Slide 1: 1H14 Results Presentation
For personal use only 1H14 Results Presentation February 2014
Slide 2: Key achievements
Key achievements For personal use only Established solid foundation for growth » Capitalising on improving residential markets Operating performance in line with expectations Good progress made on business initiatives Process improvement and operational efficiencies emerging across the Group
Slide 3: 1H14 Result: Operating Profit Recovery Continuing
1H14 Result1 Operating Profit Recovery Continuing For personal use only » Operating profit2 after tax of $14.5m » Statutory profit2 after tax of $13.2m » Includes write-downs after tax of $1.3m on non-core assets in Victoria identified for sale » Lot sales up 101% driven by CIC acquisition and stron
Slide 4: Results overview
For personal use only Results overview
Slide 5: Group financial summary
Group financial summary 1H14 1H13 Var (%) » Results reflect a broadening market improvement Lot sales 1,735 865 101% For personal use only as well as the acquisition of CIC » Group performance in line with expectations Lot settlements 1,507 814 85% Revenue1 119.4m 91.3m 31% 2 » Significant increase
Slide 6: Group operating performance
Group operating performance EBITDA1 composition by business type (% ) » Reflects first full reporting period of CIC For personal use only 6 » Business transformation continues with increased weighting 39 towards capital efficient structures through its Funds 46 47 Management and Joint Venture busine
Slide 7: Contracts on hand
Contracts on hand » Significant number of contracts on hand provides momentum into 2H14 – up 12% since 30 June 2013 For personal use only » Development revenue expected to improve in 2H14 as lots under contract settle Contracts on hand – by business segment Development (owned) Funds Management JV’s
Slide 8: FM operating performance
FM operating performance » Increased sales from key projects: Alkimos (WA), Golden Bay (WA), FM revenue composition by type (%) Yanchep (WA), Warner Lakes (QLD), Kingsford (VIC) For personal use only 8 7 13 » Project management fees continue to drive FM earnings 14 » Expect improvement in Management
Slide 9: JV operating performance
JV operating performance » Significant increased sales from CIC and Wellard (WA) project Key performance statistics 1H14 1H13 Var (%) For personal use only » Revenue and margins improved as a result of increased sales Lot sales 625 119 425% activity and sales price growth across CIC projects and Lot
Slide 10: Development operating performance
Development operating performance » Increased sales at key owned projects : Craigieburn (VIC) and Key performance statistics 1H14 1H13 Var (%) Baldivis (WA) Lot sales 271 151 79% For personal use only » Revenue (excluding superlots) is in line with 1H13 Lot settlements Retail 137 132 4% » Developmen
Slide 11: Capital management
For personal use only Capital management
Slide 12: Capital management
Capital management Capital management strategy tracking in line with expectations 31 DEC 30 JUN For personal use only » New 4-year Syndicated Loan Facility expected to be Cash at bank $26.6m $36.4m finalised in March 2014 Debt $332.9m $321.0m » Group debt increased as a result of: Gearing1 (excludin
Slide 13: Group cash flow summary
Group cash flow summary 1H14 1H13 » Operating cash flow impacted by For personal use only Cash flows related to operating activities $m $m Receipts from customers 119.3 84.0 » Development and infrastructure expenditure increased mainly due to the acquisition of CIC Receipts from asset divestments -
Slide 14: Market overview & outlook
For personal use only Market overview & outlook
Slide 15: 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 Melbourne and Perth For personal use only » Affordability, softening labour market conditions and consumer caution is like
Slide 16: Residential market overview (cont.)
Residential market overview (cont.) For personal use only ACT and adjoining NSW • Land sales 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 improvement • Evident
Slide 17: Outlook
Outlook Peet positioned to take advantage of improving markets For personal use only » Underlying foundations of the residential sector remain sound » Mixed market conditions expected to persist throughout FY14 » Three new projects are expected to commence development in 2H14 » Progressing medium de
Slide 18: 1H14 Annexures
For personal use only 1H14 Annexures
Slide 19: Summary income statement
Summary income statement1 $m 1H14 1H13 Var (%) For personal use only Funds management 17.2 15.1 14% Development 29.2 55.9 (48%) Joint venture 45.4 9.1 399% Share of net profit of equity accounted investments 15.3 (0.6) 2,650% Other2 12.3 11.8 4% Revenue 119.4 91.3 31% EBITDA (Pre inventory write-dow
Slide 20: Summary balance sheet
Summary balance sheet1 $m 31 Dec 2013 30 Jun 2013 Assets For personal use only Cash 26.6 36.4 Receivables 58.7 68.5 Inventories 563.0 542.1 Investments accounted for using the equity method 166.9 147.1 Other 33.4 36.2 Total assets 848.6 830.3 Liabilities Trade and other payables 47.6 49.6 Land vendo
Slide 21: Land bank – funds management key projects
Land bank – funds management key projects Funds Management For personal use only Lots1 remaining Project Lifecycle Project name GDV (at 31 Dec 13) 2014 2015 2016 2017 Alkimos $869m 2,409 Selling Burns Beach $345m 677 Selling Golden Bay $236m 1,387 Selling Lakelands $216m 1,338 Selling Yanchep Golf E
Slide 22: 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 31 Dec 13) 2014 2015 2016 2017 Brigadoon $77m 173 Selling Chase, Baldivis $115m 565 Selling WA Mundijong $110m 508 Planning Start Up Selling Other $875m 3,632 Gladstone $
Slide 23: 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 Selling ACT Crace $8m 25 Selling WA Wellard $378m 1,587 Selling NT The Heights $188m 161 Selling SA Lightsview $22
Slide 24: 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