PEET LIMITED — Earnings Release 2012

Aug 27, 2012

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Perth

Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au

www.peet.com.au

28 August 2012

Peet remains focussed on capital management

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• Operating net profit of $20.3 million after tax[1]

• Statutory net profit of $5.4 million

• Statutory earnings per share of 1.7 cents

• Net EBITDA margin[1] of 32%

• Gearing[2] of 39.7%

• Net Tangible Asset[3] per share of $1.24

Peet Limited today announced an operating net profit after tax of $20.3 million for the year ended 30 June 2012.

Peet Managing Director and Chief Executive Officer, Brendan Gore, said the Group’s performance was slightly above the guidance range provided to the market in November 2011 and achieved despite market conditions deteriorating in the second half of the financial year.

The Group's statutory net profit after tax for the full year was $5.4 million, representing a decrease of 76% over the previous corresponding period. This includes write-downs of $12.3 million on non-core assets sold or identified for sale and $2.6 million relating to a small developing asset in Queensland.

“The Group has operated in a very challenging environment and the results reflect the prudent capital management initiatives taken to manage through the current cycle,” he said.

“Our key priority has been capital management and Peet’s focus in the 2013 financial year will continue to be debt reduction, and the strategic balancing of development and infrastructure capital expenditure with market conditions.

“The residential property market deteriorated further in FY12, and the impact on sales and settlements of weak housing activity, some delays in development activity as a result of sustained inclement weather across the east coast, poor consumer sentiment and the deferral of capital expenditure on some of our major projects (forecast in November 2011) is reflected in the Group’s land sales and settlements.”

In FY12, Peet sold 1,776 lots, including three super lots, across its three segments - funds management, Company-owned and joint venture projects - for a total of $435.9 million, 8.2% lower than the previous period. A total of 2,052 lots, including 3 super lots, were settled for a total of $481.2 million, 7.4% less than in FY11.

1 Pre write downs

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

• 3 NTA is based on independent bank instructed mortgage valuations with no value attributed to the funds management or joint venture business segments.

Perth | Melbourne | Brisbane

Enriching lives since 1895 | Asset Manager | Land Syndicator | Fund Manager

Peet Limited | ACN 008 665 834

www.peet.com.au

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Perth Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au

In line with overall market conditions, margins were weaker, down from 43% in FY11 to 32% in FY12. More than half Peet's projects are syndicated and the net EBIDTA margin in this sector of the business held steady at a strong 66%.

"In FY12, Peet has managed its operations in line with the lower sales volumes expected in current market conditions, while maintaining its capability to respond to more normalised levels of demand in the future," said Mr Gore.

Capital Management

“Peet has maintained its strong and ongoing commitment to a clear capital management strategy through FY12 and will continue to do so in FY13,” said Mr Gore. “That strategy prioritises reducing debt and further strengthening the balance sheet, which will not only see Peet through the present cycle but, more importantly, position the Group for future growth,” he added.

“The Group's underlying strategy remains sound, and it has responded positively to the prevailing market conditions in FY12 on several important fronts with the implementation of a non-core asset divestment program to retire debt, careful allocation of capital into new projects and a continued focus on improving operating and overhead costs efficiencies.”

The Group has targeted $100 million of non-core asset sales, which are well underway. As at 30 June 2012, there was some $40 million under unconditional contracts, which are contracted to settle in the first half of FY13.

The orderly sale of a further $60 million in non-core assets is targeted for calendar year 2013, subject to market conditions.

For the year ended 30 June 2012:

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• the average cost of debt was 8.48%;

• Group interest cover was 1.6; and

• Gearing as at that date was 39.7%.

As at 30 June 2012, Peet had interest-bearing debt (including its convertible notes), net of cash, of $293 million, compared with $217 million at the same time in the previous corresponding period. A large portion of this increase is attributable to cash invested into the 13,000-lot Flagstone project in South East Queensland, which settled in July 2011 ($47 million), the first land acquisition with the Future Fund and development costs at key Company-owned projects including Gladstone in Queensland and Craigieburn in Victoria.

The Group's NTA per share as at 30 June 2012 was $1.24.

However, Peet recorded write-downs of $12.3 million on non-core assets sold or identified for sale and $2.6 million relating to a small developing asset on the Sunshine Coast in Queensland.

At year-end, 63% of the Group's interest-bearing debt was hedged, compared with 91% at the end of FY11, resulting in an average hedge maturity profile of 3.1 years compared with 3.5 years at 30 June 2011.

The Group had cash and available facilities totalling $53.9 million at year-end, and was compliant with all covenants.

Peet maintains significant headroom on its gearing covenant, however in light of the adopted capital management strategy the company is in discussions with its banks regarding the most appropriate form of covenants moving forward, in particular the Group’s ICR covenant.

Perth | Melbourne | Brisbane Enriching lives since 1895 | Asset Manager | Land Syndicator | Fund Manager Peet Limited | ACN 008 665 834

Perth Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au

www.peet.com.au

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Group Strategy

The Company is taking a very cautious view on the short-term outlook. It has a well-defined strategy that responds appropriately to the persistent poor market conditions and will continue to focus on the following key elements:

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• Careful allocation of capital into projects until there is greater certainty around sales and settlements for new releases. We recognise that this will impact earnings for the 2013 financial year but believe it prudent in the current operating environment;

• Continuing an orderly and timely non-core asset divestment program to retire debt. The $100 million divestment program is targeted to be reached by the end of the 2013 calendar year with $40 million currently under unconditional contract;

• Maintaining pressure on operating costs and overheads efficiencies; and

• Continuing to meet the market with a mix of desirable and affordable product. The Group will continue to be measured and strategic in its approach to capital investment to achieve the sales that reflect the current depth of the market, particularly in Victoria. We will continue to invest responsibly in projects where there is greater certainty.

This disciplined approach to capital management positions Peet to take advantage of any improvement or normalisation of the market to deliver more positive results to shareholders.

Dividends

The Directors consider it prudent in the current market to defer dividend payments until market conditions improve. There will therefore be no dividend paid in respect to the 2012 financial year.

Outlook

The 2012 financial year delivered some of the most challenging conditions experienced in almost 20 years and there is little expectation that markets will improve in FY13.

The series of interest rate cuts in FY12 has not had the desired effect to date and consumer and business confidence remains low.

While the long-term fundamentals of the Australian property market including population growth, an under-supply of housing and a tight rental market remain conducive to an improving market, the catalyst for household confidence, which will underpin improved demand in the residential property market activity, is yet to be found.

Peet remains confident in its underlying value with a growing wholesale and retail funds management business, coupled with quality, Company-owned projects. The Group is well prepared to respond quickly and effectively to any improvement in consumer sentiment in the residential market.

However, given the ongoing market uncertainty in Australia, and until the timing and strength of the expected recovery is confirmed, the Directors are unable to provide guidance on FY13 operating earnings with any degree of certainty. A trading update will be provided at this year’s Annual General Meeting.

Perth | Melbourne | Brisbane Enriching lives since 1895 | Asset Manager | Land Syndicator | Fund Manager Peet Limited | ACN 008 665 834

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Perth Level 7, 200 St Georges Terrace Perth WA 6000 Telephone (08) 9420 1111 | Facsimile (08) 9481 4712 Email perth@peet.com.au

www.peet.com.au

New role for Peet Director

After 21 years in various operational, marketing and business development roles within Peet Limited – and after 16 years as an Executive Director – Mr Anthony Lennon has resigned from his executive duties but has agreed to remain on the board as a Non-executive Director.

He has entered into a consultancy agreement with the Company and will also remain on the Boards of a number of Peet syndicates.

“I have been pleased to be a part of Peet’s very significant growth over the past 21 years,” said Mr Lennon. “Remaining a Director of Peet Limited and Peet syndicates allows me the opportunity to pursue other interests as well as to maintain a keen interest and important strategic role with the Group.”

Managing Director, Brendan Gore, paid tribute to Anthony’s longevity of service and his work in establishing Peet’s operations in Victoria and Queensland, in particular.

“I would like to thank Anthony for his contribution to date and look forward to his continued role as a Nonexecutive Director,” he said.

Full-year results presentation

Peet Limited Managing Director and CEO, Brendan Gore, will provide a results presentation via conference call at 2.00pm (AEST) on Tuesday 28 August 2012.

To participate in the conference call, please dial:

1800 157 000 (for participants in Australia); or

+61 2 8223 9380 (for other international participants)

All participants should quote pass code 628 290 11.

For investor inquiries, call:

Brendan Gore Managing Director and Chief Executive Officer Peet Limited (08) 9420 1111

For media inquiries, call:

Marie Mills Mills Wilson Communication Consultants 08 9228 1999, 0418 918202 mariem@millswilson.com.au

Perth | Melbourne | Brisbane Enriching lives since 1895 | Asset Manager | Land Syndicator | Fund Manager Peet Limited | ACN 008 665 834