Peet Limited · ASX:PPC
Peet — Shareholder Meeting (November 2019)
20 slides from Peet's shareholder meeting presentation, Nov 20, 2019
Slide 1: Annual General Meeting Presentation
For personal use only ANNUAL GENERAL MEETING PRESENTATION 20 NOVEMBER 2019 ANNUAL GENERAL MEETING ǀ 20 NOVEMBER 2019 ǀ PAGE 1 1
Slide 2: FY 2019 Results Highlights
FY 2019 RESULTS HIGHLIGHTS Financial Operational For personal use only 1,257 REVENUE EBITDA OPERATING margin of PROFIT AFTER TAX 262.9m 33 47.5m 13% 1% $ 3% $ % land lots under contract with a value of $336m 2,629 EPS DPS ROCE FY19 fully franked 9.8cps 2% 5.0cps -% 11.8% 2.9% Total lots settled c.65
Slide 3: Who We Are
WHO WE ARE CAPITAL LITE FUNDS MANAGEMENT MODEL • Property development company established in 1895 For personal use only • Listed on the ASX in 2004 • Australia’s largest listed ‘pure play’ residential property developer • Manages a broad property portfolio, encompassing about 48 projects encompassin
Slide 4: National Reach
NATIONAL REACH EXPANDING PORTFOLIO ACROSS COUNTRY 49,413 Peet manages a broad property portfolio, encompassing 49,400 LOTS For personal use only lots across 48 projects Diversified land bank $14.5bn strategically located in growth END-VALUE corridors of major cities in every mainland state and terri
Slide 5: Net Tangible Assets (NTA)
NET TANGIBLE ASSETS (NTA) SIGNIFICANT OPPORTUNITY TO CAPTURE FUNDS MANAGEMENT VALUE NET ASSET VALUATION - $2.1bn in Assets Under Management For personal use only PEET CAPITAL THIRD PARTY CAPITAL NTA: $1.20 NTA PEET INVENTORIES PEET CO-INVESTMENTS FUNDS MANAGEMENT AND JV $388 million1 $467 million1 $
Slide 6: Delivering Against Our Strategy
DELIVERING AGAINST OUR STRATEGY PORTFOLIO WELL POSITIONED FOR POSITIVE MEDIUM TO LONG TERM GROWTH AND VALUE CREATION For personal use only STRATEGY KEY ACHIEVEMENTS (FY19) • 49,400 lots with an end value of $14.5bn Invest in high quality land in strategic INVEST locations across country • Four mediu
Slide 7: FY19 Results Overview
For personal use only FY19 RESULTS OVERVIEW ANNUAL GENERAL MEETING ǀ 20 NOVEMBER 2019 ǀ PAGE 7
Slide 8: Long-Term Growth in Shareholder Returns
LONG-TERM GROWTH IN SHAREHOLDER RETURNS KEY HIGHLIGHTS OPERATING PROFIT AFTER TAX ($M) OPERATING EPS (CENTS) DPS (CENTS) For personal use only 49.1 10.0 5.0 5.0 47.5 9.8 44.8 4.8 42.6 9.1 4.5 4.5 8.7 38.5 8.3 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 FY15 FY16 FY17 FY18 FY19 LONG-TERM GROWTH
Slide 9: Group Balance Sheet
GROUP BALANCE SHEET CONTINUED EXECUTION OF CAPITAL MANAGEMENT STRATEGY CAPITAL MANAGEMENT METRICS FY19 FY18 FY17 NET DEBT6 ($M) AND GEARING4 (%) For personal use only Cash at bank1 $33.6m $76.7m $88.4m 31% Bank debt2 $23.2m $69.5m $151.7m 25% Peet bonds/convertible notes3 $225.0m $150.0m $100.0m 23%
Slide 10: Market Overview + Project Pipeline
For personal use only MARKET OVERVIEW + PROJECT PIPELINE ANNUAL GENERAL MEETING ǀ 20 NOVEMBER 2019 ǀ PAGE 10
Slide 11: Enquiry Levels Improving
ENQUIRY LEVELS IMPROVING TOTAL ENQUIRY BY STATE • Enquiry levels improving following the Federal VIC QLD election, interest rate and income tax cuts and 1000 1500 For personal use only improved loan serviceability assessments by 900 banks 800 700 • Prices stabilised across the portfolio with VIC 600
Slide 12: Contracts on Hand
CONTRACTS ON HAND 2500 CONTRACTS ON HAND1 (LOTS) CONTRACTS ON HAND REFLECTS IMPROVING MARKET CONDITIONS For personal use only 2000 2,186 2,257 1500 1,445 • Contracts on hand1 have increased by 15% since 30 June 1,257 1000 2019 to 1,445 lots • Reflects gradually improving market conditions across 500
Slide 13: Market Volumes and Outlook
MARKET VOLUMES AND OUTLOOK MARKET VOLUMES EXPECTED TO STABILISE ACROSS MOST MARKETS PEET SUMMARY VICTORIA QUEENSLAND WESTERN AUSTRALIA AUSTRALIAN CAPITAL SOUTH AUSTRALIA For personal use only FY19 FY19 FY19 TERRITORY FY19 FY19 • Strong economic growth, with significant Government • Net migration str
Slide 14: Growth and Resilience, Through Cycles
GROWTH AND RESILIENCE, THROUGH CYCLES TRACK RECORD OF GROWING SHAREHOLDER VALUE OVER THE LONG-TERM • A diversified portfolio of property assets captures opportunities across key markets and provides strength through cycles For personal use only • Counter cyclical acquisition strategy has allowed the
Slide 15: New Projects Supporting Growth
NEW PROJECTS SUPPORTING GROWTH PIPELINE OF APPROXIMATELY 49,400 LOTS PROVIDING For personal use only VISIBILITY OF FUTURE EARNINGS FY20 – FY22 NEW PROJECT RELEASE SCHEDULE Up to seven new land projects Project State Segment Commencement of Lots1/Units Project Life and five medium density Sales/Devel
Slide 16: New Projects Supporting Growth
NEW PROJECTS SUPPORTING GROWTH PROJECTS / LOTS DEVELOPING & SELLING For personal use only 60,000 50,000 49,413 lots Projects: 8 Lots: 9,468 NO. OF LOT/UNITS 39,945 lots 40,000 Projects: 12 30,904 lots Lots: 9,041 30,000 20,000 Projects: 28 Lots: 30,904 10,000 30 JUNE 2019 FY20 - FY22 FY23 & BEYOND A
Slide 17: Outlook
For personal use only OUTLOOK ANNUAL GENERAL MEETING ǀ 20 NOVEMBER 2019 ǀ PAGE 17
Slide 18: Market Outlook
MARKET OUTLOOK FOCUSED ON POSITIONING FOR AN IMPROVING MARKET THROUGH A CONSERVATIVE APPROACH TO PROJECT DELIVERY AND IDENTIFYING GROWTH OPPORTUNITIES For personal use only • Market conditions remain mixed, however sentiment is gradually improving • Steady employment growth, record low interest rate
Slide 19: Strategic Outlook
STRATEGIC OUTLOOK PORTFOLIO WELL POSITIONED FOR POSITIVE MEDIUM TO LONG TERM GROWTH AND VALUE CREATION For personal use only STRATEGY OUTLOOK • Selective acquisition of projects as cycles, markets and Invest in high quality land in strategic opportunities allow to restock pipeline INVEST locations a
Slide 20: 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 s