Peet Limited · ASX:PPC
Peet — H1 FY2005 Earnings Presentation
28 slides from Peet's earnings presentation, February 2005
Slide 1: Half Year Results Presentation
Half Year Results Presentation Six months ended 31 December 2004
Slide 2: Contents
CONTENTS Highlights Overview of Half Year Financial Result Balance Sheet Capital Management Divisional Performance Land Acquisition Activity Future Direction & Strategy -2-
Slide 3: Highlights
Highlights First half net profit after tax of $9.8 million Half year dividend of 5 cents per share, fully franked (full year forecast dividend 10.9 cents per share) Optimistic of meeting $31.1m full year prospectus forecast Total sales from all divisions for the half year up 11% by number an
Slide 4: Half-year financial results
Half-year financial results 31 Dec 2004 31 Dec 2003 $m $m Revenue (excl interest income) 23.4 32.3 Operating expenses (9.5) (9.7) EBITDA 13.9 22.6 Depreciation (0.1) (0.0) EBIT 13.8 22.6 EBIT margin % 59.1% 69.8% Net interest expense (0.1) (0.4) Profit before tax 13.7 22.2 Tax (3.9) (6.1) Net profit
Slide 5: Balance Sheet
Balance Sheet Land held for development and 31 Dec 2004 30 Jun 2004 resale classified as ‘Inventory’ $m $m Annual revaluation of real estate Assets Cash 9.1 6.3 assets to take place as at 30 June Inventory 110.6 99.3 2005 – expected to show land values Receivables 16.4 20.3 significantly higher
Slide 6: Capital management
Capital management Total interest bearing debt at 31 Dec 2004 of $75m - facility limit of $137m Net Interest Bearing Debt/Total Tangible Assets (adjusted for market value) of 27% Facility includes $35m available for acquisition of properties for syndication -6-
Slide 7: Current market conditions
Current market conditions Western Australian demand for land & housing has been solid in the half year ended 31/12/2004 and continues to be so Victorian and Queensland markets have softened but remain reasonable Notwithstanding this, overall lot sales at Peet & Co projects for the half year we
Slide 8: Current operating divisions
Current operating divisions Funds management Land development Joint venture & sales Syndicated Income projects projects funds4 (“Owned projects”) ♦ Western Australia ♦ Victoria ♦ Western Australia ♦ Victoria ♦ Western Australia ♦ Queensland ♦ Queensland ♦ NSW Returns Fees Profit Fees + profit shares
Slide 9: Divisional EBIT contribution
Divisional EBIT contribution EBIT Contribution by Division EBIT Contribution by Division 6 months ended 31 Dec 2004 6 months ended 31 Dec 2003 Syndicated Syndicated Projects Projects 59% 48% Ow ned Ow ned Projects Projects 41% 49% Joint Joint Venture Venture Projects Projects 3% 0% Proportionally
Slide 10: Land development and sales ("Owned Projects")
Land development and sales (“Owned Projects”) -10-
Slide 11: Owned Projects – financial performance
Owned Projects – financial performance Actual (half year) 31 Dec 2004 31 Dec 2003 Development of stages at Ashton $m $m Heights, WA and Greenvale, Vic. Revenue 13.1 15.6 projects were delayed EBIT 6.8 9.3 As a result, of the 180 sales EBIT margin % 52.1% 59.6% achieved, only 91 sales have Number
Slide 12: Owned Projects – Greenvale Lakes (Vic)
Owned Projects – Greenvale Lakes (Vic) Located in the Melbourne suburb of Greenvale, approx 25km north of the CBD 149 hectare site, expected yield of approximately 1,000 lots Sales commenced during the half year – 43 lots sold by 31/12/2004 with an average sales price of $149,700 per lot Con
Slide 13: Owned Projects – Ashton Heights (WA)
Owned Projects – Ashton Heights (WA) Located in the Perth suburb of Tapping, approx 27km north of the CBD 60 hectare site, expected yield of approximately 600 lots plus medium density Construction and sales commenced October 2004 47 lots sold by 31/12/2004 with an average sales price of $131
Slide 14: Funds management
Funds management ¾ Syndicated Projects ¾ Income Funds -14-
Slide 15: Funds management – financial performance
Funds management – financial performance Actual (half year) Syndicate capital raising fees of $3.9m 31 Dec 2004 31 Dec 2003 earned in period to 31/12/2003 - no $m $m equivalent fees in 6 months to 31/12/04 Substantial syndicate capital raising Revenue 9.8 16.7 EBIT 6.6 13.4 activity expected to
Slide 16: Syndicated Projects – Burns Beach (WA)
Syndicated Projects – Burns Beach (WA) Located in the Perth suburb of Burns Beach, approx 25km north of the CBD 147 hectares of prime beachfront land, expected yield of approximately 1,600 lots Construction and sales scheduled to commence in April 2005 Projected average sales price per lot o
Slide 17: Syndicated Projects – Warner Lakes (Qld)
Syndicated Projects – Warner Lakes (Qld) Located in the Brisbane suburb of Warner, approx 19km north of the CBD 206 hectare site, expected yield of approximately 1,200 lots plus a group housing site and mixed use sites totalling 5.9 hectares Construction and sales commenced during the half yea
Slide 18: Syndicated Projects – Tarneit Gardens (Vic)
Syndicated Projects – Tarneit Gardens (Vic) Located in the Melbourne suburb of Tarneit, approx 25km west of the CBD 125 hectare site, expected yield of approximately 1,100 lots Commercial and community precinct of 3.8 hectares Primary and secondary school sites totalling 11.9 hectares Cons
Slide 19: Syndicated Projects – The Ridge (WA)
Syndicated Projects – The Ridge (WA) Located in Baldivis in the south western suburbs growth corridor in Perth 39 hectare site, expected yield of approximately 332 lots Neighbourhood shopping centre Construction and sales commenced during the half year – 61 lots sold by 31/12/2004 with an av
Slide 20: Joint Ventures
Joint Ventures (2) PEET -20-
Slide 21: Joint Ventures – financial performance
Joint Ventures – financial performance Actual (half year) Growing earnings contribution 31 Dec 2004 $m 31 Dec 2003 $m achieved from this division in the period Revenue 0.6 - Initial income now being EBIT 0.4 (0.1) EBIT margin % 66.7% n/a generated by two of the three joint Number of income ventu
Slide 22: Joint Ventures – The Village at Wellard (WA)
Joint Ventures – The Village at Wellard (WA) Master planned community being developed with the State Government of WA agency, Landstart Located in the Perth suburb of Wellard, approx 35 km south of the CBD 321 hectare site, expected yield approximately 2,700 lots Good sales being achieved -2
Slide 23: Land acquisition activity
Land acquisition activity Brigadoon (WA) – 800 hectare site approx 30km east of Perth acquired for $5.2m Greenvale (Vic) – 1.5 hectare site acquired from Melbourne Water for $1.1m – under review for retirement housing Range of other land opportunities under review -23-
Slide 24: Current landbank and industry position
Current landbank and industry position 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 Stockland Delfin Lend Peet & Co Peet Co Mirvac Investa Australand Cedar FKP Lease Woods Source: UBS (February 2005) -24-
Slide 25: Future direction & strategy
Future direction & strategy Syndicated Projects: Expect approximately two syndicates launched each year Syndication of Tarneit Rise project planned for second half Owned Projects: Strategic acquisitions on deferred terms with rezoning conditions Buying long options on prospective land Gree
Slide 26: Future direction & strategy
Future direction & strategy Expanded funds management focus: Launch of first property investment fund, the Peet Income Property Fund, in April 2005 To pursue several retirement housing development opportunities already identified within Peet’s current development portfolio Further opportunitie
Slide 27: Future direction & strategy
Future direction & strategy Joint Ventures: Substantial earnings growth expected in 2006 financial year from current Joint Venture projects Further Joint Venture opportunities being pursued -27-
Slide 28: Disclaimer of Liability
Disclaimer of Liability While every effort is made to provide accurate and complete information, Peet & Co does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for the intended use of investors. Subject to any terms implied by law an