Slide 1: 1H21 Financial Results
1H21 FINANCIAL RESULTS 25 FEBRUARY 2021 ANNUAL GENERAL MEETING ǀ 20 NOVEMBER 2019 ǀ PAGE 1
Slide 2: Peet Is Well Positioned To Leverage Market Recovery
PEET IS WELL POSITIONED TO LEVERAGE MARKET RECOVERY 1• 1H21 operating earnings of $10.1m – up 101% 2• Strong sales growth in 1H21 across national portfolio – up 50% 3• Contracts on hand up 15% providing positive momentum into 2H21 4• Government stimulus packages have supported a further improvement
Slide 3: 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 45,800 lots across 52 projects Integrated
Slide 4: Broad Customer And Product Reach
BROAD CUSTOMER AND PRODUCT REACH SCALE PIPELINE WITH LOW COST BASE Peet manages a broad property 45,834 portfolio, encompassing 45,800 LOTS lots across 52 projects Diversified land bank $13.6bn strategically located in growth END VALUE corridors of major cities in every mainland state of Australia W
Slide 5: 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 ($2.7bn GDV1) THIRD PARTY CAPITAL ($10.9bn GDV1) NTA PER SHARE2: $1.09 INTANGIBLE VALUE PEET INVENTORIES PEET CO-INVESTMENTS FUNDS MANAGEMENT AND JV $515 milli
Slide 6: Delivering Against Our Strategy
DELIVERING AGAINST OUR STRATEGY PORTFOLIO WELL POSITIONED FOR POSITIVE MEDIUM TO LONG TERM GROWTH AND VALUE CREATION STRATEGY KEY ACHIEVEMENTS (1H21) Invest in high quality land in strategic • One townhouse site (Vic) and one low-rise apartment site INVEST locations across country (WA) acquired duri
Slide 7: Results Overview
RESULTS OVERVIEW
Slide 8: Group 1H21 Financial Results
GROUP 1H21 FINANCIAL RESULTS IMPROVING RESULTS WITH MARKET RECOVERY KEY PERFORMANCE STATISTICS 1H21 1H20 VAR (%) Group sales were up due to improving market conditions and Lot sales1 1,522 1,012 50% government stimulus Lot settlements1 1,254 773 62% Group settlements increased due to FY20 contracts
Slide 9: Group Balance Sheet
GROUP BALANCE SHEET CAPITAL MANAGEMENT METRICS 1H21 FY20 Cash at bank1 $21.8m $46.8m • Cash and debt facility headroom of $122m provides capacity to fund current portfolio and consider growth opportunities 2 Bank debt $57.7m $59.3m • All bank debt financial covenants waived until 30 June 2021 Peet b
Slide 10: Group Cash Flow Summary
GROUP CASH FLOW SUMMARY FY19 FY18 1H21 1H20 CASH FLOWS RELATED TO OPERATING ACTIVITIES $M $M Receipts from customers 98.6 90.8 Receipts primarily higher due to increased project management fees and settlements from new project commencements Payments for development and infrastructure (49.7) (61.3) P
Slide 11: Operating Performance
OPERATING PERFORMANCE
Slide 12: Group Operating Performance
GROUP OPERATING PERFORMANCE • Group EBITDA up 65% on significant increase in sales IMPROVED RESULTS ACROSS NATIONAL PORTFOLIO and settlement volumes • Contribution from eastern states’ projects represented 84% of EBITDA1,2 during the first half - WA and QLD contribution improving on the back of gove
Slide 13: Group Sales And Settlement Activity
GROUP SALES AND SETTLEMENT ACTIVITY • Group sales1 for 1H21 of 1,522 lots – up 50% MARKET IMPROVEMENT DRIVING SALES PERFORMANCE - Group sales were up due to improving WA and QLD market conditions and government stimulus - Cancellation rates are moderating towards more normalised levels • Vic sales a
Slide 14: Contracts On Hand
CONTRACTS ON HAND CONTRACTS ON HAND1 (LOTS) CONTRACTS ON HAND REFLECT 2,257 2,054 IMPROVING MARKET CONDITIONS 1,786 Contracts on hand1 have increased by 15% since 30 June 2020 1,257 to 2,054 lots • Reflects improving market conditions and government stimulus Contracts value of $488m – up 14% since 3
Slide 15: Outlook
OUTLOOK
Slide 16: New Projects Provide Medium Term Earnings Visibility
NEW PROJECTS PROVIDE MEDIUM TERM EARNINGS VISIBILITY PIPELINE OF APPROXIMATELY 45,800 LOTS PROVIDING VISIBILITY OF FUTURE EARNINGS FY21 – FY23 NEW PROJECT RELEASE SCHEDULE Up to four new land community projects and nine townhouse/apartment sites to PROJECT STATE SEGMENT PROJECT LOTS2/ GDV PROJECT LI
Slide 17: Market Conditions: By State
MARKET CONDITIONS: BY STATE PEET’S SUMMARY WA QLD VIC SA ACT/NSW • Significant lots under contract after strong • 1H21 resulted in solid sales and • Positive economic rebound post • Strong new home and allotment sales • Solid employment conditions and 1Q21 as a result of government stimulus settleme
Slide 18: Group Outlook
GROUP OUTLOOK FOCUSED ON POSITIONING FOR AN IMPROVING MARKET THROUGH A CONSERVATIVE APPROACH TO PROJECT DELIVERY AND IDENTIFYING GROWTH OPPORTUNITIES • Consider opportunistic acquisitions to restock pipeline when appropriate • Currently accelerating production to meet current demand – Sales momentum
Slide 19: Appendices
APPENDICES
Slide 20: FM Operating Performance
FM OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS 1H21 1H20 VAR (%) Lot sales1 710 566 25% FM sales were up due to improving market conditions and Lot settlements 1 769 408 88% government stimulus Revenue $16.6m $10.5m 58% Reflects the strong contracts on hand at 30 June 2020 and Share of net prof
Slide 21: JV Operating Performance
JV OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS 1H21 1H20 VAR (%) Lot sales1 477 194 146% Reflects the strong contracts on hand at 30 June 2020 and 1 increased sales activity Lot settlements 312 197 58% Revenue $20.3m $19.5m 4% Earnings up due to increased sales and settlement volumes Share of n
Slide 22: Development Operating Performance
DEVELOPMENT OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS 1H21 1H20 VAR (%) Lot sales1 335 252 33% Lot settlements1 173 168 3% Higher sales due to government stimulus Land only 155 168 (8%) Medium Density product 18 - - Earnings impacted by completion of Aston (Vic) project 2 Completed Homes 33 7
Slide 23: Summary Income Statement
SUMMARY INCOME STATEMENT 1H21 1H20 Var $M $M (%) Funds Management 16.6 10.5 58% Development 56.5 56.1 1% Joint Venture 20.3 19.5 4% Share of net profit of equity accounted investments 5.3 2.4 121% Other1 1.9 2.0 (5%) Revenue 100.6 90.5 11% EBITDA 20.9 12.7 65% Finance costs2 (5.8) (4.4) (32%) Deprec
Slide 24: Summary Balance Sheet
SUMMARY BALANCE SHEET 1H21 FY20 $M $M Assets Cash and cash equivalents 21.8 46.8 Receivables 114.0 119.4 Inventories 507.2 478.5 Investments accounted for using the equity method 230.9 232.1 Other 12.5 14.1 Total assets 886.4 890.9 Liabilities Payables 32.9 33.1 Land vendor liabilities - 6.4 Borrowi
Slide 25: 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 $1,124m 2,230 Brabham WA $691m 3,168 Burns Beach WA $168m 292 Eglinton WA $240m 1,012 Golden Bay WA $115m 561 Lakelands WA $155m 900 Yanchep Golf Estate WA $3
Slide 26: 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 $30m 80 Greenlea WA $39m 257 Mundijong WA $187m 781 Glyde Street WA $35m 44 Other WA $651m 4,037 Gladstone QLD $85m 330 Flagstone North QLD $385m 1,680 Palmview QLD $104
Slide 27: 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 $77m 365 Pier Street WA $103m 188 Redbank Plains QLD $171m 721 Googong3 NSW $622m 1,368 Atria Apartments ACT $40m 65 University of Canberra4 ACT $1,856m 3,300 Lightsview
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