Peet Limited · ASX:PPC
Peet — Shareholder Meeting (November 2009)
23 slides from Peet's shareholder meeting presentation, November 2009
Slide 1: Peet Limited 2009 Annual General Meeting
Peet Limited 2009 Annual General Meeting November
Slide 2: FY09 key messages
FY09 key messages » 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 7.0¢ per share fully fr
Slide 3: Share Price Performance
Share Price Performance Peet has outperformed peers and all relevant indices » 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 80 (15%) (47%) 50 (59
Slide 4: FY09 group performance highlights
FY09 group performance highlights Peet achieved revenue growth of 5% for FY09; full year dividend of 7 cents per share 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 inventories of $27.4m
Slide 5: FY09 factors
FY09 factors » Tighter margins » 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 incentives » Flow‐on to
Slide 6: Cash flow analysis
Cash flow analysis » 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 7: Capital management
Capital management » Core debt facility of $250m extended for a further 3 years to Oct. 2012 » No debt maturity until July 2011 » Single banking relationship for over 114 years » Gearing covenant based on market value of inventory » Compliant with all debt covenants » Entered into $200m+ new interes
Slide 8: Current market conditions
Current market conditions Current market conditions Diversification important in a generally challenging environment » 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% » Cautious but confi
Slide 9: Sales update – FY10 YTD
Sales update – FY10 YTD » Already 929 lot sales for the period ended 31 October 2009 » 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 31 October 2009 9 Pee
Slide 10: Peet Point Cook Kingsford Syndicate
Peet Point Cook Kingsford Syndicate Funds management growth strategy 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% of all investors » Dev
Slide 11: Project update
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Slide 12: Alkimos – Western Australia
Alkimos – Western Australia » 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 approvals now received »
Slide 13: Greenvale - Victoria
Greenvale ‐ Victoria » 25km north of Melbourne CBD » 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 Limited | Enriching lives
Slide 14: Craigieburn - Victoria
Craigieburn ‐ Victoria » 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 15: Outlook and strategy
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Slide 16: Land / residential investment case
Land / residential investment case Medium and long‐term fundamentals for residential land remain compelling » 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 – irrespective of ownership » Cu
Slide 17: Australian economic fundamentals
Australian economic fundamentals Several signs that the worst is over » 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 grow, while housing s
Slide 18: Australian economic fundamentals
Australian economic fundamentals Economic fundamentals point to future growth » 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 Population Employment So
Slide 19: Australian residential market fundamentals
Australian residential market fundamentals First Home Buyers will not disappear » 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 significantly better than in
Slide 20: Australian residential market fundamentals
Australian residential market fundamentals » Banks continue to lend to homebuyers; in international comparison, low default rate on home loans » Households have been taking steps to protect their balance sheets and are injecting equity » Peet has been experiencing a solid pick up in activity since t
Slide 21: Strategy
Strategy » Peet’s strategic priorities remain » 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 – with a range of product
Slide 22: 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 » Second+ home buyers and investors re‐entering the market as confidence increases » Interest rates still at historically low levels » Significantly improved
Slide 23: 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. Subject to any terms implied by law and which cannot be excluded, Pe