Slide 1: 1H17 Results Presentation
1H17 RESULTS For personal use only PRESENTATION
Slide 2: Key Performance Metrics for 1H17
KEY PERFORMANCE METRICS FOR 1H17 For personal use only OPERATIONAL FINANCIAL CAPITAL MANAGEMENT 1,408 settlements $19.8m 1H17 operating profit after tax 24.8% gearing Up 10% Up 7% Down 4% 2,450 lots 4.03 cents EPS $187m total net debt Record contracts on hand Up 7% Down 5% $44m EBITDA - Up 9% $56.4m
Slide 3: For personal use only
For personal use only
Slide 4: Group Financial Summary
GROUP FINANCIAL SUMMARY » Group revenue1 of $153.1m – up 12% KEY PERFORMANCE STATISTICS 1H17 1H16 VAR (%) For personal use only Lot sales 1,488 1,659 (10%) » Operating profit3 after tax of $19.8m - up 7% Lot settlements 1,408 1,275 10% » Group EBITDA2 of $44.0m – up 9% Revenue1 $153.1m $136.7m 12% ̵
Slide 5: Improving Financial Performance
IMPROVING FINANCIAL PERFORMANCE Growth in earnings driven by our focused strategy, market conditions and new projects For personal use only » Business well established across seven states and territories ̵ Provides good geographic spread with well located projects across key growth corridors 1,990 1
Slide 6: Focus on Driving Shareholder Returns
FOCUS ON DRIVING SHAREHOLDER RETURNS » 1H17 EPS up 7% to 4.03cps For personal use only » 1H17 DPS of 1.75cps, fully franked ̵ Target FY17 payout ratio of 50% » The Group’s Net Tangible Assets (NTA) ̵ Does not include value uplift on co-investment stakes in funds and JVs ̵ Does not include value for
Slide 7: Capital Management
CAPITAL MANAGEMENT Further improvement in FM capital employed and debt position For personal use only » ROCE1 of 13.7% 2,184 ̵ Increased FM capital employed with joint venturing of Whole Green (VIC) project » Gearing2 of 24.8%, down 4% ̵ Focused strategy on gearing reduction » Solid cash interest co
Slide 8: For personal use only
For personal use only
Slide 9: Group Operating Performance
GROUP OPERATING PERFORMANCE Peet’s diversified portfolio of projects has allowed it to capitalise on the eastern states’ strength » Approximately 80% of entire land bank is expected to be in development by end of FY17 For personal use only » Contribution from eastern states’ projects increased to 90
Slide 10: Group Sales and Settlement Activity
GROUP SALES AND SETTLEMENT ACTIVITY SALES COMPOSITION BY GEOGRAPHY (LOTS) » Group sales for 1H17 of 1,488 lots 1,800 1,659 ̵ 1H17 sales impacted by substantial completion of For personal use only 1,600 11% 1,488 three projects during 2H16 1% 1,400 10% 12% 11% » Strong sales from eastern states’ proj
Slide 11: Contracts on Hand
CONTRACTS ON HAND » Record contracts on hand1 of 2,450 lots with a value of $556m ̵ Increase driven by QLD, NSW/ACT & SA and continuing strong conditions in VIC For personal use only ̵ Providing solid momentum into 2H17 » VIC contracts on hand have remained solid since 31 December 2016 as a result o
Slide 12: FM Operating Performance
FM OPERATING PERFORMANCE » 1H17 fee revenue increased to $21.9m – up 1% on 1H16 KEY PERFORMANCE STATISTICS 1H17 1H16 VAR (%) − EBITDA1 margin 68%, up 2% on 1H16 Lot sales 826 1,008 (18%) For personal use only » 1H17 sales impacted by substantial completion of three projects Lot settlements 829 657 2
Slide 13: JV Operating Performance
JV OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS 1H17 1H16 VAR (%) » EBITDA1 of $6.6m - down 41% − Impacted by timing of settlements which are weighted to Lot sales 440 395 11% For personal use only 2H17 Lot settlements 280 437 (36%) − Contribution from JVs (before equity share of profits) Revenu
Slide 14: Development Operating Performance
DEVELOPMENT OPERATING PERFORMANCE » Revenue of $108.2m – up 61% KEY PERFORMANCE STATISTICS 1H17 1H16 VAR (%) − 1H17 settlements increased by 64% predominately Lot sales1 222 256 (13%) For personal use only across VIC projects Lot settlements » Weighted exposure to better performing Melbourne market
Slide 15: For personal use only
For personal use only
Slide 16: Capital Management
CAPITAL MANAGEMENT Strong capital management strategy outcomes CAPITAL MANAGEMENT METRICS DEC 16 JUN 16 For personal use only Cash at bank $68.9m $73.4m » Total net debt down 5% since 30 June 2016 to $187m Bank debt $156.2m $169.2m » Weighted average cash cost of bank debt (excluding bonds) Peet bon
Slide 17: Group Cash Flow Summary
GROUP CASH FLOW SUMMARY Cash generated from operations applied to deliver production from new and existing projects to meet demand For personal use only » Future land vendor term payments reduced by $47.5m with the joint venturing of Whole Green (VIC) » Redbank Plains (QLD) acquired during 1H17 − Fi
Slide 18: For personal use only
For personal use only
Slide 19: Residential Market Overview
RESIDENTIAL MARKET OVERVIEW Melbourne » Ongoing population growth and solid economy to support dwelling demand For personal use only − Employment growth expected to continue − Volumes beginning to stabilise near current high levels with moderate price growth Brisbane » Market demand continues to rem
Slide 20: National Reach
NATIONAL REACH $11.8bn For personal use only 47,000 END-VALUE LOTS 1 projects 61 nationally Notes: 1 Not all projects are shown on map
Slide 21: Overview of Peet's Land Bank
OVERVIEW OF PEET’S LAND BANK » Diversified land bank across all mainland states and territories − Pipeline of 47,000 lots with an on completion value of approximately $11.8 billion For personal use only − FM and JV projects account for approximately 80% of the Group’s land bank − Strong exposure to
Slide 22: New Projects in FY17 - FY19
NEW PROJECTS IN FY17 - FY19 Pipeline of approximately 47,000 lots providing visibility of future earnings For personal use only FY17 - FY19 PROJECT RELEASE SCHEDULE » Up to seven new projects to commence development within the next 2-3 years Project State Segment First Sales Lots Project Life (Years
Slide 23: For personal use only
For personal use only
Slide 24: 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 modest economic growth For personal use only − Conditions across Victoria, New South Wales/ACT and South Australia are expe
Slide 25: For personal use only
For personal use only
Slide 26: Summary Income Statement
SUMMARY INCOME STATEMENT 1H17 1H16 Var $M $M (%) For personal use only Funds Management 21.9 21.6 1% Development 108.2 67.4 61% Joint Venture 17.7 29.6 (40%) Share of net profit of equity accounted investments 2.9 6.6 (56%) Other1 2.4 11.5 (79%) Revenue 153.1 136.7 12% EBITDA 44.0 40.3 9% Finance co
Slide 27: Summary Balance Sheet
SUMMARY BALANCE SHEET DEC 16 JUN 16 $M $M For personal use only Assets Cash 68.9 73.4 Receivables 150.7 114.5 Inventories 508.2 598.9 Investments accounted for using the equity method 202.2 198.1 Other 15.8 13.8 Total assets 945.8 998.7 Liabilities Trade and other payables 79.0 81.5 Land vendor liab
Slide 28: Land Bank – Funds Management Key Projects
LAND BANK – FUNDS MANAGEMENT KEY PROJECTS PROJECT LIFECYCLE For personal use only PROJECT NAME STATE GDV LOTS REMAINING1 2017 2018 2019 2020 Alkimos WA $1,030m 2,290 Selling Burns Beach WA $296m 500 Selling Golden Bay WA $244m 1,046 Selling Lakelands WA $218m 1,184 Selling Yanchep Golf Estate WA $42
Slide 29: Land Bank – Company-Owned Key Projects
LAND BANK – COMPANY-OWNED KEY PROJECTS PROJECT LIFECYCLE PROJECT NAME STATE GDV LOTS REMAINING1,2 2017 2018 2019 2020 For personal use only Brigadoon WA $62m 119 Selling Chase, Baldivis WA $81m 485 Selling Mundijong WA $160m 759 Planning Other WA $665m 3,769 Planning Gladstone QLD $84m 337 Selling B
Slide 30: Land Bank – Joint Venture Key Projects
LAND BANK – JOINT VENTURE KEY PROJECTS PROJECT LIFECYCLE LOTS REMAINING1 For personal use only PROJECT NAME STATE GDV 2017 2018 2019 2020 Wellard WA $208m 1,105 Selling Redbank Plains QLD $251m 1,100 Selling Googong2 NSW $617m 2,306 Selling Eyre Kingston ACT $96m 132 Planning Start up Selling The He
Slide 31: 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