Peet Limited · ASX:PPC
Peet — Shareholder Meeting (November 2009)
29 slides from Peet's shareholder meeting presentation, Nov 18, 2009
Slide 1: Chairman's address to 2009 Annual General Meeting
Perth www.peet.com.au asx release Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au 18 November 2009 For personal use only Chairman’s address to 2009 Peet Limited Annual General Meeting Introduction Ladies and gentlemen, I am ve
Slide 2: Dividend Reinvestment Plan, Equity Raising and Land Bank
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au Dividend Reinvestment Plan The Dividend Reinvestment Plan was activated as part of the Company's ongoing capital management For personal use only strategy a
Slide 3: Share price and market capitalisation
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au Share price and market capitalisation Peet’s share price at the close of yesterday’s market was $2.22 – for a market capitalisation of For personal use only
Slide 4: Capacity building – our people
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au Capacity building – our people It is appropriate that we report regularly to you on our two key assets – our land and our people. For personal use only It i
Slide 5: The Peet team
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au The Peet team Ladies and gentlemen, we have an excellent team at Peet and it’s their work that produces quality For personal use only communities for reside
Slide 6: Board and corporate governance
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au The Board took on a much increased workload through the year as we realised the need for close liaison with Management as the Global Financial Crisis became
Slide 7: Peet Limited 2009 Annual General Meeting
For personal use only Peet Limited 2009 Annual General Meeting November
Slide 8: FY09 key messages
FY09 key messages For personal use only » Solid operating performance in challenging trading conditions » Good capital management, disciplined approach to be maintained » Strengthened balance sheet – capital raising and gearing reduction » Debt facilities have been extended » Full year dividend of 7
Slide 9: Share Price Performance
Share Price Performance Peet has outperformed peers and all relevant indices For personal use only » Both over the mid and long term, Peet’s share price has fared better than all relevant indices Relative share price performance Last 3 years Last 12 months 150 140 130 21% 120 17% 110 100 100 (2%) 90
Slide 10: FY09 group performance highlights
FY09 group performance highlights Peet achieved revenue growth of 5% for FY09; full year dividend of 7 cents per share For personal use only fully franked » Full year operating net profit after tax of $31.2 million (FY08: $47.9 million) » Statutory NPAT of $12.0m » Impacted by pre‐tax write‐down of
Slide 11: FY09 factors
FY09 factors » Tighter margins For personal use only » Highly competitive environment » Part of capital recycling strategy » Strategic decision to meet the market » Funds management – no new syndications in FY09 » Improved affordability » FHOB, FHOG, stamp duty relief, low interest rates, industry i
Slide 12: Cash flow analysis
Cash flow analysis For personal use only » Operating cash flow influenced by focus on » Working capital optimisations, i.e. sales activity » Cost‐conscious management » Deferral of some developments » Fewer cancellations of agreed sales 6 Peet Limited | Enriching lives since 1895
Slide 13: Capital management
Capital management » Core debt facility of $250m extended for a further 3 years to Oct. 2012 » No debt maturity until July 2011 For personal use only » Single banking relationship for over 114 years » Gearing covenant based on market value of inventory » Compliant with all debt covenants » Entered i
Slide 14: Current market conditions
Current market conditions Current market conditions Diversification important in a generally challenging environment For personal use only » 70% of FY09 EBIT from Victoria, market remains EBIT FY09 composition by geography strong, currently the most stable and affordable market of the major states 5
Slide 15: Sales update – FY10 YTD
Sales update – FY10 YTD » Already 929 lot sales for the period ended 31 October 2009 For personal use only » 1,153 lots under contract ($230.1m)1 Lot sales Lots under contract 2,500 2,409 2,000 1,500 1,048 1,153 898 929 934 1,000 500 0 1H09 FY09 FY10 31 Dec 30 Jun Current 1 Note: YTD 1 08 09 1 As at
Slide 16: Funds management growth strategy on track
Peet Point Cook Kingsford Syndicate Funds management growth strategy For personal use only on track » Offer closed oversubscribed; total equity raising of $22 million » Subscriptions from new Peet investors accounted for more than 40% of capital raised » East coast subscribers made up more than 35%
Slide 17: Project update
For personal use only Project update
Slide 18: Alkimos – Western Australia
Alkimos – Western Australia For personal use only » Peet’s largest managed fund » Will comprise approximately 3,300 dwellings » Est. end land sales of $1bn (today’s $) over 11 yrs » Peet equity interest approx. $25m / 14% » Institutional partners » District Structure Plan and Local Structure Plan ap
Slide 19: Greenvale - Victoria
Greenvale ‐ Victoria » 25km north of Melbourne CBD For personal use only » Approximately 2,500 lots » Catholic school in operation » Stages 9 & 10 (73 lots) pre‐sold, now under construction » Public open space being constructed around wetlands, with 10 hectare district open space to come 13 Peet Lim
Slide 20: Craigieburn - Victoria
Craigieburn ‐ Victoria For personal use only » 28km’s north west from Melbourne CBD » Now within Urban Growth Boundary – planning progressing » 1,500 lots » Proposed state school » Proposed neighbourhood activity centre 14 Peet Limited | Enriching lives since 1895
Slide 21: Outlook and strategy
For personal use only Outlook and strategy
Slide 22: Land / residential investment case
Land / residential investment case Medium and long‐term fundamentals for residential land remain compelling For personal use only » Population growth of 1.1% p.a. for the foreseeable future » Population expected to grow by approx. 1 million between FY09 and FY13 » Need to house population – irrespec
Slide 23: Australian economic fundamentals
Australian economic fundamentals Several signs that the worst is over For personal use only » Unemployment rate has been rising, but is not forecast to increase markedly above 6.5% » Reduction in hours worked rather than loss of jobs therefore supporting consumer confidence » Population continues to
Slide 24: Australian economic fundamentals
Australian economic fundamentals Economic fundamentals point to future growth For personal use only » Population continued to grow at more than 1.5% p.a. since 2006 » Population increase of 2.1% over the year to the March 2009 quarter – implying a demand for around 165,000 new dwellings per annum Po
Slide 25: First Home Buyers will not disappear
Australian residential market fundamentals First Home Buyers will not disappear For personal use only » There is no doubt that FHOB has brought forward some demand from first home buyers » First home owners have been re‐entering the market due to improving affordability » Affordability still signifi
Slide 26: Australian residential market fundamentals
Australian residential market fundamentals » Banks continue to lend to homebuyers; in international comparison, low default rate on home loans For personal use only » Households have been taking steps to protect their balance sheets and are injecting equity » Peet has been experiencing a solid pick
Slide 27: Strategy
Strategy » Peet’s strategic priorities remain For personal use only » Focusing on core businesses of funds management and residential development » Continuing expansion of retail funds management platform nationally » Continuing to meet the needs of its core markets – first and second homebuyers – w
Slide 28: Outlook
Outlook » Peet’s core market is first and second home buyers » First home buyers’ market likely to remain strong in 1H10, supported by grants For personal use only » Second+ home buyers and investors re‐entering the market as confidence increases » Interest rates still at historically low levels » S
Slide 29: 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 which