PEET LIMITED — Interim / Quarterly Report 2011

Feb 23, 2011

1H11 Results PresentationFEBRUARY 2011

Group business model

PEETLIMITED

High margin business with operating synergies across divisions g g p gy g

Key messages

• »Solid operating performance achieved
• » Increased contribution fromhigher margin company owned projects
• »Improved EBIT across both funds management and development divisions
• »Continuing to benefit from well located projects in key growth corridors
• »Balance sheet in good shape – further reduction in gearing
• »1H11 dividend of 4.0 cents per share fully franked
• »Solid position for 2H11
• »No direct impact from Qld floods or Cyclone Yasi

Operational highlights

• » Business performance
  • »Group EBIT of $41m, up 7% over previous corresponding period
  • » Weighted average sales prices of lots sold increased by 7%
    • »Including a 14.5% increase in the average price of Company‐owned lots
  • » Value of contracts on hand increased to$311.2m – an increase of 32% compared with 1H10
• » Performance driven by
  • » Solidunderlying drivers in the residential housing market
  • »Strength of Peet's projects in Victoria and WA
  • »Improved operating margins across divisions
• » Positive outlook
  • » Positive sector fundamentals including long term population growth and strong employment conditions
  • » Peetprojects focused on affordable product aimed at lower and middle market segments
  • »Up to seven new projects to be launched in 2H11 providing platform for growth

Group key financial highlights

• »Group revenue of $98.7m
• » Operating EBITDA of $41.3m – an increase of 7% compared with 1H10
• » Operating NPAT of $22.2m – an increase of 2% compared with 1H10
• »Operating EPS of 7.4 cents – up 1%
• S f 0» DPSof4.0cents
• » Gearing of 28.7%, reduced from 29.5% at 30 June10
• » NTA of $1.29, increased from $1.24 at 30 June 10
  • » No value attributed to funds management business

Not	es:

1. Rolling 12 month EBITDA based on average balance of assets for the 12 months

$m	1H11	1H10	()V%ar
Revenue	98.7	98.4	0%
EBITDA	41.3	38.5	7%
NeEBITDAintmarg	42%	39%	3%
OpinNPATterag	22.2	21.7	2%
()OpinSEP¢terag	7.4	37.	%1
1 ()%ROCE	%12.7	%12.8	()%0.1
2 ()ROE%	17.5%	22.0%	()4.5%
SNPATtatutory	22.2	21.7	2%
()SEPS¢tatutory	7.4	7.3	1%
()DPS¢	44.00	44.00	0%
3 ()Gein%arg	28.7%
4hahaNTAperssrere	$291.

2. Rolling 12 month NPAT based on average balance of equity for the 12 months

3 (Bank debt less cash)/(Total assets adjusted for market value of inventory less land vendor liabilities and cash)

4. Net assetsadjusted for market value of inventory

Group operating performance

	1H11	1H10	()V%ar
lesLotsa	1,179	1,407	()%16
leLottttssemen	1,125	1,292	()%13
fhadNotratsoconconn31Detasac	11,224488	11,112277	6%
lufhadVatratseoconconn31Detasac	$311m	$235m	32%
/fdNoicaJVsteosynsbufiinitrttotcongpro	18	18
fdNooownebujiintstrttoproeccongfitpro	9	10

• » Significant increase in value of contracts onhand
• » Increase innumber of contracts on hand 74%

Key operating statistics 1H11 EBITDA composition by business type

WAVic Qld

80%

FMoperating performance

$m	1H11	1H10	()%Var
Revenue	22.1	18.7	%18
Oitperangexpenses	()7.0	()4.5	()56%
EBITDA	115.	14.2	6%
IAiNEBTDtemargn	68%	6%7	()8%

	1H11	1H10	()V%ar
lLtosaes	915	920	()%1
lLttttoseemens	762	920	()%17
fhdNtto.oconracsonan31Dtasaec	940	762	23%
flVttaueoconracsonhd31Dtanasaec	$241m	$155m	%55
fdiNto.osyncaesbfiiittttconrungopro	16	16

Key performance statistics HY11 FM revenue composition by type

Management Performance Fees

HY11 FMrevenue composition by geography

JVoperating performance

Key performance statistics

$m	1H11	01H1	()%Var
Revenue	8.5	9.4	()10%
iOtperangexpenses	()5.8	()7.4	%22
EBITDA	2.7	2.0	35%
NEBITDAitemargn	32%	21%	11%

Key operating statistics yp g

	111H	110H	()%Var
lLtosaes	42	145	()71%
lLttttoseemens	56	150	()%63
fNtto.oconracsonhd31Dtanasaec	54	83	()35%
lfVttaueoconracsonhd31Dtanasaec	$10m	$16m	()38%
fNJVjto.oproecsbfiiittttconrungopro	2	2

• » Lot sales from joint venture projects weredevelopment approvals for Quattro joint venture
  • S l i i d» Sales activity expectedto recommence in2H11

Composition of FM and JV managed pipeline

• » Fundsmanagement business is well positioned
• » Growth in revenue to come from:
  • » Launch of up to 5 syndicates and joint ventureprojects during 2H11
  • » Increased profit shares on more recently 18% p establishedsyndicates
• » Land bank located in right growth markets
  • WA»WA, Vic and
• »Targeted towards the affordable market
• » Completion of $55m Yanchep syndication
  • » Peet's core holding expected to be sold downovertime

Geographic composition of land bankby value

Development operating performance

$m	1H11	1H10	()V%ar
Revenue	661.	688.	()4%
1Oitperangexpenses	()44.5	()48.0	%7
EBITDA	21.6	20.8	%4
iNEBITDAtemargn	33%	30%	3%

Key operating statistics

	1H11	1H10	()V%ar
lLtosaes	222	342	()%35
lLttttoseemens	307	222	38%
fhdNtto.oconracsonan31Dtasaec	254	327	()%22
lfVttaueoconracsonhd31Dtanasaec	$60m	$64m	()6%
fdjNto.oowneproecsbfiiittttconrnggoprou	9	10

finance charges amortised through cost of sales

Key performance statistics 1H11 revenue composition by geography

» Significant settlement revenue from high‐margin Company‐owned projects inVictoria

interest and

Notes:

Composition of development pipeline

• » Targeted towards affordable home‐ buyer market
• » Land bank located in strong markets
  • »Strong presence in Vic and WA
• » Pipeline has been strategically repositioned towards eastern states overthe
• » High exposure to the robust Victorian residentialmarket
• » Up to two new Company owned projects to be launched in 2H11

Geographic composition of Company‐owned land bank by value

Settlements andcontracts on hand

• » Value of contracts onhandup by 7%
• » Value of contracts onhand represent approximately 50% of target revenue for 2H11

Contracts onhand

1. $m, includes GST

Pipeline mix

• » Inexcess of 37,0001 lots under management with end value of $6.9 billion2
• »Pipeline weighted towards strongest markets (Vic and WA)
• » Focus remains onthe affordable market segment
• » Strong diversification with 70 Company‐owned, syndicated and managed projects across Australia:
  • » 29syndicated projects – 19 under development, with a further 10 in planning pipeline
  • » 35Company‐owned projects – 12 under development, 23 in planning pipeline
  • » 6managed and joint venture projects – all currently under development

Note:

1. Includeslotequivalents

2. Calculatedadopting current average lot sales prices

Project Pipeline ‐ Western Australia

projects launching in 2H11

Yanchep (1,492 l ) ots AvonRidge, Brigadoon (214 lots)

Project Pipeline ‐ Victoria

Newprojects launching in 2H11

Craigieburn (1,949 l ) ots Cranbourne Central (926 lots) Quarters, Cranbourne (914 lots) Melton(592 lots)

Project Pipeline ‐ Queensland

Newprojects launching in 2H11

Riverbank, Caboolture (1,269 lots) ,( ,

Capital management

• » Executed new syndicated facility with term of 3 years and maturity date of October 2013
  • » Newbank joined syndicate
• »Gearing red d uce to 28.7%
• » DRP for 1H11 dividend– 4.0 cents per share fully franked

	31D10ec	31D09ec
hddebWigitettutyeaveragemar	2.3years	2.4years
hdhedgWigitetutyeaverageemar	3.6years	4.6years
/bfdhedgdDeixete	88%	88%
1ighdfdebWtetteaveragecoso	%8.0	%6.3
bdeNett	$203m	$814m
2 Geiarng	28.7%%	32.6%%
3Intetrescover	3.2x	4.1x

Notes:

1. Including all costs, fees and margins

2. (Bank debt less cash)/(Total assets adjusted for market value of inventory less land vendor liabilities and cash)

3 / l i (i l di i li d i ) 3. EBIT/Totalinterest cost (including capitalisedinterest)

Cash flowanalysis

• » Solid operating cash flow influenced by a continued focus on
  • » Working capital – tighter inventory 113.3 g y management resulting in release of
  • » Increase in average salesprices
  • » Cost conscious management

Geographic positioning ‐ residential

Victorianmarket strong, Western Australian market stabilising

Victoria

• » Continues to perform well withstrong sales momentum

• » New land releases support supply of affordable land to meetdemand

• » High level of domestic and offshore migration underpinning demand

• » Population and jobs growth remainstrong

• » Recovery lagging but fundamentals remainsound

• » New housing activity stable but belowlong term trends

• » No direct impact from floods or Cyclone Yasi, however may have short term impact on planning and development

Pipeline by geography (lots)1

Western Australia

• » Market stabilising, however sentiment remains cautious; expected to improve once housing stock absorbed
• » Positive outlook due toimproving resource sector and limited newsupply
• » Population and job (wage) growth remain strong
• » Land supply shortage in key corridors

FHBstill active, upgrader and investor activity improving

First HomeBuyer (FHB)

• » FHBmarket segment has trended back to longer term average of 20% ‐ 25% of total market
• »FHB s' impacted by affordability constraints – product innovation a key focus
• » Victoriaremains strong with state grant increased to $20k until June 2011

Upgraders

» Volumessteadily increasing ‐ backfilling FHB demand since December 2009

I t nvesors

• » Volumessteadily increasing
• » Lower rental vacancy rates and increasing rental demand leading to improving rents and investorinterest

Affordability

• »Remains a key challenge – improving with recent wage growth
• » Furtherpressure expected if variable mortgage rates outpace income growth

Peet will continue to actively manage its project pipeline to maximise shareholder returns

• » Peet's strategic priorities remain
  • » Focusedbusinesses of residential land development and funds management
  • »Improve market share in existing and new growth corridors
  • »Continuing expansion of syndication and funds management platform nationally
  • »Actively managing project pipeline to maximise shareholder returns
  • » Pursueacquisition opportunities on a responsible basis
  • » Continued commitment tobeing environmentally responsible across its operations

Outlook

Positive outlook based on program of new project launches in 2H11, in conjunction withexisting solid project and funds management platform

» Contracts onhand

• » Value of contracts onhand1 represent approximately 50% of target revenue for 2H11
• » Contract valueup 7% with number of contracts on hand maintained since 30 June 2010
• » New projects
  • »Up to 7 new projects to be launched during 2H11 providing platform for growth
• » Pipeline mix
  • »Pipeline weighted towards strongest markets (Vic and WA)
  • » Focus remains onthe aff d bl ffordable mark t e segment
  • »Highly diversified ‐ 70 Company‐owned and managed projects across Australia

Summary income statement

$m	1H11	01H1	()%Var
dFtnsmanagemenu	22.1	8.17	8%1
lDteveopmen	66.1	68.8	()4%
1hOter	10.5	10.9	()4%
Revenue	98.7	98.4	0%
EBITDA	41.3	38.5	%7
2iFtnancecoss	()8.5	()95.	()%44
diiiiDttteprecaonanamorsaon	()0.8	()0.6	()%33
NPBT	320.	320.	%0
Itncomeaxexpense	()9.8	()0.31	%5
OiNPATtperang	22.2	21.7	2%
()iOEPSttperangcens	74.	73.	1%
SNPATtttauory	22.2	21.7	%2
()SEPSttttauorycens	7.4	7.3	%1
()SDPSttttauorycens	4.0	4.0	%0

Notes:

1 Includesjoint ventures, interest income and elimination entries

2 Finance costs includes interest andfinance charges amortised through cost of sales

Summary balance sheet

$m	301D1ec	31D09ec
Atsses
hCas	28.3	42.8
bliRecevaes	61.4	3.05
Iitnvenores	421.9	409.3
dfhhdiiIttttttnesmensacconeorsngeeqmeovuuuy	32.1	32.1
hOter	13.2	24.4
lfdhldfliiAtssecasseaseorsae	03.61	‐
lTttoaasses	660.5	561.6
ibiliiLtaes
ddhblTtraeanoerpayaes	25.6	23.9
ddlbliiiiLtanenoraesv	3.51	61.8
blblIiiiiitttneresearngaes	231.1	226.4
hOter	31.2	25.2
bldldhlfdhldfliiiiiiiiiLtttttaesrecyassocaewassescasseaseorsae	58.9	‐
llibiliiTttoaaes	398.1	337.3
Ntteasses	262.4	2234.
1()Gi%earng	28.7%	%32.6

Note:

1 (Bank debt less cash)/(total assets adjusted for market value of inventory less land vendor liabilities and cash)

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.