Slide 1: FY13 Results Presentation
For personal use only FY13 Results Presentation August 2013
Slide 2: Key messages
Key messages Transformational year with major acquisition, capital raising and successful syndicate launch For personal use only » Operating profit after tax of $15.2m1, above the top end of Peet’s guidance in April 2013 » Statutory profit after tax of $0.2m » Includes write-downs after tax of $13.3
Slide 3: Business Transition on Track
Business Transition on Track Continued reweighting of business to FM / higher ROCE projects For personal use only » Majority of land bank now in funds management or capital efficient structures » CIC provides four additional major strategic projects in capital efficient structures (Googong, Crace,
Slide 4: Results overview
For personal use only Results overview
Slide 5: Group financial summary
Group financial summary » Performance impacted by challenging $m FY13 FY12 Var (%) market conditions and capital management For personal use only Revenue 205.0 146.9 40% strategy EBITDA 48.0 46.6 3% » Result in line with expectations EBITDA margin 23% 32% (9%) » Pricing competition, particularly in
Slide 6: Group operating performance
Group operating performance » Sales up strongly over FY12 FY13 FY12 Var (%) For personal use only » Predominantly driven by WA Lot sales1,2 2,308 1,776 30% and Vic Lot settlements1,2 2,091 2,052 2% » Sales momentum improved in 2H13 with volumes increasing by 140% Contracts on hand 1,956 958 104% com
Slide 7: Group operating performance
Group operating performance » Funds management business EBITDA composition by business type1 (%) 43 For personal use only provided solid earnings base representing 35% of group EBITDA 1 35 49 » Pricing pressure significantly 43 impacted Performance Fees 45 during the year FY12 3 6 » Smaller number o
Slide 8: FM operating performance
FM operating performance Key performance statistics FM revenue composition by type For personal use only $m FY13 FY12 Var (%) 6 30 Revenue 28.5 32.6 (13%) 18 76 50 Operating expenses (11.5) (9.7) (19%) EBITDA 17.0 22.9 (26%) FY12 Net EBITDA margin 59% 70% (11%) 20 FY13 Project Management Selling Fee
Slide 9: Development operating performance
Development operating performance Key performance statistics Revenue composition by geography (%) For personal use only $m FY13 FY12 Var (%) 2 Revenue 128.5 93.2 38% 16 Operating expenses1 (108.0) (72.3) (49%) 26 67 EBITDA2 20.5 20.9 (2%) 56 EBITDA2 margin 16% 22% (6%) 15 18 FY12 Key operating stati
Slide 10: JV operating performance (includes CIC)
JV operating performance (includes CIC) Key performance statistics EBITDA composition by geography (%) For personal use only $m FY13 FY12 Var (%) 0 11 Revenue 33.5 20.1 67% Operating expenses (24.5) (17.5) (40%) EBITDA 9.0 2.6 246% 51 Net EBITDA margin 27% 13% 14% 38 FY12 100 Key operating statistic
Slide 11: Update on CIC acquisition
For personal use only Update on CIC acquisition
Slide 12: Strategic rationale for the CIC acquisition
Strategic rationale for the CIC acquisition » High quality, strategic projects with over For personal use only 7281 contracts on hand worth approximately $206m1 » All of CIC’s projects are currently developing and selling » Projects contribute to FY14 earnings and beyond » Diversification into new m
Slide 13: Update on CIC
Update on CIC » Peet acquired 86% of CIC by way of off-market takeover in May 2013 For personal use only » Acquired for $0.60 per CIC share, a 13% discount to CIC net assets » Business has been performing in line with expectations » The acquisition of CIC has resulted in a net contribution of $2.2m
Slide 14: Operational update
For personal use only Operational update
Slide 15: Contracts on hand
Contracts on hand Contracts on hand – by state » Contracts on hand1 at 2000 1,956 $500 $485 For personal use only 30 June 2013 of 1,956 lots for $485 Contract value Millions2 3 728 $400 3 $206 million 1500 Vic 71 $300 $267 WA Lots1 » Significant increase 1000 958 233 $25 $17 98 $43 Qld as markets st
Slide 16: Land bank – funds management key projects
Land bank – funds management key projects Funds Management Project Lifecycle For personal use only Lots1 remaining Project name GDV (at 30 June 13) 2014 2015 2016 2017 Alkimos $711m 2,632 Selling Burns Beach $460m 699 Selling Golden Bay $342m 1,506 Selling Lakelands $242m 1,677 Selling Yanchep Golf
Slide 17: Land bank – company-owned key projects
Land bank – company-owned key projects Company-owned Lots1 remaining Project Lifecycle For personal use only Project name GDV (at 30 June13) 2014 2015 2016 2017 Brigadoon $92m 184 Selling Chase, Baldivis $99m 549 Selling Completion WA Mundijong $111m 509 Planning Start Up Selling Other $881m 3,644 G
Slide 18: Land bank – joint venture key projects
Land bank – joint venture key projects Joint Venture Project Lifecycle For personal use only Lots1 remaining Project name GDV (at 30 June 13) 2014 2015 2016 2017 NSW Googong2 $694m 2,767 Selling ACT Crace $91m 276 Selling WA Wellard $377m 1,633 Selling NT The Heights $212m 805 Selling SA Lightsview
Slide 19: Capital management
For personal use only Capital management
Slide 20: Capital management
Capital management1 Capital management strategy tracking in FY131 FY121 line with expectations For personal use only Cash at bank $23.1m $22.6m » Cash and available debt facilities totalled Net bank debt $134.8m $247.7m $138.0m1 at 30 June 2013 Convertible notes $46.6m $45.8m » Covenant gearing2 dec
Slide 21: Group cash flow summary
Group cash flow summary Improved cash flows with significant investment in new and existing projects For personal use only FY13 FY12 Cash flows related to operating activities $m $m Receipts from customers 167.6 171.8 Receipts from asset divestments 52.91 2.6 Payments to suppliers and employees (49.
Slide 22: Market overview & outlook
For personal use only Market overview & outlook
Slide 23: Outlook
Outlook Peet’s land bank, combined with its strengthened balance sheet, supports profit growth For personal use only » Underlying foundations of the residential sector remain sound » Cautious view on short-term outlook – overall recovery expected, but gradual » Mixed market conditions expected to pe
Slide 24: Residential market overview
Residential market overview WA Market recovery underway For personal use only » Residential land market improving – developer volumes up 49% on FY12 with price growth now emerging » Developer stock is at lowest levels since 2006 » Rental rates increasing and vacancy levels at lowest level in almost
Slide 25: Residential market overview (cont.)
Residential market overview (cont.) ACT and adjoining NSW For personal use only » Strong population growth in recent years – may be tempered by Federal Election » Highest average state income and low unemployment » Land sales remain strong and looks to continue in the mid term due to a shortage of s
Slide 26: Thank you
For personal use only Thank you
Slide 27: FY13 Annexures
For personal use only FY13 Annexures
Slide 28: Summary income statement
Summary income statement $m FY13 FY12 Var (%) For personal use only Funds management 28.5 32.6 (13%) Development 128.5 93.2 38% Joint venture 33.5 20.1 67% Other1 14.5 1.0 1,350% Revenue 205.0 146.9 40% EBITDA (Pre inventory write-down) 48.0 46.6 3% Finance costs2 (23.9) (16.9) (41%) Depreciation an
Slide 29: Summary balance sheet
Summary balance sheet $m FY13 FY12 Assets For personal use only Cash 33.1 22.6 Receivables 90.7 83.4 Inventories 508.7 428.2 Investments accounted for using the equity method 157.2 91.8 Other 33.9 13.3 Asset classified as held for sale - 74.9 Total assets 823.6 714.2 Liabilities Trade and other paya
Slide 30: Disclaimer
Disclaimer » While every effort is made to provide accurate and complete information, Peet does not warrant or For personal use only 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