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 [email protected]

26 November 2013

Chairman's address to 2013 Peet Limited Annual General Meeting

Introduction

Ladies and gentlemen. The 2013 financial year again delivered a challenging operating environment, but it also presented significant opportunities for the Peet Group.

I believe we have met those challenges and capitalised on the opportunities presented.

Importantly this year, the Group expanded its earnings and geographic reach through the acquisition of 86% of CIC Australia Limited. CIC has high-quality, strategic projects which are currently developing and selling. They are located in states and territories where Peet did not have a presence which has helped the Group to diversify into new markets.

Also of note is our successful $124 million capital raising which allowed us to fund the acquisition of CIC, retire a significant amount of debt and fund other development activities to meet improving demand across the country.

Another opportunity we were pleased to be able to share with investors was our first retail land syndicate since 2010. The $17 million Peet Greenvale Syndicate closed oversubscribed in March 2013. On behalf of the Syndicate, Peet has commenced development of this new residential community on 40 hectares of land in Melbourne's northern growth corridor.

The new project will be marketed under the name of "Aitken Greenvale". The first stage, which includes some lots with fabulous views of the lake-like Greenvale Reservoir and through to the Melbourne city skyline, have just been released for sale with the first contracts signed just last weekend.

FY2013 Performance

Following my address, our Managing Director and Chief Executive Officer, Brendan Gore, will provide a summary of our performance for FY13, future prospects and our business outlook.

At last year's AGM, we advised that there were some positive signs emerging in the market and that proved true – and has continued, though recovery has been slow and somewhat patchy. We remain cautious in the short-term in our view of the residential property market but, in that context, continue to progress our business.

As foreshadowed at last year's AGM and in our reporting of the Group's results, our careful management of capital to protect and position Peet's balance sheet in the long-term interests of the Group has impacted earnings in the 2013 financial year, but it was the right approach to take, in light of the conditions prevailing and the outlook at the time.

The Group recorded a net operating profit after tax of $15.2 million (pre write-downs) for the year. Its statutory net profit for the full year was $0.2 million. The statutory net profit includes write-downs (after tax) of $13.3 million on long-dated landholdings in Queensland, other non-core assets in Victoria identified for sale and a small developing asset on the Sunshine Coast in Queensland.

This result, slightly above expectations, reflects the challenging residential property market conditions and the ongoing capital management initiatives being implemented in response to those conditions.

This had an impact on margins as a result of pricing strategies implemented to meet demand and ensure the recycling of capital through the business. However, Peet believes that the 2013 financial year is a cyclical low point in terms of earnings. Current indications are positive for an improved outlook for FY14 and beyond with some improvement in sales volumes as well as some price growth evidenced in the first half of the 2014 financial year. Brendan will cover more of this in his presentation.

The Group retired more than $100 million in debt over FY13 – which was ahead of expectations and resulted in gearing reducing to 29% as at 30 June 2013. This reduced level of gearing compares to the Group's targeted gearing of 35% by the end of FY13, and less than 30% by the end of FY14. Peet is continuing its non-core asset divestment program to reduce debt and position the Group for future growth.

Outlook

My fellow Directors, our management, our staff and I share a confidence in the prospects ahead for Peet. We have a firm belief that our expanded Group is on track for growth and has the strategies and the team in place to deliver it.

The Peet Group moves forward with a strengthened balance sheet, a proven long-term business model and a robust strategy to achieve our goals.

Improvement in sales from new projects and additional production, together with the expected fullyear impact of CIC should see solid earnings growth in FY14 and beyond. We note that the FY14 result will be heavily weighted to the second half.

Growth and improved returns for our investors remain our focus and we intend to reinstate the Company's dividend for FY14 onwards, targeting a 50% payout ratio.

The Australian property market

While there has been some recovery in the Australian residential property market over the past year, our short-term outlook remains cautious with the overall recovery expected to be gradual. We may see rising unemployment in Australia which could impact consumer and business confidence and, in turn, the property sector.

Nevertheless the Reserve Bank has acted by reducing interest rates to the lowest levels in 50 years which, when coupled with a rising population, is likely to have a positive impact on housing demand. During this calendar year we have experienced the gradual return of up-graders and investors to the market.

Whilst mixed market conditions are expected to persist across Australia for the balance of FY14, it is already clear that the Western Australian market continues to strengthen with some price growth emerging. The Victorian market also appears to be stabilising favourably and Queensland, particularly around greater Brisbane, is expected to improve. Conditions in our new markets (via the CIC acquisition) of the Australian Capital Territory, New South Wales, South Australia and the Northern Territory are, and are expected to continue to be, generally positive.

Affordability remains a key challenge and Peet has responded with innovation in product development and diversity of offerings to suit our prospective buyers and to fit their budgets.

We take a confident view of the medium to long-term outlook for the Australian property market – underpinned by continued population growth; good employment prospects and good demand for new land and houses.

The Board

Ladies and gentlemen, Peet has shown willingness to evolve and develop – adapting to meet the needs of new generations and building our breadth of experience and expertise in our staff and management.

I thank all my fellow Board members for their diligence throughout the year – Managing Director and Chief Executive Officer, Brendan Gore, and Non-executive Directors, Stephen Higgs, Graeme Sinclair, Anthony Lennon and Trevor Allen.

The Peet team

I would like to take this opportunity to commend 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 strongest results possible, in line with our core values.

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 scope and quality of the projects under development and financial reward and recognition.

Fair and competitive remuneration packages are an essential factor and I now move onto that area, as it pertains to some of Peet's most senior and experienced people.

Remuneration

In order to attract and retain the best and the brightest, Peet pays particular attention to providing an appropriate and competitive remuneration framework for our people, including our Executives, staff and Board members. May I repeat the word "retain", as the importance of retaining high-performing key management, with their knowledge and understanding of our assets and our business, is a significant objective of your Board. In order to achieve this we take independent advice, as necessary, when setting remuneration policies.

By doing so, we believe we achieve mutual benefit for the Company, our shareholders and for our employees. However, I can assure shareholders that we set testing hurdles for our Executives to meet in order to earn performance benefits.

Perth | Melbourne | Brisbane Peet Limited | ACN 008 665 834

With regard to non-executive directors' remuneration, their fees are inclusive of committee fees and for their membership on any subsidiary and syndicate boards. The current base remuneration was last set with effect from 1 July 2006.

At the 2012 AGM shareholders approved the increase of the current aggregate Non-executive Directors' fees pool to $900,000. However, the base fees for each Non-executive Director for the year ended 30 June 2013 was not changed. The increases in total remuneration were in respect of the fees payable to the Chairmen of the Remuneration and the Audit & Risk Management Committees as well as fees paid to Non-executive Directors for their directorships on Syndicate Boards during FY12 and FY13. The increase in fees to Mr Anthony Lennon relates to his payout package on resignation from executive duties and, where applicable, was approved at last year's AGM.

I also note that, despite being contractually entitled to an increase in his fixed remuneration of at least the rate of CPI, Brendan Gore, Managing Director and Chief Executive Officer, has agreed to maintain his base pay and superannuation for the year ending 30 June 2014 at the same level as for the past two financial years. But for some minor changes, the 2014 fixed remuneration of Brendan's direct reports – the Executive Team – has also been maintained at 2013 levels.

Additionally, while entitled to a portion of their bonuses for FY13 based on meeting non-financial KPIs, Brendan and his Executive Team have foregone the receipt of these bonuses.

Our current incentive scheme structures are designed in the context of the most challenging financial and property markets seen in decades and a property market where value and regulatory dynamics are undergoing rapid change. In such markets achieving management targets or budgets 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 has enabled Peet to manage through these market conditions and emerge stronger.

The Corporations Act 2001 requires a resolution to be put to the Meeting adopting the Remuneration Report, appearing in the Annual Report. This vote is advisory only, and does not bind the Directors or the Company. However, I note that depending on the result of that vote your directors may have to call a Board Spill Meeting. I will talk more about that later when we come to voting on the Resolutions set out in the Notice of today's meeting.

Shareholders

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

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 hand over to our Managing Director and Chief Executive Officer, Brendan Gore.

AI assistant

PEET LIMITED AGM Information 2013

65600_rns_2013-11-25_fe251d24-368a-423f-bbdf-b86d66863f0b.pdf

Chairman's address to 2013 Peet Limited Annual General Meeting