Peet Limited · ASX:PPC
Peet — Shareholder Meeting (November 2020)
19 slides from Peet's shareholder meeting presentation, Nov 19, 2020
Slide 1: 2020 Annual General Meeting
19 November 2020 For personal use only 2020 Annual General Meeting (“AGM”) Enclosed are copies of an address and a presentation to be given at today’s AGM of Peet Limited (“Peet”) by Mr Tony Lennon, Chairman and Mr Brendan Gore, Managing Director and Chief Executive Officer, respectively. This annou
Slide 2: Chairman's Address to 2020 Peet Limited Annual General Meeting
19 November 2020 For personal use only Chairman’s Address to 2020 Peet Limited Annual General Meeting I confirm that all Directors are present virtually at today’s AGM and we have also arranged for the Company’s auditor, Mr Geoff Lotter from Ernst & Young, to be present. Later in the meeting you wil
Slide 3: Chairman's Address: FY20 dividends and strategic focus
Operating earnings per share for FY20 equated to 3.1 cents (statutory loss per share of 6.2 cents) and the Directors declared a final dividend for FY20 of 1.0 cent per share, fully franked, bringing the total dividend for FY20 to 1.5 cents per share, fully franked. This compares to a full-year divid
Slide 4: Sustainability and community building
• Googong trialled a new innovative recycled road product, known as Reconophalt - a first for the ACT / Queanbeyan region. A one kilometre, two-lane road paved with Reconophalt can contain 500,000 plastic bags and packaging equivalents, 165,000 glass bottle equivalents and toner from 12,000 used pri
Slide 5: Annual General Meeting 2020
For personal use only ANNUAL GENERAL MEETING 2020 ANNUAL GENERAL MEETING ǀ 20 NOVEMBER 2019 ǀ PAGE 1
Slide 6: Peet is well positioned to leverage market recovery
PEET IS WELL POSITIONED TO LEVERAGE MARKET RECOVERY For personal use only 1 FY20 operating earnings of $15.1m in-line with guidance range of $14-16m 2 Sales growth of 43% in FY20 underpinned by strong pickup in WA and QLD 3 Contracts on hand up 42% providing positive momentum into FY21 Government st
Slide 7: Largest 'pure play' residential developer in Australia
LARGEST ‘PURE PLAY’ RESIDENTIAL DEVELOPER IN AUSTRALIA INTEGRATED MODEL WITH PROVEN CAPITAL PARTNERING CAPABILITY For personal use only • Property development company established in 1895 • Listed on the ASX in 2004 Significant and diversified land bank encompassing more than 47,000 lots across 51
Slide 8: Broad customer and product reach
BROAD CUSTOMER AND PRODUCT REACH SCALE PIPELINE WITH LOW COST BASE PROVIDING SOLID EMBEDDED MARGINS For personal use only Peet manages a broad property 47,323 portfolio, encompassing 47,000 LOTS lots across 51 projects Diversified land bank $13.9bn strategically located in growth END VALUE corridors
Slide 9: Significant operating leverage potential
SIGNIFICANT OPERATING LEVERAGE POTENTIAL c.80% OF LAND BANK EXPECTED TO BE IN PRODUCTION BY FY23 For personal use only 60,000 c.80% Pipeline in 50,000 production 47,323 lots c.70% Pipeline in Projects: 7 NO. OF LOT/UNITS production Lots: 8,353 40,000 38,970 lots Projects: 10 32,904 lots Lots: 6,066
Slide 10: Delivering against our strategy
DELIVERING AGAINST OUR STRATEGY PORTFOLIO WELL POSITIONED FOR POSITIVE MEDIUM TO LONG TERM GROWTH AND VALUE CREATION STRATEGY KEY ACHIEVEMENTS (FY20) For personal use only Invest in high quality land in strategic • Two townhouse sites and one broadacre land project INVEST locations across country se
Slide 11: Group FY20 financial results
GROUP FY20 FINANCIAL RESULTS RESULT IMPACTED BY LOWER SETTLEMENTS AND COVID-19 KEY PERFORMANCE STATISTICS FY20 FY19 VAR (%) For personal use only Lot sales1 2,323 1,629 43% Group sales were up due to improving market conditions and government stimulus Lot settlements1 1,794 2,629 (32%) Reflects the
Slide 12: Group cash flow summary
GROUP CASH FLOW SUMMARY OPERATING CASH FLOW IMPACTED BY LOWER SETTLEMENT VOLUMES IN FY20 FY19 FY18 For personal use only FY20 FY19 CASH FLOWS RELATED TO OPERATING ACTIVITIES $M $M Receipts from customers 191.6 269.8 Receipts lower due to lower land settlements, deferral of new project commencements
Slide 13: Enquiry levels remain strong
ENQUIRY LEVELS REMAIN STRONG • Enquiries remain strong at above pre-COVD-19 levels WA QLD 1400 3000 • Strong sales achieved in June and July moderated in 1200 For personal use only August and September but remain above FY20 averages 2500 1000 • WA and QLD conversion rates likely to moderate over 200
Slide 14: Contracts on hand
CONTRACTS ON HAND CONTRACTS ON HAND1 (LOTS) CONTRACTS ON HAND REFLECT IMPROVING MARKET CONDITIONS For personal use only 2,257 2,046 1,786 Contracts on hand1 – up 15% since 30 June 2020 to 2,046 lots 1,257 • Reflects improving market conditions and government stimulus Contracts value of $483m – up 13
Slide 15: New projects provide medium term earnings visibility
NEW PROJECTS PROVIDE MEDIUM TERM EARNINGS VISIBILITY PIPELINE OF APPROXIMATELY 47,000 LOTS PROVIDING For personal use only VISIBILITY OF FUTURE EARNINGS FY21 – FY23 NEW PROJECT RELEASE SCHEDULE Up to four new land projects and Project State Segment Commencement of Lots1/Units Project Life three town
Slide 16: Market conditions: by state
MARKET CONDITIONS: BY STATE PEET’S SUMMARY For personal use only WA QLD VIC SA ACT/NSW • Most estates performed strongly in 1Q21 with • Enquiry & sales improved late in • Restrictions have delayed built • Strong sales across all estates in • Tight supply to underpin demand in residual stock absorbed
Slide 17: Strong platform for sustainable growth, through cycles
STRONG PLATFORM FOR SUSTAINABLE GROWTH, THROUGH CYCLES For personal use only • Strategic land bank provides long term earnings visibility SCALE • Counter-cyclical acquisition strategy has allowed the Group to capitalise on value accretive opportunities LAND BANK • Expect c.80% of land bank to be in
Slide 18: Group outlook
GROUP OUTLOOK FOCUSED ON POSITIONING FOR AN IMPROVING MARKET THROUGH A CONSERVATIVE APPROACH TO PROJECT DELIVERY AND IDENTIFYING GROWTH OPPORTUNITIES For personal use only • Government stimulus has contributed to strong sales in 1Q21 - Sales momentum continuing into 2Q21 albeit at lower levels than
Slide 19: 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. This presentation contains forward-looking sta