Peet Limited · ASX:PPC
Peet — Shareholder Meeting (November 2005)
73 slides from Peet's shareholder meeting presentation, Nov 23, 2005
Slide 1: Letter to ASX: AGM Presentation & Chairman's Address
23 November 2005 Company Announcements Office Australian Stock Exchange Limited Via ASX Online Dear Sir/Madam AGM PRESENTATION & CHAIRMAN’S ADDRESS TO SHAREHOLDERS Please find attached the Company's AGM presentation and Chairman’s Address to shareholders for 2005. Yours faithfully PEET & COMPANY LIM
Slide 2: — eres
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Slide 3: oe ee
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Slide 4: Board of Directors
Board of Di rectors Tony Lennon E Graeme Sinclair Anthony Lennon
Slide 5: Se oS —
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Slide 6: Chairman's address: profits and dividends
Peet & Company Limited Chairman’s address November 2005 Our annual report spells out in detail the achievements of the company this year. | trust that our shareholders are pleased with our performance and financial results. However, | assure you we are vigorously increasing and building upon our cor
Slide 7: Land asset values and further final dividend
The company’s own land assets as independenily valued increased by 23 per cent to $244 million in this period, which serves as a real indicator of balance sheet strength. Maintaining well-planned and continuous rate of growth of our business will be a key focus as we roll out our expanded operations
Slide 8: Group activity indicator and total shareholder returns
GROUP ACTIVITY INDICATOR: TOTAL PROFITS MANAGED BY THE COMPANY The before tax profits achieved in the Peet group including its managed syndicates are very significant in comparison with other Companies and Trusts in the property sector in Australia and by referring to them | hope to illustrate our s
Slide 9: Profit guidance 2006 and expanded operations
PROFIT GUIDANCE: 2006 Our settlements completed for the year to date are in line with our expectations and the Board confirms its earlier market guidance of increasing net profit after tax and earnings per share by 10% for the 2006 financial year. EXPANDED OPERATIONS We are leveraging our assets by
Slide 10: Retirement, retail, commercial and healthcare projects
the year until June 30, 2006. In addition, it has the potential for capital growth. Retirement Property Projects A detailed review of all Peet & Company land holdings across Australia has earmarked a range of sites suitable for retirement housing opportunities. The result is that we have sites in ha
Slide 11: Estates, awards and syndicates
Lakelands estate at Mandurah and the Village at Wellard. These projects have won an array of awards as detailed on the screen. The land market continues to be good for us with our estates being especially buoyant in Western Australia and very healthy in Victoria. Our large land bank provides added c
Slide 12: Remuneration report
The Corporations Act requires a resolution to be put to the Meeting adopting the remuneration report, appearing in the Annual Report. However, this vote is advisory only and does not bind the directors or the Company. The objective of Peet’s executive reward framework is to ensure reward for perform
Slide 13: Peet team recognition
PEET TEAM RECOGNITION There is much positive expectation and excitement in the ranks of the company for our future direction and the growth prospects. | have been impressed by the creativity, energy and interest in the company goals that | have seen demonstrated by our team members in our various st
Slide 14: Lakelands Estate and The Village at Wellard awards
Lakelands Estate (WA) * Urban Development Institute of Australia Award ‘2005 Environmental’ * Western Australian Environment Award 2005 ‘Business Leading by Example’ Finalist * Housing Industry Association Greensmart ‘2005 Development of the Year’ * 2005 Planning Institute Australia Award ‘Special C
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Slide 16: Our Objective and Strategies
Our Objective: To provide a satisfactory return to shareholders Our Strategies: Improve performance of existing businesses Grow funds under management Continue to acquire land that delivers long term value Extract maximum value from the landbank by identifying retail, retirement housing and other co
Slide 17: Record result
Record result Excellent growth in earnings and dividend per share Strong financial and risk management Total return to IPO participants of 100% (pre-tax) Targeting growth in after-tax earnings of 10% for FY06
Slide 18: See
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Slide 19: * * . * x ax er? c & © = ise] He ©
* * . * x ax er? c 2 & © = ise] He © eed ss © = 2 SO o 2) 6 o ‘foam © £ ft I MEETING 2005 L f TO ERA p G HINUAL A
Slide 20: Revenue increased by 19% to $77 million
- increased by 19% to $77 million WEE TING 2005 L oO uU ERA, n EN e S v e NNUAL R A
Slide 21: Earnings per share increased by 10% to 15.8 cents
oe — are Sh Increased by 10% to 15.8 cents IT e P S S “ S = 5 uy = Ss L g rni _ GEN NNUAL Ea A
Slide 22: Dividends per share increased by 20%
- oO Shar increased by 20% to 12 cents er P —S S “ S = 5 uy = Ss nd ERAL GEN, vide NNUAL A
Slide 23: Total assets increased by 29% to $294.3 million
- — ue a © ark S at Increased by 29% to $294.3 million WEE UNG 20) Asse ENERAL S ota NAUAL T A
Slide 24: Market Trading Comparison
Market Trading Comparison = 170 160 | = 150 ‘4 t S140 B 230) = 120 z Q S110) 3 y = 100} 90 | 80 | geese esseseesseeges s 8 sg $2 6 6 ££ EF ERE GS & E PPSSSSSSPSSRSSSA PES S ——— Poet & Co. ——— S&PIASX200 ome S&FIASX200 Prop Trusts * Based on closing price as at 22 November 2005, The Company’s share p
Slide 25: Total return to IPO participants of 100%
180 170 160 The Company has delivered a total return to IPO participants of 100% = 150 (pre-tax)*. @ 140 8 130 On a total return basis outperforming % 120 pO the; = 110 B oo k * S&P/ASX200 Index by 31% 100 no * S&P/ASX200 Property Trust SSsSSSESSRSRLERE RS BEE’ EBB index by 46% Pees eEsPERBEE SESS S
Slide 26: 2006 Earnings Guidance
2006EarningsGuidance tt ° Based ona continuation of present market conditions the Company expects to meet its 2006 earnings target of $34.8m (Earnings Per Share of 17.4c)
Slide 27: Dividend payout ratio and policy
* Dividend payout ratio increased to 90% on go forward basis * Accordingly FY05 further final dividend rounded to 2.5c per share * Total dividend for FY05 increasing from 12c to 14.5c fully franked Dividend policy supported by; -» Strong cash flow from core business — Conservative gearing, estimated
Slide 28: — oe _ : — _ ee oo — — : - oo a
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Slide 29: Two years' stock: projects and lots by state
12 years stock 43 Projects 25,459 Lots owned or managed QLD 2 Projects 2,036 Lots WA 24 Projects 11,443 Lots NSW 1 Project 8 Lots vic 16 Projects 11,972 Lots Note: included are Owned, Syndicated end Joint Venture Projects
Slide 30: Western Australia projects map
‘Western Australia oo os fo | Dic. Ocean Lagoon ASHTON HEIGHTS es . Bums Beach cannes ee Tp Carramar Golf Course ie Ashton Heights ze Hammond Park ie Forest Gate BrooxwooD Hawkstone ES TAT E& Cakiord Gardens Brookwood : 3 ‘The Village at 4 suusane i ' ?. Wellard \ mE LAL * The Ridge i WELLARD 2 St M
Slide 31: Ashton Heights
$80m Projected Gross Revenue a _ Peet Owned Project ASHTON HEIGHTS PRIVATE ESTATE Purchased 2003 Distance from CBD 28km North Project Yield 598 Project Life 7 years ___ANNUAL GENERAL MEETING 2005
Slide 32: Lakelands Estate
$320m Projected Gross Revenue. _ _ Syndicated Project . UDIA 2005 Environmental Award Western Austratian Environment Award 2005 Business Leading by Example Finalist Purchased 1994 A Housing industry Association Distance from CED 60km South : i Greensmart 2005 Development a . of the Year Project Yiel
Slide 33: Baldivis project
-$39m: Projected: Gross’ Reven ie Syndicated | Project . Purchased 1995 Distance from CBD 42km South Project Yield 310 plus commercial Project Life S years BALDIVIS
Slide 34: The Village at Wellard
pane a aM) AWARDS: 2008 Planning Institute of Australia Awards; Special Commendation for ‘urban design — plans and ideas’ Special Commendation for “urban planning achievement’ Special Commendation for ‘community based planning’ Award for Excelience for WA Planning Minister's Sustainability Award’ ni
Slide 35: Carramar Golf Course Estate
-$450m Projected Gross. Revenue _ Syndicated Project _ Me ey, oy CARRIAMAR GOLF COURSE ESTATE AWARDS. Urban Development institute of Australia (WA) Award for best Purchased 1976 Master Planned Development Distance from CBD 28kim North City of Wanneroo Project Yield 3200 Environmental Excellence Proj
Slide 36: Burns Beach
500m Projected Gross Revenue _ Syndicated Project _ _ a BURNSBEACH Purchased 1969 Distance from CBD 28km North Project Yield 1,500 Project Life 40 years ___ANNUAL GENERAL MEETING 2005
Slide 37: Victoria projects map
ee = a - y . on C Vie: iD , ds 7 BRIMBANK y ie Gas Lee GARDENS LLL : ORT PH ay 2 Ne a raters PANGRAMA , eR lunte £EeATE The Point of Difference. = t Craigiebum Central gp int Cook Gardens 2. Greervate Gardens 49, Castleraagh 3. Greenvale Rise tf Brookland Greens 4. Greenvale Laxes 42, Panorama 5. Br
Slide 38: los
— los Purchased 2003 Distance from CBD 20km North Project Yield 2,545 Project Life 18 years
Slide 39: Brimbank Gardens
$300m Projected | Gross | Revenue _ ‘Syndicated Project Purchased 2001 Distance from CBD 18km West Project Yield 2,100 BRIMBANK Project Life 11 years GARDENS A Grand Way of Life
Slide 40: Point Cook
Point COOK ost ee se SHEDS ROAD Purchased 4999 Distance from CBD 22km West Project Yieid 4,750 Project Life 40 years
Slide 41: Tarneit Gardens
$140m. Projected Gross Revenue: / Syndicated Project Purchased 2003 Distance from CBD 25km West TARNE IT GARDE NS Project Yield 1,087 It's a great place to grow Project Life 8 years | ANNUAL GENERAL WEE TING 2008
Slide 42: Innisfail project
$200m: Projected | Gross Rever i Purchased 1999 Distance from CBD 22km West Project Yieid 1,046 Project Life 8 years The Point of Difference. | ANNUAL GENERAL WEE TING 2008
Slide 43: $100m: Projected Gross Revel : ue
$100m: Projected Gross Revel : ue Purchased 1998 Distance from CBD 4dkm South East Project Yield 825 Project Life 10 years
Slide 44: $120m Projected Gross Revenu ue
$120m Projected Gross Revenu ue Purchased 2003 Distance from CBD 55km South East Project Yield 879 Project Life 8 years
Slide 45: Queensland projects
nd us S oe i le lan 1 MEE Ss ERA ey Riverbank Warner Lakes n 4 2. e G e NNUAL A
Slide 46: Warner Lakes
ey oe Purchased 2002 Project Yield 1,194 Project Life 7 years Distance from CBD 21km North ___ANNUAL GENERAL MEETING 2005
Slide 47: Caboolture - Riverbank Estate
Purchased. 2003. Project Yield 1,080 Project Life 10 years Distance from CBD 40kms. ___ANNUAL GENERAL MEETING 2005 Caboolture — Riverbank Estate
Slide 48: Project Life - Year Summary
Project Life — 7 Year Summary _ Ashton Heights, Tapping Brigadoon Brookwood, Brookdale Bums Beach Carramar Forrest Gate, Forrestdale Hawkstone, Brookdale Lakelands The Ridge, Stage 8 The Ridge. Stage 9 Mardo Ave (Austratind) Oakford Gardens, Qakford Quattro, Queens Park The Chase at Batdivis The Rid
Slide 49: Unlisted Property Funds
Unlisted Property Funds Performance in line with business plan Funds Launched One Assets Under Six Management QUEENSLAND PROPERTIES
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Slide 51: us g > Zz st ° ~ oO = Qo i + 6G $5
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Slide 52: Housing Finance
‘Housing Finance ——Total (ex refinancing) —==Investor poccsstaa ae ' Source: ABS; NAB Market Economics ' ' ' ' ' t t t t t t t t t is) t 0 Jun-95 = Jun-96 Jun-97. Jun-98 =Jun-99 Jun-00 Jun-01 9 Jun-02 Jun-03 Jun-04 = Jun-05 Source: NAB Economic Presentation
Slide 53: Investor housing
Inve ~~ wetting | Dwelling @ a Sep87 Sep-93 Sep-99 Sep-06 Sep-87 Sep-88 Sep-$8 Sep-06 Source: Commonwealth Research Quarter! ___ANNUAL GENERAL MEETING 2005 )
Slide 54: Underlying demand and dwelling commencements by state
WA Victoria NSW Queensland SA TAS NT ACT Underlying demand - annual average (000 dwellings) Dwelling commencements (000 dwellings) 96/97 to 00/01 01/02 to 04/05 05/06 to 09/10 04/05 17.4 18.8 21.3 ¢ > 23.3 34.0 38.0 36.2 {23 46.0 42.3 45.7 38.4 31.9 44.4 43.3 39.1 7.5 7.6 7.9 10.0 1.8 3.0 2.4 27 1.2
Slide 55: Strong economic growth and affordability
* Strong economic growth for Australia * Strong employment market and wages growth assists affordability ® Skills shortage driving migration and demand * Small lot product in some areas improving affordability 20 80 82 84 86 88 90 92 94 96 98 00 O2 04 06 08 Year Ended June Source: BIS Shrapnel, ABS
Slide 56: g : Z i
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Slide 57: Population Growth Outlook
Population Growth Outlook yy caorsnpaust pie a. oe Thousands Forecast Thousands: Forecast New South Wales 50 New South Wales Queensland | 20 Western 10 Australia 75 6 Western Surctralip Queensland ge 90 92 94 96 SB 00 O02 OA O86 88 99 92 94 96 98 00 o2 04 06 Year Ended June Source: BIS Shrapnel, ABS
Slide 58: SO —— oS — —
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Slide 59: Grow recurring earnings
¢ Grow recurring earnings * Develop opportunities from landbank ¢ Continue to explore new property focussed business opportunities * Leverage off property assets
Slide 60: Long term outlook remains strong
® Long term outlook remains strong © Continued population growth e Increasing immigration underpinning demand ¢ Limited future supply of land
Slide 61: a. o. Q ee re ly ivan ud pp iin a
a. o. Q ee re ly ivan ud pp iin a
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Slide 63: The Beginning
| _ The Begin el po 7)
Slide 64: The Beginning
Slide 65: MOTOR FREE TO INSPECT.
MOTOR FREE TO INSPECT. Made Roads, Electric Light, Watex Mains, 3 Stations, “2: Miles from GPO, Perth. “Tras within § Minotes. PLANS FREE “Fhe Value Te genet ee Sap BAGH, £2 POSIT orm | Papo Tron sone 21 MonTaiy
Slide 66: as ial:
as ial:
Slide 67: You cannot import land
You cannot import land We provide a staple product We have 12 years’ stock No foreign exchange risk Low technology risk High margin business Dividends fully franked No bad debts We have a multitude of clients. This is in the sourcing of our product from landowners across the country, in the raising
Slide 68: eee
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Slide 69: Re-election of directors
Re-election of directors To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That Stephen Francis Higgs, being a director of the company who retires by rotation under rule 8.1(d) of the company’s constitution, and being eligible, is re-elected as a director
Slide 70: Re-election of directors
Re-election of directors To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “That Anthony James Lennon, being a director of the Company who retires by rotation under rule 8.1(d) of the Company’s constitution, and being eligible, is re-elected as a director o
Slide 71: Adoption of Remuneration Report
eeccleang Adoption of Remuneration Report To consider, and if thought fit, to pass the following resolution as an ordinary resolution: “To adopt the Remuneration Report for the year ended 30 June 2005.” Note: The vote on this item is advisory only and does not bind the directors or the company
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Slide 73: Christmas
Christmas Year.