Slide 1: FY15 Results Presentation
For personal use only FY15 Results Presentation August 2015
Slide 2: FY15 Results Overview
FY15 RESULTS OVERVIEW Continued strong momentum For personal use only » Strong uplift in FY15 operating profit1 after tax to $38.5m, up 22% » Strong underlying business performance FY14 Result FY14 − Revenue Resultup 22% from FY14 with 3,266 lots settled − EBITDA2 up 25% to $92.4m − Improvement in E
Slide 3: Key Highlights for FY15
KEY HIGHLIGHTS FOR FY15 » Peet moved to 100% ownership of CIC post CIC share buyback For personal use only » Selective acquisitions of land holdings to restock pipeline, predominantly through funds platform − Acquired seven new projects comprising more than 4,000 lots/dwellings with GDV1 of circa $1
Slide 4: Key Highlights for FY15 (continued)
KEY HIGHLIGHTS FOR FY15 (CONTINUED) » A total of 140 apartments settled in FY15 For personal use only MEDIUM » A further 340 apartments under construction or in the design phase DENSITY » Pipeline of approximately 1,700 units/apartments identified across national portfolio FY14 Result FY14 Result »
Slide 5: Results overview
For personal use only Results overview
Slide 6: Group Financial Summary
GROUP FINANCIAL SUMMARY » Significant increase in revenue over FY15 driven KEY PERFORMANCE STATISTICS FY15 FY14 VAR (%) by the Development business For personal use only Lot sales 3,229 3,525 (8%) Lot settlements 3,266 3,491 (6%) » Operating profit2 after tax of $38.5m - up 22% Revenue1 $360.9m $296
Slide 7: Improving Financial Performance
IMPROVING FINANCIAL PERFORMANCE Growth in earnings via improvement in margins and ROCE For personal use only » Operating profit1 after tax up 110% since FY13 representing a CAGR2 of 45%, boosted by acquisition of CIC » EBITDA1 CAGR of 32% since 1,990 FY13, helped by improving margins 1,990 − Ongoing
Slide 8: Focus on Driving Shareholder Returns
FOCUS ON DRIVING SHAREHOLDER RETURNS OPERATING EPS (CPS) DPS (CPS) NTA PER SHARE ($) For personal use only Book NTA Market adjusted NTA 8.3 1.18 1.17 7.3 4.5 1.00 3.5 1.00 1.04 5.4 0.89 FY13 FY14 FY15 - FY13 FY14 FY15 FY13 FY14 FY15 » EPS CAGR of 24% since FY13 » FY15 DPS of 4.5cps, fully franked »
Slide 9: Capital Management
CAPITAL MANAGEMENT Significant improvement in capital position » Increase in ROCE to 13.8% For personal use only − Increase in ROCE2,184 through increasing use of capital efficient structures − Improved underlying earnings performance − Targeted sale of non-core assets − Successful launch of retail
Slide 10: Operating performance
For personal use only Operating performance
Slide 11: Group Operating Performance
GROUP OPERATING PERFORMANCE » Increased contribution from Development projects For personal use only » Higher contribution from Victoria driven by Aston and NSW/ACT driven by Quayside » Funds Management business provided solid earnings base representing 30% of Group EBITDA1 » East coast EBITDA contr
Slide 12: Group Sales Activity
GROUP SALES ACTIVITY » Group sales for FY15 were 3,229 lots, down 8% on FY14 SALES COMPOSITION BY GEOGRAPHY (LOTS) For personal use only » FY15 WA sales volumes have moderated, however solid 4,000 3,525 demand remains for affordably priced lots 3,500 3,229 3,000 » Increased exposure to Vic and Qld t
Slide 13: Contracts on Hand
CONTRACTS ON HAND » Contracts on hand1 up 4% to 2,061 lots since 30 June 2014 For personal use only 2,184 − Solid increase driven by stable and improving east coast market conditions » Victorian contracts on hand have increased since year end as a result of strong markets conditions CONTRACTS ON HAN
Slide 14: Development Operating Performance
DEVELOPMENT OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS FY15 FY14 VAR (%) » FY15 settlements up strongly due to Aston (VIC) and Quayside apartments (ACT) Lot sales1 578 501 15% For personal use only Lot settlements » Predominant exposure to better performing Victorian market from both a sales a
Slide 15: FM Operating Performance
FM OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS FY15 FY14 VAR (%) » FY15 fee revenue increased to $38.6m – up 7% on FY14 − EBITDA2 margin 69%, in line with FY14 Lot sales1 1,768 1,834 (4%) For personal use only Lot settlements 1,718 1,763 (3%) » Balanced exposure to Vic and WA Revenue $38.6m $36
Slide 16: JV Operating Performance
JV OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS FY15 FY14 VAR (%) » Sales and settlements down as a result of Crace (ACT) being substantially completed in FY14 Lot sales 883 1,190 (26%) For personal use only » FY15 revenue of $100.9m, up 6% on FY14 due to continued Lot settlements 951 1,268 (25%
Slide 17: CIC Investment Return
CIC INVESTMENT RETURN LAND BANK CONTRIBUTION BY GEOGRAPHY (LOTS2) CIC continues to deliver strategic and financial benefits 100% For personal use only 5% » CIC acquisition has delivered Peet strong returns and 6% significant geographic diversification at an attractive acquisition price 80% 40% 36% »
Slide 18: Operational update
For personal use only Operational update
Slide 19: For personal use only
For personal use only FY15 RESULTS ǀ 27 AUGUST 2015 ǀ PAGE 19
Slide 20: Overview of Peet's Land Bank
OVERVIEW OF PEET’S LAND BANK » Diversified land bank across all mainland states and territories For personal use only » WA exposure balanced against Eastern seaboard » WA exposure weighted toward FM and JV, with relatively lower proportion of development projects located in WA LANDBANK COMPOSITION B
Slide 21: Aston, Craigieburn, Victoria
ASTON, CRAIGIEBURN, VICTORIA For personal use only Aston is a 200 hectare greenfield master planned community located 32 km north of the Melbourne CBD, in the thriving northern growth corridor. The community will accommodate approximately 2,500 lots along with a range of amenities, including a Neigh
Slide 22: Googong, NSW/ACT
GOOGONG, NSW/ACT For personal use only Googong is a 780 hectare greenfield master planned community situated 16 km from Canberra CBD. The community will accommodate approximately 6,000 homes, three schools, community and childcare facilities, two local Neighborhood Centres, a Major Town Centre and 3
Slide 23: Flagstone City, QLD
FLAGSTONE CITY, QLD For personal use only Flagstone is a 1,245 hectare greenfield master planned community situated 38 km South West of Brisbane’s CBD. The community will accommodate over 11,000 lots, four schools, community and childcare facilities, a local District Centre, a Central Business Distr
Slide 24: New Projects in FY16 - FY18
NEW PROJECTS IN FY16 - FY18 Pipeline of approximately 47,000 lots providing visibility of future earnings For personal use only » Up to 12 new projects expected to commence FY16 - FY18 PROJECT RELEASE SCHEDULE development within the next 2-3 years Project State Segment First Sales Lots Project Life
Slide 25: Capital management
For personal use only Capital management
Slide 26: Capital Management
CAPITAL MANAGEMENT Strong capital management strategy outcomes For personal use only » Cash and available facilities of $127.4m CAPITAL MANAGEMENT METRICS FY15 FY14 » Weighted average cash cost of bank debt (excluding Cash at bank $57.7m $38.8m convertible notes) reduced to 6.6% Bank debt $186.2m $2
Slide 27: Group Cash Flow Summary
GROUP CASH FLOW SUMMARY Cash generated from operations applied to accelerate production from new and existing projects to meet demand For personal use only » Cash borrowing costs anticipated to be lower due to reduced debt levels and newly entered interest rate hedges FY15 FY14 CASH FLOWS RELATED TO
Slide 28: Cash Flow
CASH FLOW For personal use only CASH FLOW PRE AND POST ACQUISITIONS ($M) » Development of existing pipeline to be self-funded through operating cash flows 133.2 » Disciplined execution of capital management strategy to reduce cash flow needs 113.3 − Majority of land bank now in Funds Management 73.2
Slide 29: Market overview & outlook
For personal use only Market overview & outlook
Slide 30: Residential Market Overview
RESIDENTIAL MARKET OVERVIEW Melbourne » Ongoing strong population growth to support dwelling demand For personal use only − Metropolitan Melbourne will see an additional 1.8m people over the next 20 years, equals 90,000 new residents per year − Volumes expected to stabilise near current high levels
Slide 31: Outlook
OUTLOOK Portfolio well positioned for sustainable long-term growth and value creation » Outlook supported by market fundamentals For personal use only − Greatest near term exposure to well-performing Vic market − Qld contribution to increase due to Flagstone City commencing development during FY16 −
Slide 32: Thank you
For personal use only you Thank
Slide 33: FY15 annexures
For personal use only FY15 annexures
Slide 34: Summary Income Statement
SUMMARY INCOME STATEMENT FY15 FY14 Var $M $M (%) For personal use only Funds Management 38.6 36.2 7% Development 186.0 104.2 79% Joint venture 100.9 95.6 6% Share of net profit of equity accounted investments 6.4 20.6 (69%) Other1 28.9 40.1 (28%) Revenue 360.8 296.7 22% EBITDA (Pre inventory write-d
Slide 35: Summary Balance Sheet
SUMMARY BALANCE SHEET FY15 FY14 $M $M For personal use only Assets Cash 57.7 38.8 Receivables 101.5 81.1 Inventories 520.5 540.6 Investments accounted for using the equity method 181.8 152.7 Other 13.5 33.9 Total assets 875.0 847.1 Liabilities Trade and other payables 63.3 55.5 Land vendor liabiliti
Slide 36: Land Bank – Funds Management Key Projects
LAND BANK – FUNDS MANAGEMENT KEY PROJECTS PROJECT LIFECYCLE For personal use only PROJECT NAME STATE GDV LOTS1 REMAINING 2016 2017 2018 2019 Alkimos WA $793m 2,214 Selling Burns Beach WA $328m 599 Selling Golden Bay WA $293m 1,293 Selling Lakelands WA $243m 1,446 Selling Yanchep Golf Estate WA $368m
Slide 37: Land Bank – Company-Owned Key Projects
LAND BANK – COMPANY-OWNED KEY PROJECTS PROJECT LIFECYCLE For personal use only PROJECT NAME STATE GDV LOTS1 REMAINING 2016 2017 2018 2019 Brigadoon WA $69m 139 Selling Chase, Baldivis WA $83m 444 Start up Selling Mundijong WA $116m 508 Planning Start up Selling Other WA $600m 3,583 Planning Gladston
Slide 38: Land Bank – Joint Venture Key Projects
LAND BANK – JOINT VENTURE KEY PROJECTS PROJECT LIFECYCLE For personal use only PROJECT NAME STATE GDV LOTS1 REMAINING 2016 2017 2018 2019 Googong2 NSW $599m 2,542 Selling Eyre Kingston ACT $111m 167 Start up Selling Completion Wellard WA $259m 1,248 Selling The Heights NT $131m 477 Selling Lightsvie
Slide 39: 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