Slide 1: 1H13 Results Presentation
For personal use only 1H13 Results Presentation February 2013 Bringing Land to Life
Slide 2: Key messages
Key messages Performance in line with expectations given market conditions and ongoing capital management For personal use only strategy; improved outlook from FY14 due to new projects and additional production » Net profit after tax of $1.2m » NTA of $1.33 $1 33 per share HY13 Result » Gearing of 3
Slide 3: Results overview
For personal use only RResults t overview
Slide 4: Financial summary
Financial summary For personal use only » Performance impacted by challenging market conditions and capital management strategy » Result in line with expectations with full-year results heavily weighted to second half as foreshadowed at November 2012 AGM » Pricing competition particularly in Victori
Slide 5: Group financial summary
Group financial summary » Group revenue of $83.1m, up 30% For personal use only $m 1H13 1H12 Var (%) » EBITDA of $15.1m, down 18% Revenue 83.1 63.8 30% » 18% EBITDA margin EBITDA 15.1 18.5 ((18%)) » Cyclical, not structural and impacted by EBITDA margin 18% 29% (11%) price pressures in the Victorian
Slide 6: Group operating performance
Group operating performance For personal use only » Sales up strongly over first half 1H13 1H12 Var (%) » Solid volumes with 970 lots settled Lot sales1 963 870 11% » Contracts on hand down on pcp however strong recovery CY13 YTD Lot settlements1 970 872 11% Contracts on hand 842 1053 (20%) at 31 De
Slide 7: Group operating performance
Group operating performance 1H13 EBITDA composition by business type (%) For personal use only » Funds Management business provided strong earnings base representing 52% of Group 52 62 EBITDA » 75% project management selling fees » Smaller number of larger projects to drive future Company-owned Comp
Slide 8: FY13 sales to date
FY13 sales to date For personal use only FY13 sales – by lots1 » Sales momentum building 1400 1,303 » Development capital invested to create additional lots 1200 340 » Targeted markets 963 1000 » Focus on key projects including 800 » Yanchep, Wellard and Baldivis 536 (WA); 600 427 » Craigieburn (Vic
Slide 9: Contracts on hand
Contracts on hand Contracts on hand 1200 $300 For personal use only $269 1,005 – by state 1000 $250 $240 $39 76 849 842 $212 $38 » Contracts on hand1 at Feb 800 102 67 $200 $ $22 $61 309 2013 of 1,005 lots for $269 Millions $52 Lots 264 $60 million 600 338 $150 » Significant increase as 400 $100 620
Slide 10: Operational update
For personal use only Operational Op t update p t
Slide 11: Operational update
Operational update » Recommencement of capital investment, up significantly on last half, to create additional lots in For personal use only order to meet strengthening demand in Western Australia and improving sales rates at Craigieburn in Victoria » Over th O the balance b l off the th currentt fi
Slide 12: Land bank – key projects
Land bank – key projects Lots1 remaining Project name GDV Project Lifecycle (at 31 Dec 12) For personal use only Funds Management 2013 2014 2015 2016 2017 Alkimos $736m 2,739 Selling B rns Beach Burns $324m 685 Selling Golden Bay $284m 1,605 Selling Lakelands $254m 1,758 Selling Wellard (JV) $315m 1
Slide 13: Land bank – key projects (cont.)
Land bank – key projects (cont.) Lots1 remaining For personal use only Project name GDV Status Project Lifecycle (at 31 Dec 12) Company-owned projects 2013 2014 2015 2016 2017 Brigadoon $114m 199 On schedule Chase, Baldivis $87m 506 On schedule Start Up Selling WA Mundijong $96m 627 On schedule Plan
Slide 14: Key projects underpinning outlook for FY14 and beyond
Key projects underpinning outlook for FY14 and beyond For personal use only Greenvale/Craigieburn, Vic Vantage Gladstone, Qld Flagstone City & East, Qld Lots remaining: 3,317 GDV: $655m Lots remaining: 359 GDV: $87m Lots remaining: 13,240 GDV:$1,920m » Located in the Hume growth » Historical acquisi
Slide 15: Key projects underpinning outlook for FY14 and beyond
Key projects underpinning outlook for FY14 and beyond For personal use only Shorehaven at Alkimos, WA Yanchep Golf Estate, WA Wellard, WA Lots remaining: 2,739 GDV: $736m Lots remaining: 1,433 GDV: $326m Lots remaining: 1,844 GDV: $315m » Located in the City of Wanneroo, in » Attractive location in
Slide 16: Capital management
For personal use only CCapital p t management g t
Slide 17: Capital management
Capital management For personal use only Capital Management strategy tracking in line 1H131 with expectations Cash at bank $18.7m Net bank debt $222.0m » Cash C h and d available il bl ddebt bt ffacilities iliti totalled $50 1 t t ll d $50m at 31 December 2012 Convertible notes $46.2m » Gearing2 dec
Slide 18: Cash flow summary
Cash flow summary For personal use only Improved cash flows with significant investment in new and existing projects 1H13 1H12 Cash flows related to operating activities $m $m Receipts p from customers 72.9 74.4 Receipts from asset divestments 28.71 - Payments to suppliers and employees (31.0) (27.7
Slide 19: Market overview & outlook
For personal use only Markett overview & outlook M t
Slide 20: Residential market overview
Residential market overview The state markets are at very different points in their cycles: For personal use only WA Positive signs emerging » Residential land market improving – increase in volumes, not yet in prices » Rental rates increasing and vacancy levels at lowest level in almost 6 years, es
Slide 21: Outlook
Outlook For personal use only FY13 expected to be low-point » Underlying foundations of the residential sector remains sound » Cautious view on short-term outlook – overall recovery expected, but gradual » Challenging market conditions expected to persist throughout 2H13 » Strengthening Western Aust
Slide 22: Thank you
For personal use only TThank yyou
Slide 23: 1H13 Annexures
For personal use only 1H13 AAnnexures
Slide 24: Summary income statement
Summary income statement For personal use only $m 1H13 1H12 Var (%) Funds management 14.6 15.5 (17%) Development 59.2 36.0 64% Other1 9.3 12.3 (10%) Revenue 83.1 63.8 30% EBITDA 15.1 18.5 (18%) Finance costs2 (12.2) (7.6) 61% Depreciation and amortisation (1.3) (1.1) 18% NPBT 1.5 9.8 (85%) Income ta
Slide 25: Summary balance sheet
Summary balance sheet $m 1H13 1H12 For personal use only Assets Cash 20.8 26.2 Receivables 69 5 69.5 774 77.4 Inventories 504.2 436.1 Investments accounted for using the equity method 80.6 92.2 Other 13.3 14.1 Asset classified as held for sale 0 70.7 Total assets 688.4 716.7 Li biliti Liabilities Tr
Slide 26: FM operating performance
FM operating performance 1H13 FM revenue composition by type For personal use only Key performance statistics 7 $m 1H13 1H12 Var (%) 34 16 Revenue 14.6 17.5 (16%) 77 60 Operating expenses (6.8) (6.0) (13%) EBITDA 7.8 11.5 (32%) 1H12 6 Net EBITDA margin 53% 65% (12%) 1H13 Project Management Selling F
Slide 27: Development operating performance
Development operating performance For personal use only Key performance statistics 1H13 revenue composition by geography (%) $m 1H13 1H12 Var (%) Revenue 59.2 36.0 64% 19 50 Operating expenses1 (53.1) (30.9) 72% 41 EBITDA 6.0 5.1 18% 49 EBITDA margin 10% 14% (29%) 1H12 31 10 1H13 Key operating stati
Slide 28: JV operating performance
JV operating performance For personal use only Key performance statistics $m 1H13 1H12 Var (%) Revenue 9.1 9.7 (6%) Operating expenses (8.1) (8.4) (4%) EBITDA 1.0 1.3 (23%) Net EBITDA margin 10% 13% (23%) Key operating statistics 1H13 1H12 Var (%) Lot sales 119 112 6% Lot settlements 89 150 41% No.
Slide 29: 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 f your intended for i d d use. Subject S bj to any terms implied i