Slide 1: FY16 Results Presentation
For personal use only FY16 Results Presentation August 2016 FY16 RESULTS PRESENTATION
Slide 2: FY16 Results Overview
FY16 RESULTS OVERVIEW Continued strong momentum For personal use only » FY16 operating profit1 after tax of $42.6m, up 11% » EPS of 8.7 cents per share – up 5% FY14FY14Result » Result Underlying business performance − Revenue2 of $285m with 2,865 lots settled − EBITDA3 down 3% to $89.8m − EBITDA3 ma
Slide 3: Key Highlights for FY16
KEY HIGHLIGHTS FOR FY16 Focused strategy delivering strong results For personal use only » Diversified pipeline of over 48,000 lots with a low cost base and an on-completion value of GROWTH AND approximately $12 billion strategically weighted (60% of total lots) to the eastern states AND FY14 Result
Slide 4: Key Highlights for FY16 (Continued)
KEY HIGHLIGHTS FOR FY16 (CONTINUED) » Flagstone (QLD) project successfully launched in April 2016 GROWTH − Solid pre-sales achieved since launch, including a retail shopping centre site For personal use only AND − Strong sales enquiry building momentum into FY17 POSITIONING » New $25m Werribee (VIC)
Slide 5: Key Highlights for FY16 (Continued)
KEY HIGHLIGHTS FOR FY16 (CONTINUED) » Acquisition strategy continued to be selective with a focus on the eastern states STRATEGIC − Focus on securing low cost projects to ensure delivery of affordable product For personal use only PRIORITIES » Maintained geographic diversity FY14 Result FY14 » Conti
Slide 6: Results overview
For personal use only Results overview
Slide 7: Group Financial Summary
GROUP FINANCIAL SUMMARY » Operating profit2 after tax of $42.6m - up 11% KEY PERFORMANCE STATISTICS FY16 FY15 VAR (%) » Group EBITDA2 of $89.8m – down 3% due to major For personal use only Lot sales 3,253 3,229 1% completed projects in FY15 Lot settlements 2,865 3,266 (12%) − Quayside apartments (AC
Slide 8: Improving Financial Performance
IMPROVING FINANCIAL PERFORMANCE Growth in earnings driven by our focused strategy, market conditions and new projects For personal use only » Solid operating profit growth - 3 year CAGR1 of 32.5% » EBITDA2 in FY15 includes the 1,990 settlement of Quayside apartment project 1,990 » Ongoing EBITDA2 ma
Slide 9: Focus on Driving Shareholder Returns
FOCUS ON DRIVING SHAREHOLDER RETURNS » 3 year EPS CAGR1 of 17% For personal use only » FY16 DPS of 4.5cps, fully franked − Target payout ratio of 50% going forward maintained » Book NTA per share increased by 5% − Does not include value uplift on co-investment stakes in funds and JVs − Does not incl
Slide 10: Capital Management
CAPITAL MANAGEMENT Further improvement in capital position » ROCE1 of 13.2% For personal use only − Impacted in short-term 2,184 due to acquisition of Whole Green (VIC) project in 1H16 » Gearing2 of 28.8% − Impacted by 1H16 acquisition and due to delay of Whole Green settlements of $15m into early J
Slide 11: Funds Management
FUNDS MANAGEMENT FUNDS & JVs EBITDA1 ($m) FUNDS MANAGEMENT & JOINT VENTURE GDV2 ($bn) For personal use only 70 10 9 9.3 60 8.9 8.7 8 50 7 7.5 6 40 6.2 5 30 4 20 3 2 10 1 0 0 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Co-Investment Profits Funds Management/Joint Venture EBITDA » Funds Manageme
Slide 12: Operating performance
For personal use only Operating performance
Slide 13: Group Operating Performance
GROUP OPERATING PERFORMANCE » Peet’s diversified portfolio of projects has allowed it to capitalise on the eastern states’ strength » Contribution from eastern states projects increased to 82% of EBITDA1 (FY15: 68%) For personal use only − Higher contribution driven by Victoria » WA market at or clo
Slide 14: Group Sales Activity
GROUP SALES ACTIVITY » Group sales for FY16 of 3,253 lots SALES COMPOSITION BY GEOGRAPHY (LOTS) For personal use only 4000 » Strong sales from eastern states projects 3,525 3500 − Flagstone (QLD) to make full year contribution to eastern 3,229 3,253 states sales in FY17 3000 2500 » WA and NT sales v
Slide 15: Contracts on Hand
CONTRACTS ON HAND » Record contracts on hand1 of 2,426 lots since 30 June 2015 – up 18% − For personal use only Increase driven by Victorian market as well as stable and improving eastern states market conditions − Value of contracts on hand increased by 24% to $546m providing solid momentum into FY
Slide 16: FM Operating Performance
FM OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS FY16 FY15 VAR (%) » FY16 fee revenue increased to $41.8m – up 8% on FY15 Lot sales 1,978 1,768 12% For personal use only − EBITDA1 margin 68%, in line with FY15 Lot settlements 1,508 1,718 (12%) » Funds Management business provided solid earnings R
Slide 17: JV Operating Performance
JV OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS FY16 FY15 VAR (%) » EBITDA1 of $28.3m up 32% Lot sales 712 883 (19%) » For personal use only Contribution from JVs (before equity share of profits) down 23% to $12.9m due to NT and WA market conditions Lot settlements 940 951 (1%) Revenue $55.1m $1
Slide 18: Development Operating Performance
DEVELOPMENT OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS FY16 FY15 VAR (%) » Revenue of $154.7m Lot sales1 563 578 (3%) − FY16 settlements down due to Quayside apartment For personal use only project (ACT) and The Chimes (WA), substantially Lot settlements completed in FY15 Retail 415 594 (30%)
Slide 19: Market overview & project pipeline
For personal use only Market overview & project pipeline
Slide 20: Residential Market Overview
RESIDENTIAL MARKET OVERVIEW Melbourne » Ongoing population growth, relative affordability and solid economy to support dwelling demand For personal use only − Metropolitan Melbourne growth expected to remain strong − Volumes beginning to stabilise near current high levels with moderate price growth
Slide 21: National Reach
NATIONAL REACH $12.0bn For personal use only 48,000 END-VALUE LOTS 1 projects 62 nationally Notes: 1 Not all projects are shown on map FY16 RESULTS ǀ 25 AUGUST 2016 ǀ PAGE 21
Slide 22: Overview of Peet's Land Bank
OVERVIEW OF PEET’S LAND BANK » Diversified land bank across all mainland states and territories For personal use only − Pipeline of over 48,000 lots with an on completion value of approximately $12 billion − FM and JV projects account for more than 70% of the Group’s land bank » Eastern states expos
Slide 23: New Projects in FY17 - FY19
NEW PROJECTS IN FY17 - FY19 Pipeline of approximately 48,000 lots providing visibility of future earnings » For personal use only Up to 8 new projects expected to commence development FY17 - FY19 PROJECT RELEASE SCHEDULE within the next 2-3 years Project State Segment First Sales Lots Project Life (
Slide 24: Capital management
For personal use only Capital management
Slide 25: Capital Management
CAPITAL MANAGEMENT CAPITAL MANAGEMENT METRICS FY16 FY15 Strong capital management strategy outcomes For personal use only Cash at bank $73.4m $57.7m » Diversified funding sources via a $100m bond raising in June 2016 Bank debt $169.2m $186.2m Peet bonds $100.0m - » Senior debt facility was extended
Slide 26: Group Cash Flow Summary
GROUP CASH FLOW SUMMARY Cash generated from operations applied to deliver production from new and existing projects to meet demand For personal use only » Receipts lower due to the substantial settlement revenue from the Quayside (ACT) apartment project and completion of The Chimes (WA) development
Slide 27: Outlook
For personal use only Outlook
Slide 28: Outlook
OUTLOOK Portfolio well positioned for sustainable long-term growth and value creation For personal use only » Outlook generally supported by market fundamentals with sustained low interest rates and modest economic growth − Conditions across Victoria, New South Wales/ACT and South Australia are expe
Slide 29: Thank you
For personal use only Thank you
Slide 30: FY16 annexures
For personal use only FY16 annexures
Slide 31: Summary Income Statement
SUMMARY INCOME STATEMENT FY16 FY15 Var $M $M (%) For personal use only Funds Management 41.8 38.6 8% Development 154.7 186.0 (17%) Joint Venture 55.1 100.9 (45%) Share of net profit of equity accounted investments 16.7 6.4 161% Other1 16.5 28.9 (43%) Revenue 284.8 360.8 (21%) EBITDA 89.8 92.4 (3%) F
Slide 32: Summary Balance Sheet
SUMMARY BALANCE SHEET FY16 FY15 $M $M For personal use only Assets Cash 73.4 57.7 Receivables 114.5 101.5 Inventories 598.9 520.5 Investments accounted for using the equity method 198.1 181.8 Other 13.8 13.5 Total assets 998.7 875.0 Liabilities Trade and other payables 81.5 63.3 Land vendor liabilit
Slide 33: Land Bank – Funds Management Key Projects
LAND BANK – FUNDS MANAGEMENT KEY PROJECTS PROJECT LIFECYCLE For personal use only PROJECT NAME STATE GDV LOTS1 REMAINING 2017 2018 2019 2020 Alkimos WA $1,044m 2,341 Selling Burns Beach WA $303m 515 Selling Golden Bay WA $254m 1,101 Selling Lakelands WA $222m 1,204 Selling Yanchep Golf Estate WA $42
Slide 34: Land Bank – Company-Owned Key Projects
LAND BANK – COMPANY-OWNED KEY PROJECTS PROJECT LIFECYCLE For personal use only PROJECT NAME STATE GDV LOTS1 REMAINING 2017 2018 2019 2020 Brigadoon WA $65m 127 Selling Chase, Baldivis WA $84m 503 Selling Mundijong WA $160m 759 Planning Start up Selling Other WA $673m 3,792 Planning Gladstone QLD $84
Slide 35: Land Bank – Joint Venture Key Projects
LAND BANK – JOINT VENTURE KEY PROJECTS PROJECT LIFECYCLE For personal use only PROJECT NAME STATE GDV LOTS1 REMAINING 2017 2018 2019 2020 Wellard WA $223m 1,183 Selling Googong2 NSW $557m 2,374 Selling Eyre Kingston ACT $105m 151 Planning Start up Selling The Heights NT $121m 447 Selling Lightsview
Slide 36: Disclaimer
DISCLAIMER 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 statements, including sta