Slide 1: FY12 Results Presentation
For personal use only FY12 Results Presentation August 2012 Bringing Land to Life
Slide 2: Key messages
Key messages » $20 3m1 Operating net profit after tax of $20.3m For personal use only » Operating EPS of 6.3c1 » Statutory profit of $5.4m, including $14.9m in write‐downs, predominantly on non‐core FY12 RESULT assets sold and identified for sale » NTA of $1.242 per share » Gearing3 of 39.7% » Marke
Slide 3: Initiatives are underway to increase returns
Initiatives are underway to increase returns For personal use only » Targeting $100m of asset disposals throughout CY13 ̶ $40m under unconditional Reduce debt contract which are contracted to settle by December 2012 » Improving operating cash flows Reduce debt » Minimal land vendor payments over the
Slide 4: Results overview
For personal use only RResults t overview
Slide 5: Financial summary
Financial summary For personal use only FY12 FY11 Var (%) Operating Net Profit1 $20.3m $44.0m (54%) O Operating i Earnings i per Share Sh 6 3 cents 6.3 14.6 6 cents ( %) (57%) Dividend per Share 0 cents 8.5 cents (100%) Statutory Net Profit $5.4m $22.1m (76%) NTA per Share2 $1.24 $1.37 (9%) Gearing
Slide 6: Group financial summary
Group financial summary For personal use only » Group revenue of $146.9m, down 22% $m FY12 FY11 Var (%) » Operating EBITDA1 of $46.6m, down 43% Revenue 146.9 188.7 (22%) EBITDA1 46 6 46.6 81 2 81.2 (43%) » 32% EBITDA margin Net EBITDA margin 32% 43% (11%) » Operating NPAT1 of $20.3m, down 54% Operat
Slide 7: Group operating performance
Group operating performance » Funds Management business provided strong FY12 EBITDA composition by business type1 (%) For personal use only earnings base representing 40% of group EBITDA 40 38 » Smaller number of larger projects driving Company‐owned development returns 49 44 » Earnings contribution
Slide 8: FM operating performance
FM operating performance Key performance statistics FY12 FM revenue composition by type For personal use only $m FY12 FY11 Var (%) Revenue 28.5 46.4 ( (39%) ) 34 30 57 63 Operating expenses (9.7) (15.7) 38% EBITDA 18.8 30.7 (39%) 7 FY11 Net EBITDA margin 66% 66% 0% 6 FY12 Project Management Selling
Slide 9: Development operating performance
Development operating performance Key performance statistics FY12 revenue composition by geography (%) For personal use only $m FY12 FY11 Var (%) Revenue 18 ‐ Retail 87.2 120.6 (28%) ‐ Super lots 6.0 ‐ ‐ 28 62 Operating p g expenses p 1 ((73.0)) ((80.5)) 9% 56 EBITDA2 20.2 40.1 (50%) 26 10 FY11 Net
Slide 10: Contracts on hand
Contracts on hand For personal use only » Contracts on hand of Contracts on hand 788 lots for $235 million 1200 1,125 $300 $289 » Down predominantly $21 due to: 95 1000 $250 $235 $41 178 $18 » Market weakness 788 800 $ $200 $35 82 Millions Lots » Substantially 600 141 $150 reduced capital 852 $227 i
Slide 11: Operational update
For personal use only Operational Op t update p t
Slide 12: Operational strategy
Operational strategy » Key changes to project strategy For personal use only » Gladstone (Qld) » Development to be accelerated over FY13 and FY14 » Craigieburn (Vic) » Smaller stage sizes delivering a range of product and price‐points to minimise capital expenditure and market risk » Greenvale (Vic)
Slide 13: Land bank – key projects
Land bank – key projects Lots1 remaining Project name GDV Project Lifecycle (at 30 June 12) For personal use only Funds Management 2012 2013 2014 2015 2016 2017 Alkimos $752m 2,803 Selling Burns Beach $346m 737 S lli Selling Golden Bay $296m 1,682 Selling Lakelands $261m 1,814 Selling Wellard (JV) $
Slide 14: Land bank – key projects (cont.)
Land bank – key projects (cont.) Lots1 remaining Project name GDV Status Project Lifecycle For personal use only (at 30 June 12) Company‐owned projects 2012 2013 2014 2015 2016 2017 Brigadoon $118m 210 On schedule Selling Chase, Baldivis $87m 506 On schedule Planning Start Up Selling WA Mundijong $9
Slide 15: Land bank by geography (%)
Land bank by geography (%) For personal use only » Counter‐cyclical repositioning of land bank to longer term growth states of 40 19 WA andd Qld ld 40 19 » Significant re‐weighting to improving 37 21 markets over the past three years 16 34 50 42 41 2010 2011 2012 41 2013 (Forecast) WA Vic Qld Notes:
Slide 16: Key projects underpinning outlook for FY13 and beyond
Key projects underpinning outlook for FY13 and beyond For personal use only Greenvale/Craigieburn, Vic Vantage Gladstone, Qld Flagstone City & East, Qld Lots remaining: 3,380 GDV: $667m Lots remaining: 404 GDV: $99m Lots remaining: 13,253 GDV:$1,921m » Located in the Hume growth » Historical acquisi
Slide 17: Key projects underpinning outlook for FY13 and beyond
Key projects underpinning outlook for FY13 and beyond For personal use only Shorehaven at Alkimos, WA Yanchep Golf Estate, WA Riverbank Caboolture, Qld Lots remaining: 2,803 GDV: $752m Lots remaining: 1,471 GDV: $334m Lots remaining: 1,321 GDV: $188m » Located in the City of Wanneroo, in » Attractiv
Slide 18: Value of Peet's land bank
Value of Peet’s land bank » Bank instructed mortgage valuations undertaken annually to provide an independent view of the For personal use only underlying value of Peet’s portfolio » Independent mortgage valuations of portfolio assets at year end of $560m compared to $586m at June 2011 » NTA per sha
Slide 19: Funds Management platform
Funds Management platform For personal use only » Despite challenging trading conditions, both the retail and wholesale funds management platforms are in a strong position » Significant platform across 35 projects » Project management and selling fees representing c.60% of funds management revenue »
Slide 20: Capital management
For personal use only CCapital p t management g t
Slide 21: Capital management
Capital management » Cash and available debt facilities totalled $54m at year end For personal use only » Gearing1 increased to 39.7% due to » Cash utilised to acquire 50% interest in Flagstone City and first land acquisition with Future Fund » D l Development t expenditure dit on major j new projec
Slide 22: Operating cash flow breakdown – FY12
Operating cash flow breakdown – FY12 » Expecting free operating cash‐flow improvements through FY13 For personal use only » Future acquisitions through funds management division ̶ balance sheet capital employed to be reduced and substantiallyy allocated towards debt reduction » Payments for land to
Slide 23: Capital strategy
Capital strategy For personal use only » Peet is continuing to prioritise its capital position » Careful allocation of capital into projects ̶ in particular Victoria » This strategy will remain in place until there is greater certainty around market depth and confidence » g Negative impact p on earn
Slide 24: Market overview & outlook
For personal use only Markett overview & outlook M t
Slide 25: Residential market overview
Residential market overview The state markets are at very different points in their cycles: For personal use only WA Positive signs emerging Weighting » Residential market improved in 2H FY12 – increase in dwelling starts and recovering home prices » Rental rates increasing and vacancy levels at low
Slide 26: Outlook
Outlook For personal use only » Structurally, the underlying foundations of the residential sector remain sound » Most markets are in undersupply » Strong population growth » Employment has remained robust, however note there is some structural change in the employment base » However, consistent wit
Slide 27: Outlook (cont.)
Outlook (cont.) For personal use only » Due to the combination of these factors Peet has maintained the position of being selective with its capital investment » Slowed capital investment in Victoria » Additional investment in Gladstone » Focus remains on strengthening the capital position of the bu
Slide 28: Thank you
For personal use only TThank yyou
Slide 29: Annexures
For personal use only F Y 12 A 1 Annexures
Slide 30: Summary income statement
Summary income statement For personal use only $m FY12 FY11 Var (%) Funds management 28 5 28.5 46 4 46.4 (39%) Development 93.2 120.6 (23%) Other1 25.2 21.7 16% e e ue Revenue 146.9 188.7 (22%) EBITDA (pre inventory write‐downs) 46.6 81.2 (43%) Finance costs2 (16.9) (15.6) (8%) Depreciation and amor
Slide 31: Summary balance sheet
Summary balance sheet $ $m 30 JJune 12 30 JJune 11 For personal use only Assets Cash 22.6 57.2 Receivables ece ab es 83.4 82.3 Inventories 428.2 421.4 Investments accounted for using the equity method 91.8 36.1 Other 13.3 13.1 Asset classified as held for sale 74.9 69.5 Total assets 714.2 679.6 Liab
Slide 32: JV operating performance
JV operating performance Key performance statistics For personal use only $m FY12 FY11 Var (%) Revenue 20.1 17.0 18% Operating expenses (17.5) (11.4) (54%) EBITDA 26 2.6 56 5.6 (54%) Net EBITDA margin 13% 33% (20%) K operating Key ti statistics t ti ti FY12 FY11 Var (%) Lot sales 244 164 49% Lot set
Slide 33: Group Business model
Group Business model Target EBIT Target EBIT Land Bank Diversification Land Bank Capital Sources of For personal use only Composition Margin by Geography (%) Employed1 Revenue 23 22 21 44 41 47 Lots: 13,973 40% – 50% EBIT Development 25% ‐35% GDV ($bn): 2.6 $505m » Development profit 32 # Projects:
Slide 34: Extensive experience in land development
Extensive experience in land development Peet is developing some of the most significant masterplanned communities across Australia For personal use only Syndicated / managed projects Peet owned projects Joint ventures 34
Slide 35: Disclaimer
Disclaimer For personal use only » 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. Subject to any terms implied by law and whic