PEET LIMITED — AGM Information 2012

Nov 27, 2012

Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 www.peet.com.au Email perth@peet.com.au

28 November 2012

Chairman's address to 2012 Peet Limited Annual General Meeting

Introduction

Ladies and gentlemen, the 2012 financial year delivered a complex and challenging operating environment, but the Company has responded well and continues to focus on strengthening and growing the business.

At last year's AGM, we advised that Peet was dealing with the poor levels of consumer confidence and managing risk by deferring capital expenditure on some of our major projects until conditions normalised - and that would have an impact on Peet's profit in the 2012 financial year.

The Group recorded a net operating profit after tax of $20.3 million (pre write-downs) for the year and its statutory net profit for the full year was $5.4 million. The statutory net profit number includes write downs of $12.3 million on non-core assets sold, or identified for sale, and another $2.6 million relating to a small developing asset in Queensland.

This result was just over the guidance range provided for net operating profit after tax of between $15 and $20 million.

As we move towards the end of the first half of the 2013 financial year, it is encouraging to note that there are more positive signs emerging in some market sectors, most notably here in Western Australia where first home buyers in particular - a core market for Peet - have been more active in recent months.

Nonetheless, the national property market continues to be impacted by poor consumer confidence. As we reported in August, the management of capital to protect and position our balance sheet in the best long-term interests of the Company, shareholders and development partners continues to be a high priority as we move through the 2013 financial year.

That includes continuing to be very careful about the allocation of capital into projects until there is greater certainty around sales and settlements for any new releases.

It is anticipated that this prudent management of capital in the current environment will impact earnings for the 2013 financial year, but it's the right and responsible approach for Peet, our shareholders and partners.

Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 www.peet.com.au Email perth@peet.com.au

However, be assured that growth and restoring good returns to our shareholders remain our focus. Over the next three years, as many as 15 projects are scheduled to come into production, including Flagstone City in South East Queensland - the major project in which we are partnering with MTAA Super – and these projects are in locations where we anticipate favourable timing will meet good demand.

I'm also pleased to add that more than half those new projects will be from our Funds Management business - a positive indicator of how we are delivering on our strategic objectives to continue to expand that aspect of our business as a platform for future growth. It is a highly efficient application of our capital delivering high margins.

2012 Performance

Our Managing Director and Chief Executive Officer, Brendan Gore, will follow my address with a summary of our performance for FY12 and a business outlook.

As I have mentioned, Peet recorded a decrease in net operating profit after tax to $20.3 million - as we flagged at this time last year. A result that was achieved in a difficult market with a clear focus on our capital management strategy, which continues into the current financial year.

At 30 June 2012, gearing stood at 39.7% though we are targeting gearing of less than 35% by the end of this financial year and less than 30% by the end of FY14. As has been reported, Peet is continuing its non-core asset divestment program to reduce debt and position the Group for future growth.

Net Tangible Assets per share as at 30 June 2012 was $1.24, based on independent bank mortgage valuations. The decrease on the previous year reflects the lower valuations of our assets across Victoria and Queensland in particular. However, please note that the figure of $1.24 does not account for the value attributable to our Funds Management business, which is a valuable contributor to our earnings.

Ladies and gentlemen, my fellow Directors, our management, our staff and I share a passion for the prospects ahead for Peet and a firm belief that our Company is on track for growth and has the team in place to deliver it.

May I point you to the core of our business, our quality land bank in good locations, which, at the end of the 2012 financial year stood at approximately 48,600 lots with an oncompletion value in today's dollars of $8.8 billion.

Very deliberately and strategically, around 80% of that land is now split almost evenly between Western Australia and Queensland. I would also emphasise that around 70% of the total land bank forms our managed pipeline from our retail and wholesale syndicates and joint ventures, which are in our Funds Management business.

We quite demonstrably have a sound platform for sustainable and profitable growth over the medium to long-term.

Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 www.peet.com.au Email perth@peet.com.au

The Australian property market

The Australian property market continues to be impacted by uncertain global economic conditions, the slowing of the Chinese economy and downturns in commodity prices. Just recently we have seen some high-profile announcements about the deferral or contraction of major resources and infrastructure projects and resultant job losses.

Uncertainty around job security is currently a significant factor in consumer confidence, which remains fragile despite the relative strength of the Australian economy.

What has been very positive for homebuyers is the reduction in the effective average standard variable mortgage rate of nearly one per cent over the past year. This has been a major contributor to an increase in activity in the first homebuyer market, particularly here in Western Australia.

We remain confident in the positive outlook for the Australian property market – underpinned by continued population growth; still high levels of employment; and a tight rental market.

Affordability remains a key challenge, but there are signs of improvement. Peet has responded with innovation in product development and diversity of offerings to appeal to our prospective buyers and fit their budgets.

The Board

Ladies and gentlemen, at the heart of Peet's success over some 117 years now has been its willingness to evolve and develop - adapting to meet the needs of new generations and building its breadth of experience and expertise.

In 2012, and now coming into 2013, we continue on that path.

I am pleased to advise that we have this year appointed Mr Trevor Allen as an Independent Nonexecutive Director, who now chairs the Remuneration Committee.

Mr Allen has been with us since April 2012 and brings extensive experience in business, corporate finance and capital markets to the role, including 30 years in the corporate advisory sector. He is up for election by shareholders today.

Mr Anthony Lennon continues on the Board now as a Non-executive Director since August 2012. Anthony has committed 21 years to the business in various operational, marketing and business development roles. He has served 16 years on the Board and serves on a number of Peet syndicate Boards.

On your behalf, I wish to note and recognise Anthony's significant past service and ongoing contribution to Peet.

I thank all my fellow Board members for their diligence throughout the year – Managing Director and CEO, Brendan Gore, and Non-executive Directors, Stephen Higgs, Graeme Sinclair and, as of April, Trevor Allen.

Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 www.peet.com.au Email perth@peet.com.au

I also wish to take this occasion to thank Steve Higgs for chairing the Remuneration Committee since 2004 until passing the baton this year. Also to thank Graeme Sinclair for leading our Audit & Risk Management Committee as Chairman. Graeme handles the duties with great care and attention to the ever more complex issues involved.

Again, I recognise and thank the ongoing commitment of our key Board officer, Group Company Secretary Dom Scafetta, from whom we gain high-quality advice, diligence and support at all times.

The Peet team

I also want to commend to you the entire team at Peet under the leadership of Brendan Gore and his Executive Team.

The team is a very talented and dedicated group with an appropriate mix of experience and skills and I assure you they work extremely hard to deliver the very best results possible every day, in line with our core values which underpin all our work in Peet.

The quality of their work is regularly benchmarked and tested through industry awards and accreditations where we continue to enjoy good success particularly in relation to sustainability through the Urban Development Institute's EnviroDevelopment accreditation program. In the 2012 financial year, three Victorian projects were awarded accreditation as was Riverbank Estate in Queensland.

You don't achieve high standards without providing the key factors which attract and retain the very best people - the working environment, opportunities for development and advancement, the nature and quality of the projects under development and financial reward and recognition.

Fair and competitive remuneration packages are an essential factor and I turn now to that area, in so far as it pertains to some of our most senior and experienced people at Peet.

Remuneration

Peet pays particular attention to providing an appropriate and competitive remuneration framework for our people, including our executives, staff and Board members - so that we attract and retain the best and brightest. May I repeat the word "retain" as the importance of retention of high performing key management and their knowledge and understanding of our assets and our business is a significant objective of your Board in taking independent advice and setting remuneration policies.

By doing so, we believe we achieve mutual benefit to the Company (and therefore shareholders) and to our employees. However, I can assure shareholders that we set challenging hurdles for our Executives to earn performance benefits.

The Corporations Act requires a resolution to be put to the Meeting adopting the Remuneration Report, appearing in the Annual Report.

We have a good team at Peet and I again assure the Meeting that our remuneration packages are appropriate and supported by qualitative and quantitative performance data and independent advice.

Asset Manager Level 7, 200 St Georges Terrace, Perth WA 6000 Land Syndicator PO Box 7224 Cloisters Square WA 6850 Fund Manager Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 www.peet.com.au Email perth@peet.com.au

This year we focused on the fees for Non-executive directors. The current base remuneration was last set with effect from 1 July 2006.

Peet Limited Non-executive directors' fees, including the Chairman's, are determined within an aggregate directors' fee pool limit which is periodically recommended for approval by shareholders.

In 2012, we are proposing to increase that fees pool for the first time in many years since we are close to the present limit and will otherwise be hampered in making even one more appointment to the Board. We do not intend to increase the base fees of the present Directors this financial year.

I also note that, despite being contractually entitled to an increase in his fixed remuneration of at least the rate of CPI, Mr Brendan Gore, Managing Director and Chief Executive Officer, has agreed to maintain his base pay and superannuation for the year ending 30 June 2013 at the same level as the past year. The 2013 fixed remuneration of Brendan's direct reports – the Executive Team – has also been maintained at 2012 levels.

Additionally, while entitled to a portion of their short-term cash bonuses for FY12 based on meeting non-financial key performance indicators, Brendan and his Executive Team have forgone the receipt of their bonuses for FY12.

Our current remuneration structures are designed in the context of the most challenging financial and property markets seen in decades. In such challenging markets achieving budget and meeting bankers' and other stakeholders' immediate needs is difficult. Yet the challenge in competing with other businesses for the best managers has never been greater. Peet believes it has some of the most talented executives whose commitment and flexibility will enable Peet to emerge from the current market stronger.

Shareholders

I have saved my final thanks and recognition for our shareholders and noteholders in Peet Limited and investors in our syndicates. Peet is fortunate to enjoy the support of many long-term supporters and many new investors and partners, including some of Australia's best regarded institutions.

I thank you all for your loyalty and support during another challenging year in the Australian property market and I look forward to your continued confidence in the fundamental strength of Peet Limited and our ability to manage through the cylces of this exciting industry.

Dividends

A key objective for the Board is to recommence dividends to our shareholders as soon as prudently possible given market conditions and capital requirements.

I wish you and your families a very safe and happy festive season and look forward to joining you here again next year.

I now pass you onto our Managing Director and Chief Executive Officer, Mr Brendan Gore.

Annual General Meeting November 2012

Bringing Land to Life

Key messages

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Notes:

1Pre write‐downs

2 Net assetsadjusted for market value of inventory. Does not include the value attributed to our FM business.

3 (Total interest bearing liabilities (including deferred payment obligations) less cash) / (Total assets adjusted for market value of inventory less cash, less intangible assets)

Group Business model

1 Balance sheet assets at cost as at 30June 2012

2 Includesjoint ventures

Update since FY12 results

MARKETCONDITIONS	keddhallehrhdMiioininFY12inininFY13ivetttttotarconnsremaecnggouganareconggncurren»ubuiotyercaunleslllowdhabelowdedhaldllySaicaiiiottotettt wareaacycanveensrecoverspconnsounorma»lalowloyloylowlowl vdimiviinttettytt,tettetetatesuacununememppmmenenresrarass,renacancyrasan–fdelyhoinunrsuppousghadffodablhohahadldlesInimiiimiimivitettetstytetttyresracuveprovearweverveapaconsaac»datotefheholalydlyldhhSoigimininicuWAQictttotttmesnsoprovemenusgsecr,parranmosrecenw»habebolsdbyhoioimlutetrttsenrenewmeconsucnsuslhohlesluhabld,beAiiseicininiivettattottugsavomesvesprgconuescompe»
DEBTRESTRUCTURING	'sbiadlolyligihhedheiDeGrttettetotttatetratetotretts»rmsrenegomorecseanwoupssgysngnbalaheddudebttnceseanreceinf%dbelow%byTa3530Ju20133030Ju2014tt»rgegeargoasaneanne
NONCORE‐ASSETSALEPROGRAM	$ledhllldddeNoisini46.4iiotttratn‐coreassesaprogramproceegwmnsoanunrconc»$lllesdsdda17.4iioivetote»mnsaproceerece$fuheilliolininbedA29De2012Ja2013ttt»rrmnsegcemrannuary$fuhelldA54iiottaterrmnrge»

Peet's landbank is weighted to the right States showing positive trends.

WA Market has entered up‐trend » Residential market improving – increase in land sales and dwelling starts » Rental rates increasing and rental vacancies at 6‐year low, "rent v. buy" equation now in favour of ownership in many areas » Established house listings back below long‐term average Weighting 41%» Positive economic fundamentals including population growth, with mining and engineering sectors boosting the labour market and income growth QLD SEQ New home market starting to recover » Poor performing market in FY12 – suffering the impacts of weak consumer confidence » Active resource sector with good longer‐term fundamentals » Enquiry levels improving since July 2012 » New $15,000 First Home Owners Construction Grant is generating enquiry Weighting 40%» Residential market activity remains at historical lows » Affordability has improved relative to other major cities VIC Soft market conditions to extend in FY13 » Market has softened significantly and in mild oversupply but is not uniformly spread » Supply side responding – builders and investor activity subdued, retail buyers re‐emerging » Consumer sentiment remains fragile with weaker employment outlook » Signs of stabilisation emerging Weighting **19%**Notes:

Stateweighted by land bank by lots

Businessupdate

• » Significant c.80% FY13 YTD versus previous corresponding period
• » Driven by strengthening WA market and stabilising marketin
• » 971 contracts on hand at November 2012, up 23%since June 2012
• » Earnings significantly weighted to 2H13 due to a large number of 1H13 sales settling in 2H13

Extensiveexperience in land development

Peet owned projects Syndicated / managed projects Jointventures

Peet isdeveloping some of the most significant masterplanned communities across Australia

Landbank – key projects

	Prjt noecame	GDV	1 rLoiningtsema()30Ju12tane	felePrjLitoeccyc
dsFun	Mtanagemen			2012	2013	2014	2015	2016	2017
	lkimAos	$752m	2,803	Selling
	hBuBernsac	$346m	737	S lSelliling
	ldeGoBany	$296m	1,682	Selling
	kelandsLa	$261m	1,814	Selling
	llard()WeJV	$335m	1,962	Selling
WA	helfYaGoEstatencp	$334m	1,471	Selling
	kfordOa	$179m	1,001	Planning	SellingStart Up
	daleFostrre	$139m	719	Pla	nniSellingStart Ungp
	dijMunong	$163m	744	Pla	nniStart Ungp			Selling
	fordBy	$49m	280		PlanniStart Ung			Selling
	he(holesle)YaWncpa	$124m	655		Planning
	heOtr	$184m	1,100
	kesWaLarner	$83m	380	SellingletiCompon
	lagFEasstotne	$49m	256	Start Up	Selling
	boltuCaore	$188m	1,321	Start Up	Selling
QLD	WaSpinrnerg rs	$100m	467	Planning	SellingStart Up
	lagFCitstoney	$1,873m	12997,	PlaSellingnniStart Ungp
	heOtr	$97m	623
	forKindgs	$70m	264		SellingletiCompon
	CraboCelntrnurnea	$2m15	805	Selling
	CraboWestnurne	$131m	692	Selling
VIC	BoicVillagtane	$129m	1,006	PlaSellingnniStart Ungp
	ltoMen	$90m	500	Planning	SellingStart Up
	Other	$68m	333
ldsjToFuMtat ptsnanagemenroec		$6,192m	34,612

Notes:

1 Lotsequivalent

Landbank – key projects (cont.)

1 rLoiningtsemaPrjGDVt noecame()30Ju12tane				Status	felePrjLitoeccyc
djCotsmpany‐owneproec				2012	2013	2014	2015	2016	2017
WA	Bridogaon	$118m	210	heduleOnsc	Selling
	haldivCBaisse,	$87m	506	heduleOnsc	PlanniStart USellingngp
	dijMunong	$96m	627	heduleOnsc	PlanniStart Ungp			Selling
	Other	$597m	3,625
QLD	ladstGone	$99m	404	lerdAcatece	Selling			Comletedp
	dKeRorrya	$76m	390	heduleOnsc		Planning			Start Up	Selling
	lagh/hFNoNeBeitstortnew	$255m	1,500	heduleOnsc		Planning				Start Up
	heOtr	$159m	880
	buAsCraigietonrn,	$293m	1 544 ,	lowddoSewn	Selling
	daleArGrn,eenva	$131m	588	ferdDere	Selling
	MiklehaGrlecm,eenva	$108m	549	Onhedulesc	Planning	Start Up	Selling
	rribeWee	$104m	610	heduleOnsc	Planning	Start Up	Selling
VIC	(kesd)TaitLeaRornea	$97m	569	heduleOnsc	Pla	nning	Start Up		Selling
	lekesGrLaeenva	$82m	465	heduleOnsc	PlanniStang			rt Up	Selling
	heCreTst	$44m	274	Onhedulesc	Planning			Start Up	Selling
	keleMtAitGrn,eenva	$53m	234	heduleOnsc	Planning				Start Up	Selling
	kbakRocn	$71m	420	heduleOnsc	Planning				Start Up	Selling
	Other	$144m	857
$ld pjTo2,61tatscompany‐owneroec		4m	13,973
TOTALPIPELINE		$8,806m	48,585

Notes:

1 Lotsequivalent

Key projects ‐ Greenvale/Craigieburn (Victoria)

• » Located in the Hume growth corridor –
• » Historical acquisitions low underlying cost base
• » Some portions have views across Greenvale Reservoir tothecity skyline
• » Range of product types and price points having broad market appeal
• » Further development of Greenvale deferreduntil marketconditionsimprove
• » Greenvale (Mickleham Road) retail syndicate offering now open

Key projects ‐ Shorehaven at Alkimos (Western Australia)

• » Located in the City of Wanneroo, in the north western coastal growth corridor of P ther – 2 803 , l t o s
• » Strong project commencement andcompelling overall project vision
• » 421 lots sold &settled to date with a further 142 contracts onhand
• » Coastal stage works well advanced against solid home builder pre‐commitments
• » Detailed design on village centre well ad anced advanced, negotiations with major retail tenants being progressed

Key projects ‐ Shorehaven at Alkimos (Western Australia) – cont.

Key projects ‐ Flagstone City (Queensland)

• » Existing Flagstone Rise community already well‐established established, providing key market insights: 1 200 , dwellings / 3 500 , residents residents, twoschools and local retail
• » Flagstone City will become home to 30,000 people, with retail, commercial, education, recreation, health & other community infrastructure
• » Fast‐trackedplanning under ULDA – broad‐scale Development Approval received in October 2012
• » Governmentcatalyst funding to assist with start‐up infrastructure funding
• » Detailed DA nowlodged for first 2,500 dwellings and Stage 1 of town centre
• » Lowcost base ‐ opportunity to drive long‐term value from a large, integrated master‐planned community
• » Ownedin 50/50 JV with MTAA Super
• D l i 2013 / 2014 »Development to commence in

Key projects ‐ Yanchep Golf Estate

• » Attractive location in the north western coastal growth corridor of Perth

• » Bordering the Yanchep Country Club – pleasant green outlook, with no management or maintenance costs tothe syndicate

• » 1 471 lots significant long term project 1,471 ‐

• » Over 50 builder & retail sales to date, first settlements achieved, sales rate accelerating

• » Closeproximity to beach and future new Yanchep town centre

• » Future rail line extension expected to boost sales rates and prices

Capital strategy

• » Peet is continuing to prioritise its capital position
  • » Careful allocaƟonof capital into projects ̶in parƟcular Victoria
  • »This strategy will remain in place until there is greater certainty around market depth and confidence
  • »Target gearing of 35% as at 30 June 2013 and below 30% by 30 June 2014
  • »Negative impact on earnings, however deemed prudent in current environment
• » Non‐core asset sale program targeting $100 million
  • » $46.4 million under unconditional contract with $17.4 million settled and the remainder to settle in December 2012 andJanuary 2013
• » Debt termsrenegotiated to allow Peet to strengthen its balance sheet and reduce debt

Outlook

• » Structurally, the underlying foundations of the residential sector remain sound
  • » Most markets are inundersupply
  • »Strong population growth
  • »Employment has remained robust
• » However, consistent with FY12, market conditions in FY13 remain challenging
  • » Li it dLimitedi t mpac from it t n erestrate cuts made to d t a e
  • » Issuelargely remains poor consumer sentiment
• » Due to the combination of these factors Peet has maintained the position of being selective with its capital investment
• » Focus remains on strengthening the capital position of the business and improving returns
  • »Progressing balance of targeted non‐core asset sales
  • »Improving operating cash flows
  • » Activemanagement of balance sheet to improve returns as conditions normalise
  • » Continuedgrowth of FM business

"Peet iswell positioned to capitalise on market normalisation and recovery"

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. 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 information in this presentation. All information in this presentation is subject to change without notice.

T y hankou