Slide 1: FY11 Results Presentation
For personal use only FY11 Results Presentation Success through experience
Slide 2: Key messages
Key messages For personal use only » Operating net profit of $44.0m1, up 2.8% » Operating EPS of 14.6c, up 2.1% » St t t Statutory profit fit off $22.1m, $22 1 down d 47 47.5% 5% d due tto write‐downs it d off iinventory t FY11 RESULT » DPS of 8.5c in line with FY10 » NTA of $1.372 per share, up 10.
Slide 3: Key messages (continued)
Key messages (continued) » Countercyclical repositioning of land bank to longer term growth states of WA For personal use only and QLD » Growth in land bank driven through Funds Management1, now representing approximately 70% of land bank by GDV and lots BUSINESS » Continued growth of wholesale plat
Slide 4: Group Business model
Group Business model Target EBIT Target EBIT Land Bank Diversification Land Bank Capital Sources of For personal use only Composition Margin by Geography (%) Employed1 Revenue 22 21 44 47 Lots: 14,728 40% – 50% EBIT Development 25% ‐35% GDV ($bn): 2.8 $548m » Development profit # Projects: 32 32 34
Slide 5: Financial highlights
Financial highlights For personal use only FY11 FY10 O Operating i N Net P fi 1 Profit $44 0 $44.0m ▲ 2 8% 2.8% $42 8 $42.8m Operating Earnings per Share 14.6 cents ▲ 2.1% 14.3 cents Dividend per Share 8.5 cents ─ 8.5 cents Statutory Net Profit $22.1m ▼ (47.5%) $42.1m Sh 2 NTA per Share $ 3 $1.37 ▲
Slide 6: Group key financial highlights
Group key financial highlights For personal use only » Group revenue of $188.7m, up 6% $m FY11 FY10 Var (%) » Operating EBITDA of $81 $81.2m, 2m up 7% Revenue 188 7 188.7 178 0 178.0 6% EBITDA1 81.2 75.8 7% » 43% EBITDA margin maintained Net EBITDA margin 43% 43% 0% » Operating NPAT of $44.0m, up 3%
Slide 7: Group operating performance
Group operating performance » Funds Management business provided strong FY11 EBITDA composition by business type1 (%) For personal use only recurring earnings » 25 syndicates y / JVs contributingg to profit p 38 » Smaller number of larger projects driving 34 49 54 company owned Development returns »
Slide 8: Capital management
Capital management » Strong and secure long term capital position For personal use only » Significant capital management achievements over FY11 » p Diversified capital sources – introduced new lender and issued convertible bonds » Increased weighted average debt maturity to 3.3 years » Commencement
Slide 9: Market valuation of company owned inventory
Market valuation of company owned inventory » Independent mortgage valuations of portfolio assets of $586 million, an increase of 4.9% For personal use only » NTA increased 10.5% to $1.37 from FY10 » Write down in inventory of $31.3 million before tax, $21.9 million after tax » Write downs predomina
Slide 10: Significant expansion of funds management business
Significant expansion of funds management business » Strong and recurrent earnings base For personal use only Historical Funds Management EBITDA $m » Delivered on strategy identified three 40 years ago of growing a wholesale funds platform 30 » Have partnered with three significant 20 wholesale inve
Slide 11: Key projects underpinning outlook for FY12 and beyond
Key projects underpinning outlook for FY12 and beyond For personal use only Flagstone, QLD Shorehaven at Alkimos, WA Greenvale/Craigieburn, VIC # lots remaining: 13,297 GDV: $1,929m # lots remaining: 3,014 GDV: $802m # lots remaining: 3,630 GDV: $723m Vantage Gladstone, QLD Yanchep Golf Estate, WA R
Slide 12: Land bank – key projects
Land bank – key projects t 1 remaining LLots i i Project name Location GDV FY12 FY13 FY14 For personal use only (at 30 June 11) Owned projects Greenvale VIC $410m 1,985 Craigieburn VIC $313m 1,645 Gladstone QLD $101m 513 Chase WA $87m 506 Brigadoon WA $121m 216 Other $1,744m 9,863 Total owned p proj
Slide 13: Settlements and contracts on hand
Settlements and contracts on hand For personal use only » FY12 sales and settlements Contracts on hand expected to be greater than $2921 $2891 1,500 $300 FY11 1 270 1,270 1,125 $250 » Contracts on hand as at 1,000 $200 30 June 2011 down due to $150 m) Value ($m d l iin planning delay l i approvals l
Slide 14: Residential sector conditions – cyclical, not structural
Residential sector conditions – cyclical, not structural For personal use only » Current market conditions are being driven by weak business and consumer sentiment » Result of global economic crisis, rising living costs, interest rate speculation and government policy, including carbon tax » Afforda
Slide 15: Residential market overview
Residential market overview Peet has product with geographic balance and positioned at price points to achieve volume from For personal use only improving markets » The affordable to mid‐market segment is maintaining price stability, whilst the higher end of the market has seen a decline » More posi
Slide 16: Outlook
Outlook FY12 remains challenging, however Peet is optimistic given its pipeline mix and earnings For personal use only from its funds management platform1 » Focus remains on the affordable market segment in identified growth corridors » Settlements and sales for FY12 expected to be greater than FY11
Slide 17: Strategy
Strategy For personal use only Peet is focused on delivering the right projects to the right markets under a capital efficient model » Peet’s strategic priorities remain » Focused businesses of residential land development and funds management » Continued focus on customer, product and community to
Slide 18: Success through experience
For personal use only Success through experience
Slide 19: FY11 Annexures
For personal use only FY11 Annexures Success through experience
Slide 20: Summary income statement
Summary income statement For personal use only $m FY11 FY10 Var (%) Funds management 46 4 46.4 36 7 36.7 26% Development 120.6 117.7 2% Other1 21.7 23.6 (8%) e e ue Revenue 188.7 178.0 6% EBITDA (pre inventory write‐downs) 81.2 75.8 7% Finance costs2 (15.6) (12.0) (30%) Depreciation and amortisation
Slide 21: Summary balance sheet
Summary balance sheet $ $m 30 JJune 11 30 JJune 10 For personal use only Assets Cash 57.2 41.1 Receivables 82.3 64.3 Inventories 421.4 418.4 Investments accounted for using the equity method 36.1 32.6 Other 13.1 9.5 Asset classified as held for sale 69.5 0.0 Total assets 679.6 565.9 Liabilities Trad
Slide 22: Cash flow analysis
Cash flow analysis For personal use only (126.9) 197.1 (22.3) (11.5) (98.6)1 36.4 Revenue Operating Interest and Income Tax Net operating Payment (62.2) (incl. GST) and other cash flow for land i inventory t fi finance costs t ( (pre‐land l d expenditure purchase payments) Notes: 1 Includes payment
Slide 23: Development operating performance
Development operating performance Key performance statistics FY11 revenue composition by geography (%) For personal use only $m FY11 FY10 Var (%) Revenue 120.6 117.7 2% 15 Operating expenses1 (80.5) (76.6) (5%) 28 70 62 EBITDA2 40.1 41.1 (2%) 15 Net EBITDA margin2 33% 35% (2%) 10 FY10 FY11 Key opera
Slide 24: FM operating performance
FM operating performance Key performance statistics FY11 FM revenue composition by type For personal use only $m FY11 FY10 Var (%) Revenue 46.4 36.7 26% 33 30 61 63 Operating expenses (15.7) (11.3) (39%) EBITDA 30.7 25.4 21% 7 FY10 Net EBITDA margin 66% 69% (3%) 6 FY11 Project Management Selling Fee
Slide 25: JV operating performance
JV operating performance Key performance statistics For personal use only $m FY11 FY10 Var (%) Revenue 17.0 20.0 (15%) Operating expenses (11.4) (14.4) 21% EBITDA 56 5.6 56 5.6 0% Net EBITDA margin 33% 28% 5% K operating Key ti statistics t ti ti FY11 FY10 Var (%) Lot sales 164 246 (33%) Lot settlem
Slide 26: 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. Subject to any terms implied by law and whic