Slide 1: 1H15 Results Presentation
For personal use only 1H15 Results Presentation February 2015
Slide 2: 1H15 Results Overview
1H15 RESULTS OVERVIEW Strong project performance across all business divisions aided by supportive market conditions For personal use only » Strong improvement in 1H15 operating profit1 after tax of $17.1m, up 18% (in line with statutory profit) » Strong underlying business performance FY14 Result F
Slide 3: Key Achievements for 1H15
KEY ACHIEVEMENTS FOR 1H15 • Acquired interests in six high quality strategic residential projects – New projects comprise more than 3,000 lots/dwellings with GDV1 of circa $750 million For personal use only – Strong investment partners provide the opportunity to further leverage and grow the Funds M
Slide 4: CIC Update
CIC UPDATE CIC Australia Limited (CIC) to buy-back all of its shares other than those held by Peet For personal use only » On 25 February 2015, CIC announced its intention to proceed with a proposal to buy-back all of the CIC shares held by shareholders other than Peet at an indicative price of 82.7
Slide 5: Results overview
For personal use only Results overview
Slide 6: Group Financial Summary
GROUP FINANCIAL SUMMARY » Significant increase in revenue over 1H14 driven by both KEY PERFORMANCE STATISTICS 1H15 1H14 VAR (%) the Development business and fee income from the Funds For personal use only Management business Lot sales 1,610 1,735 (7%) Lot settlements 1,456 1,507 (3%) » Operating pro
Slide 7: FM Operating Performance
FM OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS 1H15 1H14 VAR (%) » 1H15 fee revenue increased strongly to $21.2m – up 23% on 1H14 For personal use only Lot sales 1 906 839 8% − EBITDA2 margins increased to 65% from 63% Lot settlements ‒ Retail 783 751 4% » Funds management business provided sol
Slide 8: JV Operating Performance
JV OPERATING PERFORMANCE » Sales and settlements down as a result of Crace KEY PERFORMANCE STATISTICS 1H15 1H14 VAR (%) For personal use only (ACT) being substantially completed in FY14 Lot sales 448 625 (28%) » 1H15 revenue of $47.7m, up 5% on 1H14 due to Lot settlements 381 619 (38%) continued sol
Slide 9: Development Operating Performance
DEVELOPMENT OPERATING PERFORMANCE » 1H15 settlements up strongly due to Aston (Vic), KEY PERFORMANCE STATISTICS 1H15 1H14 VAR (%) For personal use only The Chimes (WA) and Quayside apartments (ACT) Lot sales 1 256 271 (6%) » Revenues up strongly for 1H15 to $94.8m – up Lot settlements 225% on 1H14 R
Slide 10: Capital management
For personal use only Capital management
Slide 11: Capital Management
CAPITAL MANAGEMENT Capital management strategy tracking in line with CAPITAL MANAGEMENT METRICS 1H15 FY14 1H14 expectations For personal use only Cash at bank $54.7m $38.8m $26.6m » Covenant gearing1 decreased to 23% Bank debt $194.1m $247.9m $285.8m » Bank debt reduced by a further $54m during the
Slide 12: Group Cash Flow Summary
GROUP CASH FLOW SUMMARY Operational cash applied to accelerate production to meet demand » Development spend in 2H15 fully self funded through operating cash flow For personal use only » Borrowing cash costs anticipated to be lower due to reduced debt levels and newly entered interest rate hedges 1H
Slide 13: Operational Update
For personal use only Operational Update
Slide 14: Group Sales Activity
GROUP SALES ACTIVITY » Group sales for 1H15 were 1,610 - SALES ACTIVITY BY LOTS down 7% on pcp For personal use only 2000 1800 » 1H15 W A sales volumes moderated, 1600 with prices stabilising following strong growth in FY14 1400 1200 » 1H15 sales across Vic and Qld 1000 improved on 1H14 and were in
Slide 15: Contracts on Hand
CONTRACTS ON HAND CONTRACTS ON HAND BY LOTS » Record number of contracts on hand1 provides momentum into 2H15, up 12% since 30 June 2014 2500 For personal use only 2,184 − Solid increase driven by stable and improving east 2000 2,184 2,232 1,990 coast market conditions 1500 Lots 1 − Development reve
Slide 16: New Projects in FY15 - FY17
NEW PROJECTS IN FY15 - FY17 Pipeline of approximately 50,000 lots providing FY15-FY17 PROJECT RELEASE SCHEDULE For personal use only visibility of future earnings Project Project State Segm ent First Sales Lots Life (Years) » Up to 10 new projects expected to commence Oakford WA Funds 2015 1,060 10y
Slide 17: Land Bank – Funds Management Key Projects
LAND BANK – FUNDS MANAGEMENT KEY PROJECTS PROJECT LIFECYCLE PROJECT NAME STATE GDV LOTS1 2015 2016 2017 2018 REMAINING For personal use only Alkimos WA $814m 2,468 Selling Burns Beach WA $298m 580 Selling Golden Bay WA $305m 1,345 Selling Lakelands WA $203m 1,186 Selling Yanchep Golf Estate WA $364m
Slide 18: Land Bank – Company-Owned Key Projects
LAND BANK – COMPANY-OWNED KEY PROJECTS PROJECT LIFECYCLE LOTS1 STATE GDV For personal use only PROJECT NAME 2015 2016 2017 2018 REMAINING Brigadoon WA $70m 155 Selling Chase, Baldivis WA $89m 476 Selling Mundijong WA $116m 509 Planning Start up Selling Other WA $612m 3,619 Gladstone QLD $81m 342 Sel
Slide 19: Land Bank – Joint Venture Key Projects
LAND BANK – JOINT VENTURE KEY PROJECTS LOTS1 REMAINING PROJECT LIFECYCLE PROJECT NAME STATE GDV For personal use only DEC 14 2015 2016 2017 2018 Googong2 NSW $618m 2,628 Selling Crace ACT $1m 2 Selling Completion Wellard WA $282m 1,336 Selling The Heights NT $134m 494 Selling Lightsview SA $174m 994
Slide 20: For personal use only
For personal use only 1H15 RESULTS ǀ 26 FEBRUARY 2015 ǀ PAGE 20
Slide 21: Market overview & outlook
For personal use only Market overview & outlook
Slide 22: Residential Market Overview
RESIDENTIAL MARKET OVERVIEW Monetary policy continues to encourage home building activity For personal use only » Sales volumes moderated in Western Australia during 1H15, where a combination of the lower iron ore price and the transition from the construction phase of major resource projects in par
Slide 23: Outlook
OUTLOOK Portfolio well positioned for sustainable long term growth and value creation For personal use only » Outlook supported by market fundamentals − WA sales have moderated with sales prices stabilising − Qld results to improve on the back of Flagstone City commencing development in late 2H15 »
Slide 24: Thank you
For personal use only Thank you
Slide 25: 1H15 Annexures
For personal use only 1H15 Annexures
Slide 26: Summary Income Statement
SUMMARY INCOME STATEMENT 1H15 1H14 Var (%) $M $M For personal use only Funds management 21.2 17.2 23% Development 94.8 29.2 225% Joint venture 47.7 45.4 5% Share of net profit of equity accounted investments 1.4 15.3 (91%) Other1 19.0 12.3 55% Revenue 184.1 119.4 54% EBITDA (Pre inventory write-down
Slide 27: Summary Balance Sheet
SUMMARY BALANCE SHEET 1H15 FY14 $M $M For personal use only Assets Cash 54.7 38.8 Receivables 80.4 81.1 Inventories 515.5 540.6 Investments accounted for using the equity method 177.7 152.7 Other 27.1 33.9 Total assets 855.4 847.1 Liabilities Trade and other payables 59.4 55.5 Land vendor liabilitie
Slide 28: 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