Peet Limited · ASX:PPC
Peet — Shareholder Meeting (November 2007)
66 slides from Peet's shareholder meeting presentation, Nov 14, 2007
Slide 1: ASX release: Annual General Meeting 14 November 2007
Perth www.peet.com.au asx release Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au For personal use only 14 November 2007 Australian Stock Exchange Limited Exchange Centre Level 4 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam
Slide 2: Chairman's Address
Perth www.peet.com.au asx release Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au Chairman’s Address For personal use only Annual General Meeting – 14 November 2007 It has been a big year for Peet Limited and I am very pleased
Slide 3: Chairman's Address (continued)
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au Total dividend payments for the year – with the final dividend payment made last month – were $43.2 million plus fully franked tax credits. For personal use
Slide 4: Chairman's Address (continued)
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au Nonetheless, assuming market conditions continue to remain favourable on the east coast and remain stable in Western Australia, we continue to target earnin
Slide 5: Chairman's Address (continued)
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au Peet Income Property Fund The Peet Income Property Fund holds an impressive portfolio of commercial and industrial properties For personal use only includin
Slide 6: Chairman's Address (continued)
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au In a very difficult market, Peet Limited continues to attract talented people to the company and just earlier this month, announced the appointment of a new
Slide 7: Chairman's Address (continued)
Perth www.peet.com.au Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au I believe every shareholder should be immensely proud of its representatives – their calibre and commitment. For personal use only I also wish to again note
Slide 8: Welcome: Peet Limited 2007 Annual General Meeting
For personal use only Welcome PEET LIMITED 2007 Annual General Meeting
Slide 9: Contents
Contents For personal use only » Group Performance Highlights 3 » Group Financial Performance 5 » Strategic Growth Model and Initiatives 11 » Land Bank and Market Position 14 » Funds Management 34 » Retirement, Commercial and Residential 37 » Market Conditions and Outlook 45 » Future Outlook and Str
Slide 10: Group Performance Highlights
Group Performance Highlights For personal use only Peet achieved earnings growth of 23.6% for FY07; full year dividend up 14.7% to 19.5 cents per share fully franked » Full year net profit after tax of $45.5 million (FY06: $36.8 million) » Final dividend of 10.5 cents per share fully franked – up 11
Slide 11: Group Performance Highlights (continued)
Group Performance Highlights (continued) For personal use only Performance demonstrates Peet’s ability to consistently deliver through market cycles » Site works for first retirement village underway, with a further two villages approved for development » Well advanced diversified commercial and res
Slide 12: Group Financial Performance
For personal use only Group Financial Performance growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 13: Financial Performance
Financial Performance For personal use only Peet has recorded and continues to target solid earnings growth » Four years historical NPAT of 23.9% (CAGR) » Overall improvement in EBIT margin to 51.6% » Up to eight new owned and syndicated projects commencing development during FY08 Historical Revenue
Slide 14: EBIT by Geographical Region
EBIT by Geographical Region For personal use only High quality earnings stream, weighted to funds management » Vic and Qld contributed 54% of FY07 EBIT » Overall improvement in operating margins » Three syndicate capital raisings completed totalling $57M » Growing contribution from retirement and re
Slide 15: Strong Shareholder Returns
Strong Shareholder Returns For personal use only Peet has delivered solid fully franked dividend yield and growth which has driven strong TSR performance since listing Dividends Earnings per share 18.2% 4 year CAGR 10.4% 4 year CAGR 21.4 30 27.9 20 18.4 25 24.3 8.4 14.4 14.8 15 19.6 7.3 20 5.1 cps c
Slide 16: Group Financial Performance
Group Financial Performance For personal use only Significant business scale with aggregated group revenue in excess of $400 million » Charts below illustrate the Peet Group’s actual revenue and profit before tax consolidated for syndicated and joint venture projects » Growth in operations achieved
Slide 17: Assets Under Management
Assets Under Management For personal use only Total assets under management has grown to more than $1.5 billion » Consistent growth in assets under management1 1,600 1,502 1,400 1,244 1,200 1,000 891 784 millions 800 600 533 400 200 0 FY03 FY04 FY05 FY06 FY07 1 Assets adjusted for market value Enric
Slide 18: Strategic Growth Model and Initiatives
For personal use only Strategic Growth Model and Initiatives growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 19: Strategic Growth Model
Strategic Growth Model For personal use only 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 syndicat
Slide 20: Key Drivers to Growth
Key Drivers to Growth For personal use only Peet has an established and scalable business model and future earnings growth will be driven by leveraging existing platform » Continue to bring new projects to market (approx. 38,000* lot potential pipeline) » Increase scale of funds management business
Slide 21: Land Bank and Market Position
For personal use only Land Bank and Market Position growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 22: Land Bank and Market Position
Land Bank and Market Position For personal use only Significant land bank with an on-completion value of approximately $6.13 billion1 » Australia’s third largest land bank amongst ASX listed entities » Existing controlled lots stand at approximately 33,800 with a further pipeline of 4,200 lots under
Slide 23: Land Acquisition Activity
Land Acquisition Activity For personal use only Land acquisition activity continues to facilitate future growth » Around 8,200 lots acquired since June 2006 – 9000 8,2021 22.5% land bank increase 8000 7000 » Acquisitions continue in key states of Vic, WA and Qld 6000 5000 4,297 » Industrial landhold
Slide 24: Land Bank
Land Bank For personal use only As at 30 September 2007 12 Projects 5,664 Lots » Peet has established a quality national land bank that provides a diversified production profile » Strong exposure to improving east coast property market » Estimated on-completion value approx. $6.13 billion QLD 9 Proj
Slide 25: Syndicated and JV Project Pipeline
Syndicated and JV Project Pipeline For personal use only Over 16,350 lots under management, with an estimated on-completion value of $3.45 billion » Increased profitability projected over longer term as increased profit shares are realised on more recent syndicates No. of On Completion Lots2 Value (
Slide 26: Owned Project Pipeline
Owned Project Pipeline For personal use only Over 17,400 lots owned with a combined estimated completion value of $2.68 billion » Owned projects contributing to profits projected to increase from seven in FY07 to 14 in FY08 » Number of owned projects have historically low cost base No. of On-complet
Slide 27: Estates – Western Australia
Estates – Western Australia For personal use only Enriching lives since 1895 | www.peet.com.au 20
Slide 28: Ashton Heights
Ashton Heights For personal use only Owned Project Location 28km North of CBD Projected Gross Revenue $114 million Total Area 60.0 ha Purchase Date 2003 Commencement Completion Estimated Timing 2005 2009 Sold Remaining Total Number of Lots 444 159 603 Enriching lives since 1895 | www.peet.com.au 21
Slide 29: Burns Beach
Burns Beach For personal use only Syndicated Project Awards Location 28km North of CBD » 2007 Western Australian Coast Care Award – Projected Gross Revenue $963 million Winner of Outstanding Total Area 290.0 ha Development, Innovation and/or Design Purchase Date 1969 Commencement Completion Estimate
Slide 30: Lakelands Private Estate
Lakelands Private Estate For personal use only Syndicated Project Awards Location Mandurah, 60km South of CBD » Urban Development Institute of Australia Award ‘2005 Environmental’ Projected Gross Revenue $419 million » Western Australian Environment Award Total Area 281.9 ha 2005 ‘Business Leading b
Slide 31: The Village at Wellard
The Village at Wellard For personal use only Joint Venture Project – Landstart (WA Gov’t) Awards Location Wellard, 29km South of CBD » 2006 Housing Industry Association Projected Gross Revenue $332 million Greensmart Development of the Year Total Area 320.6 ha » 2005 Planning Institute Australia Awa
Slide 32: Quattro
Quattro For personal use only Joint Venture Project – Urban Renewal Project Overview Location 11km South East of CBD » 5 full refurbishments Projected Gross Revenue $88 million » 308 demolitions » 280 lots created (24 hectares) Total Area 24.0 ha » Sustainable housing Purchase Date n/a Commencement
Slide 33: Estates - Victoria
Estates - Victoria For personal use only Enriching lives since 1895 | www.peet.com.au 26
Slide 34: Greenvale
Greenvale For personal use only Owned Project Location 20km North of CBD Projected Gross Revenue $500 million Total Area 357.0 ha Purchase Date 2003 Commencement Completion Estimated Timing 2004 2021 Sold Remaining Total Number of Lots 229 2,098 2,327 Enriching lives since 1895 | www.peet.com.au 57
Slide 35: Innisfail
Innisfail For personal use only Owned Project Location 22km West of CBD Projected Gross Revenue $250 million Total Area 145.0 ha Purchase Date 1999 Commencement Completion Estimated Timing 2003 2012 Sold Remaining Total Number of Lots 837 623 1460 Enriching lives since 1895 | www.peet.com.au 58 28
Slide 36: Brimbank Gardens
Brimbank Gardens For personal use only Syndicated Project Location 18km West of CBD Projected Gross Revenue $259 million Total Area 203.0 ha Purchase Date 2001 Commencement Completion Estimated Timing 2002 2015 Sold Remaining Total Number of Lots 1068 1001 2069 Enriching lives since 1895 | www.peet.
Slide 37: Tarneit Gardens
Tarneit Gardens For personal use only Syndicated Project Location 25km West of CBD Projected Gross Revenue $139 million Total Area 124.6 ha Purchase Date 2003 Commencement Completion Estimated Timing 2005 2012 Sold Remaining Total Number of Lots 506 622 1128 Enriching lives since 1895 | www.peet.com
Slide 38: Cardinia Lakes
Cardinia Lakes For personal use only Syndicated Project Location 55km South East of CBD Projected Gross Revenue $115 million Total Area 90 ha Purchase Date 2003 Commencement Completion Estimated Timing 2005 2013 Sold Remaining Total Number of Lots 171 593 764 Enriching lives since 1895 | www.peet.co
Slide 39: Estates - Queensland
Estates - Queensland For personal use only Enriching lives since 1895 | www.peet.com.au 32
Slide 40: Warner Lakes
Warner Lakes For personal use only Syndicated Project Location 21km North of CBD Projected Gross Revenue $203 million Total Area 206 ha Purchase Date 2003 Commencement Completion Estimated Timing 2004 2012 Sold Remaining Total Number of Lots 431 725 1156 Enriching lives since 1895 | www.peet.com.au
Slide 41: Funds Management
For personal use only Funds Management growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 42: Syndicate Capital Raising and Distribution
Syndicate Capital Raising and Distribution For personal use only Direct distribution network of 4,000 active investors; strong repeat investment in excess of 65% » A further 6,000 prospective investors who receive information » $57M raised from three land syndications in FY07 – Botanic, Mundijong an
Slide 43: Funds Management – Income Property Fund
Funds Management – Income Property Fund For personal use only » A portfolio of non-CBD commercial and industrial properties » Two new properties purchased in FY07 » A third property was acquired (first in Victoria) and settled in August 2007 » Expanded to more than 600 unit holders — strong inflow o
Slide 44: Retirement, Commercial and Residential
For personal use only Retirement, Commercial and Residential growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 45: Retirement - Senior Living
Retirement - Senior Living For personal use only » Demographics point to major growth opportunity » Priority is organic growth – adding value to Peet land estates » Solid pipeline of developments already identified » New “Peet Senior Living” and “Lattitude” brands established » Focus on strata-title
Slide 46: Retirement - Senior Living (continued)
Retirement - Senior Living (continued) For personal use only Lattitude Lakelands » Within Lakelands Estate, Mandurah » 194 unit retirement village » Construction underway » Stage 1 (31 units) 60% sold » 4 year project » Project value $70 million Enriching lives since 1895 | www.peet.com.au 39
Slide 47: Commercial and Residential Built Form
Commercial and Residential Built Form For personal use only More than 100 residential built form and commercial projects identified in land bank; potential syndication and income fund feedstock » Peet Living undertakes development of boutique low rise apartments, townhouses and gated villa complexes
Slide 48: Carramar Village
Carramar Village For personal use only Syndicate Project Carramar Village, Carramar, WA Project Type Shopping & medical No. of retail units 16 Current Status Development approval received and building licence application submitted. Construction t o commence late 2007\early 2008` . Expected Completio
Slide 49: Grand 56, Joondalup, WA
Grand 56, Joondalup, WA For personal use only Owned Project Grand 56, Joondalup, WA Project Type Mixed use (apartments & commercial) No. of residential 24 plus 1 commercial units Current Status 100% sold Expected Completion January 2008 Date Description This boutique project designed by leading Pert
Slide 50: Vantage Square\Madison Square, Wellard
Vantage Square\Madison Square, Wellard For personal use only Owned Project Vantage Square\Madisson Square, Wellard, WA Project Type Apartments and Tow nhouses No. of residential 120 Apartments and Tow nhouses Units Current Status Building Licence application under preparation. Sales and construction
Slide 51: Fusion Ashton Heights
Fusion Ashton Heights For personal use only Owned Project Fusion Ashton Heights, Tapping, WA Project Type Gated Villas No. of residential 27 villas Units Current Status Civil, landscape and pool w orks commenced. Sales to be launched end of 2007 Expected Completion February 2008 Date Description Fus
Slide 52: Market Conditions and Outlook
For personal use only Market Conditions and Outlook growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 53: Market Overview
Market Overview For personal use only Positive Outlook » Unemployment rate at an all time low » Planning restrictions affecting availability » Strong population growth of new supply » Residential vacancies near all time lows » Housing affordability an emerging issue » Residential rents growing stron
Slide 54: Residential Market Overview
Residential Market Overview For personal use only Peet is well placed to take advantage of improving market conditions in the east coast market MARKET PERFORMANCE Last 6 -12 Months Next 6 -12 Months Sound. Improving demand. Price growth. Improving volume and prices. VIC Low vacancy rate. Low vacancy
Slide 55: Population, ageing and migration
Population, ageing and migration For personal use only Source of Population: Overseas Migration » Net migration approaching natural increase » Migration will drive population growth » Migration relied on by states suffering labour shortages 200,000 180,000 160,000 140,000 120,000 100,000 80,000 Natu
Slide 56: Strong Population Growth has Driven Housing Demand
Strong Population Growth has Driven Housing Demand For personal use only Underlying housing demand running at approximately 3,175 dwellings per week » Population growth in the three key States of Vic, WA and Qld has been strong. » After some years of below Australian average population growth, Victo
Slide 57: Population and migration
Population and migration For personal use only Source of Population: Inter-state migration » WA population continues to grow Queensland (Dec Qtr) Queensland (Dec Qtr) Interstate : 8,273 Interstate : 8,273 International : 6,301 International : 6,301 Natural Increase: 7,034 Natural Increase: 7,034 Pop
Slide 58: Strong Population Growth Expected to Continue
Strong Population Growth Expected to Continue For personal use only Overseas migration a key driver of population growth » Strong population growth is projected to continue in key states of Vic, WA and Qld 9,000,000 8,000,000 7,000,000 6,000,000 Population 5,000,000 4,000,000 NSW Vic QLD WA 3,000,00
Slide 59: Record Low Vacancy Rates
Record Low Vacancy Rates For personal use only All key states experiencing record low vacancy rates » A tightening rental market is expected to see rents rise which may also drive prices further. % 9 8 MELB BRIS 7 PERTH AUS Qtr’ly Vacancy Rate AVG (AUS) Tightening rental market 6 5 4 3 2 Record low
Slide 60: Economic Snapshot
Economic Snapshot For personal use only States economic overview » Solid medium term economic outlook for Queensland, Victoria and New South Wales » Steady growth outlook for Western Australia % 7 forecast Vic NSW Qld WA 6 5 4 3 2 1 0 2005-06 (a) 2006-07 (e) 2007-08 (f) 2008-09 (f) 2009-10 (f) 2010-
Slide 61: Future Strategy and Outlook
For personal use only Future Strategy and Outlook growth and diversity Enriching lives since 1895 | www.peet.com.au
Slide 62: Peet's Growth Strategy
Peet’s Growth Strategy For personal use only Clear platform for growth from existing businesses » Continue to optimise our core business » Continue to unlock further development opportunities within our existing land bank — retirement, retail, commercial and industrial developments » Increase scale
Slide 63: Outlook
Outlook For personal use only Continued focus on earnings growth as a key driver of shareholder value » Operating businesses performing well » Strategic initiatives on track » Strengthened balance sheet to capitalise on and pursue new growth opportunities » National land bank allows us to capitalise
Slide 64: About Peet
About Peet For personal use only Enriching lives since 1895 | www.peet.com.au 57
Slide 65: Asset Manager, Land Syndicator, Fund Manager
For personal use only Asset Manager Land Syndicator Fund Manager growth and diversity Enriching lives since 1895 | www.peet.com.au 58
Slide 66: 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 which