Slide 1: Investor Presentation October 2014
For personal use only Investor Presentation October 2014
Slide 2: FY14 result
FY14 result » Operating profit after tax of $31.6m1 – up 73% vs FY13 For personal use only » Statutory profit after tax of $30.3m FY14 Result FY14 » Result Group EBITDA margin of 25% demonstrating continued recovery » Market value NTA of $1.18 per share, up 18% » Covenant gearing of 29.8% - expected
Slide 3: Key achievements
Key achievements Integration of CIC successfully completed For personal use only Continued reweighting of business to funds management and higher ROCE projects FY14 Result » FY14 Majority of land bank now in funds management or capital efficient structures Result » Wholesale relationships in pla
Slide 4: Results overview
For personal use only Results overview
Slide 5: Group Business model
Group Business model Continued reweighting of business to Funds Management Land Bank For personal use only Target EBIT Target EBIT Diversification by Capital Sources of Composition Margin Land Bank Employed1 Geography (%)4 Revenue 1 2 24 35 25 36 Lots: 12,114 40% – 50% Development 20%-25% GDV ($bn):
Slide 6: Group financial summary
Group financial summary » Performance driven by improving market conditions Key performance statistics FY14 FY13 Var (%) and CIC acquisition Lot sales 3,525 2,308 53% For personal use only » Significant increase in revenue over FY13 as market Lot settlements 3,491 2,091 67% conditions improved Reven
Slide 7: Group operating performance
Group operating performance EBITDA1 composition by business type (%) » Business transformation continues with increased For personal use only weighting towards capital efficient structures through Funds Management and Joint Venture 33 Development 17 businesses Funds Management 31 50 JVs » Funds Mana
Slide 8: FM operating performance
FM operating performance FM revenue composition by type (%) For personal use only 14 Key performance statistics FY14 FY13 Var (%) 6 Lot sales1 1,834 1,389 32% 10 17 Lot settlements1 Retail 1,763 1,218 45% 76 77 Super lots - 7 - FY13 Revenue $36.2m $30.3m 19% FY14 Share of net profit /(loss) of equit
Slide 9: JV operating performance
JV operating performance Key performance statistics FY14 FY13 Var (%) For personal use only Lot sales 1,190 503 137% EBITDA1 composition by geography (%) Lot settlements 1,268 451 181% 39 Revenue $95.6m $39.4m 143% 8 23 53 Share of net profit of equity accounted $14.2m $4.4m 223% investments WA ACT/
Slide 10: Development operating performance
Development operating performance Revenue composition by geography (%) Key performance statistics FY14 FY13 Var (%) For personal use only 3 6 Lot sales1 501 416 20% 2 WA 16 Lot settlements1 VIC QLD Retail 457 412 11% 42 67 ACT/NSW 15 Super lots 3 3 - 49 FY13 Revenue $104.2m $128.5m (19%) FY14 EBITDA
Slide 11: Contracts on hand
Contracts on hand Contracts on hand1 » Sales momentum continues with a further increase in contracts on 2500 For personal use only hand since year end 2,093 2000 1,956 1,990 » Sales momentum is solid since June 2014 Lots 1500 » Significant increase in lot sales in FY14 of over 3,500 lots » Strong se
Slide 12: Extensive experience in land development
Extensive experience in land development For personal use only INVESTOR PRESENTATION ǀ OCTOBER 2014 ǀ PAGE 12
Slide 13: Land bank – Funds Management key projects
Land bank – Funds Management key projects Funds Management Lots1 remaining For personal use only Project name GDV Project Lifecycle (at 30 June 14) 2015 2016 2017 2018 Alkimos $839m 2,386 Selling Burns Beach $368m 735 Selling Golden Bay $304m 1,322 Selling Lakelands $203m 1,246 Selling Yanchep Golf
Slide 14: Land bank – Company-owned key projects
Land bank – Company-owned key projects Company-owned For personal use only Lots1 remaining Project Lifecycle Project name GDV (at 30 June 14) 2015 2016 2017 2018 Brigadoon $76m 168 Selling Chase, Baldivis $97m 502 Start up Selling WA Mundijong $87m 541 Planning Start up Selling Other $618m 3,621 Gla
Slide 15: 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 30 June 14) 2015 2016 2017 2018 NSW Googong2 $629m 2,678 Selling ACT Crace $2m 6 Selling Completion WA Wellard $315m 1,436 Selling NT The Heights $136m 539 Selling SA Lig
Slide 16: Capital management
For personal use only Capital management
Slide 17: Capital management
Capital management Capital management strategy tracking in line with FY14 FY13 expectations For personal use only Cash at bank $38.8m $36.4m » Covenant gearing1 decreased to 29.8% Bank debt $247.9m $274.3m Convertible notes $47.6m $46.6m » Bank debt reduced by a further $26.4m during the year Covena
Slide 18: Group cash flow summary
Group cash flow summary Improved cash flows with significant investment in new and existing projects For personal use only FY141 FY13 Cash flows related to operating activities $m $m Receipts from customers 281.5 206.2 Receipts from asset divestments 16.2 52.92 Payments to suppliers and employees (8
Slide 19: Market overview & outlook
For personal use only Market overview & outlook
Slide 20: Residential market overview
Residential market overview » Fundamentals underpinning the housing market remain supportive of both prices and volumes » Construction activity continues to remain strong across major capital cities For personal use only » Affordability, softening labour market conditions and consumer caution is lik
Slide 21: Residential market overview (cont.)
Residential market overview (cont.) For personal use only ACT and adjoining NSW Shortage of supply • Land sales expected to remain solid in the mid term due to a shortage of supply • The residential construction market remains reasonably buoyant FY15 Medium term forecast SA Market showing tentative
Slide 22: Outlook
Outlook » Strong sales momentum continuing into FY15 For personal use only » Favourable market dynamics including population growth and continuing low interest rates » In particular, Peet well positioned for Queensland recovery to supplement stronger WA, Vic and NSW/ACT projects » Expect FY15 to sho
Slide 23: Thank you
For personal use only Thank you
Slide 24: FY14 Annexures
For personal use only FY14 Annexures
Slide 25: Summary income statement
Summary income statement1 $m FY14 FY13 Var (%) For personal use only Funds management 36.2 30.3 19% Development 104.2 128.5 (19%) Joint venture 95.6 39.4 143% Share of net profit of equity accounted investments 20.6 1.8 1,044% Other2 40.1 40.8 (2%) Revenue 296.7 240.8 23% EBITDA (Pre inventory write
Slide 26: Summary balance sheet
Summary balance sheet1 $m FY14 FY13 Assets For personal use only Cash 38.8 36.4 Receivables 71.6 68.5 Inventories 540.6 542.1 Investments accounted for using the equity method 162.2 147.1 Other 33.9 36.2 Total assets 847.1 830.3 Liabilities Trade and other payables 55.5 49.6 Land vendor liabilities
Slide 27: Disclaimer
Disclaimer » While every effort is made to provide accurate and complete information, Peet does not warrant or For personal use only 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