PEET LIMITED — Interim / Quarterly Report 2021

Feb 24, 2021

1H21 FINANCIAL RESULTS

25 FEBRUARY 2021

ANNUAL GENERAL MEETING ǀ 20 NOVEMBER 2019 ǀ PAGE 1

PEET IS WELL POSITIONED TO LEVERAGE MARKET RECOVERY

INTEGRATED MODEL WITH PROVEN CAPITAL PARTNERING CAPABILITY LARGEST 'PURE PLAY' RESIDENTIAL DEVELOPER IN AUSTRALIA

• Property development company established in 1895

• Listed on the ASX in 2004

• Significant and diversified land bank encompassing more than 45,800 lots across 52 projects

• Integrated platform with broad product expertise across land, medium density townhouses and low rise apartments

• Flexible and unique funding model underpinned by proven capital partnering capability of c.34,000 lots held in capital efficient arrangements

SCALE PIPELINE WITH LOW COST BASE BROAD CUSTOMER AND PRODUCT REACH

UNIQUE FUNDS MANAGEMENT MODEL

SIGNIFICANT FUNDS MANAGEMENT PLATFORM VALUE NOT CAPTURED IN NTA

• 1. Gross Development Value
• 1. NTA before application of AASB 16 Leases.
• 1. Based on book value of assets at 31 December 2020 5

DELIVERING AGAINST OUR STRATEGY PORTFOLIO WELL POSITIONED FOR POSITIVE MEDIUM TO LONG TERM GROWTH AND VALUE CREATION

RESULTS OVERVIEW

GROUP 1H21 FINANCIAL RESULTS

IMPROVING RESULTS WITH MARKET RECOVERY

KEY PERFORMANCE STATISTICS	1H21	1H20	VAR (%)
Lot sales1	1,522	1,012	50%
Lot settlements1	1,254	773	62%
Revenue2	$100.6m	$90.5m	11%
EBITDA3	$20.9m	$12.7m	65%
EBITDA3margin	21%	14%	7%
4Operating profit after tax	$10.1m	$5.1m	101%
KEY METRICS	1H21	1H20	VAR (%)
EPS (operating)	2.10c	1.05c	100%
DPS5	1.0c	0.5c	100%
	DEC 20	JUN 20	VAR (%)
per share6Book NTA	$1.09	$1.09	-

Group sales were up due to improving market conditions and government stimulus

Group settlements increased due to FY20 contracts on hand and increased sales volumes

Increased revenue was due to FM fees and equity accounted earnings

Group EBITDA3 margin higher due to improved FM/JV performance and cost reduction initiatives during 1H21, despite completion of Aston (Vic) project during FY20

Group NTA does not fully reflect:

• Value uplift on co-investment stakes in funds and joint ventures
• Value of Funds Management business

NOTES:

• 1. Includes equivalent lots
• 1. Includes share of net profit from associates and JVs
• 1. EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures
• 1. Operating profit is a non-IFRS measure that is determined to present the ongoing activities of the Group in a way that reflects its operating performance. Operating profit excludes unrealised fair value gains/(losses) arising from the effect of revaluing assets and liabilities and adjustments for realised/unrealised transactions outside the core ongoing business activities

1. Fully franked

2. NTA before application of AASB 16 Leases.

GROUP BALANCE SHEET

CAPITAL MANAGEMENT METRICS	1H21	FY20
Cash at bank1	$21.8m	$46.8m
Bank debt2	$57.7m	$59.3m
Peet bonds/convertible notes3	$225.0m	$225.0m
Gearing4	30.0%	28.8%
Interest coverratio5	1.9x	1.6x
Weighted average debt maturity	1.7 years	2.1 years
Debt fixed/hedged	92%	91%
Weighted average cash cost of debt	7.3%	7.3%

• Cash and debt facility headroom of $122m provides capacity to fund current portfolio and consider growth opportunities
• All bank debt financial covenants waived until 30 June 2021
• Refinancing of $100m bond process commenced. The Group is currently assessing several alternatives
• Gearing of 30% expected to trend lower in 1H22 resulting from Medium Density settlements and non-core asset divestments
• Cash cost of debt expected to reduce post refinancing of bonds

Notes:

• 1 Includes cash at bank of syndicates consolidated under AASB10
• 2 Includes bank debt of syndicates consolidated under AASB10
• 3 Excluding transaction costs
• 4 (Total interest bearing liabilities (including land vendor liabilities) less cash) / (Total assets less cash, less intangible assets)
• 5 12 month rolling EBIT (excluding restructuring and divestment-related provisions) / Total interest cost (including capitalised interest). 1H21 RESULTS | FEBRUARY 2021 |

GROUP CASH FLOW SUMMARY

CASH FLOWS RELATED TO OPERATING ACTIVITIES	1H21$M	1H20$M
Receipts from customers	98.6	90.8	Receipts primarily higher due to increased project management fees and settlements
Payments for development and infrastructure	(49.7)	(61.3)	from new project commencements
Payments to suppliers and employees	(22.1)	(27.3)	Development and infrastructure outlays impacted by the following:
Borrowing costs	(11.2)	(10.7)	•completion of Aston project (Owned) in FY20•construction of townhouses and low rise apartments during 1H21
Distributions and dividends from associates and joint ventures	6.8	1.0	•stock required to meet strong sales demand
Net taxes paid	(2.4)	(5.2)	Substantial capital expected to be recycled from townhouse settlements during2H21 and FY22
Operating cash flow before acquisitions	20.0	(12.7)
Payments for land acquisitions –Term payments	(6.9)	-	Distributions from funds and joint ventures increased due to higher settlements
Payments for land acquisitions –Land & Medium Density Sites	(35.8)	(11.3)	Acquired threenew development sites
Net operating cash flow	(22.7)	(24.0)

OPERATING PERFORMANCE

GROUP OPERATING PERFORMANCE

IMPROVED RESULTS ACROSS NATIONAL PORTFOLIO

• Group EBITDA up 65% on significant increase in sales and settlement volumes
• Contribution from eastern states' projects represented 84% of EBITDA1,2 during the first half
  • WA and QLD contribution improving on the back of government stimulus
• FM/JV business provided solid capital-lite earnings base representing c.74% of Group EBITDA1,2
• Continued focus on overhead management and other operational efficiencies

Notes:

Notes: 1 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures

1 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint ventures 2 Pre-overheads

GROUP SALES AND SETTLEMENT ACTIVITY

MARKET IMPROVEMENT DRIVING SALES PERFORMANCE

• Group sales1 for 1H21 of 1,522 lots up 50%
  • Group sales were up due to improving WA and QLD market conditions and government stimulus
  • Cancellation rates are moderating towards more normalised levels
• Vic sales activity during the first half were impacted by COVID-19 lockdown restrictions
• Credit availability and continuing low interest rates remain positive
• Group settlements1 of 1,254 lots up 62%

CONTRACTS ON HAND

CONTRACTS ON HAND1 (LOTS)

Notes: 1. Includes equivalent lots.

CONTRACTS ON HAND REFLECT IMPROVING MARKET CONDITIONS

Contracts on hand1 have increased by 15% since 30 June 2020 to 2,054 lots

• Reflects improving market conditions and government stimulus

Contracts value of $488m – up 14% since 30 June 2020

• Cancellation rates continue to moderate towards more normalised levels

OUTLOOK

NEW PROJECTS PROVIDE MEDIUM TERM EARNINGS VISIBILITY

PIPELINE OF APPROXIMATELY 45,800 LOTS PROVIDING VISIBILITY OF FUTURE EARNINGS

Up to four new land community projects and nine townhouse/apartment sites to commence development within the next three years

• Approximately 60% of the lots in these projects sit within the FM/JV business

Planned project releases will be fully funded from internally generated cash flows, existing debt facilities and third party capital

FY21 – FY23 NEW PROJECT RELEASE SCHEDULE

PROJECT	STATE	SEGMENT	PROJECTSTART1	LOTS2/UNITS	GDV	PROJECT LIFE(YEARS)
Communities
University of Canberra3	ACT	JV	FY22	3,300	$1,856m	20
Fort Largs	SA	Owned	FY22	335	$90m	6
Jumping Creek	NSW	Owned	FY22	219	$88m	3
Aston West	VIC	Owned	FY23	1,134	$360m	8
Townhouses
Strathpine	QLD	Owned	FY21	76	$31m	2
Nudgee	QLD	Owned	FY21	84	$40m	2
Rochedale	QLD	Owned	FY21	36	$23m	1
Acacia	VIC	Owned	FY21	80	$36m	2
Lightwood	VIC	Owned	FY21	81	$34m	2
South Morang	VIC	Owned	FY22	71	$37m	3
Keysborough	VIC	Owned	FY23	130	$100m	4
Apartments
Pier Street	WA	JV	FY21	188	$103m	3
Glyde Street	WA	Owned	FY22	44	$35m	3
Total				5,778	$2,833m

MARKET CONDITIONS: BY STATE

PEET'S SUMMARY

• Significant lots under contract after strong 1Q21 as a result of government stimulus

• New development stages now completed enabling stimulus sales to proceed to settlement, with relaxation of bank credit conditions assisting

• First home buyers remain the most active segment

• Net pricing improved due to strength of demand

• Sales cancellation rate in line with medium term rates

• 1H21 resulted in solid sales and settlement volumes

• Volume and net pricing improvements experienced across the portfolio

• New stage releases to meet increased demand continue to sell but capacity constraints are being experienced by some builders and contractors, that may result in delayed settlements

• WA QLD VIC SA ACT/NSW • Positive economic rebound post COVID-19 lockdown

  • Significant Government investment in infrastructure continues
  • Greenfield markets performing strongly compared to inner ring markets

• Strong new home and allotment sales in 2020 on back of HomeBuilder

• Market strength underpinned by low interest rates, which will continue into foreseeable future

• Owner occupier market is most active

• Detached home market is most active

• Rental vacancy rates are improving (impacted by lack of rental supply)

• Rents are increasing

• Solid employment conditions and tight supply supporting a strong market

• Volumes up materially in 1H21 due to Government stimulus and accommodating lending conditions

MARKET OUTLOOK

• Land sales strong in 1H21 with focus on converting to settlements

• Relative affordability & strength of the local economy will continue to support this market.

• Established housing market continues to strengthen with positive growth

• Strength of mining sector helping employment & overall confidence

• 2H21 sales activity expected to moderate due to a bring forward of demand from stimulus

• Rental vacancy rates lowest since 2007

• SEQ continues to benefit from solid interstate migration throughout COVID-19 at >25,000 persons annualised

• NSW and Victoria contribute ~89% of net interstate migration by state due to relative affordability and lifestyle.

• Population growth offset by negative overseas migration in June 20 quarter ABS period

• Softer sales conditions originally expected in 2H21 as a result of bringing forward demand, likely to be delayed until 4Q21 as stimulus ends

• Elevated volumes expected to continue through the course of FY21 due to HomeBuilder impact

• Prices showing early signs of recovery

• Current volumes and price growth expected to be maintained throughout FY21, subject to any negative impact from end of HomeBuilder and Jobkeeper

• Market in "modest growth mode" and expected to continue throughout CY21

WA QLD VIC SA ACT/NSW

• Limited competition to underpin demand in the short to medium term
• Modest price growth forecast to continue through FY21 and into FY22

GROUP OUTLOOK

FOCUSED ON POSITIONING FOR AN IMPROVING MARKET THROUGH A CONSERVATIVE APPROACH TO PROJECT DELIVERY AND IDENTIFYING GROWTH OPPORTUNITIES

• Consider opportunistic acquisitions to restock pipeline when appropriate
• Currently accelerating production to meet current demand
  • Sales momentum continuing into 2H21
• Improving market conditions due to Government stimulus and improving consumer confidence has contributed to strong sales in 1H21
• Residential markets are expected to remain positive over the medium term supported by low interest rates, accommodative credit conditions and an improving employment outlook
• The Group enters 2H21 with positive momentum supported by contracts on hand, improving sales activity, as well as new project commencements planned in the coming 2 years

APPENDICES

FM OPERATING PERFORMANCE

KEY PERFORMANCE STATISTICS	1H21	1H20	VAR (%)
Lot sales1	710	566	25%
Lot settlements1	769	408	88%
Revenue	$16.6m	$10.5m	58%
Share of net profit of equity accounted investments	$2.5m	$1.1m	127%
EBITDA2	$12.3m	$5.8m	112%
EBITDA2 margin	64%	50%	14%
	DEC 20	JUN 20	VAR (%)
Contracts on hand1	1,114	1,173	(5%)

FM sales were up due to improving market conditions and government stimulus

Reflects the strong contracts on hand at 30 June 2020 and increased sales activity

1H21 revenue higher due to settlement volumes and performance fees

Improved earnings due to higher settlement volumes and performance fees

2 Includes effects of non-cash movements in investments in associates

20 1H21 RESULTS | FEBRUARY 2021 |

JV OPERATING PERFORMANCE

1 Includes equivalent lots

2 Includes effects of non-cash movements in investments in JVs

KEY PERFORMANCE STATISTICS	1H21	1H20	VAR (%)
Lot sales1	477	194	146%
Lot settlements1	312	197	58%
Revenue	$20.3m	$19.5m	4%
Share of net profit of equity accounted investments	$2.8m	$1.3m	115%
EBITDA2	$7.1m	$5.0m	42%
EBITDA2 margin	31%	24%	7%
	DEC 20	JUN 20	VAR (%)
Contracts on hand1	569	404	41%
16%20%JV SALES1GEOGRAPHY (LOTS)13%QLDWANSW/ACTSA51%Notes:	13%14%	7%JV EBITDA2COMPOSITION BYGEOGRAPHY (%)QLDWANSW/ACTSANT41%		25%

Reflects the strong contracts on hand at 30 June 2020 and increased sales activity

Earnings up due to increased sales and settlement volumes

DEVELOPMENT OPERATING PERFORMANCE

KEY PERFORMANCE STATISTICS	1H21	1H20	VAR (%)
Lot sales1	335	252	33%
Lot settlements1	173	168	3%
Land only	155	168	(8%)
Medium Density product	18	-	-
Completed Homes2	33	71	(54%)
Revenue	$56.5m	$56.1m	1%
EBITDA	$6.7m	$7.2m	(7%)
EBITDAmargin	12%	13%	(1%)
	DEC 20	JUN 20	VAR (%)
Contracts on hand1	371	209	78%
7%22%DEVELOPMENTSETTLEMENTS124%COMPOSITION BYGEOGRAPHY (LOTS)VICQLDWASA47%Notes:	28%DEVELOPMENTEBITDA COMPOSITIONBY GEOGRAPHY (%)40%	3%16%

Higher sales due to government stimulus

Earnings impacted by completion of Aston (Vic) project

1 Includes equivalent lots

2 Includes settlements of both Completed Homes built on Company-managed third-party owned land and Completed Homes built on company-owned land

SUMMARY INCOME STATEMENT

	1H21	1H20	Var
	$M	$M	(%)
Funds Management	16.6	10.5	58%
Development	56.5	56.1	1%
Joint Venture	20.3	19.5	4%
Share of net profit of equity accounted investments	5.3	2.4	121%
Other1	1.9	2.0	(5%)
Revenue	100.6	90.5	11%
EBITDA	20.9	12.7	65%
Finance costs2	(5.8)	(4.4)	(32%)
Depreciation and amortisation	(1.5)	(1.7)	12%
NPBT	13.6	6.6	106%
Income tax expense	(3.7)	(1.7)	(118%)
Non-controlling interest	0.2	0.2	-
NPAT3	10.1	5.1	101%

1 Includes AASB10 Syndicates, unallocated and elimination entries

2 Finance costs includes interest and finance costs expensed through cost of sales

3 Attributable to the owners of Peet Limited

SUMMARY BALANCE SHEET

	1H21	FY20
	$M	$M
Assets
Cash and cash equivalents	21.8	46.8
Receivables	114.0	119.4
Inventories	507.2	478.5
Investments accounted for using the equity method	230.9	232.1
Other	12.5	14.1
Total assets	886.4	890.9
Liabilities
Payables	32.9	33.1
Land vendor liabilities	-	6.4
Borrowings	280.9	282.2
Other	53.1	54.4
Total liabilities	366.9	376.1
Net assets	519.5	514.8
Book NTA per share1	$1.09	$1.09

LAND BANK FUNDS MANAGEMENT KEY PROJECTS

PROJECT LIFECYCLE PROJECT NAME STATE GDV1 LOTS REMAINING2 2021 2022 2023 2024 2025 Alkimos WA $1,124m 2,230 Brabham WA $691m 3,168 Burns Beach WA $168m 292 Eglinton WA $240m 1,012 Golden Bay WA $115m 561 Lakelands WA $155m 900 Yanchep Golf Estate WA $387m 1,526 Oakford WA $136m 924 Forrestdale WA $199m 955 Movida WA $142m 640 Mundijong WA $239m 930 Yanchep (Wholesale) WA $172m 889 Spring Mountain QLD $56m 168 Caboolture QLD $109m 480 Palmview DMA QLD $120m 561 Flagstone City QLD $3,427m 10,942 Cornerstone VIC $129m 467 Newhaven VIC $313m 1,056 Cranbourne VIC $10m 79 Mt Barker SA $75m 357 Total Funds Management 8,007m 28,137

LEGEND Planning Selling

LAND BANK DEVELOPMENT KEY PROJECTS

PROJECT LIFECYCLE

PROJECT NAME	STATE	GDV1	LOTS REMAINING2	2021	2022	2023	2024	2025
Brigadoon	WA	$30m	80
Greenlea	WA	$39m	257
Mundijong	WA	$187m	781
Glyde Street	WA	$35m	44
Other	WA	$651m	4,037
Gladstone	QLD	$85m	330
Flagstone North	QLD	$385m	1,680
Palmview	QLD	$104m	385
Strathpine	QLD	$45m	123
Nudgee	QLD	$40m	84
Rochedale	QLD	$23m	36
Other	QLD	$99m	872
Aston West	VIC	$360m	1,134
Summerhill	VIC	$10m	23
Acacia	VIC	$36m	80
Lightwood	VIC	$34m	81
Lumeah	VIC	$20m	45
South Morang	VIC	$37m	71
Keysborough	VIC	$100m	130
Lightsview	SA	$34m	97
Tonsley	SA	$184m	697
Fort Largs	SA	$90m	335
Jumping Creek	NSW	$88m	219
Total Company-Owned		$2,716m	11,621

LEGEND Planning Selling

LAND BANK JOINT VENTURE KEY PROJECTS

PROJECT LIFECYCLE

PROJECT NAME	STATE	GDV1	LOTS REMAINING2	2021	2022		2023	2024	2025
Wellard	WA	$77m	365
Pier Street	WA	$103m	188
Redbank Plains	QLD	$171m	721
Googong3	NSW	$622m	1,368
Atria Apartments	ACT	$40m	65
University of Canberra4	ACT	$1,856m	3,300
Lightsview	SA	$21m	69
Total Joint Venture		$2,890m	6,076
TOTAL PIPELINE		$13,613m	45,834
						LEGEND	Planning	Selling

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. This presentation contains forward-looking statements, including statements regarding future earnings and distributions that are based on information and assumptions available to Peet as at the date of this presentation. Actual results performance or achievements could be significantly different from those expressed in, or implied by these forward-looking statements. These forward-looking statements are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond Peet's control, and which may cause actual results to differ materially from those expressed in the statements contained in the release.

The information provided in this presentation may not be suitable for your specific needs and should not be relied upon by you in substitution of you obtaining independent advice. 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 this presentation. All information in this presentation is subject to change without notice.

This presentation is not an offer or an invitation to acquire Peet securities or any other financial products in any jurisdictions, and is not a prospectus, product disclosure statement or other offering document under Australian law or any other law. It is for information purposes only.