PEET LIMITED — AGM Information 2013

Nov 25, 2013

Annual General Meeting

November 2013

Key messages

Transformational year with major acquisition, capital raising and successful syndicate launch

	»	Sales volumes up 30% to 2,3081»Sales momentum improved in 2H13 with volumes increasing by40% compared to 1H13
	»	Contracts on hand increased by over 100% to 1,9561lots for $485m
	»	Operating profit after tax of $15.2m2, above the top end of Peet'sguidance in April 2013
FY13 Result	»	Statutory profit after tax of $0.2m»Includes write-downs after tax of $13.3m on long-datedlandholdings in Queensland and non-core assets in Victoriaidentified for sale
	»	Market value NTAof $1.05 per share, reduced due to capital raising,CIC transaction costs and movement in year-end mortgage valuations
	»	Net bank debt down 46% to $135m3
	»	Covenant gearingof 29%, reduced from 40% in pcp –below targetand ahead of schedule

1 Includes CIC

2 Excluding write-downs and CIC acquisition – related costs

3 Excludes Peet Yanchep Land Syndicate and CIC

Key messages

TransformationalYearFy13 Result	»Acquisition of 86% of CIC Australia Limited (CIC) providing majorprojects in NSW, ACT, SA and NT»$124m capital raising to fund acquisition and reduce debt»Successful retail syndication of Peet Greenvale completed in March 2013raising $17m in equity»Significantly improved net operating cash flow of $45.5m»Land bank of 51,173 lots with a gross development value of $10.5 billion
MarketConditions	»Market conditions remained challenging throughout FY13 with positivesigns emerging into FY14.»Interest rate cuts have improved affordability and are now having apositive impact on sales activity»WA market recovery underway with positive signs emerging in Victoria,Queensland showing signs of stabilising

Business Transition on Track

Continued reweighting of business to FM / higher ROCE projects

• » Majority of land bank now in Funds Management or capital efficient structures
• » CIC provides four additional major strategic projects in capital efficient structures
• » Wholesale relationships in place to pursue further growth opportunities

Reweighting of land bank to larger master planned community projects with long-term cash flows

• » Peet now has 15 projects with in excess of 1,000 lots
• » These projects generally have a life span in excess of 12+ years, underpinning future cash flows
• » Number of projects provides asset and geographic diversification

Deleveraging of balance sheet and improved operating cash flow

• » Deleveraging ahead of target
• » Significant capital investment has already been made in bringing larger projects into production
• » Operating cash flows together with identified non-core asset sales program to further reduce gearing moving forward.
• » Non-core asset sale program is proceeding with $65 million settled to date
  • » $7 million currently under contract;
  • » $15 million currently being marketed; and
  • » a further $12 million targeted CY14
• » Peet within gearing target range of 20% to 30%

Contracts on hand

• » Contracts on hand for the four months ending 31 October 2013 have increased a further 10% to 2,147 lots for a contract value of $500m
• » Solid increase driven by stable and improving market conditions

1 Includes CIC sales

Strategic rationale for the CIC acquisition

• » High quality, strategic projects all of which are currently developing and selling
• » Projects contribute to FY14 earnings and beyond
• » Diversification into new markets of ACT/NSW, SA and NT
• » CIC management team is highly credentialed and well respected, providing an established platform to expand operations off a stronger capital base
• » Most projects are held in capital efficient joint ventures and co-investment structures Lightsview, SA

Update on CIC acquisition

• » Peet acquired 86% of CIC by way of off-market takeover in May 2013
• » Acquired for $0.60 per CIC share, a 13% discount to CIC net assets
• » Business has been performing in line with expectations
  • » The acquisition of CIC has resulted in a net contribution for FY13 of $2.2m after tax, after taking acquisition costs into account
• » CIC's financial position has been significantly strengthened with the extension of its multi-option facility (MOF) which was repayable in full by September 2013
  • » The MOF is now repayable in quarterly instalments through to 30 June 2014
  • » No dividends will be paid in order to facilitate debt reduction and reinvest in the business
• » Transition to Peet majority ownership has been smooth

WA Market recovery underway

• » Residential land market improving FY13 developer volumes up 49% on FY12 with price growth now emerging
• » Developer stock is at lowest levels since 2006
• » Positive economic fundamentals including population growth and improving affordability
• » Strengthening consumer and investor sentiment is driving good demand

VIC Market is improving

• » Sales volumes are stabilising; traffic volumes improving; pricing showing modest recovery
• » Oversupply has reduced; market approaching equilibrium
• » Consumer sentiment cautious with uncertain employment outlook
• » Cost of development including statutory charges are a key concern

Early signs market is beginning to stabilise QLD

• » Poor performing market in FY13 suffering the impacts of weak consumer confidence
• » Sizeable resource sector with good longer-term fundamentals
• » Enquiry levels improving since January 2013
• » Residential market activity remains at historical lows
• » Affordability has improved relative to other major cities
• » Improving employment figures and economic activity

ACT and adjoining NSW

• » Solid population growth in recent years may be tempered by change in government
• » Highest average state income and low unemployment
• » Land sales remain solid and expected to continue in the mid-term due to a shortage of supply
• » The residential construction market remains reasonably buoyant

SA Market showing tentative signs of improvement

• » Evident recovery in land sales being reported across metropolitan Adelaide
• » SA Government build bonus and NRAS allocations showing up both in terms of sales and new home building
• » Lightsview still outperforming the market

NT Strong residential demand for purchase & rent off the back of resource (LNG) projects

• » Strong demand for residential land
• » NT Government very focused on land release, delivery and elimination of red tape for the development industry
• » Inpex LNG development now starting to ramp up peak workforce projected to be around 3,500 workers
• » US Defence starting to increase its presence
• » High rentals adding to increased demand for house and land packages

Key projects - Flagstone City (QLD)

• » Existing Flagstone Rise community already well-established, providing key market insights.
• » Flagstone City will become home to 30,000 people, with retail, commercial, general industry, education, recreation, health & other community infrastructure
• » Fast-tracked planning under EDQ– broadscale Development Approval received in October 2012
• » Government catalyst funding to assist with start-up infrastructure funding
• » Detailed DA now lodged for first 2,500 dwellings and Stage 1 of town centre
• » Low cost base opportunity to drive longterm value from a large, integrated master-planned community
• » Owned in a 50/50 JV with MTAA Superannuation
• » Development expected to commence in 2015

Key projects - Greenvale/Craigieburn (VIC)

• » Located in the Hume growth corridor – approx 3,400 lots
• » Historical acquisitions – low underlying cost base
• » Some portions have views across Greenvale Reservoir to the city skyline
• » Range of product types and price points having broad market appeal

Key projects - Shorehaven at Alkimos (WA)

• » Located in the City of Wanneroo, in the North Western coastal growth corridor of Perth – 2,800 lots
• » Key elements of project vision now in place or being delivered shortly:
  • » Coastal access road and first stages complete
  • » Planning for future village centre well advanced
  • » Foreshore park has commenced
  • » Strong builder & retail sales achieved
  • » Estate now well established with over 350 homes

Artist Impression

Key projects – Apartments at Wellard (WA)

Invita Apartments

• » Development on Peet-owned landholding of 82 apartments
• » Single and double bedroom apartments
• » Ranging in price from $280,000 to $350,000
• » 32 out of the 36 apartments in Stage 1 sold within a three week period

Artist Impressions

Ultima Apartments

• » Development of Peet-owned land holding of 82 apartments
• » Single and double bedroom apartments
• » Scheduled for market launch in early 2014

Key projects - Yanchep Golf Estate (WA)

• » Attractive location in the North Western coastal growth corridor of Perth
• » Bordering the Sun City Country Club pleasant golf course outlook
• » 1,565 lots significant long term project
• » Close proximity to beach and future new Yanchep town centre
• » Good builder and retail sales to date
• » Future rail line extension expected to boost sales rates and prices

Outlook

Peet's land bank, combined with its strengthened balance sheet, supports profit growth

• » Underlying foundations of the residential sector remain sound
• » Cautious view on short-term outlook overall recovery expected, but gradual
• » Mixed market conditions expected to persist throughout FY14
  • » Strengthening Western Australian market, with price growth now emerging
  • » The Victorian market has stabilised, and is showing signs of recovery in both volume and price
  • » Queensland market showing signs of stabilisation
• » Solid profit growth FY14 onwards due to new projects, additional production and full year impact of CIC
• » CIC major projects in NSW, ACT, SA and NT are profit producing and performing in line with expectations
• » Dividends intended to be reinstated for FY14 onwards, targeting 50% payout ratio

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.