Slide 1: FY17 Results Presentation
For personal use only FY17 RESULTS PRESENTATION
Slide 2: Key Performance Metrics for FY17
KEY PERFORMANCE METRICS FOR FY17 CAPITAL STRATEGIC For personal use only OPERATIONAL FINANCIAL MANAGEMENT GROWTH $44.8m FY17 operating Two new wholesale 3,077 settlements profit after tax 21.4% gearing Up 7% Down 7% funds established Up 5% 2,186 lots Preferred partner for WA 9.1 cents EPS $161.4m ne
Slide 3: For personal use only
For personal use only
Slide 4: Group Financial Summary
GROUP FINANCIAL SUMMARY Further growth achieved in FY17 KEY PERFORMANCE STATISTICS FY17 FY16 VAR (%) For personal use only » Group revenue1 of $311.4m – up 9% Lot sales 3,000 3,253 (8%) Lot settlements 3,077 2,865 7% » Operating profit2 after tax of $44.8m - up 5% Revenue1 $311.4m $284.8m 9% » Group
Slide 5: Improving Financial Performance
IMPROVING FINANCIAL PERFORMANCE Consistent growth in earnings driven by our focused strategy, market conditions and new projects For personal use only » Business well established 1,990 across seven states and territories 1,990 ̵ Provides good geographic spread with well located projects across key g
Slide 6: Focus on Driving Shareholder Returns
FOCUS ON DRIVING SHAREHOLDER RETURNS » FY17 Operating EPS up 5% to 9.1 cps ̵ For personal use only Consistent growth in operating EPS » FY17 DPS of 4.75 cps, fully franked - up 6% ̵ Final DPS of 3 cps, fully franked – payable October 2017 » The Group’s Net Tangible Assets (NTA) ̵ Does not include va
Slide 7: Capital Management
CAPITAL MANAGEMENT Continued focus on capital employed and reduction in debt » ROCE1 of 13.2% For personal use only ̵ ROCE1 driven2,184 by earnings contribution, capital efficient structures and discipline ̵ Increased FM capital employed with establishment of two new wholesale funds » Gearing2 of 21
Slide 8: Funds Management
FUNDS MANAGEMENT FUNDS MANAGEMENT & JVs EBITDA1 ($m) FUNDS MANAGEMENT & JVs GDV2 ($bn) For personal use only 70 14 9.3 60 12 8.9 8.7 11.6 50 10 9.3 40 8 6.2 8.9 8.7 7.5 30 6 6.2 20 4 10 2 0 0 FY12 FY13 FY14 FY15 FY16 FY17 FY12 FY13 FY14 FY15 FY16 FY17 Co-Investment Profits Funds Management/Joint Ven
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For personal use only
Slide 10: Group Operating Performance
GROUP OPERATING PERFORMANCE Peet’s diversified portfolio of projects has allowed it to capitalise on the eastern states’ strength » Approximately 70% of entire land bank was in development by the end of FY17 For personal use only ̵ More than 80% of the land bank expected to be in development by 2019
Slide 11: Group Sales and Settlement Activity
GROUP SALES AND SETTLEMENT ACTIVITY SALES COMPOSITION BY GEOGRAPHY (LOTS) » Group sales for FY17 of 3,000 lots – down 8% 4,000 ̵ Substantial completion of a number of projects 3,525 For personal use only 3,500 11% during FY16 3,229 3,253 1% 3,000 3,000 ̵ New projects commenced sales predominantly 12
Slide 12: Contracts on Hand
CONTRACTS ON HAND Contracts on hand underpin momentum into FY18 For personal use only » Contracts on hand1 of 2,186 lots with a value of $546m ̵ Contract value underpinned by price growth across VIC, QLD and NSW/ACT CONTRACTS ON HAND1 BY GEOGRAPHY (LOTS) CONTRACTS ON HAND1 BY GEOGRAPHY (VALUE) 3,000
Slide 13: FM Operating Performance
FM OPERATING PERFORMANCE » FY17 fee revenue increased to $48.3m – up 16% on FY16 KEY PERFORMANCE STATISTICS FY17 FY16 VAR (%) − EBITDA1 margin 70%, up 2% on FY16 Lot sales 1,756 1,978 (11%) For personal use only Lot settlements 1,912 1,508 27% » FY17 sales impacted by substantial completion of a num
Slide 14: JV Operating Performance
JV OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS FY17 FY16 VAR (%) » EBITDA1 of $21.2m - down 25%, impacted by − Timing of settlements from Lightsview (SA) Lot sales 735 712 3% For personal use only − Reduced contributions from Village at Wellard (WA) in line Lot settlements 741 940 (21%) with WA
Slide 15: Development Operating Performance
DEVELOPMENT OPERATING PERFORMANCE » Revenue of $192.8m – up 25% KEY PERFORMANCE STATISTICS FY17 FY16 VAR (%) − Strong price growth achieved across VIC projects Lot sales2 509 563 (10%) For personal use only Lot settlements » Development projects well located in Melbourne key growth corridors Retail
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For personal use only
Slide 17: Capital Management
CAPITAL MANAGEMENT Strong capital management strategy outcomes CAPITAL MANAGEMENT METRICS FY17 FY16 FY15 FY14 For personal use only Cash at bank $88.4m $73.4m $57.7m $38.8m » Net debt down 17% since 30 June 2016 to $161m1 Bank debt $151.7m $169.2m $185.9m $247.9m Peet bonds/convertible notes4 $100.0
Slide 18: Group Cash Flow Summary
GROUP CASH FLOW SUMMARY Cash generated from operations applied to deliver production from new and existing projects to meet demand » Majority of land bank in Funds Management or capital efficient structures (PDA’s) For personal use only » FY18 distributions to be fully cash covered » Cash borrowing
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For personal use only
Slide 20: Key Projects FY18 – FY20
KEY PROJECTS FY18 – FY20 PROJECT` STATUS » 1,245 hectare greenfield master planned community situated in a key South East Queensland Growth corridor 38 km For personal use only south west of Brisbane’s CBD » Joint Venture with MTAA Super » Total yield of more than 12,000 lots with a GDV1 of more tha
Slide 21: Key Projects FY18 – FY20
KEY PROJECTS FY18 – FY20 PROJECTS STATUS » 200 hectare greenfield master planned community located 32 km north of the Melbourne CBD, in the northern growth For personal use only corridor » Total yield of more than 2,500 lots with a GDV1 of $626 million ASTON (VIC) » The community will accommodate a
Slide 22: Key Projects FY18 – FY20
KEY PROJECTS FY18 – FY20 PROJECTS STATUS For personal use only » 20 hectare site located 8km north of Canberra CBD » Conditional agreement with the University of Canberra for a proposed residential development ̵ Negotiations of conditions precedent are progressing UNIVERSITY OF » A total yield of ap
Slide 23: For personal use only
For personal use only
Slide 24: Residential Market Overview
RESIDENTIAL MARKET OVERVIEW Melbourne » Strong economic growth, with forecast high investment in infrastructure by government For personal use only » Strong population growth expected to continue » Economic outlook and population growth to support dwelling demand − Employment growth expected to cont
Slide 25: Residential Market Overview
RESIDENTIAL MARKET OVERVIEW Sydney / Canberra » Strong economic outlook to support government investment in infrastructure projects For personal use only » Demand remains solid supported by pent-up demand and strong economy − NSW population growth expected to continue − Undersupply of dwellings rela
Slide 26: National Reach
NATIONAL REACH $13.8bn For personal use only 51,726 END-VALUE LOTS 1 projects 57 nationally Notes: 1 Not all projects are shown on map
Slide 27: Overview of Peet's Land Bank
OVERVIEW OF PEET’S LAND BANK Land bank represents approximately 17 years’ lot supply based on current sales rates For personal use only » Diversified land bank across all mainland states and LANDBANK COMPOSITION BY GEOGRAPHY AND BUSINESS TYPE (LOTS1) territories 60,000 − Pipeline of approximately 52
Slide 28: New Projects in FY18 – FY20
NEW PROJECTS IN FY18 – FY20 Pipeline of approximately 52,000 lots providing visibility of future earnings For personal use only FY18 – FY20 PROJECT RELEASE SCHEDULE » Three new projects commenced development/sales in FY17 Project State Segment First Sales Lots 1 Project Life (Years) » Up toFY14 FY14
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For personal use only
Slide 30: Outlook
OUTLOOK Portfolio well positioned for sustainable long-term growth and value creation » Outlook generally supported by market fundamentals with sustained low interest rates and economic growth For personal use only − Conditions across Victoria and New South Wales/ACT are expected to remain supportiv
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For personal use only
Slide 32: Summary Income Statement
SUMMARY INCOME STATEMENT FY17 FY16 Var $M $M (%) For personal use only Funds Management 48.3 41.8 16% Development 192.8 154.7 25% Joint Venture 50.4 55.1 (9%) Share of net profit of equity accounted investments 15.3 16.7 (8%) Other1 4.6 16.5 (72%) Revenue 311.4 284.8 9% EBITDA 91.1 89.8 1% Finance c
Slide 33: Summary Balance Sheet
SUMMARY BALANCE SHEET FY17 FY16 $M $M For personal use only Assets Cash 88.4 73.4 Receivables 131.3 114.5 Inventories 486.2 598.9 Investments accounted for using the equity method 213.4 198.1 Other 14.5 13.8 Total assets 933.8 998.7 Liabilities Trade and other payables 69.5 81.5 Land vendor liabilit
Slide 34: Land Bank – Funds Management Key Projects
LAND BANK – FUNDS MANAGEMENT KEY PROJECTS PROJECT LIFECYCLE For personal use only PROJECT NAME STATE GDV 1 LOTS REMAINING2 2018 2019 2020 2021 2022 Alkimos WA $1,213m 2,406 Selling Burns Beach WA $258m 480 Selling Golden Bay WA $216m 973 Selling Lakelands WA $214m 1,161 Selling Yanchep Golf Estate W
Slide 35: Land Bank – Company-Owned Key Projects
LAND BANK – COMPANY-OWNED KEY PROJECTS PROJECT LIFECYCLE For personal use only PROJECT NAME STATE GDV 1 LOTS REMAINING2 2018 2019 2020 2021 2022 Brigadoon WA $60m 115 Selling Chase, Baldivis WA $66m 318 Selling Mundijong WA $160m 759 Planning Start up Other WA $561m 3,485 Planning Gladstone QLD $84m
Slide 36: Land Bank – Joint Venture Key Projects
LAND BANK – JOINT VENTURE KEY PROJECTS PROJECT LIFECYCLE GDV 1 LOTS REMAINING2 For personal use only PROJECT NAME STATE 2018 2019 2020 2021 2022 Wellard WA $171m 938 Selling Brabham3 WA $767m 3,333 Planning Start up Selling Redbank Plains QLD $225m 1,035 Selling Googong4 NSW $756m 2,108 Selling Atri
Slide 37: 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