Peet Limited · ASX:PPC
Peet — Shareholder Meeting (November 2016)
28 slides from Peet's shareholder meeting presentation, Nov 23, 2016
Slide 1: Annual General Meeting
ANNUAL GENERAL MEETING For personal use only NOVEMBER 2016
Slide 2: Improving Financial Performance
IMPROVING FINANCIAL PERFORMANCE Growth in earnings driven by our focused strategy, market conditions and new projects For personal use only » Fourth consecutive year of operating profit growth » 3 year EPS CAGR1 of 17% 1,990 1,990 » FY16 DPS of 4.5cps, fully franked − Target payout ratio of 50% goin
Slide 3: Capital Management
CAPITAL MANAGEMENT Further improvement in capital position » ROCE1 of 13.2% For personal use only 2,184 » Gearing2 of 28.8% − Focused strategy on reducing gearing to lower end of target range » Improving cash interest coverage3 to 4.3x − Cost of debt decreased to 6.7% - down 1% TOTAL ASSETS ($M)4 AN
Slide 4: Key Highlights for FY16
KEY HIGHLIGHTS FOR FY16 Focused strategy delivering strong results For personal use only » Diversified pipeline of over 48,000 lots with a low cost base and an on-completion value of GROWTH approximately $12 billion AND AND FY14 Result FY14 POSITIONING Result » Selective acquisitions of land holding
Slide 5: Key Highlights for FY16 (continued)
KEY HIGHLIGHTS FOR FY16 (CONTINUED) » Flagstone (QLD) project successfully launched in April 2016 GROWTH For personal use only − Solid pre-sales achieved since launch, including a retail shopping centre site AND − Strong sales enquiry building momentum into FY17 POSITIONING FY14 Result FY14 Result »
Slide 6: Funds Management
FUNDS MANAGEMENT Funds Management strategy delivering results FUNDS & JVs EBITDA1 ($m) FUNDS MANAGEMENT & JOINT VENTURE GDV2 ($bn) For personal use only 70 10 9 9.3 60 8.9 8.7 8 50 7 7.5 6 40 6.2 5 30 4 20 3 2 10 1 0 0 FY12 FY13 FY14 FY15 FY16 FY12 FY13 FY14 FY15 FY16 Co-Investment Profits Funds Man
Slide 7: Operating performance
For personal use only Operating performance
Slide 8: Group Operating Performance
GROUP OPERATING PERFORMANCE » Peet’s diversified portfolio of projects has allowed it to capitalise on the eastern states’ strength For personal use only » Contribution from eastern states’ projects increased to 82% of EBITDA1 (FY15: 68%) » Funds Management/Joint Venture business provided solid earn
Slide 9: Contracts on Hand
CONTRACTS ON HAND » Contracts on hand1 increased to 2,688 lots since 30 June 2016 – up 11% − For personal use only Increase driven by VIC and QLD markets − Value of contracts on hand increased by a further 12% to $612m since year end - providing solid momentum into FY17 » Victorian contracts on hand
Slide 10: National Property Portfolio
For personal use only National Property Portfolio
Slide 11: National Reach
NATIONAL REACH $12.0bn For personal use only 48,000 END-VALUE LOTS 1 projects 62 nationally Notes: 1 Not all projects are shown on map AGM PRESENTATION ǀ NOVEMBER 2016 ǀ PAGE 11
Slide 12: Flagstone City, QLD
KEY PROJECTS – FLAGSTONE CITY, QLD » Flagstone is a 1,245 hectare greenfield master planned community situated in a key South East Queensland Growth corridor 38 km south west of Brisbane’s CBD For personal use only » Joint Venture with MTAA Super with over 12,000 dwellings » Flagstone City will beco
Slide 13: Flagstone City, QLD
KEY PROJECTS – FLAGSTONE CITY, QLD » Environmental approvals for the entire development site in place For personal use only » Government catalyst funding to assist with start-up infrastructure funding » Solid pre-sales achieved since launch in April 2016 ̵ Large display village due to open June 2017
Slide 14: Flagstone City, QLD
KEY PROJECTS – FLAGSTONE CITY, QLD Infrastructure and stage development works under construction including: For personal use only » Completed Sales and Information centre » Catalyst funded (Qld government) bridge currently under construction » Entry works including main arterial road servicing over
Slide 15: Googong, ACT/NSW
KEY PROJECTS – GOOGONG, ACT/NSW » Googong is a 790 hectare greenfield master planned community For personal use only situated 16 km from Canberra CBD » Joint Venture with Mirvac » The community will accommodate − Approximately 6,0001 homes − Three schools − Community and childcare facilities − Major
Slide 16: Googong, ACT/NSW
KEY PROJECTS – GOOGONG, ACT/NSW For personal use only AGM PRESENTATION ǀ NOVEMBER 2016 ǀ PAGE 16
Slide 17: The Village at Wellard, WA
KEY PROJECTS – THE VILLAGE AT WELLARD, WA » The Village at Wellard is a 320 hectare multi-award winning project situated on Perth’s southern suburbs, railway line in the For personal use only south west corridor 36 km from Perth’s CBD » Joint Venture with Western Australian Housing Authority with ov
Slide 18: The Village at Wellard, WA
KEY PROJECTS – THE VILLAGE AT WELLARD, WA » Almost 70% of homesites completed – over 2,100 settlements achieved since 2004 For personal use only » Future childcare centre and Village tavern forecast for completion in next 12 months » All approvals for remaining development in place » Multi award win
Slide 19: Aston, VIC
KEY PROJECTS - ASTON, VIC » Aston is a 200 hectare greenfield master planned community located 32 km north of the Melbourne For personal use only CBD » The community will accommodate approximately 2,500 lots along with a range of amenities, including: − Neighbourhood Activity Centre − State Governme
Slide 20: Aston, VIC
KEY PROJECTS - ASTON, VIC » Located in major corridor which is evolving into a mature diverse For personal use only community » Strong price growth on residential lots achieved in recent releases » Extended landholdings through the amalgamation of land parcels in Aston West (1,000 lots) in 2015 AGM
Slide 21: Lightsview, SA
KEY PROJECTS – LIGHTSVIEW, SA » Located 8km north east of the Adelaide CBD, it has become a highly sought after medium to high density suburb outselling all comparable For personal use only developments in Adelaide » Highly innovative infill Joint Venture project with SA Government » Project will de
Slide 22: Lightsview, SA
KEY PROJECTS – LIGHTSVIEW, SA » Delivers diverse range of product and price points For personal use only » Approximately 50% of the project comprises in-house design built form housing and apartments which is sold as packaged housing » Recognised as a leader in the delivery of innovative built form
Slide 23: Tonsley, SA
KEY PROJECTS – TONSLEY, SA » Located 12km South of the Adelaide CBD, Tonsley is the former Mitsubishi vehicle manufacturing plant. For personal use only » Peet has secured 11 hectares under a development agreement with the SA Government for the development of 1,000 terrace homes and apartments » 100
Slide 24: Tonsley, SA
KEY PROJECTS – TONSLEY, SA » The site already contains a sub-campus of the nearby Flinders For personal use only University, Adelaide's major trade training TAFE and various high tech, innovation focused businesses. AGM PRESENTATION ǀ NOVEMBER 2016 ǀ PAGE 24
Slide 25: Outlook
For personal use only Outlook
Slide 26: Outlook
OUTLOOK Portfolio well positioned for sustainable long-term growth and value creation For personal use only » Outlook generally supported by market fundamentals with sustained low interest rates and modest economic growth − Conditions across Victoria, New South Wales/ACT and South Australia are expe
Slide 27: Thank you
For personal use only Thank you
Slide 28: 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