Slide 1: FY18 Results Presentation
FY18 RESULTS PRESENTATION
Slide 2: Key Performance Metrics for FY18
KEY PERFORMANCE METRICS FOR FY18 CAPITAL STRATEGIC OPERATIONAL FINANCIAL MANAGEMENT GROWTH $49.1m FY18 operating Broadening product 2,257 lots under 18.2% gearing profit after tax offering to Completed contract with a value Down 3% Up 10% Homes and Medium of $616m Density Finalised DMA for 10.02cps
Slide 3: Overview
v | OVERVIEW
Slide 4: Group Financial Summary
GROUP FINANCIAL SUMMARY STRATEGIC INITIATIVES CONTINUE TO DRIVE EARNINGS GROWTH KEY PERFORMANCE STATISTICS FY18 FY17 VAR (%) » Group revenue1 of $301.7m – down 3% Lot sales 2,950 3,000 (2%) Lot settlements 2,924 3,077 (5%) » FY18 revenue comparative to FY17 was lower predominantly due to: Revenue1 $
Slide 5: Focus on Driving Shareholder Returns
FOCUS ON DRIVING SHAREHOLDER RETURNS CONSISTENT GROWTH IN EARNINGS DRIVEN BY OUR FOCUSED STRATEGY, MARKET CONDITIONS AND NEW PROJECTS » Business well established across seven states and territories ̵ Provides good geographic spread with well located projects across key growth corridors ̵ Expanding m
Slide 6: Capital Management
CAPITAL MANAGEMENT CONTINUED EXECUTION OF CAPITAL MANAGEMENT STRATEGY » Strengthening capital position and flexible balance sheet ̵ Strong operating cash flows of $118m before land acquisitions 2,184 » ROCE1 of 14.7% - up 1.5% ̵ Target ROCE 12% - 14% ̵ ROCE lower in FY19 as new Completed Homes and M
Slide 7: Significant Funds Management Value Not Captured in NTA
SIGNIFICANT FUNDS MANAGEMENT VALUE NOT CAPTURED IN NTA APPROXIMATELY $2.1BN1 IN ASSETS UNDER MANAGEMENT, WITH 60% COMPRISING THIRD PARTY CAPITAL FUNDS MANAGEMENT AND JV » GDV2 of $11.0bn THIRD PARTY CAPITAL ̵ Significant pipeline of 37,981 lots providing long-term earnings visibility Funds ̵ Represe
Slide 8: Performance
PERFORMANCE
Slide 9: Group Operating Performance
GROUP OPERATING PERFORMANCE PEET’S DIVERSIFIED PORTFOLIO OF PROJECTS HAS ALLOWED IT TO CAPITALISE ON THE EASTERN STATES’ EBITDA1 COMPOSITION BY BUSINESS TYPE2 (%) STRENGTH Development Funds Management JVs » Group EBITDA of $101.3m – up 11% » Contribution from eastern states’ projects increased to 91
Slide 10: Group Sales and Settlement Activity
GROUP SALES AND SETTLEMENT ACTIVITY SALES COMPOSITION BY GEOGRAPHY (LOTS) » Group sales for FY18 of 2,950 lots – down 2% WA VIC QLD NSW/ACT SA ̵ Completion of four VIC projects during the year ̵ Timing of new stage releases 13% » Group settlements of 2,924 – down 5% 29% 12% ̵ Contracts on hand up du
Slide 11: Contracts on Hand
CONTRACTS ON HAND CONTRACTS ON HAND UNDERPIN MOMENTUM INTO FY19 » Contracts on hand1 have increased 3% since 30 June 2017 to 2,257 lots with a 13% increase in value to $616m ̵ Contract value underpinned by price growth across VIC, QLD and ACT/NSW CONTRACTS ON HAND1 (LOTS) CONTRACTS ON HAND1 (VALUE)
Slide 12: FM Operating Performance
FM OPERATING PERFORMANCE » FY18 revenue of $35.2m impacted by KEY PERFORMANCE STATISTICS FY18 FY17 VAR (%) − Completion of four VIC projects during the year Lot sales 1,782 1,756 1% » FM revenue expected to increase in FY19 Lot settlements 1,796 1,912 (6%) » Earnings from investments increased to $5
Slide 13: JV Operating Performance
JV OPERATING PERFORMANCE » EBITDA1 of $16.6m – down 22%, impacted by KEY PERFORMANCE STATISTICS FY18 FY17 VAR (%) − Timing of settlements from projects across ACT and SA Lot sales 756 735 3% » Share of equity accounted profits impacted by timing delay in Lot settlements 690 741 (7%) settlements duri
Slide 14: Development Operating Performance
DEVELOPMENT OPERATING PERFORMANCE » Revenue of $200m – up 4% KEY PERFORMANCE STATISTICS FY18 FY17 VAR (%) » FY18 EBITDA of $67.2m up 54% Lot sales2 412 509 (19%) − Strong price growth achieved across VIC projects Lot settlements2 438 424 4% Land only 382 395 (3%) » Lot sales were down due to: Medium
Slide 15: Management
( PT ANAGEM ENT
Slide 16: Debt Management
DEBT MANAGEMENT STRONG CAPITAL MANAGEMENT STRATEGY OUTCOMES CAPITAL MANAGEMENT METRICS FY18 FY17 FY16 FY15 » Net debt decreased to $140m1 – down 13% Cash at bank $76.7m $88.4m $73.4m $57.7m − Bank debt down 54% to $69.5m Bank debt $69.5m $151.7m $169.2m $185.9m − Improved diversification of funding
Slide 17: Group Cash Flow Summary
GROUP CASH FLOW SUMMARY CASH GENERATED FROM OPERATIONS APPLIED TO DELIVER PRODUCTION FROM NEW AND EXISTING PROJECTS TO MEET DEMAND » Strong operating cash flows (before acquisitions) of $118m – up 19% » Cash and facilities to be applied towards the funding of growth opportunities secured and develop
Slide 18: Market Overview & Project Pipeline
Slide 19: Residential Market Overview
RESIDENTIAL MARKET OVERVIEW MELBOURNE » Strong economic growth, with forecast significant investment in infrastructure by Government » Strong population growth expected to continue » Economic outlook and population growth to underpin dwelling demand − Employment growth expected to continue − Volumes
Slide 20: National Reach
NATIONAL REACH 49,660 $13.8bn END-VALUE LOTS 1 projects 57 nationally Notes: 1 Not all projects are shown on map
Slide 21: Overview of Peet's Land Bank
OVERVIEW OF PEET’S LAND BANK LAND BANK REPRESENTS APPROXIMATELY 17 YEARS’ LOT SUPPLY BASED ON CURRENT SALES RATES » Sizeable and diversified land bank across all mainland states and LANDBANK COMPOSITION BY BUSINESS TYPE (LOTS1) territories 60,000 − Pipeline of approximately 49,700 lots with an on co
Slide 22: New Projects Supporting Growth
NEW PROJECTS SUPPORTING GROWTH PIPELINE OF APPROXIMATELY 49,700 LOTS PROVIDING VISIBILITY OF FUTURE EARNINGS » Two new projects commenced development/sales in FY18 » Up to three new land projects and three medium density townhouse sites to commence development within the next two years - Approximate
Slide 23: Pipeline Replenishment
PIPELINE REPLENISHMENT PEET WELL PLACED TO TAKE ADVANTAGE OF OPPORTUNITIES » Peet remains disciplined and well positioned - Counter cyclical acquisition strategy has allowed the Group to capitalise on strong market conditions and secure a favourable cost base - By FY20 (excluding acquisitions) the G
Slide 24: Outlook
Slide 25: Peet Priorities and Strategic Focus
PEET PRIORITIES AND STRATEGIC FOCUS STRATEGIC POSITIONING PROVIDES SOLID MEDIUM-TERM EARNINGS VISIBILITY » Portfolio well positioned to target on-going growth and value creation » Accelerating production where possible and appropriate, and active management of product mix » Selective acquisition of
Slide 26: Peet Outlook
PEET OUTLOOK » The Victorian residential market is moderating as expected with more focus placed on location and quality » Lending conditions for investors and foreign buyers have tightened » Competition reducing due to more restrictive developer access to financing » Well placed to capitalise on op
Slide 27: Annexures
SG FUNG ANNEXURES
Slide 28: Summary Income Statement
SUMMARY INCOME STATEMENT FY18 FY17 Var $M $M (%) Funds Management 35.2 48.3 (27%) Development 200.0 192.8 4% Joint Venture 46.9 50.4 (7%) Share of net profit of equity accounted investments 13.8 15.3 (10%) Other1 5.9 4.6 28% Revenue 301.8 311.4 (3%) EBITDA 101.3 91.1 11% Finance costs2 (29.9) (25.2)
Slide 29: Summary Balance Sheet
SUMMARY BALANCE SHEET FY18 FY17 $M $M Assets Cash and cash equivalents 76.7 88.4 Receivables 124.4 131.3 Inventories 493.9 486.2 Investments accounted for using the equity method 222.8 213.4 Other 11.5 14.5 Total assets 929.3 933.8 Liabilities Payables 82.5 69.5 Land vendor liabilities 20.1 33.8 Bor
Slide 30: Land Bank – Funds Management Key Projects
LAND BANK – FUNDS MANAGEMENT KEY PROJECTS PROJECT LIFECYCLE PROJECT NAME STATE GDV1 LOTS REMAINING2 2019 2020 2021 2022 2023 Alkimos WA $1,154m 2,427 Selling Burns Beach WA $256m 416 Selling Golden Bay WA $200m 869 Selling Lakelands WA $196m 1,089 Selling Yanchep Golf Estate WA $398m 1,565 Selling O
Slide 31: Land Bank – Company-Owned Key Projects
LAND BANK – COMPANY-OWNED KEY PROJECTS PROJECT LIFECYCLE PROJECT NAME STATE GDV1 LOTS REMAINING2 2019 2020 2021 2022 2023 Brigadoon WA $50m 105 Selling Chase, Baldivis WA $51m 309 Selling Mundijong WA $187m 781 Planning Start up Other WA $646m 3,937 Planning Gladstone QLD $86m 333 Selling Boystown Q
Slide 32: Land Bank – Joint Venture Key Projects
LAND BANK – JOINT VENTURE KEY PROJECTS PROJECT LIFECYCLE PROJECT NAME STATE GDV1 LOTS REMAINING2 2019 2020 2021 2022 2023 Wellard WA $144m 801 Selling Brabham WA $783m 3,333 Planning Start up Selling Pier Street WA $69m 146 Planning Start up Selling Completion Redbank Plains QLD $204m 922 Selling Go
Slide 33: 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