Peet Limited · ASX:PPC
Peet — Shareholder Meeting (November 2018)
22 slides from Peet's shareholder meeting presentation, Nov 21, 2018
Slide 1: Annual General Meeting Presentation
For personal use only NOVEMBER 2018 ANNUAL GENERAL MEETING PRESENTATION
Slide 2: FY18 Financial Highlights
FY18 FINANCIAL HIGHLIGHTS OPERATING CASH FLOW EBITDA (Before land payments) $101.3m 2018 $118.1m For personal use only 2018 2017 2017 Up 11 per cent on 2,924 lot settlements Up 18.6 per cent NET PROFIT RETURN ON CAPITAL $49.1m 14.7% 2018 2017 Up 10 per cent Return on equity above company benchmark F
Slide 3: Group Strategic Model
GROUP STRATEGIC MODEL BUILDING A HIGHER VALUE FUNDS MANAGEMENT BUSINESS For personal use only » Funds Management strategy delivering consistent results and margins ̵ Institutional/Wholesale co-investment strategy delivering emerging profits » Broadening product offering to Completed Homes, Medium De
Slide 4: Group Financial Summary
GROUP FINANCIAL SUMMARY STRATEGIC INITIATIVES CONTINUE TO DRIVE EARNINGS GROWTH KEY PERFORMANCE STATISTICS FY18 FY17 VAR (%) » FY18 revenue1 comparative to FY17 was lower predominantly For personal use only due to: Lot sales 2,950 3,000 (2%) ̵ The joint venturing of the Newhaven (VIC) project in FY1
Slide 5: Focus on Driving Shareholder Returns
FOCUS ON DRIVING SHAREHOLDER RETURNS CONSISTENT GROWTH IN EARNINGS DRIVEN BY OUR FOCUSED STRATEGY, MARKET CONDITIONS AND NEW PROJECTS » Business well established across seven states and territories For personal use only ̵ Provides good geographic spread with well located projects across key growth c
Slide 6: Significant Funds Management Value Not Captured in NTA
SIGNIFICANT FUNDS MANAGEMENT VALUE NOT CAPTURED IN NTA APPROXIMATELY $2.1BN1 IN ASSETS UNDER MANAGEMENT, WITH 60% COMPRISING THIRD PARTY CAPITAL FUNDS MANAGEMENT AND JV For personal use only » GDV2 of $11.0bn ̵ Significant pipeline of 37,981 lots providing long-term earnings visibility ̵ Represents
Slide 7: Capital Management
CAPITAL MANAGEMENT STRONG CAPITAL MANAGEMENT STRATEGY OUTCOMES » Net debt decreased to $140m1 – down 13% CAPITAL MANAGEMENT METRICS FY18 FY17 FY16 FY15 For personal use only − Bank debt down 54% to $69.5m Cash at bank $76.7m $88.4m $73.4m $57.7m − Improved diversification of funding Bank debt $69.5m
Slide 8: Group Cash Flow Summary
GROUP CASH FLOW SUMMARY CASH GENERATED FROM OPERATIONS APPLIED TO DELIVER PRODUCTION FROM NEW AND EXISTING PROJECTS TO MEET DEMAND FY18 FY17 For personal use only » Strong operating cash flows (before acquisitions) CASH FLOWS RELATED TO OPERATING ACTIVITIES $M $M of $118m – up 19% Receipts from cust
Slide 9: National Reach
NATIONAL REACH 49,660 $13.8bn END-VALUE For personal use only LOTS 57 projects 1 nationally Notes: 1 Not all projects are shown on map
Slide 10: For personal use only
KEY PROJECT OVERVIEW For personal use only ANNUAL GENERAL MEETING ǀ NOVEMBER 2018 ǀ PAGE 10
Slide 11: Flagstone - QLD
KEY PROJECT OVERVIEW FLAGSTONE - QLD For personal use only » 1,245 hectare master planned community situated in a key South East Queensland growth corridor 38 km south west of Brisbane’s CBD » Total yield of more than 12,000 lots with a GDV1 of more than $3.4 billion - Expected settlement period to
Slide 12: Flagstone - QLD
KEY PROJECT OVERVIEW FLAGSTONE - QLD For personal use only ANNUAL GENERAL MEETING ǀ NOVEMBER 2018 ǀ PAGE 12
Slide 13: Googong - ACT
KEY PROJECT OVERVIEW GOOGONG - ACT » 780 hectare master planned community situated 16 km For personal use only from Canberra CBD » Joint Venture with Mirvac Group » Total yield of approximately 6,000 dwellings with a GDV1 of $1.7 billion University of Canberra » The community will accommodate three
Slide 14: University of Canberra - ACT and Palmview - QLD
KEY PROJECT OVERVIEW UNIVERSITY OF CANBERRA - ACT PALMVIEW - QLD » 20 hectare site located 8 km north of Canberra CBD For personal use only » Total yield of approximately 1,003 lots, comprising » Conditional agreement with the University of Canberra land and Completed Homes and Medium Density for a
Slide 15: Shorehaven - WA and Brabham - WA
KEY PROJECT OVERVIEW SHOREHAVEN - WA BRABHAM - WA » 260 hectare master planned community, located 45km » 220 hectare landholding, 22 km from the Perth CBD, For personal use only north of the Perth CBD adjacent to the proposed Whiteman Park Train Station location » Total yield of approximately 2,500
Slide 16: Aston - VIC and Newhaven - VIC
KEY PROJECT OVERVIEW ASTON - VIC NEWHAVEN - VIC » 209 hectare master planned community located 32 km » 121 hectare master planned community situated 26 For personal use only north of the Melbourne CBD, in the northern growth km from Melbourne CBD corridor » Total yield of approximately 1,754 dwellin
Slide 17: Tonsley - SA
KEY PROJECT OVERVIEW TONSLEY - SA For personal use only » 11 hectare site located 9 km south west of Adelaide CBD » Launched in January 2018, stage 1 sold and settled and first homes under construction » A total yield of more than 800 dwellings with a GDV1 of $265 million » High density mixed use de
Slide 18: Medium Density Pipeline
KEY PROJECT OVERVIEW MEDIUM DENSITY PIPELINE For personal use only » Pipeline of 9 Medium Density sites comprising of 554 townhouses in the major population centres of Melbourne, Brisbane and Perth » An expected GDV1 of $240 million » 237 townhouses are development approved » 124 under construction,
Slide 19: Pipeline Replenishment
PIPELINE REPLENISHMENT PEET WELL PLACED TO TAKE ADVANTAGE OF OPPORTUNITIES For personal use only » Peet remains disciplined and well positioned - Counter cyclical acquisition strategy has allowed the Group to capitalise on strong market conditions and secure a favourable cost base - By FY20 (excludi
Slide 20: Peet Priorities and Strategic Focus
PEET PRIORITIES AND STRATEGIC FOCUS STRATEGIC POSITIONING PROVIDES SOLID MEDIUM-TERM EARNINGS VISIBILITY » Portfolio well positioned to target longer-term growth and value creation For personal use only » Accelerating production where possible and appropriate, and active management of product mix »
Slide 21: Peet Outlook
PEET OUTLOOK » The Victorian residential market continues to moderate with more focus placed on location and quality » Borrowing conditions for investors and owner occupiers have tightened resulting in longer approval processes For personal use only » Competition reducing due to more restrictive dev
Slide 22: 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