Peet Limited · ASX:PPC
Peet — Shareholder Meeting (November 2006)
66 slides from Peet's shareholder meeting presentation, Nov 15, 2006
Slide 1: AGM cover letter to ASX
~~ = = ‘T Enriching lives since 1895 Perth Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) $420 11114 Facsimile (08) 9481 4742 www.peel.com.au Email pertn@peet.com.au 15 November 2006 Australian Stock Excha
Slide 2: Chairman's Address
~~ = = ‘T Enriching lives since 1895 Perth Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) $420 11114 Facsimile (08) 9481 4742 www.peel.com.au Email pertn@peet.com.au Chairman’s Address Annual General Meeti
Slide 3: Chairman's Address (continued)
~~ = = ‘T Enriching lives since 1895 Perth Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) $420 11114 Facsimile (08) 9481 4742 www.peel.com.au Email pertn@peet.com.au And our success has, of course, been pa
Slide 4: Chairman's Address: placement and profit guidance
~~ = = ‘T Enriching lives since 1895 Perth Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) $420 11114 Facsimile (08) 9481 4742 www.peel.com.au Email pertn@peet.com.au In addition, existing shareholders will
Slide 5: Chairman's Address: expanded operations
~~ = = ‘T Enriching lives since 1895 Perth Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) $420 11114 Facsimile (08) 9481 4742 www.peel.com.au Email pertn@peet.com.au The strength of our land bank gives us
Slide 6: Chairman's Address: Peet Living and corporate governance
~~ = = ‘T Enriching lives since 1895 Perth Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) $420 11114 Facsimile (08) 9481 4742 www.peel.com.au Email pertn@peet.com.au Peet Living During the year, our reside
Slide 7: Chairman's Address: remuneration and the Peet team
~~ = = ‘T Enriching lives since 1895 Perth Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) $420 11114 Facsimile (08) 9481 4742 www.peel.com.au Email pertn@peet.com.au As part of today’s business you will be
Slide 8: Chairman's Address: closing
~~ = = ‘T Enriching lives since 1895 Perth Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) $420 11114 Facsimile (08) 9481 4742 www.peel.com.au Email pertn@peet.com.au Finally | thank our investors and share
Slide 9: Entiching lives since 1895 | www
Entiching lives since 1895 | www
Slide 10: $80 million institutional placement
$80 million institutional placement Ered) og ves since 1808 | way peel com cu v c
Slide 11: Placement - offer overview
Placement - offer overview Capital raising to leverage platform and drive future earnings growth Placement of 20 million Peet shares raising $82 million » New shares to rank equally with existing shares » Placement price was determined by book build at $4.10 » Placement underwritten by UBS AG, Austr
Slide 12: 2006 Results Overview
2006 Results Overvie’ Ered) og ves since 1808 | way peel com cu v c
Slide 13: 2006 Key achievements
2006 Key achievements Peet achieved earnings growth of 24% for FY06, targeting 15% EPS growth for FY07 (21.2 cps) » » » » » » Full year net profit after tax of $36.8 million (2005: $29.6 million AIFRS adjusted basis) Final dividend of 9.5 cents per share fully franked has been paid Full year dividen
Slide 14: 2006 Key achievements (continued)
2006 Key achievements (continued) Performance demonstrates Peet’s ability to consistently deliver through market cycles » » » » » » Market value of inventory increased by 33% to $325 million at June 06 Acquisition program continues to deliver land bank growth Well advanced and diversified commercial
Slide 15: Epdcbing lives since 1295 | wawypee! com au
Epdcbing lives since 1295 | wawypee! com au
Slide 16: Full year financial performance
Full year financial performance Peet has recorded and continues to project strong earnings growth » Three years historical NPAT of 24% (CAGR) » FYO7 EPS guidance maintained at 21.2 cps*—15% growth on FY06 » FYO7 DPS guidance maintained at 19.1 cps » Strong FYO6 EBIT margins—-26.3% for owned projects
Slide 17: Group financial performance
Group financial performance Significant business scale with aggregated group revenue in excess of $355 million » Charts below illustrate the Peet Group’s actual revenue and profit before tax consolidated for syndicated and joint venture projects » Growth in operations achieved through leveraging exi
Slide 18: Strong shareholder returns
Strong shareholder returns Peet has delivered solid fully franked dividend yield and growth which has driven strong TSR performance since listing Earnings per share Dividends » EPS of 18.4 cps up 24.4%, projecting 15% » Final dividend at 9.5 cps growth for FYO7 » Full year dividend at 17 cps fully f
Slide 19: EBIT by geographical region
EBIT by geographical region » Over 60% of land bank situated in Vic and Qld, providing diversification in market cycles » EBIT contribution from WA in FY07 includes earnings from commercial & residential built form projects 2006 EBIT Contribution 2007 EBIT Contribution 3% 4% 50% 47% 49% 47% BWA @Vic
Slide 20: Assets Under Management
Assets Under Management Total owned ad syndicated assets under management has grown to more than $1.2 billion 1,244 FYO6 1400 1200 1000 891 784 600 553 400 200 0) FYO3 FYO4 FYO5 ‘ Assets adjusted for market vaiue Enriching
Slide 21: Key drivers to growth
Key drivers to growth Peet has an established and scalable business model; future earnings growth to be driven by leveraging existing platform » Increased scale of FM business / syndication rollout » Increase product flow (via strengthened capital position) » In excess of 65% of repeat investment by
Slide 22: Land bank
Land bank Ered) og lives since | Wii, peeLCOMm au
Slide 23: Land bank and market position
Land bank and market position Significant land bank with an on completion value of approximately $5.4 billion’ » Australia’s third largest land bank amongst ASX listed entities » Existing controlled lots stand in excess of 30,660 with a further pipeline of 259 lots under conditional contract » Size
Slide 24: Land acquisition activity
Land acquisition activity Acquisitions team expanded to facilitate future growth 5000 » Inexcess of 3,100 lots acquired since June “500 ails 2006 has resulted in a 11% land bank am increase mt 3.198 | » Acquisitions in key states of Vic, WA and Qld: .. » Zoned industrial landholdings acquired in Vic
Slide 25: Land bank
Land bank Peet has established a quality national land bank that provides a diversified production profile Estimated on-completion value approx $5.4 billion m 13 years stock me 66 projects me 30,665 lots managed or owned y 29 Projects 15,849 Lots ‘Correct as at 30 September 06 51% 2included are owne
Slide 26: Estates — Western Australia
Estates — Western Australia > > » > » » » > > » > > » >» » » Bunbury ©) Enriching lives since 1895 | weiw.peel.com.au Ocean Lagoon Burns Beach Carramar Golf Course Estate Ashton Heights The Chase Forrest Gate Hawkstone Oakford Gardens Brookwood The Village at Wellard The Ridge Byford LakeLands Estat
Slide 27: Ashton Heights
Lo) fe, WO ASHTON HEIGHTS PRIVATE EATATE
Slide 28: Awards
Awards Urban Development Institute of Aus' Award ‘2005 Environmental’ - rn Australian Environment Award } Projected Gross Revenue if z= =: Y . . > ~ somone 7 k 2005 ‘Business Leading by Example’ | Total Area g i f Fine 1 : Housing Industry Association Greensmart ee ——— ~~ oe ~ d 2005 Development of
Slide 29: The Ridge
Slide 30: 2006 Housing Industry Association Greensmart Development of the Year
2006 Housing Industry Association Greensmart Development of the Year 2005 Planning institute Australia Awards; - Special Commendation for Urban Design -Plans and Ideas ecial Commendation for Urban Planning Achievement pecial Commendation for Community Based Planning - Award for Excellenc WA, Plannin
Slide 31: Carramar Golf Course Estate
Slide 32: Burns Beach
Burns Beach Syndicated Project | Location 5 28km North of CBD qt t Projected Gross Revenue $963 milion | Total Area | Purchase Date Completion Estimated Timing Js J 1 q i r i pron nnniweseen/ DS InANAAOsO LE NMNIADIAN AIAN DEDIDOOMNENAMDI DA posbon nonin aartvante RasaeaasanX ase’ Number of Lots Enr
Slide 33: Estates - Victoria
Estates - Victoria CONAARON Enriching lives since 1695 | wvyw.peel.con).au Craigieburn Central Greenvale Gardens Greenvale Rise Greenvale Lakes Brimbank Gardens Tarneit Gardens Tarneit Rise Innisfail Point Cook Gardens . Castlereagh . Brookland Greens . Cranbourne Central Cardinia Lakes Westbury Par
Slide 34: Brimbank Gardens
Brimbank Gardens Syndicated Project | Location 1Bkm West of CBD | Projected Gross Revenue $259 million i Total Ai | Purchase Date Jovacrememamemcenem Estimated Timing | 2002 H 2015 BRIMBANK GARDENS Number of Lots Enriching lives since 1695 | wvyw.peel.con).au
Slide 35: ees
ees PAGE Gey a RAG - ea A a og He a } Estimated Timing | Number of Lots
Slide 36: t TF Le
t TF Le 4
Slide 37: MN UIE, Le
Sy MN UIE, 5 Le LO ee
Slide 38: Syndicated Project
Syndicated Project
Slide 39: Estates - Queensland
Estates - Queensland River Bank Warner Lakes Buderim Thornlands Beachmere Mitchelton Gladstone
Slide 40: Completion
Completion
Slide 41: Syndicated and JV project pipeline
Syndicated and JV project pipeline Over 17,700 lots under management, with an estimated on-completion value of $3.4 billion? » Older syndicates make significant contribution to profits over FYO7 to FY08; Increased profitability over longer term as increased profit share is realised on more recent sy
Slide 42: Owned project pipeline
Owned project pipeline Over 12,960 lots owned with a combined estimated completion value of $2.0 billion » » Enriching lives since 1895 | ww. Owned projects contributing to profits projected to increase from 3 in FY06 to 11 over FYO7 Number of owned projects have historically low cost base No. of Lo
Slide 43: Funds management
Funds management Epdcbing lives since 1295 | wawypee! com au
Slide 44: Syndicate capital raising and distribution
Syndicate capital raising and distribution Distribution network of over 3,500 active investors; repeat investment in excess of 65% » Additional 5,500 prospective investors who receive information » Four layer fee structure de-risks earnings » Target of A$55m in equity to be raised from syndication i
Slide 45: Funds Management — income property fund
Funds Management — income property fund » » » ii) “in ee » » » » » Fund Assets Enricni 1695 | www. peel.comau A portfolio of non-CBD commercial and industrial properties Three new properties purchased in FYO7 already Expanded to over 600 unit holders $37 million funds under management Fund property
Slide 46: Commercial, residential and retirement
Commercial, residential and retirement Epdcbing lives since 1295 | wawypee! com au
Slide 47: Commercial and residential built form
Commercial and residential built form In excess of 110 commercial and residential built form projects identified in land bank; potential income fund feedstock » » » » » » Peet Commercial seeks to develop shopping centres, light industrial units, office units, bulky goods outlets and medical and chil
Slide 48: Oy o
Oy o full fine supermarket and a range of Description commercial and food outlets. centrally lor within our i Carramar Golf Course Estate on Joondalup 0%
Slide 49: Grand 56, Joondalup, WA
Grand 56, Joondalup, WA Grand 56, Joondalup, WA Mixed use (apartments & commercial) No. of retail units 25 Current Status Expected Completion Bate Off plan sates— 100% pre-sold Late 2007 Description This boutique project designed by Perth’s leading residential architects, Overman & Zuideveid, is loc
Slide 50: The Village at Wellard
The Village at Wellard | The Village at Wellard, WA i Apartments & Townhouses No. of retail units 50 Clearing of Planning Approval Conditions Current Status Expected Completion Date Autumn 2008 This transit orientated project designed by The Buchan Group and Overman & Zuideveid, forms the western si
Slide 51: Point Cook Junction
Point Cook Junction ciieeetel ecknemiemmeete eee Pues Project Type No. of retail units 1 30 Current Status Development Application Expected Completion Date | Mid 2008 This project comprises 30 live work single and two storey units located immediately adjacent to tha Description | proposed Point Cook
Slide 52: Retirement housing
Retirement housing » » » » » » Growing business organically by utilising existing (and future) Peet land estates Retirement projects will generate development profit on initial unit sales and DMF (Deferred Management Fee) income in the long term Existing Peet estates with retirement housing potentia
Slide 53: Lakelands Estate and The Village at Wellard 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’ » 2005 Planning Institute Australia Award ‘Special C
Slide 54: Market conditions and outlook
Market conditions and outlook Epdcbing lives since 1295 | wawypee! com au
Slide 55: Market outlook
Market outlook » » » » » Barriers to entry increasing due to complexity and lead times Property fundamentals to remain positive » Long term demand trends remain positive and are considered sustainable » Economic climate, employment, demand side drivers such as immigration and affordability remain po
Slide 56: Housing commencements
Housing commencements Equivalent to underlying demand running at 3,175 dwellings per week Underlying demand (dwellings) Dwelling Annuai average commencements 1996/97-2000/01 _2001/02-2005/06 — 2006/07-2010/11 2005/06 WA . “47,500 So 19,000 . 21,300 25,500 ald _ 31.000 ss “44.100 a 13,000 a 37 800 13
Slide 57: Rental Vacancy Trend
Rental Vacancy Trend Tight rental markets reflect high demand 5.0 - 40 + 3.0 Bris (2.2) “me Syd (2.1) 20 + Perth (18) Melb (17) 10 [- Source: REIA, Peet Limited 0.0 Jun-03 Jun-04 Jun-05 Jun-06 Enriching lives since 1695 | wvyw.peel.con).au
Slide 58: Population growth outlook
Population growth outlook Net Annual Population Increase 100.0 90.0 a ~ 80.0 ZN ! —~ XxX — 70.0 plo 60.0 Aa ZA \ : pe NOOSE Forecast Population 000's 0.0 r r r r r T T 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 NSW VIC QLD WA Source: BIS Shrapnel Enriching lives since 1695 | wvyw.peel.co
Slide 59: Population migration
Population migration Net Overseas Migration Net Interstate Migration Forecast Forecast ee >t “ | th ' 1999 2000 DOT 2ae FHS 200d 20S tos ——2007__ 2008 Source: BIS Shrapnel Source: BIS Shrapnel Enriching lives since 1695 | wvyw.peel.con).au
Slide 60: Affordability outlook
Affordability outlook Home Loan Affordability - Monthly Mortgage Repayments (As a percentage of total full-time earnings) 70.0 Forecast 60. 30.0 "ita =a 50.0 — 40.0 _ 30.0 20.0 18.0 0.0 T 7 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 oe SY Iey me Velbournd Brisbane —__—<Perth Source: BIS
Slide 61: Future outlook and strategy
Future outlook and strateg Epdcbing lives since 1295 | wawypee! com au
Slide 62: Future outlook
Future outlook Strong competitive advantage driven by experienced and focused management team » » » » » » Peet already owns or manages 100% of stock required to provide product to achieve our next 3 year internal revenue targets Continue to develop growth opportunities within our existing land bank
Slide 63: Forward strategy
Forward strategy Long term target to deliver EPS growth of 10% per annum » Continue to optimise Peet's core business » Continued focus of EPS growth as a key driver of shareholder value » Continue to pursue new growth opportunities » Maintain gearing target of 30% - 40% » Dividend payout ratio proje
Slide 64: About Peet
About Peet 111 Years of Assets and Funds Management Enrichini ince 1895 | weyw.peel.com.au
Slide 65: About Peet
About Peet Key issues over the past 111 years remain relevant today TORIA PARK ATION ESTATE Mea to: Ket 86 MOTOR ‘a Va INSPEST be, stot Enriching lives since 1695 | wvyw.peelc
Slide 66: Asset Manager, Land Syndicator, Fund Manager
Asset Manager Land Syndicator Fund Manager | Epdcbing lives since 1295 | wawypee! com au