Slide 1: 1H16 Results Presentation
For personal use only 1H16 Results Presentation February 2016
Slide 2: 1H16 Results Overview
1H16 RESULTS OVERVIEW Continued strong momentum For personal use only » Solid uplift in 1H16 operating profit1 after tax of $18.5m, up 8% » Further improvement in underlying business performance FY14 Result FY14 − Revenue 2 Resultof $137m with 1,275 lots settled − Record contracts on hand of 2,318 l
Slide 3: Key Highlights for 1H16
KEY HIGHLIGHTS FOR 1H16 For personal use only » Diversified pipeline of approximately 48,000 lots with an on completion value of approximately $12 billion FY14 Resultstrategically weighted to east coast states (61%) and balanced between Funds Management (60%), JVs FY14 Result (10%) and Development (
Slide 4: Key Highlights for 1H16
KEY HIGHLIGHTS FOR 1H16 » 1H16 net operating cash flow before land payments of $24m For personal use only − 2H16 operating cash flows expected to increase due to increase in settlement proceeds CASH Result» New Victorian retail land syndicate on track to be launched March 2016 FLOW FY14FY14 Result −
Slide 5: Results overview
For personal use only Results overview
Slide 6: Group Financial Summary
GROUP FINANCIAL SUMMARY » Operating profit2 after tax of $18.5m - up 8% KEY PERFORMANCE STATISTICS 1H16 1H15 VAR (%) For personal use only Lot sales 1,659 1,610 3% » Group EBITDA2 of $40.3m – down 12% due to completed projects Lot settlements 1,275 1,456 (12%) Revenue1 − Quayside apartments (ACT) an
Slide 7: Improving Financial Performance
IMPROVING FINANCIAL PERFORMANCE Growth in earnings via improvement in margins For personal use only » Solid growth in first half earnings since FY13 » Ongoing EBITDA1 margin improvement 1,990 1,990 driven by improved gross margin through net price growth, cost efficiencies and greater impact of high
Slide 8: Capital Management
CAPITAL MANAGEMENT Significant improvement in capital position » ROCE1 of 13% For personal use only − Expected to improve during 2H16 as a result of improved underlying earnings performance 2,184 − New retail syndicate to be launched in March 2016 further improving ROCE » Increase in covenant gearin
Slide 9: Operating performance
For personal use only Operating performance
Slide 10: Group Operating Performance
GROUP OPERATING PERFORMANCE Strategic reweighting of portfolio to east coast delivering diversified earnings base » For personal use only Contribution from east coast projects increased to 76% of EBITDA » Higher contribution driven by Victoria » Funds Management business provided solid earnings base
Slide 11: Group Sales Activity
GROUP SALES ACTIVITY » Group sales for 1H16 were 1,659 lots, up 3% on 1H15 SALES COMPOSITION BY GEOGRAPHY (LOTS) For personal use only 1,800 1,735 1,610 1,659 » Strong sales from east coast projects 1,600 − Flagstone (QLD) to launch 2H16 further increasing 1,400 east coast sales 1,200 1,000 963 » WA
Slide 12: Contracts on Hand
CONTRACTS ON HAND » Record contracts on hand1 of 2,318 lots – up 12% since 30 June 2015 − For personal use only Increase driven by stable and improving east coast market conditions 2,184 − Value of contracts on hand increased by 19% to $523m providing solid momentum into 2H16 » Victorian contracts o
Slide 13: Development Operating Performance
DEVELOPMENT OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS 1H16 1H15 VAR (%) » Revenues for 1H16 of $67.4m – down 29% on 1H15 Lot sales1 256 256 - − 1H16 settlements down due to Quayside apartment For personal use only project (ACT) and The Chimes (WA), substantially Lot settlements completed FY15
Slide 14: FM Operating Performance
FM OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS 1H16 1H15 VAR (%) » 1H16 revenue increased to $21.6m – up 2% on 1H15 − EBITDA1 margin 66%, up 1% on 1H15 Lot sales 1,008 906 11% For personal use only Lot settlements 657 786 (16%) » Increased exposure to improving QLD market expected with Flagston
Slide 15: JV Operating Performance
JV OPERATING PERFORMANCE KEY PERFORMANCE STATISTICS 1H16 1H15 VAR (%) » 1H16 revenue of $29.7m, down 38% on 1H15 predominantly due to soft market conditions in NT Lot sales 395 448 (12%) For personal use only Lot settlements 437 381 15% » Equity accounted profits up 294% during the half to $6.3m Rev
Slide 16: Operational update
For personal use only Operational update
Slide 17: Peet is developing significant master-planned communities across Australia
Lifensive experionce i develeponcti Peet is developing some of the most significant master-planned communities across Australia DARWIN'SOUTH The Heights, Durack* PERTH NORTHWEST CORRIDOR Yanchep Golf Estate* &.1/ Lot 2¥anchep ‘Shorehaven at Alkimos® 5). a Burns Beach* ov) 1 West Hamptons Apartments
Slide 18: Overview of Peet's Land Bank
OVERVIEW OF PEET’S LAND BANK » Diversified land bank across all mainland states and territories For personal use only − Pipeline of 48,000 lots with an on completion value of approximately $12 billion » WA exposure balanced against eastern seaboard » WA exposure weighted toward FM and JV, with relat
Slide 19: New Projects in FY16 - FY18
NEW PROJECTS IN FY16 - FY18 Pipeline of approximately 48,000 lots providing visibility of future earnings For personal use only » Up to 12 new projects expected to commence FY16 - FY18 PROJECT RELEASE SCHEDULE development within the next 2-3 years Project State Segment First Sales Lots1 Project Life
Slide 20: Capital management
For personal use only Capital management
Slide 21: Capital Management
CAPITAL MANAGEMENT Solid capital management strategy outcomes For personal use only » Cash and available facilities of $99m CAPITAL MANAGEMENT METRICS DEC 15 JUN 15 » Total bank debt steady at $186m Cash at bank $49.3m $57.7m Bank debt $185.7m $186.2m » Weighted average cash cost of bank debt (exclu
Slide 22: Group Cash Flow Summary
GROUP CASH FLOW SUMMARY » Receipts lower due to the substantial settlement revenue from the Quayside apartment project and completion of The Chimes development during FY15 For personal use only » Operating cash flow before land acquisitions expected to be stronger in 2H16 − Increased settlement proc
Slide 23: Market overview & outlook
For personal use only Market overview & outlook
Slide 24: Residential Market Overview
RESIDENTIAL MARKET OVERVIEW Melbourne » Ongoing strong population growth, relative affordability and solid economy to support dwelling demand For personal use only − Metropolitan Melbourne growth expected to remain strong − Volumes beginning to stabilise near current high levels with moderate price
Slide 25: 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 exp
Slide 26: Thank you
For personal use only you Thank
Slide 27: 1H16 annexures
For personal use only 1H16 annexures
Slide 28: Summary Income Statement
SUMMARY INCOME STATEMENT 1H16 1H15 Var $M $M (%) For personal use only Funds Management 21.6 21.2 2% Development 67.4 94.8 (29%) Joint venture 29.6 47.7 (38%) Share of net profit of equity accounted investments 6.6 1.4 371% Other1 11.5 19.1 (40%) Revenue 136.7 184.2 (26%) EBITDA (Pre inventory write
Slide 29: Summary Balance Sheet
SUMMARY BALANCE SHEET DEC 15 JUN 15 $M $M For personal use only Assets Cash 49.3 57.7 Receivables 113.5 101.5 Inventories 598.9 520.5 Investments accounted for using the equity method 188.1 181.8 Other 12.9 13.5 Total assets 962.7 875.0 Liabilities Trade and other payables 66.4 63.3 Land vendor liab
Slide 30: Land Bank – Funds Management Key Projects
LAND BANK – FUNDS MANAGEMENT KEY PROJECTS PROJECT LIFECYCLE For personal use only PROJECT NAME STATE GDV LOTS1 REMAINING 2016 2017 2018 2019 Alkimos WA $999m 2,350 Selling Burns Beach WA $307m 585 Selling Golden Bay WA $275m 1,202 Selling Lakelands WA $226m 1,395 Selling Yanchep Golf Estate WA $388m
Slide 31: Land Bank – Company-Owned Key Projects
LAND BANK – COMPANY-OWNED KEY PROJECTS PROJECT LIFECYCLE For personal use only PROJECT NAME STATE GDV LOTS1 REMAINING 2016 2017 2018 2019 Brigadoon WA $66m 132 Selling Greenlea WA $80m 485 Selling Mundijong WA $124m 511 Planning Start up Selling Other WA $686m 3,824 Planning Gladstone QLD $86m 340 S
Slide 32: Land Bank – Joint Venture Key Projects
LAND BANK – JOINT VENTURE KEY PROJECTS PROJECT LIFECYCLE For personal use only PROJECT NAME STATE GDV LOTS1 REMAINING 2016 2017 2018 2019 Googong2 NSW $577m 2,452 Selling Eyre Kingston ACT $111m 167 Selling Wellard WA $253m 1,245 Selling The Heights NT $125m 465 Selling Lightsview SA $133m 732 Selli
Slide 33: 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