Peet : 26 February 2020 - Confirmation of Release - PPC - 1H20 Results Presentation

1H20 RESULTS

PRESENTATION

26 FEBRUARY 2020

OVERVIEW

2

FY19 RESULTS | AUGUST 2019 | 2

PEET IS WELL POSITIONED TO LEVERAGE ITS UNQIUE MODEL

MEDIUM TERM OUTLOOK SUPPORTED BY ONGOING MARKET RECOVERY

1

2

3

4

5

1H FY20 result in-line with expectations given significant second half weighting of forecast settlements

Recovery in market conditions demonstrated by 52% increase in sales during 1H20, compared to 2H19

Previous interest rates cuts and easing of credit availability expected to support ongoing recovery

Significant operating leverage potential with c.80% of the land bank expected to be in development by FY22

Ability to leverage integrated platform, strong brand, cost efficient land bank and flexible funding model

1H20 RESULTS | FEBRUARY 2020 | 3

LARGEST 'PURE PLAY' RESIDENTIAL DEVELOPER IN AUSTRALIA

INTEGRATED MODEL WITH PROVEN CAPITAL PARTNERING CAPABILITY

• Property development company established in 1895

• Listed on the ASX in 2004

 Significant and diversified land bank encompassing more than 49,000 lots across 51 projects

 Integrated platform with broad product expertise across land, medium density townhouses and low rise apartments

 Flexible and unique funding model underpinned by proven capital partnering capability with more than 37,000 lots held in capital efficient arrangements

1H20 RESULTS | FEBRUARY 2020 | 4

BROAD CUSTOMER AND PRODUCT REACH

SCALE PIPELINE WITH LOW COST BASE PROVIDING SOLID EMBEDDED MARGINS

Peet manages a broad property portfolio, encompassing 49,000 lots across 51 projects

NO. OF

NT PROJECTS

1

NO. OF

WA PROJECTS

19

NO. OF

QLD PROJECTS

12

VIC		NO. OF	NSW	NO. OF
	PROJECTS	PROJECTS
		10			2
		NO. OF			NO. OF
ACT		PROJECTS	SA		PROJECTS
	2		5

49,058

LOTS

$14.3bn

END VALUE

51

PROJECTS

Diversified land bank

strategically located in growth corridors of major cities in every mainland state and territory of Australia

Range of affordable

product type appealing to all buyer segments with a core focus on

first home buyers

1H20 RESULTS | FEBRUARY 2020 | 5

SIGNIFICANT OPERATING LEVERAGE POTENTIAL

c.80% OF LAND BANK EXPECTED TO BE IN PRODUCTION BY FY22

NO. OF LOT/UNITS

60,000

50,000

40,000

30,000

20,000

10,000

c.65%

Pipeline in production

30,501 lots

Projects: 30

Lots: 30,501

c.80%

Pipeline in	49,058 lots
production
	Projects: 8
39,676 lots	Lots: 9,382
Projects: 13
Lots: 9,175

31 DEC 2019

FY20 - FY22

FY23+

YEAR

1H20 RESULTS | FEBRUARY 2020 | 6

NET ASSET VALUE (NAV)

SIGNIFICANT FUNDS MANAGEMENT PLATFORM VALUE NOT CAPTURED IN NTA

NET ASSET VALUATION - $2.1bn in Assets Under Management

PEET CAPITAL

THIRD PARTY CAPITAL

NTA PER SHARE3: $1.18

NAV

PEET INVENTORIES

$539 million1

26%

of AUM

DEVELOPMENT

• GDV2 of $2.8bn across 11,872 lots
• Held at lower of historical cost and net realisable value
• Generating solid margins

PEET CO-INVESTMENTS

$328 million1

15%

of AUM

JV / FM

CO-INVESTMENTS

• Represents Peet's economic interest in syndicates and JV projects
• Held at lower of historical cost and net realisable value

FUNDS MANAGEMENT AND JV

$1,241 million1

59%

of AUM

FUNDS MANAGEMENT AND JV

• GDV2 of $11.5bn
• • Significant pipeline of 37,186 lots providing long-term earnings visibility
  • Represents more than 75% of land bank
  • Lowly geared portfolio
• Value of 'capital lite' fee streams not captured in NTA
• • High margin profit source across multiple fee streams and projects
  • Scalable platform operating across seven states and territories

NOTES:

1. Based on book value of assets at 31 December 2019
2. Gross Development Value
3. NTA before application of AASB 16 Leases. NTA including AASB 16 Leases is $1.17

1H20 RESULTS | FEBRUARY 2020 | 7

DELIVERING AGAINST OUR STRATEGY

PORTFOLIO WELL POSITIONED FOR POSITIVE MEDIUM TO LONG TERM GROWTH AND VALUE CREATION

STRATEGY

KEY ACHIEVEMENTS (1H20)

INVEST

ENHANCE

EXPAND

MAINTAIN

Invest in high quality land in strategic locations across country

Enhance, plan and create communities and homes targeting the low to middle market segment

Expand product offering and geographic presence to appeal to wider variety of customers

Maintain strong capital management

• Two medium density townhouse sites and one broadacre project secured during 1H20 on attractive terms
• One new project commenced development / sales during 1H20 with a further two commencing in 2H20
• c.65% of landbank under development
• Broadened product offering to Medium Density Townhouses and low rise Apartments
• • Pipeline of approx 1,400 townhouses/low rise apartments
• Flexible funding model: Development, Funds Management, JVs
• Disciplined balance sheet utilisation, gearing of 28% within target range

1H20 RESULTS | FEBRUARY 2020 | 8

RESULTS OVERVIEW

1H20 RESULTS | FEBRUARY 2020 | 9

GROUP 1H20 FINANCIAL RESULTS

RESULT IN LINE WITH EXPECTATIONS GIVEN SIGNIFICANT SECOND HALF SETTLEMENT SKEW

KEY PERFORMANCE STATISTICS	1H20	1H19	VAR (%)
Lot sales1	1,012	964	5%
Lot settlements1	773	1,417	(45%)
Revenue2	$90.5m	$117.1	(23%)
EBITDA3	$12.7m	$36.3m	(65%)
EBITDA3 margin	14%	31%	(17%)
Operating profit after tax4	$5.1m	$23.1m	(78%)
KEY METRICS	1H20	1H19	VAR (%)
EPS (operating)	1.05c	4.74c	(78%)
DPS5	0.5c	2.0c	(75%)
	DEC 19	JUN 19	VAR (%)
Book NTA per share6	1.18	1.20	(2%)

Group sales were up due to improving east coast markets and lower cancellation rates as restrictive lending conditions gradually ease

Reflects the impact of lower sales volumes in FY19 carrying into FY20

1H20 revenue was lower due to settlement volumes and timing of product mix

Group EBITDA3 impacted by lower settlement volumes

Result in line with expectations with a significant weighting to 2H20

NOTES:

1. Includes equivalent lots
2. Includes share of net profit from associates and JVs
3. EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures
4. Operating profit is a non-IFRS measure that is determined to present the ongoing activities of the Group in a way that reflects its operating performance. Operating profit excludes unrealised fair value gains/(losses) arising from the effect of revaluing assets and liabilities and adjustments for realised transactions outside the core ongoing business activities
5. Fully franked
6. NTA before application of AASB 16 Leases. NTA including AASB 16 Leases is $1.17

1H20 RESULTS | FEBRUARY 2020 | 10

GROUP BALANCE SHEET

CONTINUED EXECUTION OF CAPITAL MANAGEMENT STRATEGY

CAPITAL MANAGEMENT METRICS	1H20	FY19
Cash at bank1	$29.2m	$33.6m
Bank debt2	$53.5m	$23.2m
Peet bonds/convertible notes3	$225.0m	$225.0m
Gearing4	28.1%	24.6%
Interest cover ratio5	2.7x	4.0x
Weighted average debt maturity	2.6 years	3.1 years
Debt fixed/hedged	92%	91%
Weighted average cash cost of debt	7.4%	8.0%

NET DEBT6 ($M) AND GEARING4 (%)

28%

25%

23%

19%

247

212

161141

FY17

FY18

FY19

1H20

FLEXIBLE AND DIVERSE

The Group has a flexible and diverse funding profile

Long term debt maturity profile including Corporate Bonds

Notes:

BALANCE SHEET

Balance sheet remains strong:

• Total net debt6 of $247m, including corporate bonds
• Gearing4 of 28.1% - within target range

STRATEGY

Implementing Built Form strategy to improve and diversify portfolio:

• Inventory build up of medium density product

• Inventory capital to be recycled from FY21

1. Includes cash at bank of syndicates consolidated under AASB10
2. Includes bank debt of syndicates consolidated under AASB10
3. Excluding transaction costs
4. (Total interest bearing liabilities (including land vendor liabilities) less cash) / (Total assets less cash, less intangible assets)
5. 12 month rolling EBIT / Total interest cost (including capitalised interest). Excludes syndicates consolidated under AASB10
6. Net of transaction costs

1H20 RESULTS | FEBRUARY 2020 | 11

GROUP CASH FLOW SUMMARY

OPERATING CASH FLOW IMPACTED BY LOWER SETTLEMENT VOLUMES IN 1H20

CASH FLOWS RELATED TO OPERATING ACTIVITIES	1H20	1H19
$M	$M
Receipts from customers	90.8	120.7									Revenue lower due to lower land settlements and development settlement mix
Payments for development and infrastructure	(62.0)	(54.4)									• Includes construction of medium density townhouses and low rise
													apartments totalling $29.5m during 1H20
Payments to suppliers and employees	(27.3)	(40.6)
								• Increased capital to be deployed during FY20 into development and
Borrowing costs	(10.7)	(6.9)											construction of Medium Density products
											• Substantial capital from Medium Density products expected to be recycled as
Distributions and dividends from associates and joint ventures	1.0	5.3
										settlements commence from FY21
Net taxes paid	(5.2)	(9.0)											Distributions from funds and joint ventures impacted by lower settlements
Operating cash flow before acquisitions	(13.4)	15.1
												Secured three new development sites on attractive terms
Payments for land acquisitions - Term payments	-	(10.6)
Payments for land acquisitions - Land & Medium Density Sites	(11.3)	(14.8)
Net operating cash flow	(24.7)	(10.3)

1H20 RESULTS | FEBRUARY 2020 | 12

OPERATING PERFORMANCE

1H20 RESULTS | FEBRUARY 2020 | 13

GROUP OPERATING PERFORMANCE

1H20 SETTLEMENT VOLUMES AND GROUP PROFITABILITY IMPACTED BY LOWER SALES VOLUMES IN FY19

					8%
					18%
28%				11%	EBITDA1,2
EBITDA1,2
COMPOSITION BY	40%		COMPOSITION BY
		GEOGRAPHY (%)
BUSINESS TYPE (%)
		Development	18%				VIC
					QLD
		Funds Management
						WA
		JVs
							NSW/ACT
							SA
32%					45%

• Contribution from eastern states' projects represented 82% of EBITDA1,2
• • Contribution driven by low cost VIC Development projects
  • VIC and QLD to benefit most from an improvement in lending conditions
• Approximately 65% of entire land bank is currently in development
• • c.80% of the land bank expected to be in development by FY22
• FM/JV business provided solid capital-lite earnings base representing c.60% of Group EBITDA1,2
• Continued focus on overhead management and other operational efficiencies
• • Targeting 5% overhead cost reduction in FY20

Notes:	Notes:
1	EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures
2		1	EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures
Pre-overheads	Pre-overheads
		2

1H20 RESULTS | FEBRUARY 2020 | 14

GROUP SALES AND SETTLEMENT ACTIVITY

MARKET IMPROVEMENT DRIVING SALES PERFORMANCE

14%
23%
SALES1	5%
COMPOSITION BY		19%
GEOGRAPHY (LOTS)			SETTLEMENTS1	28%
		VIC
				COMPOSITION BY
		QLD	5%
		WA	GEOGRAPHY (LOTS)
		NSW/ACT	28%
		SA				VIC
							QLD
30%							WA
							NSW/ACT
							SA
				29%				19%

Notes:

Notes: 1 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures 1 Includes equivalent lots

2 Pre-overheads

• Group sales1 for 1H20 of 1,012 lots - up 5%
• • Group sales were up due to improving east coast markets and lower cancellation rates as restrictive lending conditions gradually ease
  • Customers understanding and preparedness of lending requirements
  • Cancellation rates are moderating towards more normalised levels
• Peet expects lending conditions to further improve throughout FY20 due to:
• • Low interest rates
  • Reduction in income tax rates
  • Changes by APRA in relation to loan serviceability thresholds
• Group settlements1 of 773 lots - down 45%
• • Settlements impacted by lower sales volumes in FY19 carrying into 1H20. Full year settlements to be impacted by lower sales activity during FY19
  • Timing of Development product mix

1H20 RESULTS | FEBRUARY 2020 | 15

IMPROVING SALES ACTIVITY UNDERPINNING OUTLOOK

QUARTERLY SALES1 (LOTS)

DECEMBER QUARTER SALES UP 54% ON PRIOR QUARTER

Strong recovery in sales volumes, albeit off a low base

• Notable uptick in December quarter with sales up 54% on prior quarter
• VIC and QLD seeing strongest recovery

459 505

613

382 399

Enquiry levels continue to improve along with conversion rates

283

1Q19

2Q19

3Q19

4Q19

1Q20

2Q20

New projects with expected first settlements in 2H20 and FY21 include

• Palmview and Strathpine in QLD;
• Brabham in WA; and
• Jumping Creek in ACT

Notes:

1. Includes equivalent lots.

FY20 RESULTS | FEBRUARY 2020 | 16

CONTRACTS ON HAND

CONTRACTS ON HAND1 (LOTS)

2,257

1,496

1,257

FY18

FY19

1H20

CONTRACTS ON HAND REFLECT IMPROVING MARKET CONDITIONS

Contracts on hand1 have increased by 19% since 30 June 2019 to 1,496 lots

• Reflects gradually improving market conditions across
	eastern states
•	Restrictive lending conditions easing
•	Improved conversion timeframes

CONTRACTS ON HAND (VALUE)

$616m

$336m

$390m

Contracts value of $390m - up 16% since 30 June 2019

Lower contracts on hand as at 30 June 2019 to impact lot settlements in FY20

• The number of cancellations is moderating and is expected to improve over the balance of FY20 and to normalised levels during FY21

FY18

FY19

1H20

Notes:

1. Includes equivalent lots.

FY20 RESULTS | FEBRUARY 2020 | 17

OUTLOOK

1H20 RESULTS | FEBRUARY 2020 | 18

MARKET VOLUMES AND OUTLOOK

CONDITIONS EXPECTED TO IMPROVE ACROSS MOST MARKETS

PEET SUMMARY

VICTORIA

1H20

• Solid economic growth, with significant Government investment in infrastructure
• Economic outlook and population growth to underpin dwelling demand
• Sales volumes improving as restrictive lending conditions ease

QUEENSLAND

1H20

• Strengthening population growth via interstate migration
• Affordability advantage over Sydney and Melbourne
• Enquiry and sales have marginally improved during 1H20

WESTERN AUSTRALIA

1H20

• Despite ongoing challenges in WA, market conditions have stabilised
• Sales volumes and prices generally stable during 1H20
• Rental vacancy and rents improving

AUSTRALIAN CAPITAL

TERRITORY

1H20

• Continued growth in employment and wages supporting a steady market
• Volumes down in 1H20 primarily due to restrictive lending conditions

SOUTH AUSTRALIA

1H20

• Sales volumes and prices steady
• Continued Government investment in defence / shipbuilding will support an increase in population
• Rental vacancy and rents improving

MARKET OUTLOOK
VICTORIA	QUEENSLAND	WESTERN AUSTRALIA	ACT	SOUTH AUSTRALIA

• Volumes expected to improve through the course of FY20 and into FY21 off low base
• Prices showing early signs of increases

• Balanced market conditions expected to continue in FY20
• SEQ to benefit most from an improvement in lending conditions due to affordability

• Volumes expected to show modest growth in 2H20 from a low base
• Current price stability expected to continue

• Tight supply to underpin demand in the short to medium term
• Modest price growth forecast for FY21

• Outlook for SA economy is continued steady growth
• Volumes and price growth expected to be steady in FY20 but improve into FY21

Decelerating Maintained

Modest growth

Strong growth

FY20 RESULTS | FEBRUARY 2020 | 19

NEW PROJECTS PROVIDE MEDIUM TERM EARNINGS VISIBILITY

PIPELINE OF APPROXIMATELY
49,000 LOTS PROVIDING
VISIBILITY OF FUTURE	FY20 - FY22 NEW PROJECT RELEASE SCHEDULE
EARNINGS

Up to seven new land projects and six medium density townhouse sites to commence development within the next two years

• Approximately 86% of the lots in these projects sit within the FM/JV business
• Average project duration of c.seven years providing visibility of future earnings and cash flows

New projects will be fully funded from internally generated cash flows, existing debt facilities and third party capital

Project	State	Segment	Commencement of	Lots1/Units	Project Life
			Sales/Development		(Years)
Palmview	QLD	Owned	FY20	441	4
University of Canberra	ACT	JV	FY21	3,300	18
Brabham	WA	JV	FY21	3,333	14
Medium Density - Townhouses	VIC/QLD	Owned	FY20 - FY22	473	3
Pier Street Apartments	WA	JV	FY21	186	3
Strathpine	QLD	Owned	FY20	182	4
Eglinton	WA	Funds	FY21	1,041	8
Jumping Creek	NSW	Owned	FY21	219	3
Total				9,175	Av 7

Notes:

1 Refers to lots and/or dwellings

1H20 RESULTS | FEBRUARY 2020 | 20

STRONG PLATFORM FOR SUSTAINABLE GROWTH, THROUGH CYCLES

TRACK RECORD OF GROWING SHAREHOLDER VALUE OVER THE LONG-TERM

SCALE

LAND BANK

SOLID EMBEDDED

MARGINS

INTEGRATED PLATFORM

PROVEN TRACK

RECORD

• Strategic land bank provides long term earnings visibility
• Counter-cyclicalacquisition strategy has allowed the Group to capitalise on value accretive opportunities
• Expect c.80% of land bank to be in production by FY22 from 65% currently
• Solid embedded margins given pipeline age, location and acquisition terms achieved
• Average age of land bank is 9 years
• More than 90% of lot acquisitions since FY12 have been secured on capital-efficient terms
• Leading national operating platform across development, marketing, acquisitions and sales
• Broad product expertise across land, medium density townhouses and low rise apartments
• Funds Management platform provides highly attractive capital-lite earnings representing 60% of Group EBITDA
• Proven capital partnering capability provides significant scale benefits and access to external capital
• High quality management team, with significant residential and commercial property market experience
• The Group has delivered an average annual earnings growth of 6% p.a in the last 4 years ending 30 June 2019

1H20 RESULTS | FEBRUARY 2020 | 21

STRATEGIC OUTLOOK

PORTFOLIO WELL POSITIONED FOR POSITIVE MEDIUM TO LONG TERM GROWTH AND VALUE CREATION

STRATEGY

OUTLOOK

INVEST

ENHANCE

EXPAND

Invest in high quality land in strategic locations across country

Enhance, plan, and create communities and homes targeting the low to middle market segment

Expand product offering and geographic presence to appeal to wider variety of customers

• Selective acquisition of projects as cycles, markets and opportunities allow to restock pipeline
• Focus on securing low cost projects, predominantly through funds platform
• Delivery of affordable product targeted at the low and middle market segments
• Accelerating production where possible and appropriate, and active management of product mix
• Up to 7 new land projects and 6 Medium Density Townhouse sites to commence development within the next two years
• Well-placedto deliver supply to the market as demand improves

• Continue to strengthen balance sheet through

MAINTAIN

Maintain strong capital management

- Recycling of capital from medium density pipeline

- Selective deployment of development capital to reflect market conditions and outlook

1H20 RESULTS | FEBRUARY 2020 | 22

MARKET OUTLOOK

FOCUSED ON POSITIONING FOR AN IMPROVING MARKET THROUGH A CONSERVATIVE APPROACH TO PROJECT DELIVERY AND IDENTIFYING GROWTH OPPORTUNITIES

• Steady employment growth, continued low interest rates, income tax cuts and significant Government infrastructure investment are supporting underlying demand
• Market conditions continue to recover notwithstanding subdued consumer confidence
• Cancellation rates are returning to more normalised levels, as restrictive lending conditions ease
• The Group continues to have a strong focus on capital management
• • Selective deployment of development capital to reflect market conditions and outlook
  • Continued focus on overhead management and other operational efficiencies
• As previously indicated, the Group's lower contracts on hand going into FY20 will result in earnings being significantly weighted towards the second half of FY20
• Notwithstanding the early indications of a market recovery, we continue to expect FY20 earnings to be down on FY19. However, our pipeline of projects and the underlying fundamentals of the residential property sector means that Peet is well positioned to respond to increasing demand as market conditions improve and lending conditions continue to normalise

1H20 RESULTS | FEBRUARY 2020 | 23

APPENDICES

1H20 RESULTS | FEBRUARY 2020 | 24

FM OPERATING PERFORMANCE

KEY PERFORMANCE STATISTICS	1H20	1H19 VAR (%)	FM sales were up due to improving east coast markets and
Lot sales1	566	474	19%
lower cancellation rates as restrictive lending conditions ease
Lot settlements1	408	938	(56%)
Reflects the impact of lower sales volumes in FY19 carrying into
Revenue	$10.5m	$14.8m	(29%)
Share of net profit of equity accounted investments	$1.1m	$6.1m	(82%)	FY20
EBITDA2	$5.8m	$14.4m	(60%)	1H20 revenue lower due to settlement volumes impacting
EBITDA2 margin	50%	69%	(19%)	performance fees
	DEC 19	JUN 19 VAR (%)	Equity accounted profit impacted by lower settlement volumes
Contracts on hand1	843	685	23%

10%1%

30%	FM SALES	1	FM EBITDA2	27%
	COMPOSITION BY	COMPOSITION BY
	GEOGRAPHY (LOTS)	GEOGRAPHY (%)

30%

		VIC			VIC
		QLD
				QLD
		WA
				SA
		SA	72%
30%

Notes:

1. Includes equivalent lots
2. Includes effects of non-cash movements in investments in associates

1H20 RESULTS | FEBRUARY 2020 | 25

JV OPERATING PERFORMANCE

KEY PERFORMANCE STATISTICS	1H20	1H19 VAR (%)
Lot sales1	194	205	(5%)
Lot settlements1	197	262	(25%)
Revenue	$19.5m	$18.8m	4%
Share of net profit of equity accounted investments	$1.3m	$2.4m	(46%)
EBITDA2	$5.0m	$5.9m	(15%)
EBITDA2 margin	24%	28%	(4%)

	DEC 19	JUNE 19 VAR (%)
Contracts on hand1	358	361	(1%)

Reflects the impact of lower sales volumes in FY19 carrying into FY20

Equity accounted profit impacted by lower settlement volumes

		2%			3%
26%			27%	18%
JV SALES1		JV EBITDA2
		30%
	GEOGRAPHY (LOTS)		COMPOSITION BY
					GEOGRAPHY (%)
		QLD			QLD
		WA			WA
14%		NSW/ACT			NSW/ACT
	SA		16%	SA
		NT		NT
		28%			36%

Notes:

1. Includes equivalent lots
2. Includes effects of non-cash movements in investments in JVs

1H20 RESULTS | FEBRUARY 2020 | 26

DEVELOPMENT OPERATING PERFORMANCE

KEY PERFORMANCE STATISTICS	1H20	1H19	VAR (%)
Lot sales1	252	285	(12%)
Lot settlements1	168	217	(23%)
Land only	131	193	(32%)
Medium Density product	37	24	54%
Revenue	$56.1m	$73.3m	(23%)
EBITDA	$7.2m	$21.6m	(67%)
EBITDA margin	13%	29%	(16%)
Contracts on hand1	DEC 19	JUN 19	VAR (%)
295	211	40%

Lower sales reflect first phase of Aston (VIC) project developing out

Reflects the impact of lower sales volumes in FY19 carrying into FY20

1H20 revenue lower due to settlement volumes and timing of product mix from Aston (VIC)

Impacted by lower settlement volumes and product mix from Aston (VIC). Next stage of Aston expected to improve 2H20 EBITDA.

	8%		7%	2%
			23%
				12%
	DEVELOPMENT		DEVELOPMENT
	SETTLEMENTS1	36%	EBITDA COMPOSITION
	COMPOSITION BY		BY GEOGRAPHY (%)
31%	GEOGRAPHY (LOTS)		VIC
VIC
		QLD
	QLD
		WA
	WA
		NSW/ACT
	SA
		SA
	25%		56%

Notes:

1 Includes equivalent lots

1H20 RESULTS | FEBRUARY 2020 | 27

SUMMARY INCOME STATEMENT

	1H20	1H19	Var
		$M	$M	(%)
Funds Management	10.5	14.8	(29%)
Development	56.1	73.3	(23%)
Joint Venture	19.5	18.8	4%
Share of net profit of equity accounted investments	2.4	8.6	(72%)
Other1	2.0	1.6	25%
Revenue	90.5	117.1	(23%)
EBITDA	12.7	36.3	(65%)
Finance costs2	(4.4)	(7.0)	37%
Depreciation and amortisation	(1.7)	(1.2)	(42%)
NPBT	6.6	28.1	(77%)
Income tax expense	(1.7)	(5.1)	67%
Non-controlling interest	0.2	0.1	100%
NPAT3	5.1	23.1	(78%)

Notes:

1. Includes AASB10 Syndicates, unallocated and elimination entries
2. Finance costs includes interest and finance costs expensed through cost of sales
3. Attributable to the owners of Peet Limited

1H20 RESULTS | FEBRUARY 2020 | 28

SUMMARY BALANCE SHEET

	1H20	FY19
	$M	$M
Assets
Cash and cash equivalents	29.2	33.6
Receivables	120.7	125.2
Inventories	533.6	518.7
Investments accounted for using the equity method	234.7	233.7
Other	16.2	10.9
Total assets	934.4	922.1
Liabilities
Payables	53.8	65.7
Land vendor liabilities	6.4	6.4
Borrowings	275.8	245.2
Other	47.8	44.9
Total liabilities	383.8	362.2
Net assets	550.6	559.9
Book NTA per share1	$1.18	$1.20

NOTES:

1. NTA before application of AASB 16 Leases. NTA including AASB 16 Leases is $1.17

1H20 RESULTS | FEBRUARY 2020 | 29

LAND BANK FUNDS MANAGEMENT KEY PROJECTS

					PROJECT LIFECYCLE
PROJECT NAME	STATE	GDV1 LOTS REMAINING2	2020	2021	2022	2023	2024

Alkimos	WA	$1,144m	2,341
Burns Beach	WA	$205m	347
Eglinton	WA	$252m	1,041
Golden Bay	WA	$144m	718
Lakelands	WA	$176m	1,008
Yanchep Golf Estate	WA	$398m	1,544
Oakford	WA	$153m	980
Forrestdale	WA	$206m	971
Movida	WA	$172m	770
Mundijong	WA	$256m	933
Yanchep (Wholesale)	WA	$172m	889
Spring Mountain	QLD	$72m	226
Caboolture	QLD	$135m	608
Palmview DMA	QLD	$120m	561
Flagstone City	QLD	$3,473m	11,236
Cornerstone	VIC	$151m	549
Newhaven	VIC	$343m	1,139
Botanic Village	VIC	$18m	53
Cranbourne	VIC	$7m	79
Mt Barker	SA	$95m	500
Total Funds Management		$7,692m	26,493

				Selling
Planning				Selling
	Start up			Selling
		Selling	Selling	Completion
				Selling
				Selling
				Selling
		Planning	Selling
		Planning	Start up	Selling
				Selling
		Planning	Selling
		Selling	Start up	Selling
		Selling		Completion
		Selling
	Selling
			Completion
				Planning
				Selling

Notes:

1. Gross Development Value
2. Equivalent lots as at 31 December 2019

1H20 RESULTS | FEBRUARY 2020 | 30

LAND BANK DEVELOPMENT KEY PROJECTS

PROJECT LIFECYCLE

PROJECT NAME

STATE

GDV1

LOTS REMAINING2

2020

2021

2022

2023

2024

Brigadoon

WA

$38m

91

Selling

Greenlea

WA

$54m

273

Selling

Completion

Mundijong

WA

$187m

781

Planning

Start up

Selling

Other

WA

$656m

4,041

Planning

Gladstone

QLD

$86m

333

Selling

Flagstone North

QLD

$411m

1,660

Planning

Start up

Selling

Palmview

QLD

$121m

441

Selling

Strathpine

QLD

$61m

182

Start up

Selling

Nudgee

QLD

$41m

84

Start up

Selling

Completion

Rochedale

QLD

$23m

36

Start up

Selling

Completion

Other

QLD

$102m

1,019

Planning

Aston, Craigieburn

VIC

$401m

1,248

Selling

Planning

Selling

Summerhill

VIC

$24m

56

Selling

Completion

Lightwood

VIC

$34m

81

Start up

Selling

Completion

Lumeah

VIC

$33m

71

Start up

Selling

Completion

South Morang

VIC

$37m

71

Start up

Selling

Keysborough

VIC

$100m

130

Planning

Start up

Selling

Lightsview Apartments

SA

$59m

170

Selling

Tonsley

SA

$183m

769

Selling

Other

SA

$35m

116

Planning

Jumping Creek

NSW

$90m

219

Planning

Start up

Selling

Total Company-Owned

$2,776m

11,872

Notes:

1. Gross Development Value
2. Equivalent lots as at 31 December 2019

1H20 RESULTS | FEBRUARY 2020 | 31

LAND BANK JOINT VENTURE KEY PROJECTS
								PROJECT LIFECYCLE
			GDV1	LOTS REMAINING2
	PROJECT NAME	STATE	2020	2021	2022	2023	2024
	Wellard	WA	$105m	512					Selling
	Brabham	WA	$728m	3,333	Start up					Selling
	Pier Street	WA	$98m	186	Planning		Start up			Selling	Completion
	Redbank Plains	QLD	$194m	835					Selling
	Googong3	NSW	$732m	1,712					Selling
	Atria Apartments	ACT	$34m	67		Selling			Completion
	University of Canberra4	ACT	$1,756m	3,300	Planning		Start up			Selling
	The Heights	NT	$123m	521					Selling
	Lightsview	SA	$39m	227				Selling		Completion
	Total Joint Venture		$3,809m	10,693
	TOTAL PIPELINE		$14,277m	49,058

Notes:

1. Gross Development Value
2. Equivalent lots as at 31 December 2019
3. Googong represents 50% share of project
4. Conditional agreement

1H20 RESULTS | FEBRUARY 2020 | 32

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 statements regarding future earnings and distributions that are based on information and assumptions available to Peet as at the date of this presentation. Actual results performance or achievements could be significantly different from those expressed in, or implied by these forward-looking statements. These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond Peet's control, and which may cause actual results to differ materially from those expressed in the statements contained in the release.

The information provided in this presentation may not be suitable for your specific needs and should not be relied upon by you in substitution of you obtaining independent advice. Subject to any terms implied by law and which cannot be excluded, Peet accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in this presentation. All information in this presentation is subject to change without notice.

This presentation is not an offer or an invitation to acquire Peet securities or any other financial products in any jurisdictions, and is not a prospectus, product disclosure statement or other offering document under Australian law or any other law. It is for information purposes only.

1H20 RESULTS | FEBRUARY 2020 | 33