Slide 1: FY2020 Financial Results
FY2020 FINANCIAL RESULTS 27 AUGUST 2020 ANNUAL GENERAL MEETING ǀ 20 NOVEMBER 2019 ǀ PAGE 1
Slide 2: Overview
OVERVIEW FY20 RESULTS | AUGUST 2020 | 2
Slide 3: Peet Is Well Positioned To Leverage Market Recovery
PEET IS WELL POSITIONED TO LEVERAGE MARKET RECOVERY 1 FY20 operating earnings of $15.1m in-line with guidance range of $14-16m 2 Sales growth of 43% in FY20 underpinned by strong pickup in WA and QLD 3 Contracts on hand up 42% providing positive momentum into FY21 Government stimulus packages have s
Slide 4: COVID-19 Impact And Response
COVID-19 IMPACT AND RESPONSE PEOPLE AND SAFETY BUSINESS OPERATIONS MANAGEMENT RESPONSE • Targeted best practice pandemic • Settlements impacted due to delays/timing and • A voluntary 20% reduction in response minimising development expenditure on new stock remuneration for Leadership Team and the Bo
Slide 5: Largest 'Pure Play' Residential Developer In Australia
LARGEST ‘PURE PLAY’ RESIDENTIAL DEVELOPER IN AUSTRALIA INTEGRATED MODEL WITH PROVEN CAPITAL PARTNERING CAPABILITY • Property development company established in 1895 • Listed on the ASX in 2004 Significant and diversified land bank encompassing more than 47,000 lots across 51 projects Integrated
Slide 6: Broad Customer And Product Reach
BROAD CUSTOMER AND PRODUCT REACH SCALE PIPELINE WITH LOW COST BASE PROVIDING SOLID EMBEDDED MARGINS Peet manages a broad property 47,323 portfolio, encompassing 47,000 LOTS lots across 51 projects Diversified land bank $13.9bn strategically located in growth END VALUE corridors of major cities in ev
Slide 7: Significant Operating Leverage Potential
SIGNIFICANT OPERATING LEVERAGE POTENTIAL c.80% OF LAND BANK EXPECTED TO BE IN PRODUCTION BY FY23 60,000 c.80% Pipeline in 50,000 production 47,323 lots c.70% Pipeline in Projects: 7 NO. OF LOT/UNITS production Lots: 8,353 40,000 38,970 lots Projects: 10 32,904 lots Lots: 6,066 30,000 20,000 Projects
Slide 8: Unique Funds Management Model
UNIQUE FUNDS MANAGEMENT MODEL SIGNIFICANT FUNDS MANAGEMENT PLATFORM VALUE NOT CAPTURED IN NTA Assets Under Management of $2.1bn PEET CAPITAL ($2.6bn GDV2) THIRD PARTY CAPITAL ($11.3bn GDV2) NTA PER SHARE3: $1.09 INTANGIBLE VALUE PEET INVENTORIES PEET CO-INVESTMENTS FUNDS MANAGEMENT AND JV $488 milli
Slide 9: Delivering Against Our Strategy
DELIVERING AGAINST OUR STRATEGY PORTFOLIO WELL POSITIONED FOR POSITIVE MEDIUM TO LONG TERM GROWTH AND VALUE CREATION STRATEGY KEY ACHIEVEMENTS (FY20) Invest in high quality land in strategic • Two townhouse sites and one broadacre land project INVEST locations across country secured during FY20 on a
Slide 10: Results Overview
RESULTS OVERVIEW FY20 RESULTS | AUGUST 2020 | 10
Slide 11: Group FY20 Financial Results
GROUP FY20 FINANCIAL RESULTS RESULT IMPACTED BY LOWER SETTLEMENTS AND COVID-19 KEY PERFORMANCE STATISTICS FY20 FY19 VAR (%) Lot sales1 2,323 1,629 43% Group sales were up due to improving market conditions and government stimulus Lot settlements1 1,794 2,629 (32%) Reflects the impact of lower sales
Slide 12: Group Balance Sheet
GROUP BALANCE SHEET CONTINUED EXECUTION OF CAPITAL MANAGEMENT STRATEGY CAPITAL MANAGEMENT METRICS FY20 FY19 • Cash and available bank debt headroom provides capacity to pursue Cash at bank1 $46.8m $33.6m growth opportunities Bank debt2 $59.9m $23.2m • All bank debt financial covenants waived until 3
Slide 13: Group Cash Flow Summary
GROUP CASH FLOW SUMMARY OPERATING CASH FLOW IMPACTED BY LOWER SETTLEMENT VOLUMES IN FY20 FY19 FY18 FY20 FY19 CASH FLOWS RELATED TO OPERATING ACTIVITIES $M $M Receipts from customers 191.6 269.8 Receipts lower due to lower land settlements, deferral of new project commencements and completion of two
Slide 14: Operating Performance
OPERATING PERFORMANCE FY20 RESULTS | AUGUST 2020 | 14
Slide 15: Group Operating Performance
GROUP OPERATING PERFORMANCE • Group EBITDA impacted by lower settlement FY20 SETTLEMENT VOLUMES AND GROUP PROFITABILITY volumes IMPACTED BY LOWER SALES VOLUMES IN FY19 • Contribution from eastern states’ projects represented 84% of EBITDA1,2,3 - Contribution driven by low cost VIC Development 19% pr
Slide 16: Group Sales And Settlement Activity
GROUP SALES AND SETTLEMENT ACTIVITY • Group sales1 for FY20 of 2,323 lots – up 43% MARKET IMPROVEMENT AND GOVERNMENT STIMULUS - Group sales were up due to improving WA and DRIVING SALES PERFORMANCE QLD market conditions and government stimulus - Cancellation rates are moderating towards more normali
Slide 17: Contracts On Hand
CONTRACTS ON HAND CONTRACTS ON HAND1 (LOTS) CONTRACTS ON HAND REFLECT IMPROVING MARKET CONDITIONS 2,257 2,098 1,786 1,257 Contracts on hand1 have increased by 42% since 30 June 2019 to 1,786 lots • Reflects improving market conditions and government stimulus FY18 FY19 FY20 20 AUG 2020 Contracts valu
Slide 18: Outlook
OUTLOOK FY20 RESULTS | AUGUST 2020 | 18
Slide 19: New Projects Provide Medium Term Earnings Visibility
NEW PROJECTS PROVIDE MEDIUM TERM EARNINGS VISIBILITY PIPELINE OF APPROXIMATELY 47,000 LOTS PROVIDING VISIBILITY OF FUTURE EARNINGS FY21 – FY23 NEW PROJECT RELEASE SCHEDULE Up to four new land projects and Project State Segment Commencement of Lots1/Units Project Life three townhouse/apartment sites
Slide 20: Strong Platform For Sustainable Growth, Through Cycles
STRONG PLATFORM FOR SUSTAINABLE GROWTH, THROUGH CYCLES • Strategic land bank provides long term earnings visibility SCALE • Counter-cyclical acquisition strategy has allowed the Group to capitalise on value accretive opportunities LAND BANK • Expect c.80% of land bank to be in production by FY23 fro
Slide 21: Group Outlook
GROUP OUTLOOK FOCUSED ON POSITIONING FOR AN IMPROVING MARKET THROUGH A CONSERVATIVE APPROACH TO PROJECT DELIVERY AND IDENTIFYING GROWTH OPPORTUNITIES • Government stimulus has contributed to strong sales in June 2020 - Sales momentum continuing into 1Q21 • Accelerate production to meet expected dema
Slide 22: Appendices
APPENDICES FY20 RESULTS | AUGUST 2020 | 22
Slide 23: FM Operating Performance
FM OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS FY20 FY19 VAR (%) FM sales were up due to improving market conditions and Lot sales1 1,412 909 55% government stimulus Lot settlements1 924 1,535 (40%) Revenue Reflects the impact of lower sales volumes in FY19 carrying into $22.8m $26.4m (14%) FY2
Slide 24: JV Operating Performance
JV OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS FY20 FY19 VAR (%) Lot sales1 479 414 16% Reflects the impact of lower sales volumes in FY19 carrying into Lot settlements1 436 539 (19%) FY20 Revenue $34.6m $38.8m (11%) Share of net profit of equity accounted investments $4.8m $5.0m (4%) Revenue i
Slide 25: Development Operating Performance
DEVELOPMENT OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS FY20 FY19 VAR (%) Lot sales1 432 306 41% Higher sales due to government stimulus Lot settlements1 434 555 (22%) Reflects the impact of lower sales volumes in FY19 carrying into Land only 426 489 (13%) FY20 Medium Density product 8 66 (88%)
Slide 26: Summary Income Statement
SUMMARY INCOME STATEMENT FY20 FY19 Var $M $M (%) Funds Management 22.8 26.4 (14%) Development 128.5 181.1 (29%) Joint Venture 34.6 38.8 (11%) Share of net profit of equity accounted investments 6.7 12.9 (48%) Other1 3.7 3.7 0% Revenue 196.3 262.9 (25%) EBITDA (pre restructuring and divestment-relate
Slide 27: Summary Balance Sheet
SUMMARY BALANCE SHEET FY20 FY19 $M $M Assets Cash and cash equivalents 46.8 33.6 Receivables 119.4 125.2 Inventories 478.5 518.7 Investments accounted for using the equity method 232.1 233.7 Other 14.1 10.9 Total assets 890.9 922.1 Liabilities Payables 33.1 38.7 Land vendor liabilities 6.4 6.4 Borro
Slide 28: Land Bank Funds Management Key Projects
LAND BANK FUNDS MANAGEMENT KEY PROJECTS PROJECT LIFECYCLE PROJECT NAME STATE GDV1 LOTS REMAINING2 2021 2022 2023 2024 2025 Selling Alkimos WA $1,133m 2,263 Selling Brabham WA $711m 3,256 Selling Burns Beach WA $189m 315 Selling Completion Eglinton WA $221m 1,024 Selling Golden Bay WA $125m 620 Selli
Slide 29: Land Bank Development Key Projects
LAND BANK DEVELOPMENT KEY PROJECTS PROJECT LIFECYCLE PROJECT NAME STATE GDV1 LOTS REMAINING2 2021 2022 2023 2024 2025 Brigadoon WA $35m 88 Selling Greenlea WA $51m 261 Selling Completion Mundijong WA $187m 781 Planning Selling Other WA $652m 4,038 Planning Gladstone QLD $86m 337 Selling Flagstone No
Slide 30: Land Bank Joint Venture Key Projects
LAND BANK JOINT VENTURE KEY PROJECTS PROJECT LIFECYCLE PROJECT NAME STATE GDV1 LOTS REMAINING2 2021 2022 2023 2024 2025 Wellard WA $92m 433 Selling Completion Pier Street WA $103m 188 Selling Completion Redbank Plains QLD $183m 784 Selling Googong3 NSW $699m 1,610 Selling Atria Apartments ACT $39m 6
Slide 31: 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