMITED 2008 Half Year Results Briefing March, 2008
Slide 2: Contents
Contents For personal use only » Key Achievements » Group Results » Land Bank and Market Position » Funds Management, Retirement and Built Form » Market Conditions and Outlook Enriching lives since 1895 | www.peet.com.au 2
Slide 3: Key Highlights
Key Highlights For personal use only Half year earnings in line with expectations at $15.3 million; underlying operating businesses are in good shape » Half year net profit after tax of $15.3 million (1H07: $19.4 million) » Interim dividend of 9.0 cents per share fully franked to be paid 18 April 20
Slide 4: Group Financial Performance
For personal use only Group Financial Performance growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 5: Group Results
Group Results For personal use only Peet has a solid track record, driven by a strong transparent business model and a quality land bank » FY08 results are expected to be heavily weighted in the 2H08 due to the large number of lots under contract 1H08 1H07 Revenue $57.8M $61.4M Net profit after tax
Slide 6: EBIT Composition by Business Type
EBIT Composition by Business Type For personal use only High quality earnings stream » Vic and Qld contributed 61% of 1H08 EBIT » Qld contribution continues to grow » Owned project margin slightly down due to bringing on new stages in Vic to meet strong demand » Business segment margins to improve i
Slide 7: Capital Management
Capital Management For personal use only Peet is well positioned with all debt secured by a portfolio of high quality property assets and strong operating cash flows » Cash at bank position has increased from $21.6m to around $60m since 31 Dec » Senior debt facilities – 3 year evergreen » Gearing hi
Slide 8: Land Bank and Market Position
For personal use only Land Bank and Market Position growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 9: Strategic Growth Model
Strategic Growth Model For personal use only Peet’s strategic objective is to deliver EPS growth and TSR out-performance » Funds and asset management underpinned by Australia’s third largest land bank (ASX) and an established company-owned distribution network » Business model allows use of syndicat
Slide 10: Land Bank and Market Position
Land Bank and Market Position For personal use only Significant land bank with an on-completion value of approximately $7.6 billion1 » Australia’s third largest land bank amongst ASX listed entities » Existing controlled lots stand at approximately 38,000 with a further pipeline of 575 lots under co
Slide 11: Land Bank
Land Bank For personal use only » Peet has established a quality national land bank that provides a diversified production profile » 73 projects » 38,000 lots managed or QLD owned 13 Projects » Large and growing exposure to 6,000 Lots WA 16% improving east coast property 29 Projects 17,320 Lots mark
Slide 12: Diversified Pipeline
Diversified Pipeline For personal use only Development pipeline continues to facilitate future growth – 17 new projects commencing development in next 18 months $7.6b Development Pipeline » 13 new east coast projects coming into production » Increased pipeline in key markets – $2.1b around 5,450 lot
Slide 13: Syndicated and JV Project Pipeline
Syndicated and JV Project Pipeline For personal use only Some 20,600 lots under management, with an estimated on-completion value of $4.8 billion1 » Increased profitability projected over longer term as increased profit shares are realised on more recent syndicates 2 No. of Lots 2008 2009 2010 2011
Slide 14: Owned Project Pipeline
Owned Project Pipeline For personal use only Some 17,400 lots owned with a combined estimated on-completion value of $2.2 billion1 » Owned projects contributing to profits projected to increase from 11 in FY08 to 14 in FY09 » Number of owned projects have historically low cost base No. of Lots2 2008
Slide 15: Estates – Western Australia
Estates – Western Australia For personal use only Enriching lives since 1895 | www.peet.com.au 15
Slide 16: Estates - Victoria
Estates - Victoria For personal use only Enriching lives since 1895 | www.peet.com.au 16
Slide 17: Estates - Queensland
Estates - Queensland For personal use only Enriching lives since 1895 | www.peet.com.au 17
Slide 18: Alkimos Project
For personal use only Alkimos Project growth and diversity Enriching lives since 1895 | www.peet.com.au 18
Slide 19: Project Overview
Project Overview For personal use only Key strategic objective achieved; institutional distribution capability established » Acquisition of coastal residential zoned project – 40km north of Perth CBD » Project duration of approximately 12 years » Estimated sales revenue of approximately $1.4billion
Slide 20: The Site
The Site For personal use only » Wide diversity of housing » R20 single housing – R80 multistorey » High densities – close to coast and train station precinct » Primary school » Serviced commercial » Retail » Transit orientated uses Enriching lives since 1895 | www.peet.com.au 20
Slide 21: Local Structure Plan - Overview
Local Structure Plan - Overview For personal use only » Land zoned residential » Total yield 2,852 lots » Opportunities to modify layout » LSP preparation and approval 1-2 years » Detailed design and construction 1st stages – 8 -12 months Enriching lives since 1895 | www.peet.com.au 21
Slide 22: Funds Management, Retirement and Built Form
For personal use only Funds Management, Retirement and Built Form growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 23: Syndicate Capital Raising and Distribution
Syndicate Capital Raising and Distribution For personal use only Direct retail distribution network of around 4,000 active investors; strong repeat investment in excess of 65% » Peet syndicates are special purpose companies established to acquire specific assets » 25th retail syndicate launched – Pe
Slide 24: Retirement - Senior Living
Retirement - Senior Living For personal use only » Demographics point to major growth opportunity » Priority is organic growth – adding value to Peet land estates » Solid pipeline of developments already identified » Focus on strata-title resort-style villages » Initial projects – Lakelands, Warner
Slide 25: Commercial and Residential Built Form
Commercial and Residential Built Form For personal use only More than 100 residential built form and commercial projects identified in land bank; potential syndication and income fund feedstock » Peet Living delivers value-added living solutions to desirable suburbs and locations, offering boutique
Slide 26: Market Conditions and Outlook
For personal use only Market Conditions and Outlook growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 27: Market Overview
Market Overview For personal use only Low Unemployment is Supporting Strong Immigration Residential demand underpinned by: 14.0 Growth 160,000 12.0 140,000 » Population growth 120,000 Unemployment rate (%) 10.0 » Employment growth Immigration p.a. 100,000 8.0 » Historically low vacancy rates 80,000
Slide 28: Market Outlook - Residential
Market Outlook - Residential For personal use only Peet is well placed to take advantage of improving market conditions in the east coast market Last 6 Months Next 12 Months Strong market fundamentals as VIC Strengthening demand. demand outstrips supply. ▲ Fundamentals still strong. ◀▶ Outer suburba
Slide 29: Market Environment - WA
Market Environment - WA For personal use only » The residential market in Western Australia is some 18 months into a correction phase following the market peak in late 2006. » Evidence from the preceding four market cycles in WA would suggest that a recovery in real estate Perth Median Rent and Vaca
Slide 30: Strong Population Growth has Driven Housing Demand
Strong Population Growth has Driven Housing Demand For personal use only Underlying housing demand running at approximately 3,365 dwellings per week » Dwelling commencements trailing underlying demand Underlying Demand Dwellings Dwelling Stock Deficiency ('000's) Average Commencement As at June Stat
Slide 31: 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 resulting in rents rising 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 v
Slide 32: Peet's Growth Strategy
Peet’s Growth Strategy For personal use only Solid and transparent platform for growth from existing businesses » Continuing to focus on our core business to deliver sustainable growth in earnings » Growing our existing funds management platform and capital partnering relationships; » Continuing to
Slide 33: Outlook
Outlook For personal use only East Coast strength to drive future Peet growth » Operating businesses performing well » Strategic initiatives on track » Strong balance sheet and operating cash flows » Continue to manage business in a low risk manner » Dividend payout ratio projected at CIRCA 90%, div
Slide 34: About Peet
About Peet For personal use only More than a 112 year track record of Asset and Funds Management Enriching lives since 1895 | www.peet.com.au 34
Slide 35: 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 36: Asset Manager Land Syndicator Fund Manager
For personal use only Asset Manager Land Syndicator Fund Manager growth and diversity Enriching lives since 1895 | www.peet.com.au 36