Peet Limited · ASX:PPC
Peet — Merger or Acquisition (November 2014)
20 slides from Peet's merger presentation, Nov 7, 2014
Slide 1: Acquisitions and equity raising
For personal use only Acquisitions and equity raising November 2014 Bringing Land to Life
Slide 2: Disclaimer
Disclaimer The following disclaimer applies to this presentation and to any information provided regarding the information contained in this presentation (Information). You are advised to read this disclaimer carefully before reading or making any other use of this presentation or the Information. I
Slide 3: Transaction overview
Transaction overview » Peet has acquired interests in six residential development projects (Acquisitions) For personal use only » Peet and the Future Fund have jointly acquired a 50% interest in Golden Bay estate, located south-west of Perth and 100% of Bluestone Mount Barker estate, located south-e
Slide 4: Acquisitions
For personal use only Acquisitions
Slide 5: Overview of Acquisitions
Overview of Acquisitions Peet has secured six high quality, strategic projects For personal use only » New projects comprise more than 3,000 lots/dwellings » Golden Bay and Bluestone Mount Barker estates are currently developing and selling and will contribute to FY15 earnings » Use of capital effic
Slide 6: Golden Bay, Western Australia
Golden Bay, Western Australia Project overview For personal use only » Located in the coastal suburb of Golden Bay, approximately 53km south-west of the Perth CBD and 12km north of Mandurah » The Golden Bay Estate is a master planned community which will contain approximately 1,700 lots, a neighborh
Slide 7: Bluestone Mount Barker, South Australia
Bluestone Mount Barker, South Australia Project overview For personal use only » The Bluestone Estate is located in Mount Barker, the major centre of the Adelaide Hills region, approximately 30km south-east of the Adelaide CBD » Approximately 75 hectares of developable land acquired » The project is
Slide 8: Midvale/Stratton, Western Australia
Midvale/Stratton, Western Australia Project overview For personal use only » Located in the suburbs of Midvale and Stratton, approximately 19km north-east of the Perth CBD » The project consists of 40 hectares of future developable land with an anticipated yield of approximately 600 lots » Forecast
Slide 9: Market overview
Market overview Fundamentals underpinning the housing market remain supportive of both prices and volumes For personal use only Perth, WA Market stabilising after good price growth » Market conditions expected to moderate and stabilise - normal market settings » Developer stock remains tight Golden
Slide 10: Contracts on hand
Contracts on hand Contracts on hand1 » Sales momentum continues with a further increase in contracts on 2500 For personal use only hand since year end 2,183 2000 1,956 1,990 » Sales momentum is solid since June 2014 Lots 1500 » Significant increase in lot sales in FY14 of over 3,500 lots » Strong se
Slide 11: Impact on Peet
For personal use only Impact on Peet
Slide 12: Impact on Peet
Impact on Peet Financial impacts Enhances and diversifies Peet’s landbank For personal use only » The transaction enhances Peet’s operating earnings, cash flow » The transaction represents the continued progress of Peet’s and growth profile while improving balance sheet strength strategy of acquirin
Slide 13: Pro-forma balance sheet
Pro-forma balance sheet Jun 2014 Jun 2014 30 Jun 2014 Post balance date pro-forma Transaction pro-forma For personal use only $m reported adjustments1 (pre transaction) adjustments2 (post transaction) Assets Cash 38.8 (10.6) 28.2 28.2 Receivables 71.6 71.6 71.6 Inventories 540.6 540.6 6.2 546.8 Inve
Slide 14: Equity raising
For personal use only Equity raising
Slide 15: Equity raising structure
Equity raising structure » $47 million equity raising comprising two placements (Placements) For personal use only » $40 million underwritten placement to existing and new institutional investors (Institutional Placement) » $7 million non-underwritten conditional placement to an entity associated wi
Slide 16: Timetable
Timetable For personal use only Trading halt and announcement of Acquisitions and equity raising Friday, 7 November 2014 Institutional Placement offer opens 10:00am Friday, 7 November 2014 Institutional Placement offer closes 12:30pm Friday, 7 November 2014 Trading in Peet shares recommences Monday,
Slide 17: Key Risks
For personal use only Key Risks
Slide 18: Key Risks
Key Risks Introduction Changes in government policy by professional valuers, for any properties held by Peet, in Peet operates in a highly regulated environment and is response to changes in market conditions; For personal use only A number of risks and uncertainties, which are both specific to Peet
Slide 19: Key Risks (cont.)
Key Risks (cont.) Purchasers’ settlement Breach of financial covenants Financing of managed funds and syndicates Peet’s managed funds and syndicates utilise debt to fund For personal use only A failure of a significant portion of purchasers to settle on As at the date of this presentation, Peet was
Slide 20: Key Risks (cont.)
Key Risks (cont.) Acquisitions and joint ventures Prolonged adverse weather conditions may result in delays indemnity obligations if and when they fall due, which could in construction and marketing and possibly deferral of have an adverse impact on earnings. For personal use only Peet may make stra