PEET LIMITED — Interim / Quarterly Report 2013

Feb 27, 2013

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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 February 2013

Peet positions itself for market improvement

• Statutory net profit of $1.2 million[1] compared with $8.7 million (down 86%)

• 963 lots sold and 970 lots settled (both up 11%)[2]

• A total of 842 contracts on hand as at 31 December 2012[2]

• EBITDA of $15.1 million (down 18%)

• Gearing[3] of 37% compared with 40% as at 30 June 2012

• Net Tangible Assets[4] per share of $1.33

• Non-core asset divestment program on track with $42 million settled and received

• Core debt reduced by $26 million

• Peet Greenvale Syndicate on track to close mid-March 2013

Peet Limited today announced a statutory net profit of $1.2 million[1] for the half-year to 31 December 2012.

This represents a decrease of 86% compared with the previous corresponding period and is in line with expectations.

Peet Managing Director and Chief Executive Officer, Brendan Gore, said the Group’s full year performance would be heavily weighted to the second half of the year, as foreshadowed at the Company’s Annual General Meeting in November 2012.

“The half-year result was disappointing, but also expected in some of the most challenging conditions the residential property market has seen, and reflects the ongoing capital management initiatives being implemented in response to those conditions. This includes implementing targeted pricing strategies to meet market demand.

“While this has had an impact on margins, we believe FY13 is the cyclical low point in terms of earnings and there are positive indications for improved earnings in FY14 and beyond,” he added.

“Peet had more than 840 contracts on hand at the end of the half-year, with a gross value of $240 million; and sales volumes have improved in January and February 2013, particularly in Western Australia where Peet has a significant proportion of its portfolio.”

1 Attributable to owners of Peet Limited 2 Includes super lots and lot equivalents

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

less cash, less intangible assets). Excludes Peet Yanchep Land Syndicate

4 NTA is based on independent bank instructed mortgage valuations (adjusted for development costs and settlements post 30 June 2012) with no value attributed to the Funds Management and Joint Venture business segments.

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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“Our focus on disciplined and prudent management including the responsible balancing of development and infrastructure capital expenditure, appropriate for market conditions, remains a key feature of our strategy for the second half of the year,” said Mr Gore.

The Group achieved 963 managed and Company-owned sales[1] and 970 settlements[1] in the first half of 2013 – an increase of 11% on both measures compared with the previous corresponding period.

As a result of the market conditions, the EBITDA margin was lower at 18%, compared with 32% reported for FY12. This has been impacted by the downward pressure on prices, particularly in Victoria, and the impact of low margins on the sales of some non-core assets as part of our capital management program. More than 70% of Peet’s land bank is syndicated and/or managed and the EBITDA margin in the Funds Management business was still a strong 53%, but down from 65% in the previous corresponding period.

At 31 December 2012, there were 842 contracts on hand[1] , with a gross value of $240 million, compared with 849 contracts on hand[1] as at 30 June 2012 with a gross value of $235 million.

“Peet continues to meet the needs of the market, responding with affordable, quality product across projects that are strategically weighted across Western Australia, Victoria and Queensland,” said Mr Gore.

Capital Management

Peet’s capital management strategy prioritises reducing debt, primarily via the sale of non-core assets, as well as the reduction of operating costs.

Up to 31 December 2012, the Group had achieved the settlement of $42 million in non-core asset sales and these proceeds were partly applied to a $26 million reduction in core bank debt. A further $5 million in non-core asset sales is contracted to settle in March 2013.

The early and ongoing implementation of a rigorous and disciplined capital management strategy is positioning Peet well for growth as markets normalise and improve.

“During 1H13, the Group has begun applying development capital to create additional lots in order to meet strengthening demand in Western Australia and improving sales rates at our Craigieburn project in Victoria,” said Mr Gore. “Once fully developed and titled, these lots will be available for immediate sale.”

“Furthermore, another 15 new projects are expected to start development over the balance of the current financial year and through to 2015, including seven Company-owned projects and eight syndicated projects (including Flagstone City in Queensland).”

During the half-year ended 31 December 2012, the Group also successfully renegotiated its bank covenants to better align with its strategy.

1 Includes super lots and lot equivalents

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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As at 31 December 2012 gearing[1] was 37% (compared to 40% at 30 June 2012) and the Group continues to target gearing of 35% by 30 June 2013 and less than 30% by 30 June 2014.

As at 31 December 2012, Peet had interest-bearing debt[2] (including its convertible notes), net of cash, of $268 million, compared with $294 million at 30 June 2012.

The Group’s cash and available facilities[2] totalled $50 million at the end of the period, and it remains compliant with all banking covenants.

Group Strategy

Peet will continue to apply prudent operational and capital management strategies, appropriate for the market conditions to optimise results in the short-term, and position the Company for future growth.

In particular, the Group will continue to focus on further debt reduction; improved operating cash flow; the disciplined allocation of capital to projects; and ongoing vigilance in relation to costs and overhead efficiencies.

Our non-core asset divestment program is on-track with $42 million in settlements achieved and a further $5 million contracted to settle in March 2013. The remainder of the non-core assets to be sold are targeted to be marketed during the 2013 calendar year.

Retail Syndicate Update

During 1H13 the Company launched its first retail land syndicate since September 2010. The $17 million Peet Greenvale Syndicate is progressing well and, as at the date of this report, total applications and firm commitments of $17 million had been received. Based on applications received to date, Peet is confident the syndication will be fully subscribed by the closing date of 14 March 2013 and Peet’s core holding is likely to be below its maximum commitment of 25%, detailed in the Product Disclosure Statement.

Outlook

As foreshadowed, the market conditions throughout the first half remained challenging and are expected to persist throughout the second half of FY13.

There are some early positive signs in Western Australia where the rental market is particularly tight with the vacancy rate remaining near historic lows. Peet has a significant exposure to the strengthening Western Australian market and is well positioned to take advantage of these improvements, with sales volumes continuing to improve in the first two months of the second half. Total sales of managed and Company-owned lots for January and February to date across Australia totalled 340. This has had the effect of increasing contracts on hand to 1,005, representing a 19% increase since 31 December 2012.

There are also indications that the Victorian market is stabilising, with sales in Peet’s Victorian projects generally in line with current expectations. However, this market remains price sensitive which has resulted in lower operating margins across the Victorian portfolio.

1 (Total interest bearing liabilities (including deferred payment obligations) less cash) / (Total assets adjusted for market value of inventory less cash, less intangible assets). Excludes Peet Yanchep Land Syndicate

2 Excludes Peet Yanchep Land Syndicate

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

In Queensland, the land market is still suffering from consumer uncertainty, which has been further impacted by recent weather events. However, we observe improving employment figures and economic activity in Queensland so that the outlook for our business in that State is encouraging.

Tropical Cyclone Oswald, which struck Queensland in late January 2013, has delayed works and therefore the anticipated completion of lots, titles and settlements at the Company’s Gladstone project.

“The impacts of these weather events may result in settlement proceeds being delayed into FY14,” said Mr Gore.

“Taking into account the inclement weather impacting the Gladstone project’s development program, the Company now expects FY13 operating earnings to be in the range of $11m to $15m.”

Peet considers that FY13 is the low-point of the cycle in terms of earnings and expects improvements in FY14 and beyond, underpinned by an upward trend in the Western Australian market in the first instance, continuing low interest rates and improving consumer sentiment. A series of 15 new projects scheduled to be launched through the second half of FY13 through to FY15, including seven Companyowned projects, are also expected to contribute to an uplift in earnings through those periods.

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