Slide 1: Full Year Results FY22
FULL YEAR RESULTS FY22
Slide 2: Agenda
FY22 Results Agenda 01 02 03 04 05 Group Results Operating Outlook Q&A Highlights Overview Performance FY22 RESULTS | AUGUST 2022 | PAGE 2
Slide 3: Company Overview
Company Overview • Leading Australian developer of quality residential communities with a proven WHOLESALE/ INSTITUTIONAL track record for over 127 years 9,675 lots1 $2.9bn GDV • Large, nationally diverse land bank provides economies of scale to deliver a wide range of product at lower cost OWNED RE
Slide 4: Strong Platform for Growth
Strong Platform for Growth GEOGRAPHICALLY DIVERSE $13.4bn • Benefit from various growth corridors – positioned for future Australian population growth • Allows Peet to leverage state-base fluctuations END VALUE • Ability to manage land bank and capital through market cycles 47 HIGHLY DESIRABLE LOCAT
Slide 5: Our Commitment to Sustainability
Our Commitment to Sustainability Company Overview Our Sustainability Approach As a leading residential developer with a large national footprint, our approach focuses on sustainable practices to create • Strong culture, brand and customer long-term shared value for our communities, shareholders and
Slide 6: Group Highlights
GROUP HIGHLIGHTS
Slide 7: FY22 Results Highlights
FY22 Results Highlights Strong performance underpinned by high quality portfolio FINANCIAL OPERATIONAL 6.25 NET OPERATING 52.3 DIVIDEND OF PROFIT¹ AFTER TAX 6.25 3.50 $930M 28.5 CENTS PER $52.3m 15.1 SHARE FULLY FRANKED 1.50 CONTRACTS ON HAND3 VALUE 3,163 2,514 FY20 FY21 FY22 FY20 FY21 FY22 LOTS3 SO
Slide 8: Delivering against our Strategy
Delivering against our Strategy FY22 Achievements Invest in high quality land in Enhance plan and create Expand product offering and Maintain strong capital strategic locations across country communities and homes with a range of geographic presence to appeal to wider management product appealing to
Slide 9: FY22 Key Transactions
FY22 Key Transactions Acquisition of remaining 50% of Flagstone City project • Provides significant exposure to a large scale, low cost and long-term project in key SEQ growth corridor with more than 11,100 lots with a GDV Transactions accelerate strategy of c.$4.0 billion whilst strengthening the b
Slide 10: Broad Buyer Appeal
Broad Buyer Appeal Diverse customer base from product expansion • Product expansion to include built form and shift to focus on more desirable, urban areas has resulted in a broader buyer appeal • First Home Buyer segment remains core. However, Peet now appeals to a broader range of buyers including
Slide 11: Rapid Development Pipeline
Rapid Development Pipeline Strong pipeline of new projects to support future earnings 39,376 lots c. 90% Pipeline in production Projects: 2 Lots: 3,842 GDV: $611m c. 76% 35,473 lots Pipeline in production Projects: 7 c. 73% Lots: 5,489 Pipeline in GDV: $2,930m 30,045 lots production Projects: 5 Lots
Slide 12: Results Overview
RESULTS OVERVIEW PEET
Slide 13: Group FY22 Financial Results
Group FY22 Financial Results Strong result reflects portfolio quality KEY PERFORMANCE STATISTICS FY22 FY21 VAR (%) Lot sales1 3,163 3,142 1% • Group revenue was up due to price growth and product mix Lot settlements1 2,514 2,980 (16%) Revenue2 $290.7m $234.3m 24% • Increased earnings was due to incr
Slide 14: Group Cash Flow Summary
Group Cash Flow Summary FY19 FY18 FY22 FY21 CASH FLOWS RELATED TO OPERATING ACTIVITIES $M $M Receipts from customers • Receipts higher due to increased settlement revenue from existing and new 276.7 228.2 projects and funds management fee income Payments for development and infrastructure (126.5) (1
Slide 15: Group Balance Sheet
Group Balance Sheet CAPITAL MANAGEMENT METRICS 30-Jun-22 30-Jun-21 • Cash and debt facility headroom of c.$205m provides capacity to fund Cash at bank1 $55.4m $64.1m current portfolio Bank debt2 $102.4m $70.3m • Credit approval received to extend the term of the Group’s senior debt facility to Octob
Slide 16: Strong Financial Position
Strong Financial Position CONTRACTS ON HAND1 (LOTS) 2,597 2,640 Strong starting position and visibility for FY23 with record contracts on hand 1,948 1,786 • Value of contracts on hand of $930m – up 70% since 30 June 2021 1,257 - Value of contracts have increased by 3% to $958m since year end - Refle
Slide 17: Our Shareholder Returns
Our Shareholder Returns We have returned $117m to shareholders through fully franked dividends and our ongoing capital management program over the past five years • Disciplined application of our capital management framework Shareholder returns since FY18 ($m) and strong balance sheet means sharehol
Slide 18: Operating Performance
OPERATING PERFORMANCE PEET
Slide 19: Group Operating Performance
Group Operating Performance Improving results across national portfolio • Group EBITDA1 up 48% on solid price growth, 20% FM fee income and equity accounted profits • Contribution from eastern states’ projects EBITDA1,2 6% 11% represented 89% of EBITDA1,2 during FY22 COMPOSITION BY BUSINESS TYPE (%)
Slide 20: Group Sales and Settlement Activity
Group Sales and Settlement Activity Market conditions driving sales performance • Group sales for FY22 of 3,163 lots1 – up 1% 16% - WA and QLD sales volumes positively 25% impacted by net migration trends and SALES affordability COMPOSITION BY - VIC and ACT/NSW sales activity remained 13% GEOGRAPHY
Slide 21: Enquiry Levels Remain Solid
Enquiry Levels Remain Solid • Enquiry levels and buyer urgency have moderated on the back of rising interest rates 11,716 11,954 and consumer confidence in response to media commentary on inflation, construction timeframes and house values - Buyers remain cautious waiting for interest 8,896 rates to
Slide 22: Outlook
OUTLOOK PEET
Slide 23: Market Outlook
Market Outlook Structural drivers remain supportive 12 MONTH MARKET OUTLOOK WA QLD VIC SA ACT/NSW Underlying strength of the local Demand moderating in 1H23 with Price growth and volumes Market expected to remain steady Limited competition to underpin economy continues to support market supply conce
Slide 24: New Projects Provide Medium Term Earnings Visibility
New Projects Provide Medium Term Earnings Visibility Pipeline of approximately 39,400 lots providing visibility of future earnings FY23 – FY25 NEW PROJECT RELEASE SCHEDULE • Up to three new land community projects and six townhouse/apartment PROJECT STATE SEGMENT PROJECT LOTS2/ GDV PROJECT LAUNCH1 U
Slide 25: FY23 Focus
FY23 Focus Portfolio well-positioned for positive growth and value creation Invest in high quality land in strategic Enhance plan and create Expand product offering and Maintain strong capital locations communities and homes with a range geographic presence to appeal to wider management of product a
Slide 26: Group Outlook
Group Outlook • Underlying drivers remain supportive, including strong labour market conditions and population growth amidst constrained land supply Focused on positioning the Group for growth • Expectations for further interest rate increases leading to demand through a prudent approach to project
Slide 27: Q&A
Q&A FY19 RESULTS | AUGUST 2019 27
Slide 28: Appendices
APPENDICES FY19 RESULTS | AUGUST 2019 28
Slide 29: FM Operating Performance
FM Operating Performance KEY PERFORMANCE STATISTICS FY22 FY21 VAR (%) Lot sales1 1,513 1,613 (6%) • Lower settlements partially due to acquisition of Flagstone 1 Lot settlements 1,338 1,732 (23%) (QLD) Revenue $38.3m $37.2m 3% Share of net profit of equity accounted investments $10.0m $5.4m 85% • Eq
Slide 30: JV Operating Performance
JV Operating Performance KEY PERFORMANCE STATISTICS FY22 FY21 VAR (%) • Revenue impacted by completion of Lightview (SA) and Lot sales1 628 998 (37%) lower settlements at Wellard (WA) Lot settlements1 521 764 (32%) Revenue $25.8m $44.7m (42%) • Equity accounted profits increased due to higher settle
Slide 31: Development Operating Performance
Development Operating Performance KEY PERFORMANCE STATISTICS FY22 FY21 VAR (%) Lot sales1 1,022 531 92% • Increased sales and settlements partially due to acquisition of 100% of Flagstone in January 2022 Lot settlements1 655 484 35% Land only 577 456 27% • Higher revenue and EBITDA due to increased
Slide 32: Summary Income Statement
Summary Income Statement FY22 FY21 VAR $M $M (%) Funds Management 38.3 37.2 3% Development 201.3 134.7 49% Joint Venture 25.8 44.7 (42%) Share of net profit of equity accounted investments 23.6 13.3 77% Other1 1.7 4.4 (61%) Revenue 290.7 234.3 24% EBITDA 86.0 58.1 48% Finance costs2 (11.5) (14.8) 22
Slide 33: Summary Balance Sheet
Summary Balance Sheet FY22 FY21 $M $M Assets Cash and cash equivalents 55.4 64.1 Receivables 84.9 94.0 Inventories 657.1 489.9 Investments accounted for using the equity method 188.0 232.6 Other 7.4 9.1 Total assets 992.8 889.7 Liabilities Payables 27.7 34.5 Land vendor liabilities 34.4 - Borrowings
Slide 34: Land Bank Development Key Projects
Land Bank Development Key Projects PROJECT NAME STATE GDV1 LOTS REMAINING2 2023 2024 2025 2026 2027 Greenlea WA $3m 5 Glyde Street WA $47m 51 Glendalough WA $73m 100 Other WA $629m 3,904 Gladstone QLD $10m 328 Flagstone North/New Beith3 QLD $80m 1,862 Palmview QLD $66m 173 Spring Mountain QLD $59m 1
Slide 35: Land Bank Funds Management Key Projects
Land Bank Funds Management Key Projects PROJECT NAME STATE GDV1 LOTS REMAINING2 2023 2024 2025 2026 2027 Alkimos WA $893m 1,780 Brabham WA $685m 2,782 Burns Beach WA $217m 356 Eglinton WA $245m 945 Golden Bay WA $107m 411 Lakeland Estates WA $157m 739 Yanchep Golf Estate WA $432m 1,518 Oakford WA $1
Slide 36: Land Bank Joint Venture Key Projects
Land Bank Joint Venture Key Projects PROJECT NAME STATE GDV1 LOTS REMAINING2 2023 2024 2025 2026 2027 Wellard WA $78m 299 Edens Crossing QLD $137m 494 Googong3 NSW $607m 1,190 Total Joint Venture $822m 1,983 Total Pipeline $13,446m 39,376 LEGEND Planning Selling Notes: 1 Gross Development Value 2 Eq
Slide 37: 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