Slide 1: FY23 Results
FY23 RESULTS 24 August 2023 Where you belong
Slide 2: Agenda
FY23 Results Agenda 01 02 03 04 05 Group Results Operating Outlook Q&A Highlights Overview Performance Page 2 | FY23 Results Googong, NSW
Slide 3: Company Overview
Company Overview • Leading Australian developer of quality residential communities with a proven track record for nearly 130 years WHOLESALE/ INSTITUTIONAL 8,953 lots1 • Large, nationally diverse land bank provides $2.8bn GDV economies of scale to deliver a wide range of product at lower cost RETAIL
Slide 4: Strong Platform for Growth
Strong Platform for Growth 130-year track record of developing through cycles GEOGRAPHICALLY DIVERSE PIPELINE $13.5bn • • 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
Slide 5: Our Commitment to Sustainability
Our Commitment to Sustainability Our Sustainability Approach As a leading residential developer with a large national footprint, our approach focuses on sustainable practices to create long-term shared value for our communities, shareholders and people ENVIRONMENT SOCIAL GOVERNANCE POSITIVE SOCIAL I
Slide 6: Highlights
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Slide 7: FY23 Results Highlights
FY23 Results Highlights Strong performance in challenging conditions FINANCIAL OPERATIONAL Net Operating Profit1 DPS $70.1m 7.50c 1,399 2,594 LOTS4 SOLD LOTS4 SETTLED +34% on FY22 +20% on FY22 Operating EPS NTA 14.79c $1.29 $476m 27.7% CONTRACTS ON GEARING5 +37% on FY22 6% higher than FY22 HAND4 EDI
Slide 8: Delivering against our Strategy
Delivering against our Strategy Significant value to be unlocked INVEST in high quality land EXPAND product offering MAINTAIN strong capital VALUE CREATION in strategic locations across and geographic presence to appeal management • Good visibility of future earnings country to wider variety of cust
Slide 9: Rapid Development Pipeline
Rapid Development Pipeline Strong pipeline of new projects to support future earnings 35,730 lots c. 83% Selling Projects: 4 Lots: 5,954 GDV: $1,427m c. 73% 29,776 lots Selling Projects: 6 c. 72% Lots: 3,743 Selling / GDV: $2,801m 26,033 lots Significant Development Projects: 3 Lots: 306 25,727 lots
Slide 10: Overview
RESULTS Oyerpren Where You belong | PEET
Slide 11: Group FY23 Financial Results
Group FY23 Financial Results Strong result despite a challenging economic backdrop Sales activity impacted by interest rate increases, consumer KEY PERFORMANCE STATISTICS FY23 FY22 VAR (%) confidence and limited stock releases due to extended stage construction timeframes Lot sales1 1,399 3,163 (56%
Slide 12: Group Cash Flow Summary
Group Cash Flow Summary Strong operating cash flows and enhanced liquidity FY23 FY22 CASH FLOWS RELATED TO OPERATING ACTIVITIES $M $M Receipts from customers 338.8 276.7 Receipts higher due to increased settlement revenue from existing and new projects, Flagstone City and New Beith sale proceeds Pay
Slide 13: Group Balance Sheet
Group Balance Sheet Strong balance sheet and liquidity position CAPITAL MANAGEMENT METRICS FY23 FY22 Cash at bank1 $38.8m $55.4m Cash and debt facility headroom of c.$150m provides capacity to fund current portfolio Bank debt2 $143.4m $102.4m Peet bonds3 $150.0m $200.0m Bank debt higher due to repay
Slide 14: Our Shareholder Returns
Our Shareholder Returns We have returned $173m to shareholders since FY18, through fully franked dividends and our ongoing capital management program • Disciplined application of our capital management framework and Shareholder returns since FY18 ($m) strong balance sheet means shareholders benefit
Slide 15: Operating Performance
OPERATING Performance Where You belong | PEET
Slide 16: Group Operating Performance
Group Operating Performance Increased Development weighting delivering results • Group EBITDA1 up 24% - Development earnings higher due to price growth, townhouse settlements, 34% 9% 6% Flagstone City and New Beith sale EBITDA1,2 proceeds COMPOSITION BY BUSINESS TYPE (%) 48% 15% - Funds management f
Slide 17: Group Sales and Settlement Activity
Group Sales and Settlement Activity Flexible development program in place ready to take advantage of shortage of market supply • Group sales for FY23 of 1,399 lots 1 - Sales activity impacted by rising 11% interest rates, fewer stock releases 22% and lower first home buyer activity - Sales pricing a
Slide 18: Enquiry Levels Remain Solid
Enquiry Levels Remain Solid • Enquiry levels throughout FY23 have been impacted 11,716 11,954 by rising interest rates and lower consumer confidence in response to media commentary on inflation, construction timeframes and house values 8,896 - Buyers remain cautious waiting for interest rates to sta
Slide 19: Outlook
OUTLOOK Where You belong | PEET
Slide 20: New Projects Provide Medium Term Earnings Visibility
New Projects Provide Medium Term Earnings Visibility Pipeline of approximately 35,700 lots1 providing visibility of future earnings FY24 – FY26 NEW PROJECT RELEASE SCHEDULE • Up to two new land community projects and six PROJECT STATE SEGMENT PROJECT LOTS3/ GDV PROJECT LAUNCH2 UNITS LIFE townhouse/a
Slide 21: FY24 Focus
FY24 Focus Portfolio well-positioned for positive growth and value creation INVEST in high quality land in EXPAND product offering and MAINTAIN strong capital strategic locations across country geographic presence to appeal to management wider variety of customers • Balance portfolio between land an
Slide 22: Group Outlook
Group Outlook Flexible delivery program in place to Focused on positioning the Group for take advantage of shortage of market growth through a prudent approach to project delivery and identifying supply growth opportunities • Residential markets continue to adjust from their peak as a result of inte
Slide 23: Thank You
Thank You peet.com.au Perth | Melbourne | Brisbane | Canberra | Adelaide
Slide 24: Appendices
APPENDICES Where You belong | PEET
Slide 25: FM Operating Performance
FM Operating Performance KEY PERFORMANCE STATISTICS FY23 FY22 VAR (%) Lower sales due to market conditions and reclassification of Lot sales1 521 1,513 (66%) Flagstone City to Development 1 Lot settlements 1,137 1,338 (15%) Revenue impacted by reduced fees from lower sales Revenue $19.4m $38.3m (49%
Slide 26: JV Operating Performance
JV Operating Performance KEY PERFORMANCE STATISTICS FY23 FY22 VAR (%) Lower sales due to market conditions and completion of 1 Lot sales 262 628 (58%) Lightsview Lot settlements1 688 521 32% Equity accounted profits increased due to higher settlements at Revenue $34.4m $25.8m 33% Googong Share of ne
Slide 27: Development Operating Performance
Development Operating Performance KEY PERFORMANCE STATISTICS FY23 FY22 VAR (%) Lot sales1 616 1,022 (40%) 1 Lot settlements 769 655 17% Land only 577 18% Higher revenue and EBITDA2 due to New Beith settlement 682 in October 2022 Medium Density product 87 78 12% Revenue $265.1m $201.3m 32% EBITDA2 $5
Slide 28: Summary Income Statement
Summary Income Statement FY23 FY22 VAR $M $M (%) Funds Management 19.4 38.3 (49%) Development 265.1 201.3 32% Joint Venture 34.4 25.8 33% Share of net profit of equity accounted investments 44.3 23.6 88% Other1 0.5 1.7 (77%) Revenue 363.7 290.7 25% EBITDA 107.0 86.0 24% Finance costs2 (9.7) (11.5) 1
Slide 29: Summary Balance Sheet
Summary Balance Sheet FY22 FY23 Restated $M $M Assets Cash and cash equivalents 38.8 55.4 Receivables 71.6 82.0 Inventories 718.7 657.1 Investments accounted for using the equity method 194.4 188.0 Other 6.9 7.4 Total assets 1,030.4 989.9 Liabilities Payables 48.7 27.7 Land vendor liabilities 21.1 3
Slide 30: Land Bank Development Key Projects
Land Bank Development Key Projects LOTS PROJECT NAME STATE GDV1 2024 2025 2026 2027 2028 REMAINING2 Greenlea WA $2m 2 Glyde Street WA $64m 50 Glendalough WA $91m 100 Other WA $719m 3,847 Gladstone Qld $10m 325 Palmview Qld $41m 105 Spring Mountain Qld $65m 134 Strathpine Qld $12m 20 Nudgee Qld $54m
Slide 31: Land Bank Funds Management Key Projects
Land Bank Funds Management Key Projects LOTS PROJECT NAME STATE GDV1 2024 2025 2026 2027 2028 REMAINING2 Alkimos WA $930m 1,634 Brabham WA $644m 2,714 Burns Beach WA $151m 259 Eglinton WA $214m 867 Golden Bay WA $97m 394 Lakelands WA $145m 681 Yanchep Golf Estate WA $377m 1,493 Oakford WA $186m 817
Slide 32: Land Bank Joint Venture Key Projects
Land Bank Joint Venture Key Projects LOTS PROJECT NAME STATE GDV1 2024 2025 2026 2027 2028 REMAINING2 Wellard WA $47m 246 Edens Crossing Qld $155m 450 Googong3 NSW $614m 1,120 St Clair SA $39 m 173 Forestville SA $102m 188 Total Joint Venture $957m 2,177 Total Pipeline $13,506m 35,730 LEGEND Plannin
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