Peet Limited · ASX:PPC
Peet — Peet & Company — H1 2006 Earnings Presentation
49 slides from Peet's earnings presentation, Feb 27, 2006
Slide 1: Cover letter to ASX: half year presentation
. 27 February 2006 Australian Stock Exchange Limited Exchange Centre Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam HALF YEAR PRESENTATION Please find attached Peet & Company Limited's presentation in respect to the financial results for the half-year ended 31 December 2005. Yours faithfull
Slide 2: Peet & Company Limited 2006 Half Year Results Presentation
PEET & COMPANY LIMITED 2006 HALF YEAR RESULTS PRESENTATION 27 FEBRUARY 2006
Slide 3: Agenda
Agenda Highlights 1H06 Results Divisional Performance Market Environment Direction and Strategy
Slide 4: Sound first half operating result after tax of $17.1 million
Sound first half operating result after tax of $17.1 million Interim dividend of 7.5 cents per share 100% franked (1HO5: 5 cents) Strong balance sheet and conservative gearing Sales of over 1,300 lots (a record) across the group including managed entities with a gross sales value of more than $193 m
Slide 5: Strong ongoing program of acquiring well located land parcels
Strong ongoing program of acquiring well located land parcels in WA, VIC and QLD Continuing sound sales activity Progressed Income Fund and Retirement Living strategies Successful completion of Cranbourne syndication in record time Continued focus on earnings per share growth as driver of increased
Slide 6: 1H06 Results in Summary
1HO6 Results in Summary Revenue Fo 122% = 55.3m Net Profit Bo 67%) «=17.41m Earnings per share T 67 % 8.5 ¢ Dividend per share T 50 % 7.5¢ Gearing (net bank debttotal tangible assets adjusted for market value) 30 % * 1105 comparison has been calculated under AIFRS
Slide 7: Revenue & Profit Growth
Revenue & Profit Growth Revenue NPAT 60.0 qoermerne S$ 55.3 18.0 $17.1 m 16.0 50.0 14.0 40.0 4 12.0 4 E 10.0 5 & 30.0 4 & 30] 20.0 4 6.0 5 4.04 10.0 4 2.0 0.0 4 0.0 4 4HO5 41HO6 4HO5 4HO6 * 1H05 comparison has been calculated under AIFRS
Slide 8: Shareholder Return
Shareholder Return cents Earnings Per Share 9.0 7 8.5¢ 8.0 5 8.0 4 7.0 4 7.0 4 6.0 | 67% 604 50! : ° 5.0 | 4.0 | go) 30 | 3.0 | 2.0 7 2.0 4 1.0 | 1.04 0.0 4 0.0 Dividend Per Share 1HO5 1HO6 * 1H05 Comparison has been calculated under AIFRS 1HOS 7.5¢ 1H06
Slide 9: EBIT contribution by activity
EBIT contribution by activity EBIT Contribution by Activity Half Year end 31 Dec 2005 $30m 5 & Joint Ventures $25m 4 oe m Funds Management/Land Syndication $20m 4 1B Land Development $15m 4 Soa 1HO5 4HO6 Land Development * Strong growth in revenue and EBIT due to increased settlements particularly A
Slide 10: Strategic Growth
Strategic Growth Asset and funds management, underpinned by Australia’s third largest landbank
Slide 11: Slide 11
Slide 12: Land - ASX listed developers and LPTs landbank
Land — funds management & owned projects ASX listed developers and LPTs - Landbank: 80,000 4 70,000 4 60,000 4 50,000 4 40,000 4 30,000 +4 20,000 4 10,000 4 04 Delfin Lend Stockland Peet & Co Mirvac ” Australand Investa Cedar Lease Woods Source: UBS
Slide 13: Land - lots owned or managed by state
Land — funds management & owned projects 12 years stock 49 Projects 26,320 Lots owned or managed QLD: 2 Projects Owned Projects Syndicates Joint Venture TOTAL QLD Landbank WA: 24 Projects lots Owned Projects 1,208 e Syndicates 6,767 € Joint Venture 2,918 TOTAL WA Landbank _ 10,893 NSW: 1 Project Own
Slide 14: Land - funds management & owned projects
Land — funds management & owned projects * Solid profit performance influenced by strong demand in WA and steady market conditions in VIC and QLD * Strong pre-sales carried forward into 2H06 (1,320 lots are yet to settle) * Continued ongoing program of acquiring well located land parcels in WA and V
Slide 15: WA project map
‘Ocean Lagoon Burns Beach Carramer Gott Course Ashton Heights Hammond Park Forest Gate Hawkstone Oakford Gardens Brookwood ; Wag The Vilage at vii han ‘gs i i Weilard i Pies y The Ridge NN 2 ], St Michel Private (Sold Qul) “ Garden Estate Lakelands Estate Twin Rivers a y ‘Quatiro: The New Queens Par
Slide 16: The Ridge (Baldivis) and Ashton Heights (Tapping)
THE RIDGE (Baldivis) A Purchased 1995 Le (= Distance from CBD 42km South Lots 310 plus commercial _) Project Life 13 years ASHTON HEIGHTS (Tapping) Purchased 2003 Distance from CBD —- 28km North Lots 598 Project Life 7 years
Slide 17: The Village at Wellard (Wellard)
THE VILLAGE AT WELLARD (Wellard) Purchased 2003 Distance from CBD 29km South Lots 2,637 Project Life 10 years
Slide 18: Victoria project map
1 2 3. 4, 5. 6. 7, 8. Craigieburn Centrat Greenvale Gargens Greenvale Rise Greenvale Lakes Brimbank Gardens Tameit Gardens Farnell Rise Snnisfail 9. Point Cook Gardens: 10, Castlereagh 44, Brookiand Greens 412, Panorama (Soié out) 43, Cardinia Lakes 14, The Parks at Innisfail 45, Westville Gardens
Slide 19: Greenvale Lakes (Greenvale)
GREENVALE LAKES (Greenvale) Purchased 2003 ‘ } Distance from CBD 20km North ic. Lots 2,545 Project Life 15 years
Slide 20: Innisfail (Point Cook)
INNISFAIL (Point Cook) Purchased 1999 Distance from CBD 22km West Lots 1,750 Project Life 10 years
Slide 21: Tarneit Gardens (Tarneit)
TARNEIT GARDENS (Tarneit) Purchased 2003 Distance from CBD 25km West Lots 1,087 Project Life 8 years
Slide 22: Queensland projects: River Bank
Slide 23: Warner Lakes (Warner)
foe ce oe WARNER LAKES (Warner) Purchased 2002 Lots 1,024 Project Life 7 years Distance from CBD 21km North
Slide 24: Project pipeline
Land — funds management & owned projects PROJECT PIPELINE ‘Ashton Heights, Tapping Brigadoon Brookwood, Brookdale Burns Beach Byford Carramar Forrest Gate, Forrestdale Hawkstone, Brookdale Lakelands The Ridge, Stage 8 The Ridge. Stage 9 Mardo Ave (Austratind) Oakford Gardens, Oakford Quattro, Queens
Slide 25: Land acquisition activity
Land — funds management & owned projects LAND ACQUISITION ACTIVITY * 6 acquisitions in VIC & WA with potential yield of 2,050 residential lots * Net increase in landbank since listing of approximately 2,000 lots * Range of other strategic acquisitions under due diligence in WA, VIC & QLD ¢ Acquisiti
Slide 26: 2005 Awards
Land — funds management & owned projects 2005 AWARDS LAKELANDS ESTATE (WA) * Urban Development Institute of Australia Award ‘2005 Environmental * Western Australian Environment Award 2005 ‘Business Leading by Example’ Finalist * Housing Industry Association Greensmart ‘2005 Development of the Year’
Slide 27: Income Property Funds
Income Property _. Funds |
Slide 28: Income Property Funds
Income Property Funds INCOME FUNDS Peet Income Property Fund launched in May 2005 Portfolio consists of six modern commercial properties at Brisbane Technology Park (5) and Canning Vale, WA (1) Fund has received a solid level of investor interest, distribution networks being developed to facilitate
Slide 29: Income Property: potential industrial complex
income Property Potential industrial complex Potential Feedstock for Peet Income Fund Area 24 hectares (60 acres) Location 20km west of Melbourne Excellent freeway and ring road access
Slide 30: r
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Slide 31: Retirement Living
Retirement Living . Priority is to grow business organically by utilising existing (and future) Peet land estates , Existing Peet estates with retirement housing potential have been identified and estate master-plans have been amended to incorporate the best product/concept for each location . Now i
Slide 32: Market Environment
Slide 33: Market Outlook
Market Environment MARKET OUTLOOK * Barriers to entry increasing due to complexity and lead times * Property fundamentals to remain solid over the next year — Steady interest rates — Population growth — Low unemployment — Improving purchaser sentiment * Individual states have different dynamics - WA
Slide 34: Housing Commencements
Market Environment HOUSING COMMENCEMENTS : Dwelling i Underlying Demand - Annual Average i 000 dwellings) Commencements ( (‘000 dwellings) 1996/97- 2001/02 - 2006/07 - DINE PDDP IZOD WEEDON DOD PTIDALED OMI EIODEVE DODD 2000/01 2005/06 201 0/11 2005/06 Western Australia 17.5 19.0 21.3 25.6 Victoria
Slide 35: Population Growth Outlook
Market Environment POPULATION GROWTH OUTLOOK Net Annual Population Increase 95,000 90,000 + post Forecast 85,000 4 80,000 4 75,000 4 70,000 + 65,000 4 60,000 4 55,000 4 $0,000 4 45,000 4 40,000 4 35,000 4 30,000 4 25,000 4 20,000 : 7 r 7 . : : f Jun-98 — Jun-99 — Jun-00 Jun-01 Jun-02 Jun03— Jun-04-
Slide 36: Population Migration
Market Environment POPULATION MIGRATION Net Overseas Migration Net Interstate Migration 60,060 - 40,000 Forecast 85,000 30,000 50,600 ra 20,000 45,000 16,000, @ 40,000 rm a 8 oe @ 35000 3 6 —~ o 5 a cause Oo 36,600 2 -16,000 25,600 TT wf 26,600 20,000 Oe aa 36,000 —“_ atl 40,000 15000 Ct ere Na ype
Slide 37: Affordability Outlook
Market Environment AFFORDABILITY OUTLOOK Home Loan Affordability- Monthly Mortgage Repayments (As a percentage of total full-time earnings) 65 Forecast 55 ra 45 4 eo ss % 35 25 15 ; : ; r ; , : ; dun-98 Jun-99 Jun-00 Jun-01 Jun-02 Jun-03 Jun-04 Jun-05 Jun-O6 Jun-07 Jun-08 Sydney Melbourne Brisbane P
Slide 38: Australian Residential Market
Market Environment AUSTRALIAN RESIDENTIAL MARKET Number of Building Approvals, Private Sector, Proportion of Housing Finance by type Australia (excluding refinancing), Australia 1s 35,000 30.000 55 25000 5s 20.000 ts 15.000 9.000 7 5.000 Dee9S Dee-96 Deew9S Dec-99 Dec-00 Dec-O1 Dec-O2 Dee-03 DeewO4
Slide 39: WA Residential Market Outlook
Market Environment WA RESIDENTIAL MARKET OUTLOOK Number of Building Approvals, Private Sector, WA Number of loans to First Home Buyers, WA 6000 3000 | a__[\ Ao “ WAV |TV V 3500 2.006 1006 CO ON ai 2300 Dec-95 Dee-96 Dec9F —Dee-98 —Dee-99 Dee Dee-0F Dee-02Dec-OR —ee-08 —ree-05 Dees Dee-96 Dec$7 Dec¥S
Slide 40: WA Residential Market Outlook: Employment
Market Environment WA RESIDENTIAL MARKET OUTLOOK Employment Growth Rate, WA 80 80 A TQ 4 604 504 we 404 30 4 20 4 00 Sy - V : + r -10 Jan-99 Jan-00 Jan-01 Jan02 Jan-03 Jan-04 Jan-05 Jan-06 Annual Employment Growth Rate (seasonally adjusted) ———=Unemplo yment Rate (seasonallyadjusted) Souree: ABS
Slide 41: VIC Residential Market Outlook
Market Environment VIC RESIDENTIAL MARKET OUTLOOK Number of Building Approvals, Private Sector, VIC Number of loans to First Home Buyers, VIC 10,00 9,000 4 8,000 *0000 7,000 PY“ 6,000 VW 8000 N\ 5,000 / Siw VV 4,000 Vz 8000 | | 3,000 2.000 H 4000 4 4,000 ia 2000 Dec-95 Dec-96 Dec-O7 Dec-98 Dec-09 De
Slide 42: VIC Residential Market Outlook: Employment
Market Environment VIC RESIDENTIAL MARKET OUTLOOK Employment Growth Rate, VIC % 10 \ op WV T T T T -10 Jan-99 Jan00 Jan-Ot Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Annual Employment Growth Rate (seasonally adjusted) —_—lUnem ployment Rate (seasonally adjusted) Source: ABS
Slide 43: QLD Residential Market Outlook
Market Environment QLD RESIDENTIAL MARKET OUTLOOK aa . Number of loans to First Home Buyers, QLD Number of Building Approvais, Private Sector, QLD yers, Q 10000 9,000 8,000 fr 7,000 8000 6,000 §,000 af g000 + 4,000 3,000 \ Wa 4000 2,000 1,600 . 2000 Dec-95 Dec-96 Dec-97 Dec-98 Dec-99 Dec-00 Dec-01 D
Slide 44: QLD Residential Market Outlook: Employment
Market Environment QLD RESIDENTIAL MARKET OUTLOOK Employment Growth Rate, QLD % Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06 Annual Employment Gro wth Rate (seasonally adjusted) ——_.Lnemplo yment Rate (seasonally adjusted) Source: ABS
Slide 45: Future outlook & strategy
Slide 46: Future outlook and strategy
Future outlook and strategy « Continued focus on EPS growth as driver of shareholder value * Continue to develop new income streams « Strong balance sheet to capitalise on opportunities * Strong competitive advantage driven by experienced and focussed management team ¢ Continue to focus on acquisiti
Slide 47: Years of experience
111 years of experience ....... TA Ge BPoD SECTIONS 42.5 LOCATION i373. ue
Slide 48: Years of experience
111 years of experience ....... VICTORIA PARK STATION ESTATE Oppanite the Railway Station, MOTOR FREE TO INSPECT Made Roads, Electric Light, Water ins, 3 Stations, 22 Miles GPO, Perth, Tram within 5 Masten This Unigque. Tree be: PLANS. FREE 4 ACRE Sena antes Lots £25 SM! DEPOSIT — ve noses -roposed
Slide 49: Contacts and disclaimer of liability
Y) eae O 4) eal O O Warwick Hemsley (08) 9420 1111 Managing Director Anthony Lennon (03) 9868 5900 Executive Director Brendan Gore (08) 9420 1111 Chief Financial Officer (2] PEET PERT & COMPANY LIMITED (EST. 1995) ABN 58 008 665 B34 Disclaimer of Liability While every effort is made to provide accur