Slide 1: 2008 Full Year Results Presentation
For personal use only Peet Limited 2008 Full Year Results Presentation September 2008 asset manager land syndicator fund manager asset manager land syndicator fund manager asset manager land syndicator fund manager asset manager Peet Limited | Enriching lives since 1895
Slide 2: Contents
Contents For personal use only » Group Performance Highlights 3 » Group Financial Performance 4 » Strategic Growth Model 10 » Land Bank and Market Position 11 » Alkimos Project 20 » Funds Management, Retirement and Built Form 23 » Market Conditions and Outlook 28 » Peet’s Growth Strategy 34 » Outloo
Slide 3: Group Performance Highlights
Group Performance Highlights Peet achieved earnings growth of 5.3% for FY08; full year dividend of For personal use only 19.75 cents per share fully franked » Full year net profit after tax of $47.9 million (FY07: $45.5 million) » Final dividend of 10.75 cents per share fully franked » Sales of 2,27
Slide 4: Group Financial Performance
Group Performance Highlights For personal use only Group Financial Performance Peet Limited | Enriching lives since 1895
Slide 5: Group Financial Performance
Group Financial Performance Peet’s performance has been solid, driven by a strong business model and a For personal use only quality land bank » Settlements from owned and managed projects totalled more than 2,400 lots - grossing more than $426 million (FY07: $405 million) FY08 FY07 Revenue $167.9M
Slide 6: EBIT Composition
EBIT Composition High-quality earnings stream, weighted to funds management For personal use only » East coast operations contributed 69% of FY08 EBIT (FY07: 54%) » Peet manages 28 syndicate landholdings nationally » Up to 8 new owned and syndicated projects commencing development during FY09 EBIT C
Slide 7: Group Financial Performance
Group Financial Performance Performance demonstrates Peet’s ability to consistently deliver through For personal use only market cycles » Strong performance from Vic and Qld » Earnings from Funds Management increased by 10.8% to $35 million Historical Revenue Growth Historical EBIT Growth Historical
Slide 8: Capital Management
Capital Management Peet is well positioned with all debt secured by a portfolio of high-quality For personal use only property assets and solid operating cash flows » Senior debt facilities – 3 year evergreen » Syndicate debt is all non-recourse » At year end gearing was 37% - compared to 41% at the
Slide 9: Strong Shareholder Returns
Strong Shareholder Returns Peet has delivered solid fully franked dividend yield and growth which has For personal use only driven strong TSR performance since listing Earnings per share Dividends 25.0 25.0 21.4 21.6 19.5 19.75 20.0 18.4 20.0 17.0 14.8 14.5 14.4 15.0 15.0 10.5 10.75 9.5 cps cps 10.0
Slide 10: Strategic Growth Model
Strategic Growth Model Peet’s strategic objective is to deliver EPS growth and TSR out-performance For personal use only » 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 11: Land Bank and Market Position
Group Performance Highlights For personal use only Land Bank and Market Position Peet Limited | Enriching lives since 1895
Slide 12: Land bank and Market Position
Land bank and Market Position Significant land bank with an on-completion value of approximately For personal use only $7.4 billion1 » Australia’s third largest land bank amongst ASX listed entities - controlled lots stand at approx 37,000 » Size of land bank provides ability to purchase well ahead
Slide 13: Land Bank
Land Bank Peet has established a quality national land bank that provides a diversified For personal use only production profile » 80 Projects – 28 currently being developed » 37,000 lots managed and QLD owned 14 Projects 5,740 Lots WA 15.5% » Strong exposure to Vic and Qld 35 Projects property mark
Slide 14: Diversified Pipeline
Diversified Pipeline Development pipeline continues to facilitate future growth – 8 new east For personal use only coast projects commencing development during FY09 $7.4b Development Pipeline » Increased pipeline in key markets – around 5,600 lots acquired since June 2007 $1.1 b » Targeted acquisiti
Slide 15: Syndicated and JV Project Pipeline
Syndicated and JV Project Pipeline Some 19,800 lots under management, with an estimated on-completion For personal use only value of $4.5 billion1 » Increased profitability projected over longer term as increased profit shares are realised on more recent syndicates No. of Lots2 2009 2010 2011 2012 2
Slide 16: Owned Project Pipeline
Owned Project Pipeline Some 17,200 lots owned with a combined estimated on-completion value of For personal use only $2.9 billion1 » Number of owned projects have historically low cost base » A total of 47 Company owned projects – 29 located across Vic and Qld No. of Lots2 2009 2010 2011 2012 2013 1
Slide 17: Estates – Western Australia
Estates – Western Australia For personal use only Peet Limited | Enriching lives since 1895 17
Slide 18: Estates – Victoria
Estates – Victoria For personal use only Peet Limited | Enriching lives since 1895 18
Slide 19: Estates – Queensland
Estates – Queensland For personal use only Peet Limited | Enriching lives since 1895 19
Slide 20: Alkimos Project
Alkimos Project Key strategic objective achieved; institutional partnership For personal use only » Acquisition of unique beach front residential zoned project – 40km north of Perth CBD » Project duration of approximately 12 years » Estimated sales revenue of approximately $1.4billion » Peet appoint
Slide 21: The Site
The Site For personal use only Peet Limited | Enriching lives since 1895 21
Slide 22: Structure Plan - Overview
Structure Plan - Overview » District Structure Plan endorsed by City of Wanneroo Council – District Structure Plan For personal use only July 2008 » Total yield of approximately 2,800 lots » Project incorporates designated coastal village – includes mixed use, retail and hospitality » Project will o
Slide 23: Funds Management, Retirement and Built Form
Group Performance Highlights For personal use only Funds Management, Retirement and Built Form Peet Limited | Enriching lives since 1895
Slide 24: Syndicate Capital Raising and Distribution
Syndicate Capital Raising and Distribution For personal use only Direct retail distribution network of around 4,000 active investors; strong repeat investment in excess of 65% » Peet syndicates are special purpose companies established to acquire specific assets » Expansion of existing funds managem
Slide 25: 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 » Focus on strata-title resort-style villages » Initial projects – Lakelands, Warner
Slide 26: Retirement - Senior Living (continued)
Retirement - Senior Living (continued) For personal use only Lattitude Lakelands » Within Lakelands Estate, Western Australia » 194 units, resort-style living » Construction underway » Stage 1 (31 units) 75% sold » First completions November 2008 Peet Limited | Enriching lives since 1895 26
Slide 27: Commercial and Residential Built Form
Commercial and Residential Built Form For personal use only Solid pipeline of residential built form and commercial projects identified in land bank; potential syndication and income fund feedstock » Peet Living delivers value-added living solutions to desirable suburbs and locations, offering bouti
Slide 28: Market Conditions and Outlook
Group Performance Highlights For personal use only Market Conditions and Outlook Peet Limited | Enriching lives since 1895
Slide 29: Market Overview
Market Overview Residential demand underpinned by: For personal use only » Strong population growth fuelled by immigration Low Unemployment is Supporting Strong » Low unemployment Immigration Growth » Historically low vacancy rates 14.0 160,000 » Increasing rental yields 12.0 140,000 Challenges 120,
Slide 30: Market Overview: Record Low Vacancy Rates
Market Overview All key states experiencing record low vacancy rates For personal use only » Rental growth is expected to remain strong over the next 2-3 years due in part to the continuation of the housing supply deficiency and low levels of housing affordability » A tightening rental market is res
Slide 31: Market Overview: Housing Demand Outstripping Supply
Market Overview Underlying housing demand is already outstripping new supply and the For personal use only gap is set to widen » Decline in housing starts and significant growth in population is a major contributor to housing stock deficiency » Residential stock deficiency is forecast to peak at ove
Slide 32: Population Growth
Population Growth For personal use only Overseas migration continues to underpin population growth across Australia » Australia’s population rose by over 334k (1.6%) in the year to June 2008 - The highest since the early 1980’s » Australian population is forecast to increase from 21 million people t
Slide 33: Market Outlook - Residential
Market Outlook - Residential For personal use only Peet is well placed to take advantage of sound conditions on the east coast market Next 12 Months Market conditions to remain firm supported by VIC affordability advantage and population growth. Volumes and prices have eased during FY08. WA Fundamen
Slide 34: Peet's Growth Strategy
Peet’s Growth Strategy For personal use only Solid and transparent platform for growth from existing businesses » Continuing to focus on our core business to deliver sustainable growth in earnings » Growing our existing funds management platform and capital partnering relationships » Continuing to g
Slide 35: Outlook
Outlook For personal use only The current cycle has resulted in a major shortfall in housing supply relative to underlying demand » Expect to be operating within a challenging Australian residential market in FY09 » The medium to long-term prospects and fundamentals of the residential property marke
Slide 36: About Peet
About Peet Track record of more than 112 years of Asset and Funds Management For personal use only 36
Slide 37: 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
Slide 38: For personal use only
Asset Manager Land Syndicator Fund Manager For personal use only Peet Limited | Enriching lives since 1895 38