Peet Limited · ASX:PPC
Peet — Macquarie Australia Conference 2014
20 slides from Peet's conference presentation, May 8, 2014
Slide 1: Macquarie Australia Conference Presentation
For personal use only Flagstone, Qld Macquarie Australia Conference Presentation April 2014 Bringing Land to Life
Slide 2: Group Update
Group Update Broadening sales momentum continuing For personal use only Operating performance tracking in line with expectations » Residential sales are strong in our key corridors » On track for sales greater than 3,000 lots in FY14 » Three projects commencing development in 4Q14 » Building stron
Slide 3: Contracts on hand
Contracts on hand » Record number of contracts on hand at end of March 2014 quarter For personal use only » Sales momentum robust since 31 December 2013 » 3Q14 Contracts on hand – up 16% since 30 June 2013 » Provides momentum into FY15 » Development revenue expected to improve in 2H14 » Higher devel
Slide 4: Investment case for Peet Limited
Investment case for Peet Limited Australia’s only large scale pure-play residential exposure; ability to leverage existing platform For personal use only » Australia’s only scale pure-play residential land development business Pure play » Disciplined focus on core competency – not distracted by othe
Slide 5: Group Business model
Group Business model Land Bank Target EBIT Target EBIT Diversification by Capital Sources of Composition M argin Land Bank Employed1 Geography (% ) Revenue For personal use only 2 2 25 25 36 36 Lots: 13,225 40% – 50% EBIT Development 20% -25% GDV ($bn): 3.0 $455m » Development profit # Projects: 30
Slide 6: Land bank – Funds Management key projects
Land bank – Funds Management key projects Funds Management Lots1 remaining Project Lifecycle For personal use only Project name GDV (at 31 Dec 13) 2014 2015 2016 2017 Alkimos $869m 2,409 Burns Beach $345m 677 Golden Bay $236m 1,387 Lakelands $216m 1,338 Yanchep Golf Estate $400m 1,573 WA Oakford $20
Slide 7: Land bank – Company-owned key projects
Land bank – Company-owned key projects Company-owned Lots1 remaining Project Lifecycle For personal use only Project name GDV (at 31 Dec 13) 2014 2015 2016 2017 Brigadoon $77m 173 Chase, Baldivis $115m 565 WA Mundijong $110m 508 Other $875m 3,632 Gladstone $81m 343 Beaudesert $245m 1,045 QLD Flagsto
Slide 8: Land bank – Joint Venture key projects
Land bank – Joint Venture key projects Joint Venture For personal use only Lots1 remaining Project Lifecycle Project name GDV (at 31 Dec 13) 2014 2015 2016 2017 NSW Googong2 $685m 2,964 ACT Crace $8m 25 WA Wellard $378m 1,587 NT The Heights $177m 710 SA Lightsview $227m 1,254 Total joint venture $1,
Slide 9: Market overview
For personal use only Market overview
Slide 10: Housing market fundamentals and state outlook (WA, VIC)
Residential market overview » Fundamentals underpinning the housing market remain supportive of both prices and volumes » Construction activity continues to remain strong across Melbourne and Perth For personal use only » Affordability, softening labour market conditions and consumer caution is like
Slide 11: Market outlook (cont.): ACT, SA, NT
Residential market overview (cont.) For personal use only ACT and adjoining NSW • Land sales expected to remain solid in the mid term due to a shortage of supply • The residential construction market remains reasonably buoyant 2H14 Medium term forecast SA Market showing tentative signs of improvemen
Slide 12: Australian Residential Market Update
For personal use only Australian Residential Market Update
Slide 13: Dwelling construction has a huge catch-up task ahead
Residential market overview Despite recent sharp pick-up, dwelling construction has a huge ‘catch-up’ task ahead… For personal use only Population gain vs. dwelling completions 110 population 100 gain 90 80 70 60 50 40 30 20 10 0 dwelling -10 completions -20 -30 86 88 90 92 94 96 98 00 02 04 06 08 1
Slide 14: Housing shortage now critical across the country
Residential market overview Housing shortage now critical across the country Housing market balance For personal use only 350 Forecasts 300 250 200 Dwellings ('000s) 150 100 Shortage 50 0 -50 Surplus -100 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 Cumul
Slide 15: Unprecedented housing shortage – especially NSW, Qld and WA
Residential market overview Unprecedented housing shortage – especially NSW, Qld and WA For personal use only 120 NSW 80 VIC 100 70 60 80 50 60 40 30 40 20 20 10 0 0 -10 -20 -20 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 120 QLD 70 WA 100 60 50 80 40 60
Slide 16: Mortgage rates and housing price growth vs incomes
Residential market overview Mortgage rate level implies further Housing price growth now outpacing For personal use only housing price gains household incomes 21% 4% 25% Housing price growth (6 month annualised, LHS) Housing price growth Mortgage rate (inverted, 6 month advanced, RHS) Household inco
Slide 17: Investors and upgraders leading the charge
Residential market overview Investors and upgraders leading the charge – first home buyers subdued For personal use only Housing finance 140 120 100 $bn annualised (trend) 80 60 40 20 0 00 01 02 03 04 05 06 07 08 09 10 11 12 13 First home buyer Upgrader (excl. refin.) Investor (excl. refin.) » New l
Slide 18: Outlook
Outlook Peet positioned to take advantage of improving markets For personal use only » Underlying foundations of the residential sector remain sound » Continued focus on building strong residential presales for FY15 and driving production » Strong focus on improving returns across the Group’s portfo
Slide 19: Thank you
For personal use only Thank you
Slide 20: Disclaimer
Disclaimer » While every effort is made to provide accurate and complete information, Peet does not warrant or represent that the For personal use only 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