Peet Limited · ASX:PPC
Peet — Macquarie WA Forum 2016
25 slides from Peet's conference presentation, Oct 12, 2016
Slide 1: Macquarie WA Forum Presentation October 2016
For personal use only MACQUARIE WA FORUM PRESENTATION OCTOBER 2016
Slide 2: FY16 Results Overview
FY16 RESULTS OVERVIEW Continued strong momentum For personal use only » FY16 operating profit1 after tax of $42.6m, up 11% » EPS of 8.7 cents per share, up 5% FY14 Result » Underlying business performance − Revenue2 of $285m with 2,865 lots settled − EBITDA3 down 3% to $89.8m − EBITDA3 margin increa
Slide 3: Key Highlights for FY16
KEY HIGHLIGHTS FOR FY16 Focused strategy delivering strong results For personal use only » Diversified pipeline of over 48,000 lots with a low cost base and an on-completion value of GROWTH AND approximately $12 billion AND FY14 Result FY14 POSITIONING » Selective acquisitions of land holdings to re
Slide 4: Key Highlights for FY16 (Continued)
KEY HIGHLIGHTS FOR FY16 (CONTINUED) » Flagstone (QLD) project successfully launched in April 2016 GROWTH − Solid pre-sales achieved since launch, including a retail shopping centre site For personal use only AND − Strong sales enquiry building momentum into FY17 POSITIONING » New $25m Werribee (VIC)
Slide 5: Key Highlights for FY16 (Continued)
KEY HIGHLIGHTS FOR FY16 (CONTINUED) » Acquisition strategy continued to be selective with a focus on the eastern states STRATEGIC − Focus on securing low cost projects to ensure delivery of affordable product For personal use only PRIORITIES » Maintained geographic diversity FY14 Result FY14 » Conti
Slide 6: Financial overview
For personal use only Financial overview
Slide 7: Improving Financial Performance
IMPROVING FINANCIAL PERFORMANCE Growth in earnings driven by our focused strategy, market conditions and new projects For personal use only » Solid operating profit growth - 3 year CAGR1 of 32.5% » EBITDA2 in FY15 includes the 1,990 settlement of Quayside apartment project 1,990 » Ongoing EBITDA2 ma
Slide 8: Focus on Driving Shareholder Returns
FOCUS ON DRIVING SHAREHOLDER RETURNS » 3 year EPS CAGR1 of 17% For personal use only » FY16 DPS of 4.5cps, fully franked − Target payout ratio of 50% going forward maintained » Book NTA per share increased by 5% − Does not include value uplift on co-investment stakes in funds and JVs − Does not incl
Slide 9: Capital Management
CAPITAL MANAGEMENT Further improvement in capital position » ROCE1 of 13.2% For personal use only − Impacted in short-term 2,184 due to acquisition of Whole Green (VIC) project in 1H16 » Gearing2 of 28.8% − Impacted by 1H16 acquisition and due to delay of Whole Green settlements of $15m into early J
Slide 10: Funds Management
FUNDS MANAGEMENT FUNDS MANAGEMENT & JOINT VENTURE EBITDA1 ($m) FUNDS MANAGEMENT & JOINT VENTURE GDV2 ($bn) For personal use only 70 10 9 9.3 60 8.9 8.7 8 50 7 7.5 6 40 6.2 5 30 4 20 3 2 10 1 0 0 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Co-Investment Profits Funds Management/Joint Venture EB
Slide 11: Operating performance
For personal use only Operating performance
Slide 12: Group Operating Performance
GROUP OPERATING PERFORMANCE » Peet’s diversified portfolio of projects has allowed it to capitalise on the eastern states’ strength » Contribution from eastern states projects increased to 82% of EBITDA1 (FY15: 68%) For personal use only − Higher contribution driven by Victoria » WA market at or clo
Slide 13: Group Sales Activity
GROUP SALES ACTIVITY » Group sales for FY16 of 3,253 lots SALES COMPOSITION BY GEOGRAPHY (LOTS) For personal use only 4000 » Strong sales from eastern states projects 3,525 − Flagstone (QLD) to make full year contribution to eastern 3500 3,229 3,253 states sales in FY17 3000 2500 » WA and NT sales v
Slide 14: Contracts on Hand
CONTRACTS ON HAND » Contracts on hand1 increased to 2,647 lots since 30 June 2016, up 9% − For personal use only Increase driven by Victorian market as well as stable and improving eastern states market conditions − Value of contracts on hand increased by a further 10% to $601m since year end - prov
Slide 15: Project pipeline
For personal use only Project pipeline
Slide 16: National Reach
NATIONAL REACH $12.0bn For personal use only 48,000 END-VALUE LOTS 1 projects 62 nationally Notes: 1 Not all projects are shown on map MACQUARIE WA FORUM PRESENTATION ǀ OCTOBER 2016 ǀ PAGE 16
Slide 17: New Projects in FY17 - FY19
NEW PROJECTS IN FY17 - FY19 Pipeline of approximately 48,000 lots providing visibility of future earnings » For personal use only Up to 8 new projects expected to commence development FY17 - FY19 PROJECT RELEASE SCHEDULE within the next 2-3 years Project State Segment First Sales Lots Project Life (
Slide 18: Key Project – Flagstone City, QLD
KEY PROJECT – FLAGSTONE CITY, QLD » Flagstone is a 1,245 hectare greenfield master planned community situated in a key South East Queensland growth corridor 38 km south west of Brisbane’s CBD For personal use only » Joint Venture with MTAA Super with 12,000 lots » Flagstone City will become home to
Slide 19: Key Project – Flagstone City, QLD
KEY PROJECT – FLAGSTONE CITY, QLD » Environmental approvals for the entire development site in place For personal use only » Government catalyst funding to assist with start-up infrastructure funding ̵ Construction of bridge over the interstate railway line to access the core site area underway ̵ Su
Slide 20: Key Project – Flagstone City, QLD
KEY PROJECT – FLAGSTONE CITY, QLD SUMMARY INFORMATION – IN PROGRESS » Infrastructure and stage development works under For personal use only Acquisition Date June 2011 construction including: Location Greater Flagstone, Logan ̵ Completed office and Sales and Information centre Project Value (Incl. G
Slide 21: Market overview & outlook
For personal use only Market overview & outlook
Slide 22: Residential Market Overview
RESIDENTIAL MARKET OVERVIEW Melbourne » Ongoing population growth, relative affordability and solid economy to support dwelling demand For personal use only − Metropolitan Melbourne growth expected to remain strong − Volumes beginning to stabilise near current high levels with moderate price growth
Slide 23: Outlook
OUTLOOK Portfolio well positioned for sustainable long-term growth and value creation For personal use only » Outlook generally supported by market fundamentals with sustained low interest rates and modest economic growth − Conditions across Victoria, New South Wales/ACT and South Australia are expe
Slide 24: Thank you
For personal use only Thank you
Slide 25: Disclaimer
DISCLAIMER 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. This presentation contains forward-looking statements, including sta