Peet Limited · ASX:PPC
Peet — Shareholder Meeting (November 2011)
21 slides from Peet's shareholder meeting presentation, Nov 15, 2011
Slide 1: Chairman's address to 2011 Peet Limited Annual General Meeting
Enriching lives since 1895 Perth Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 www.peet.com.au Email perth@peet.com.au asx asx release 15 November 2011 For personal us
Slide 2: Chairman's address: Experience and 2010/2011 performance
Enriching lives since 1895 Perth Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 www.peet.com.au Email perth@peet.com.au Experience As many of you know, Peet was establi
Slide 3: The Australian property market
Enriching lives since 1895 Perth Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 www.peet.com.au Email perth@peet.com.au The Australian property market For personal use
Slide 4: Remuneration
Enriching lives since 1895 Perth Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 www.peet.com.au Email perth@peet.com.au Part of doing that is providing an appropriate a
Slide 5: Peet Limited Annual General Meeting – November 2011
For personal use only PEET LIMITED Annual General Meeting ─ November 2011
Slide 6: Key messages
Key messages For personal use only » Operating net profit of $44.0m1, up 2.8% » Operating EPS of 14.6c, up 2.1% FY11 RESULT » Statutory profit of $22.1m, down 47.5% due to write‐downs of inventory » DPS of 8.5c in line with FY10 » NTA of $1.372 per share, up 10.5% due to portfolio net valuation gain
Slide 7: Market conditions
Market conditions » Since the release of Peet’s FY11 results in late August 2011, trading conditions have continued to For personal use only prove challenging » Market conditions trending towards those experienced in FY09 » Consumer sentiment has deteriorated, challenged by domestic and global econo
Slide 8: Residential market overview
Residential market overview Peet has product with geographic balance and positioned at price points to achieve volume from improving For personal use only markets » The affordable to mid‐market segment has moderated, whilst the higher end of the market has seen a more pronounced decline » More posit
Slide 9: FY12 outlook
FY12 outlook » Due to market conditions, Peet has decided to defer capital expenditure on certain projects For personal use only » Therefore, settlement revenue will be deferred to future periods when conditions normalise and there is greater confidence around sales and settlement activity » Craigie
Slide 10: Group Business model
Group Business model Target EBIT Target EBIT Land Bank Diversification Land Bank Capital Sources of For personal use only Composition Margin by Geography (%) Employed1 Revenue Lots: 14,728 40% – 50% EBIT Development 25% ‐35% GDV ($bn): 2.8 $548m » Development profit # Projects: 32 FY10 FY11 WA Vic Q
Slide 11: Land bank by geography
Land bank by geography (%) For personal use only » Countercyclical repositioning of land bank to longer term growth states of 37 16 21 WA andd QLD 14 34 » During the year Peet added another 37 17,300 lots with an on‐completion value l off $2.7 $ billion b ll to it’s ’ Funds d Management business 49
Slide 12: Key projects underpinning outlook for FY12 and beyond
Key projects underpinning outlook for FY12 and beyond For personal use only Flagstone, QLD Shorehaven at Alkimos, WA Greenvale/Craigieburn, VIC # lots remaining: 13,297 GDV: $1,929m # lots remaining: 3,014 GDV: $802m # lots remaining: 3,630 GDV: $723m Vantage Gladstone, QLD Yanchep Golf Estate, WA R
Slide 13: Flagstone Project
Flagstone Project » Peet has established a $90 million Flagstone For personal use only partnership with MTAA Super through the acquisition of a 50% interest in Flagstone West » MTAA Super to retain a 50% interest » The proposed masterplan includes c.10,000 residential lots plus the 200 hectare futur
Slide 14: Acquisition overview
Acquisition overview For personal use only Illustration 10
Slide 15: Acquisition rationale
Acquisition rationale For personal use only 1. Unique opportunity – large scale off‐market opportunity 2. Acquisition equivalent to $7,000/lot ($70,000/hectare), enhancing future profitability 3 3. L ti – growth Location th corridor id targeted t t d by b Qld Government G t to t accommodate d t SEQ’
Slide 16: Land bank – key projects
Land bank – key projects t 1 remaining LLots i i Project name Location GDV FY12 FY13 FY14 For personal use only (at 30 June 11) Owned projects Greenvale VIC $410m 1,985 Craigieburn VIC $313m 1,645 Gladstone QLD $101m 513 Chase WA $87m 506 Brigadoon WA $121m 216 Other $1,744m 9,863 Total owned p proj
Slide 17: Significant expansion of funds management business
Significant expansion of funds management business » Strong and recurrent earnings base For personal use only Historical Funds Management EBITDA $m » Delivered on strategy identified three years ago of growing a wholesale funds platform » Have partnered with three significant wholesale investors who
Slide 18: Capital management
Capital management » Significant capital management achievements over FY11 For personal use only » Diversified capital sources – introduced new lender and issued convertible bonds » g Increased weighted average g debt maturityy to 3.3 yyears » Divestment program for non‐core assets underway » Procee
Slide 19: Strategy
Strategy For personal use only Peet is focused on delivering the right projects to the right markets under a capital efficient model » Peet’s strategic priorities remain » Focused businesses of residential land development and funds management » Continued focus on customer, product and community to
Slide 20: For personal use only
For personal use only
Slide 21: 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 whic