Slide 1: Peet & Company Ltd Results Presentation
Peet & Company Ltd Results Presentation Year ended 30 June 2005 23 August, 2005
Slide 2: Contents
Contents ¢ Highlights ¢ Group financial performance ¢ Divisional performance ¢« Peet & Co’s landbank ¢ Market conditions and outlook ¢ Future direction and strategy 2 (]} PEET
Slide 3: Key achievements
Key achievements Full year net profit after tax of $31.6 million, prospectus profit forecast of $31.1m exceeded Final dividend of 7 cents per share fully franked Full year dividend of 12 cents per share (ahead of prospectus forecast of 10.9 cents) — payout ratio = 75% Successful initial public offer
Slide 4: Financial highlights
Financial highlights Net profit after tax Earnings per share Dividends per share NTA per share NTA per share (adjusted for market value) Total assets at book value Gearing - net debt/total tangible assets (adjusted for market value) Total return to IPO participants: - Capital growth (based on $1.75
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Slide 6: Full year financial performance
Full year financial performance Actuai (full year) 30 Jun 2005 $m Revenue (excl interest income) 76.3 Operating expenses (29.5) EBITDA 46.8 Depreciation (0.2) EBIT 46.7 EBIT margin % 61.2% Net interest expense (0.8) Profit before tax 45.9 Tax (14.3) Net profit after tax 31.6 Earnings per share 15.8
Slide 7: Three year revenue and profit growth
Three year revenue and profit growth Revenue Net Profit After Tax $90m $40.0m $76m ssom $35.0m $31.6m $70m $64m $30.0m $28.7m $60m sso $49m s $25.0m 4 m 19.3 4 18.8% $20.0m $18.3m 10.1% $40m 4 | h ! 15.0 $30m 32.0% $15.0m 48.7% $20m | $10.0m | $10m $6.0m FY03 FY04 FY05 FY03 FY04 FYOS Year ended 30 J
Slide 8: Shareholder returns
Shareholder returns Earnings per share Dividends per share 18.0¢ 14.0¢ 15.8¢ 12.0¢ 16.0¢ 14.4¢ 12.0¢ 14.0¢ 10.0¢ 4 10.0¢ 12.0¢ G.7% 4 16.0% 10.0¢ o7¢ 8.0¢ | 8.0¢ 4 6.0¢ 48.5% 4.5¢ 6.0% ¢ 4.0¢ 4 4.0¢ 122.2% 2.0¢ 2.0¢ | FY03 FYO4 FY0S FYO3 FYO4 FYOS Year ended 30 June Note: To enable comparability to
Slide 9: Balance Sheet Jun 2005 Jun 2004
Balance Sheet 30 Jun 2005 30 Jun 2004 $m $m ¢ Land held for development and Assets resale classified as Inventory Cash 17.4 6.3 . Inventory 130.5 99.3 * Market value of land is Receivables 29.0 20.3 i if; i H ectwente 32 33 significantly higher than carrying Property, plant & equipment 1.2 07 value
Slide 10: Impact of AIFRS
Impact of AIFRS Required to adopt AIFRS for the year ended 30 June 2006 First reporting period is half year to 31 Dec 2005 The adoption of AIFRS will NOT impact: « Business operations « Net cash flows * Debt covenants Key impacts to profit and loss statement: ¢ UIG53 profit recognition (short term)
Slide 11: Impact of AIFRS
Impact of AIFRS ¢ Headline net profit effect likely to be more volatile ¢ Minor effect on restated FY05 underlying operating profit: $m Revenue UIG53 (2.46) UIG Performance fee adjustment 0.25 Employee benefit expense (0.41) (2.62) Income tax effect 0.66 (1.96) EPS effect (1.0) cents * Minor effect
Slide 12: Current operating divisions
Current operating divisions 7) development | &sales a tt ‘i 2 i ii icc (ON noS Projects) LONI @ Western Australia ¢ Victoria ¢ Victoria @ Western Australia ; « NSW Returns : Profit Capital’ I Land + working capital rking capita Notes: 4. Contributed by Peet 2. Peet typically underwrites syndicates a
Slide 13: Senior management team
Senior management team BOARD OF DIRECTORS Tony Lennon (Non Executive Chairman) Warwick Hemstey (Executive) Stephen Higgs (Non-Executive) Graeme Sinclair (Non-Executive) Anthony Lennon (Executive) MANAGING DIRECTOR Warwick Hemsley NATIONAL BUSINESS DEVELOPMENT DIRECTOR Anthony Lennon ‘STATE BUSINESS
Slide 14: EBIT contribution by activity
EBIT contribution by activity EBIT Contribution by Activity EBIT Contribution by Activity Year ended 30 June 2005 Year ended 30 June 2004 Funds Management 73% Funds Management 57% Owned Projects 25% ‘Joint Venture Projects 2% Growing contribution in the period from Owned Projects versus Syndicated P
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Slide 16: Owned projects — financial performance
Owned projects — financial performance Actual - year ended 30 Jun 2008 30 Jun 2004 $m $m Revenue 43.2 23.5 EBIT 19.3 10.3 EBIT margin % 44.6% 43.7% Number of income generating projects 4 1 Total lot sales* 343 196 * Lot sales based on full lot equivalents ¢ Strong growth in revenue and EBIT due to t
Slide 17: Funds management
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Slide 18: Funds management — financial performance
Funds management — financial performance Land syndication « FY05 results ahead of budget Actual “year ended * Good syndication activity in 2"¢ half aor rand * Strong demand for Peet's traditional land syndicate product Revenue 31.9 35.9 . EBIT 26.5 30.1 ¢ Strong rate of return for syndicate EBIT mar
Slide 19: Funds management - Income Funds
Funds management - Income Funds NEW-ACQUISITION CANNING VALE(WA) EFER SUPPLEMENTARY PDS:FOR DETAILS. Peet Income Property Fund launched in May 2005 Fund launched with a portfolio of five modern commercial properties at Brisbane Technology Park Fund subsequently acquired a commercial property in Cann
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Slide 21: Joint ventures — financial performance
Joint ventures — financial performance Actual - year ended 30 Jun 2005 30 Jun 2004 $m $m Revenue 14 0.8 EBIT 0.9 0.7 EBIT margin % 84.4% 83.1% Number of income generating projects 2 1 Total lot sales* 226 *Lot sales based on full lot equivalents * Growing earnings contribution achieved from this div
Slide 22: Awards
Awards womweter Lakelands Estate (WA) - singe 2005 Housing Industry Association Greensmart Development of the Year 2004 Atwell Waters Private Estate (WA) 2004 Urban Development Institute of Australia (WA) - Best Residential Estate Less Than 250 Lots Panorama Private Estate (Vic) 2002 UDIA (Vic) - Be
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Slide 24: Current landbank
Current landbank WA: 24 Projects Owned projects Syndicates Joint ventures Total WA Landbank QLD: 2 Projects Owned projects Syndicates Joint ventures Total QLD Landbank NSW: 1 Project Owned projects Syndicates Joint ventures Total NSW Landbank Victoria: 16 Projects Owned projects. 7,355 Syndicates 4,
Slide 25: Landbank details
Landbank details Landbank (lots) by development The majority of Peet’s landbank has 48,000 te-000 status, by division . ‘ 14,000 : received the necessary zoning and “2009 ae development approvals 2000 mont Venture | 7 * Nearly 80% of the land held by «900 —_ _f syndicates has all zonings and : ee de
Slide 26: Landbank and market position
Landbank and market position ASX listed developers and LPTs: 80,000 5 70,000 +4 60,000 4 50,000 4 40,000 4 30,000 4 20,000 4 10,000 4 04 lunes. Deifin Lend Stockland Peet &Co Mirvac Australand Investa Cedar Lease Woods Source: UBS (August 2005) 6 (]} PEET
Slide 27: Overview of key projects - Victoria
Overview of key projects - Victoria ONAARWNS hy y y iy i _ ae y , py y My a a 7 7 4 Wa Craigieburn Central Greenvale Gardens Greenvale Rise Greenvale Lakes Brimbank Gardens Tarneit Gardens Tameit Rise Innisfait Ge alt Lie Gy ne us oon > OR We iy Ly iG il) ) —a i) 1, IN Lt j WA) A Tn A oO Oe F BRIMBA
Slide 28: North of Melbourne
North of Melbourne Greenvale Lakes and Rise Key statistics - Greenvale Lakes Purchased 2003 Zoning In UGB Area 208.0ha Project Yield 1,600 Status Owned Key statistics - Greenvale Gardens Purchased 2002 Zoning Unzoned! Area 115.0ha Project Yield 375 Status Owned Note | Proposed for inclusion in UGB K
Slide 29: West of Melbourne
West of Melbourne Brimbank Gardens Key statistics Purchased 2001 Zoning Residential/Commercial Area 203.0ha Project Yield 2,100 Status Syndicated oe (]} PEET
Slide 30: West of Melbourne (continued)
West of Melbourne (continued) Innisfail Innisfail plan HACKETTS LANE 'SNEYOES ROAD Key statistics - Innisfail Purchased 1999 Zoning Residential/Commerciai Area 145.0ha Project Yield 1,750 Status Owned 20 (]} PEET
Slide 31: West of Melbourne (continued)
West of Melbourne (continued) Tarneit Gardens ~341- Key statistics Purchased 2003 Zoning Residential/Commercial Area 124.6ha Project Yield 1,087 Status Syndicated (]} PEET
Slide 32: West of Melbourne (continued)
West of Melbourne (continued) Point Cook Gardens ~32- Key statistics Purchased 1999 Zoning Residential Area 110ha Project Yield 1,046 Status Syndicated (]} PEET
Slide 33: East of Melbourne
East of Melbourne Brookland Greens Key statistics Purchased 1998 Zoning Residential/Commetcial Area 135.0ha Project Yield B25 Status Syndicated Key statistics Purchased 2003 Zoning Residential/Commertcial Area 90ha Project Yield 879 Status Syndicated a (]} PEET
Slide 34: Overview of key projects - WA
Overview of key projects - WA STCLATR AN Oasis BY THE SEA Ocean Lagoon Burns Beach Carramar Golf Course Ashton Heights Hammond Park . Forest Gate nnn . _Hawkstone . Oakford Gardens Brookwood The Village at Weillard The Ridge St Michel Private Garden Estate LA TATA Lakelands Estate iN) fag |. Twin Ri
Slide 35: North of Perth
North of Perth Carramar Purchased 1976 Zoning Residential/Commercial Area 336ha Project Yietd 3,200 Status Syndicated Ashton Heights Purchased 2003 Zoning Residential Area 60.0ha Project Yiefd 598 Status Owned a6 (]} PEET
Slide 36: North of Perth (continued)
North of Perth (continued) Burns Beach Estate Burns Beach Estate Purchased 1969 Zoning Residential/Commercial Area 290.0ha Project Yield 1,460 Status Syndicated 26 (]} PEET
Slide 37: South of Perth
South of Perth Lakelands Estate Lakelands Estate Purchased 1994 Zoning Residential/Commercial Areg 281.9ha Project Yieid 2,570 Status Syndicated The Ridge, Baldivis Purchased 1995 Zoning Residential/Commercial Area 39.3ha Project Yield 330 Status Syndicated (]} PEET ~37-
Slide 38: Overview of key projects - Queensland
Overview of key projects - Queensland At 4. Riverbank 2. Warner Lakes -38-
Slide 39: Brisbane
Brisbane Warner Lakes 1 Key statistics Purchased 2002 Zoning Residential/Commercial Area 206.0ha Project Yield Pali Status Syndicated Caboolture - Riverbank Estate i ci ie Key statistics Purchased 2003 Zoning Residential Area 141.0ha Project Yield 1,000 Status Joint venture 26 (]} PEET
Slide 40: Land acquisition activity
Land acquisition activity Net increase in landbank since listing Range of other land opportunities under review Acquisitions team expanded to facilitate rapid growth of landbank and replace stock being developed Sound year for acquisitions in Victoria and WA: Victoria Western Australia South East Co
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Slide 42: Current market conditions — by state
Current market conditions — by state Key market drivers and leading indicators include overall economic growth, inflation and interest rate expectations; employment growth; population growth; and housing affordability Western Australia * Strong economy, employment growth and population growth «Affor
Slide 43: Housing commencements
Housing commencements Underlying demand - annual average Dwelling commencements (000 dwellings) ('000 dwellings) 96/97 to 00/01 01/02 to 04/05 05/06 to 09/10 04/05 WA 17.4 18.8 21.3 ‘ ; 23.3 Victoria & 38.0 “0 {3 NSW 46.0 42.3 45.7 38.4 Queensland 31.9 44.4 43.3 39.1 SA 7.5 7.6 7.9 10.0 TAS 1.8 3.0
Slide 44: Residential market outlook
Residential market outlook Peet is anticipating sound sales in the year ended 30 June 2006 as a result of: * Strong economic growth for Australia * Strong employment market and wages growth assists affordability * Skills shortage driving migration and demand * Small lot product in some areas improvi
Slide 45: Outlook for population growth
Outlook for population growth Strong population growth set to continue in Peet’s key states of WA, Victoria, NSW and Queensland, underpinned by growing net overseas migration: Net Population Increase Net Overseas Migration 4oo Thousands Forecast 75 Thousands Forecast 96 92 88 Ba 80 76 72 68 64 6a 56
Slide 46: Outlook for affordability
Outlook for affordability Home Loan Affordability Proportion of Monthly Earnings as Repayment Low interest rates, strong economic growth and strong employment, together with moderating growth in house prices, set to lead to improved home loan affordability in Peet’s key states 75 0 80 82 84 86 8B 90
Slide 47: Direction and strategy
Direction and strategy The past, the future a. (]} PEET
Slide 48: The past...
The past...
Slide 49: The past...
The past... STATION ESTATE Shpponite the Rediway. St MOTOR FREE TO INSPECT Made de Roady Hk Electric Lig Light, Water 3 Stations, 2! files. from oe, Perth. rth, “Tram withir within 5 Minutes, _PLANS FR FREE This Unions Tees ie situated on Seale itt FROM “ £25 £2 EPS sous | Proposed ‘Tram along Cali
Slide 50: The past...
The past... 60. (]} PEET
Slide 51: The past...
The past... -51-
Slide 52: The future - Peet & Co's core strategic objectives
The future - Peet & Co’s core strategic objectives Leveraging its proven strengths and capabilities of identifying, securing and adding value to landholdings for the benefit of its shareholders and other stakeholders 2 (]} PEET
Slide 53: Future direction and strategy
Future direction and strategy Owned Projects: * Strategic acquisitions on deferred terms with rezoning conditions * Buying long options on prospective land ¢ Greenvale project to increase production * Generate projects for future syndications * Effective use of balance sheet 6 (]} PEET
Slide 54: Future direction and strategy
Future direction and strategy Funds management: * Syndicated Projects: « Expect approximately two syndicates launched each year * Expanded funds management focus: « To pursue several retirement housing development opportunities already identified within Peet’s current development portfolio « Further
Slide 55: Future direction and strategy
Future direction and strategy Joint Ventures: ¢ Wellard JV (WA) performing strongly, Caboolture JV (Qld) and Queens Park JV (WA) yet to come on stream ¢ Further Joint Venture opportunities being pursued vigorously 65 (]} PEET
Slide 56: Summary
Summary * Growing recurring earnings * Leverage of property assets * Continue to optimise property portfolio * Experienced and focused management team * Strong pipeline of projects 66 (]} PEET
Slide 57: Contacts:
Contacts: Warwick Hemsley Managing Director Brendan Gore Chief Financial Officer -57- (08) 9420 1111 (08) 9420 1111 (]} PEET
Slide 58: Disclaimer of Liability
(]} PEET PEET & COMPANY LIMITED (EST. 1895) ABN 56 008 665 834 Disclaimer of Liability While every effort is made to provide accurate and complete information, Peet & Co does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for the in