Slide 1: Peet Limited 2007 Half Year Results
‘Mk iT Peet Limite | 2007 Half Year Results —< Enfiching lives since 189¢
Slide 2: Contents
Contents » » » » » » » » Key Achievements Group Financial Performance Strategic Growth Model and Initiatives Land Bank Funds Management Commercial, Residential and Retirement Market Conditions and Outlook Future Outlook and Strategy Entiching jves since 17895 | www.peet.corm_ au
Slide 3: Key Achievements
Key Achievements Peet achieved earnings growth of 13.6% for 1H07 and remains confident of achieving its 15% EPS growth target of 21.2 cps » Half year net profit after tax of $19.4 million (1HO6: $17.1 million) » Interim dividend of 9.0 cents per share fully franked — up 20% on the previous correspon
Slide 4: Key Achievements (continued)
Key Achievements (continued) Performance demonstrates Peet’s ability to consistently deliver through market cycles » Acquisition program continues to deliver land bank growth - a total of 3,200 lots potential acquired since year end » Well advanced diversified commercial and residential development
Slide 5: Group Financial Performance
Group Financial Performance Enfiching lives since 1895 | wwwpeel.corn.au
Slide 6: Financial Highlights
Financial Highlights Peet’s first half performance has been solid, driven by a strong business model and a quality land bank 1HO07 1HOG Revenue $51.2M $55.3M W 74% Net profit after tax $19.4M $17.1M M& 136% Earnings per share 9.5¢ 8.5¢ Mm 118% Dividends per share 9.0c 7.5¢ M& 200% Gearing 31% 30% In
Slide 7: EBIT Composition
EBIT Composition High quality earnings stream, weighted to funds management » Vic and Qid contributed 56% of 1HO7 EBIT » Improved EBIT contribution from funds management » Overall improvement in margins » Two capital raisings completed totalling $41M 1H07 EBIT composition by business type 1H07 EBIT
Slide 8: Strategic Growth Model and Initiatives
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Slide 9: Strategic Growth Model
Strategic Growth Model Peet's strategic objective is to deliver EPS growth and TSR out-performance » Funds and asset management underpinned by Australia’s third largest land bank (ASX) and an established company-owned distribution network » Business model allows use of syndication and income fund pl
Slide 10: Key Drivers to Growth
Key Drivers to Growth Peet has an established and scalable business model and future earnings growth will be driven by leveraging existing platform » Increased scale of funds management business / syndication rollout » » » » » Increase product flow (via strengthened capital position including $82M i
Slide 11: Land Bank
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Slide 12: Land Bank and Market Position
Land Bank and Market Position Significant land bank with an on-completion value of approximately $5.5 billion » Australia’s third largest land bank amongst ASX listed entities » Existing controlled lots stand at 30,297 with a further pipeline of 1,616 lots under conditional contract » Size of land b
Slide 13: Land Acquisition Activity
Land Acquisition Activity Land acquisition activity continues to facilitate future growth 5600 4 4500 J 4,297 » Around 3,200 lots acquired since June 2006 4000 _ ~ 10% land bank increase 3500 3.200" » Acquisitions continue in key states of Vic, WA 3000 and Qld 2600 | » Zoned industrial landholdings
Slide 14: Land Bank
Land Bank Peet has established a quality national land bank that provides a diversified production profile Estimated on-compietion value approx $5.5 billion » 12 years stock » G/ projects » 30,297 lots managed or owned Vv — » Note: included are 29 Projects _ owned, syndicated and joint venture proje
Slide 15: Estates — Western Australia
Estates — Western Australia Gledhow 6km sout ny * ALBANY @© COON Oa” wh Ocean Lagoon Burns Beach Carramar Golf Course Estate Ashton Heights The Chase Forrest Gate Hawkstone Oakford Gardens Brookwood The Village at Wellard The Ridge Byford LakeLands Estate Twin Rivers Quattro Brigadoon Mundijong The
Slide 16: Estates - Victoria
Estates - Victoria Port Phillip Ba Frankston e_ Ener OOnyAnhwWN- * Industrial Craigieburn Central Greenvale Gardens Greenvale Rise Greenvale Lakes Brimbank Gardens Tarmeit Gardens Tarneit Rise Innisfail Point Cook Gardens Casilereagh Brookland Greens Cranbourne Central Cardinia Lakes Westbury Park W
Slide 17: Estates - Queensland
Estates - Queensland Enriching ‘orth of Brisbane }Okm north of Brisbane ives since 1895 | waiw.peel.com.au 1. 2. 3. 4. 5. 6. 7. 8. River Bank Warner Lakes Buderim Thornlands Beechmere Gladstone Mitchelton, Keperra, Cooroy
Slide 18: Syndicated and JV Project Pipeline
Syndicated and JV Project Pipeline Over 17,147 lots under management, with an estimated on-completion value of $3.5 billion » Older syndicates make significant contribution to profits over FYO7 to FY08; Increased profitability over longer term as increased profit share is realised on more recent syn
Slide 19: Owned Project Pipeline
Owned Project Pipeline Over 13,150 lots owned with a combined estimated completion value of $2.0 billion » Owned projects contributing to profits projected to increase from three in FY06 to 24 in FY08 » Number of owned projects have historically low cost base No. of On-compietion Lots’ Vatue ($m) 20
Slide 20: Funds Management
mn a Enfiching lives since 189¢
Slide 21: Syndicate Capital Raising and Distribution
Syndicate Capital Raising and Distribution Distribution network of over 3,600 active investors; repeat investment in excess of 65% » A further 6,000 prospective investors who receive information » $41M raised from two land syndications in 1HO7 — Botanic and Mundijong » Increased syndicate investor p
Slide 22: Funds Management — Income Property Fund
Funds Management — Income Property Fund » » » » >» > » » Fund Assets Since 1895 | wviaw.pect A portfolio of non-CBD commercial and industrial properties Two new properties purchased in FY07 to date Expanded to around 600 unit holders $37 million funds under management Fund property values increased
Slide 23: Commercial, Residential and Retirement
Commercial, Retirement Erp dching lives since 1895 | wvvvpee! com au
Slide 24: Commercial and Residential Built Form
Commercial and Residential Built Form More than 110 commercial and residential built form projects identified in land bank; potential income fund feedstock » » » » » » Peet Commercial seeks to develop shopping centres, light industrial units, office & hi-tech business units, bulky goods outlets and
Slide 25: Carramar
Carramar Project Carramar Neighbourhood Centre, Carramar, WA Project Type Shopping No. of retail units 16 Current Status Development approval received and construction commenced in January 2007 Expected March 2008 Completion Date Description This project comprises a full fine supermarket and a range
Slide 26: Joondalup
Joondalup, Project Grand 56, Joondalup, WA Project Type Mixed use (apartments & commercial) No. of residential 25 units Current Status 100% Pre-soid and construction commenced January 2007 Expected January 2008 Completion Date Description This boutique project designed by leading Perth residential a
Slide 27: The Village at Wellard
The Village at Wellard Project The Village at Weliard, WA Project Type Apariments and townhouses No. of residential 60 units Current Status Clearing of Planning Approval conditions Expected December 2008 Completion Date Description This transit orientated project designed by The Buchan Group and Ove
Slide 28: Retirement Housing
Retirement Housing » >» » » » » Growing business organically by utilising existing (and future) Peet land estates Retirement projects will generate development profit on initial unit sales and DMF (Deferred Management Fee) income in the long term Existing Peet estates with retirement housing potenti
Slide 29: Market Conditions and Outlook
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Slide 30: Introduction / Key Points
Introduction / Key Points Peet is well placed to take advantage of any improvement in the east coast market with more than 12 years of land supply » Strong economic and population growth in Qid, WA and Victoria » Resources sector and overseas / interstate migration is a key driver of growth » Moneta
Slide 31: Residential Market Overview
Residential Market Overview vic Sound. Trading at historical averages Low vacancy rate Remain stable ~ strong fundamentals << > WA Strong economy. Strong demand Low vacancy rate Market coming off alt time high but underlying demand remains fundamentally sound << > QLD Robust. Stightly better than hi
Slide 32: Housing Commencements
Housing Commencements Equivalent to underlying demand running at 3,175 dwellings per week Underlying demand (dwellings} Dwelling Annual average commencements 199G/97-2000/01 2001/02-2005/06 200G(07-2010/14 WA. i) 25,500 Vie 38,350 ale NSW 47 400 30,050 139,600 187 100 165,100 148,140 Source: BIS Shr
Slide 33: Growth expected to continue
Growth expected to continue » WA is expected to achieve growth of 5.3% 0% 7 -------------- 2-22 and 2.8% in 2006-07 and 2007-08 respectively while Qld is expected to grow —s%4- 2006.07 2007-08 w Average 2008-2008 1777 --__-_------------------ by 4.3% in each year. 4% L--------------- » Growth in Vic
Slide 34: Housing demand has driven strong population growth
Housing demand has driven strong population growth » Population growth in the three key States of Vic, WA and Qld has been strong. » After some years of below Australian average population growth, Victoria has rebounded with population growth in that State mirroring the rest of Australia. 2.5% 2.0%
Slide 35: Overseas migration a key driver of population growth
» » Overseas migration a key driver of population growth All three States continue to see strong overseas migration, with Victoria taking a relatively large share of Australia’s overseas migration intake. The State’s status as Australia’s 2nd largest economy is a key driver of overseas migration. Th
Slide 36: Strong population growth expected to continue
Strong population growth expected to continue » Strong population growth is projected to continue for Qld and, to a lesser extent, WA, while Vic will continue to grow at a robust rate. Population 7,000,000 5 6,000,000 5,000,000 4 , oe non iene paisa cise cat orto 4,000,000 + a 3,000,000 4 2,000,000
Slide 37: Interest rates "on hold"
» Interest rates “on hold” Interest rates are now at historical lows and, although a series of rate increases by the RBA has seen rate rises recently, monetary policy has been fairly stable. 15 » Target Cash Rate oe Aug 80 AprSi Novei Jul $2 Aug 94 Jul96 May97 Nov99 May0O Mard1 OctO1 Jun 02 Mar05 No
Slide 38: Record low vacancy rates
Record low vacancy rates All key states experiencing record low vacancy rates » A tightening rental market is expected to see rents rise which may also drive prices further. 10.4 ——- MELB oJ BRIS 84 PERTH i 0 ~— AUS i 4 J - —— LONG TERM AVG (AUS} 6 Tightening Rental Qtrly Vacancy Rate (%) Source: RE
Slide 39: Housing investment ...or lack of
Housing investment ...or lack of » Low vacancy rates and strong price growth are symptoms of housing shortages. » These shortages have been caused by a range of factors, not least recent interest rate increases which have dampened the investor market and therefore the stock of investment properties.
Slide 40: Australian Land Supply - Overview
Australian Land Supply - Overview » There is currently a land supply deficiency - driving up land prices and distorting demand for land » Land supply is now a national issue due to: » » » » Mobility of labour markets High levels of interstate migration Growth in household wealth generating demand fo
Slide 41: Land Supply Adequacy — Eastern Sea Board
Land Supply Adequacy — Eastern Sea Board 40000 5 » The Eastern sea board (Qld, Sydney, 5000 - Adequate Supply and Melbourne) is forecast to suffer from a potential lack of lot supply. 0 » Itis likely that much of this shortfall will be addressed but there may be $000 4 lags in achieving balance. ; :
Slide 42: Land Supply Adequacy - Perth
Land Supply Adequacy - Perth Adequate Supply » Currently a shortage of land. » Medium term outlook not encouraging 2001-2005 "7006 for shortage to ease. 2000 | -4000 4 ~6000 4 ~8000 4 inadequate Supply ~10000 + ~12000 5 ~14000 - Source: MacroPlan Australia Entiching lives since 1895 | www.peet.com.a
Slide 43: Future Outlook and Strategy
m0) IE Future Outlook and Strategy > Enfiching lives since 189¢
Slide 44: Future Outlook
Future Outlook Strong competitive advantage driven by experienced and focused management team » Peet presently owns or manages 100% of stock required to provide product to achieve our next 3 year internal revenue targets, excluding syndication fee revenue » Continue to develop growth opportunities w
Slide 45: Forward Strategy
Forward Strategy Long term target to deliver EPS growth of 10% per annum » Continue to optimise Peet’s core business » Continued focus of EPS growth as a key driver of shareholder value » Continue to pursue new growth opportunities » Confidence to manage business for low risk including maintaining g
Slide 46: About Peet
About Peet More than 111 Years of Assets and Funds Management Entiching lives since 1895 | wwwpeet.camau f
Slide 47: About Peet
About Peet Key issues over the past 111 years remain relevant today
Slide 48: Appendix: Existing Projects
pendix: Existing Projects Enfiching lives since 1895 | wwwpeel.corn.au
Slide 49: Lakelands Project
cated Project ; Number of Lo ye a a i. i any - LAKELANDS A Fs Awards Urban Development institute of Austr: Award ‘2005 Environmental’ Western Australian Environment Award 2005 ‘Business Leading by Exampie’ Fin: Housing Industry Association Greensmart *2005 Development of the Year 2005 Planning insti
Slide 50: 2006 Housing Industry Association Awards
2006 Housing Industry Association Development of the Y institute Aust - Special Cornmendation for Urban Design - Plans and ideas - Special Cornmendation for Urban pecial Commendation for Community Based Planning lence for WA Planning tainability Award
Slide 51: Burns Beach
Burns Beach Syndicated Project | Location . | B8km North of CBD | Projected Gross Revenue $963. million i Total Area 290.0 ha | Purchase Date 1969. | Estimated Timing 2008 | Sold | Remaining { Total i FNumberoftots | Saet tana Enriching lives since 1895 | wwiw.peel.c
Slide 52: Completion
Completion
Slide 53: Projected Gross Revenue
i Projected Gross Revenue
Slide 54: MED,
CL MED, LA I hs t Purch mpletion
Slide 55: Projected Gross Revenue
ted Gross Revenue Total Area Completion
Slide 56: 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
Slide 57: Asset Manager, Land Syndicator, Fund Manager
Asset Manager Land Syndicator jpn Fund Manager | Enfiching lives since 1895 | wwwpeel.corn.au