PEET LIMITED — Investor Presentation 2011

Aug 28, 2011

FY11 Results Presentation

Success through experience

Key messages

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Notes:

1Pre FY11 write‐downs

2 Net assetsadjusted for market value of inventory

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

Key messages (continued)

SSSBUINEOSOGREPITININ	»	ffliliiildbklhCWAtttttttounercyccareposonngoananoongerermgrowsaesodQLDan
	»	1,hldbkdhhdGiiiFMttttrownananrvenrougunsanagemennowrepresennglfldbkbdli70%GDVttapproxmaeyoananyanos
	»	dhfhlllfdddCiiFY11FFMTAAttttonnuegrowowoesaepaormurnguureunan‐hiStuperparnersps
	»	hlliijRttteegngoargescaeproecsw‐
	»	lldhlldIiiiiiiitttttttnvenoryssraegcayposonegeograpcayanaprceponsohlfkiiitacevevoumerommprovngmares
	»	lhdlhddldlY10iDFttttteveopmenconracsonanoweranueoeayepannnglfkdjjiittapprovasoeymaorproecsnownproucon‐
FY12OUTLOOK	»	ldldbhhhlhhSiFY11,tttttttaesanseemensexpeceoegeranaougcompanyllklhhlddiidittttttowneeveopmenmargnseyomoeraenesorermasargerlfdljiitttcoreproecsarenearsagesoproconcceyuy
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Notes:lud1Incingjointturvenes

Group Business model

3 IncludesJuly 2011 settlement of Flagstone acquisition

Financialhighlights

	FY11			FY10
1ffiiiiOONNPPtttperangero	$$444400m	▲	%%2288	$$442288m
hOiEiStperangarnngsperare	146tcens	▲	%21	143tcens
ddhDiiSenperarev	85tcens		─	85tcens
fSNPitttttaorerouy	$221m	▼	()475%	$421m
2hhNTASSperare	$$1337	▲	1005%%	$$1224
3()l.blGiiittearngncconverenoes	33%5	▼	()2%5	360%

Notes:

1 Prewrite‐downs

2 Net assetsadjusted for market value of inventory

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

Group key financial highlights

• »Group revenue of $188.7m, up 6%
• » Operating EBITDA of $81 2m up 7%
  • » 43%EBITDA margin maintained
• »Operating NPAT of $44.0m, up 3%
• » Statutory NPAT of $22.1m
  • » impacted by pre‐tax write‐down of inventoriesof $31.3m ($21.9m post‐tax)
• » NTA per share of $1.375
  • » does not account for value of funds management business / earnings
• » Gearing of 33.5%4
  • »Based
• 1 Prewrite‐downs
• 2 Basedon average balance of assets and equity for the year
• 3 2H11 dividendof 4.5 cents per share
• 4 (Total interest bearing liabilities (including deferred payment obligations) less cash) / (Total assets adjusted for market value of inventory less cash, less intangible assets)
• 5 Net assetsAdjusted for market value of inventory

	$f%G18876ropreeneompuvuu,	$m	FY11	0FY1	()%Var
	$$fi%OEBITDA8811.227tperangommpu,	Revenue	118888.77	117788.00	6%
	%d43EBITDAiiit»margnmanane	1EBITDA	81.2	75.8	7%
		inNeEBITDAtmarg	%43	%43	%0
	$fOiNPAT4403%tperangomup,	inOpNPATterag	4444.00	4422.88	%3
	$fSNPAT22.1tttauoryom	()OpinEPS¢terag	14.6	14.3	2%
	dbdfiitttmpaceypre‐axwre‐owno»	()DPS¢	38.5	8.5	0%
	$$f()ii33291.1.tt‐tnvenoresommposax	2 ()ROCE%	13.0%	12.6%	0.4%
	$5hfNTA1.37persareo	2 ()ROE%	17.4%	19.7%	()2.3%
	dflffdtt»oesnoaccounorvaueouns
	/biitmanagemenusnessearnngs	SNPATtatutory	22.1	42.1	()47%
	4fGi33%5earngo	()SSEP¢tatutory	37.	14.1	()8%4
	dddfiiiiBttaseonresecoenanenon»vv	4 ()Gein%arg	33.5%	36.0%	()2.5%
Notes1	:‐doPreritewwns	5haNTApersre	$1.37	$1.24	%10

Group operating performance

• composition by business type1 » Funds Management business provided strong (%) recurring earnings
  • » 25 syndicates / JVs contributing to profit y gp
• » Smaller number of larger projects driving company owned Development returns
• Vi t i i fit d i d i FY11» Vic FY10toria main profitdriver during

	FY11
lesLotsa	2,209	2,567	()%14
leLottttssemen	2,981	2,366	()%7
/fdNoicaJVsteosynsbufiinitrttotcongpro	25	23
fdjNotsoowneproecbuiintrttocongfitpro	8	13

Notes:

1 Prewrite‐downs

FY11EBITDA

FY11 EBITDAcomposition by geography1 (%)

Capital management

• »Strong and secure long term capital position
• » Significant capital management achievements over FY11
  • » Diversifiedcapital sources – introduced new lender and issued convertible bonds
  • » Increasedweighted average debt maturity to 3.3 years
• » Commencement of divestment program for non‐core assets underway
  • P d t f d t dl t i li d d bt d th it l t » Proceeds tofundcurrentdevelopmentpipeline, reduce debtandpursue other capitalmanagementinitiatives

	30J11une	30J10une
hbakCatsan	$57.2m	$41.1m
debNett	$217m	$179m
1Geinarg	33.5%	36.0%
2Intetrescover	3.7x	3.4x
hddebWigitettutyeaveragemar	3.3earsy	1.9earsy
hdhedgWigitetutyeaverageemar	3.5years	4.1years
//bfddhheddgddDeixete	91%	93%
3hdfdebWigtetteaveragecoso	8.63%	13%7.

Notes:

1 (Total interest bearing liabilities (including deferred payment obligations) less cash) / (Total assets adjusted for market value of inventory less cash, less intangible assets) ( g( gp y g ))( j y,g )2 EBIT

(pre write‐downs) / Total interest cost (including capitalised interest)

3 Including all costs, fees and margins and convertible notes

Market valuationof company owned inventory

• » Independent mortgage valuations of portfolio assets of $586 million, an increase of 4.9%
  • » NTA increased 10.5%to $1.37 from FY10
• » Write down in inventory of $31.3 million before tax, $21.9 million after tax
  • » Write downs predominantly related to long‐dated projects in Queensland portfolio, following widespread economic impact of natural disasters, zoning and p g lanningdelays and deteriorating business and consumer confidence
  • »Newly acquired Flagstone West value not written down
  • » Offsetby significant market value increases in Victoria and to a lesser extent WA

Significant expansion of funds management business

40

20

10

30

• »Strong and recurrent earnings base
• » Delivered on strategy identified three years ago of growing a wholesale fundsplatform
• » Have partnered with three significant wholesale investors who are invested across four funds
  • » MTAASuper 0
  • » FutureFund
  • »Myer Family

Notes:1 In

• » Significant capital commitment to fund fundgrowth of business moving forward
• » GDV of wholesale now $3bn1, representing 48% of funds 3 management GDV
• » Securessignificant future earnings 0

today's dollars. Assumes 100% of lots in each syndicate / joint venture

Historical Funds Management EBITDA $m

2007 2008 2009 2010 2011

Historical Funds Management GDV 7$bn 4562

2008 2009 2010 2011

1

2007

Key projects underpinning outlook for FY12 and beyond

Flagstone, QLD Shorehaven at Alkimos, WA Greenvale/Craigieburn, VIC

#lots remaining: 13,297 GDV: $1,929m # lots remaining: 3,014 GDV: $802m # lots remaining: 3,630 GDV: $723m

#

lots remaining: 513 GDV: $101m # lots remaining: 1,497 GDV: $340m # lots remaining: 1,325 GDV: $189m

Landbank – key projects

1 Lots

equivalent

jPrt noecame	ioLotcan	GDV	11riiniingLLotstema()30Ju11tane	FY12	FY13	FY14
djOwtsneproec
leGreenva	VIC	$410m	1,985
igiebuCrarn	VIC	$313m	1,645
Gladstone	QLD	$011m	351
haCse	WA	$87m	065
igdoBraon	WA	$211m	261
heOtr		$1,44m7	9,863
ldjTotatsowneproec		$2776m	14,728
dsFuMtnanagemen
lagFtosne	QLD	$929m1,	3,2917
lkimAos	WA	$802m	3,014
heYancp	WA	$679m	2,152
kelandsLa	WA	$297m	29 ,07
bolCatuore	QLD	$189m	1,325
llagBoicVitane	VIC	$129m	1,006
kfodOar	WA	$179m	1,001
bolCrCetraanurnen	VIC	$167m	883
hBuBernsac	WA	$371m	795
boCrWtanurnees	VIC	$147m	778
daleFotrres	WA	$139m	719
heOtr		$909m	6,622
ljToFMtatsproec		$5,937m	33,671
inJoVeVettutnnreress
llardWe	WA	$361m	2,094
lueQVattrouas	WA	$37m	191
lToJVjtatsproec		$398m	2,285
TOTALPIPELINE		$9,111m	50,684
Notes:

Settlements andcontracts on hand

• » FY12 sales and settlements expected to be greater than FY11
• » Contracts on hand as at 30 June 2011 down due tod ldelay in planning approvals on Greenvale and Craigieburn
  • » However both projects are now in production and showing a solid sales rate

Contracts onhand

Notes:1 IncludesGST

Residential sector conditions– cyclical, not structural

• » Current market conditions are being driven by weak business and consumer sentiment
  • » Result of global economic crisis, rising living costs, interest rate speculation and government policy, including carbon tax
• »Affordability remains an issue, however household balance sheets have improved
• » Sector fundamentals remain attractive
  • » Structuralundersupply, strong population growth and low unemployment
• » Affordablemarket likely to recover first when business and consumer confidence returns

Residential marketoverview

Peet has product with geographic balance and positioned at price points to achieve volume from improving markets

• » The affordable to mid‐market segment is maintaining price stability, whilst the higher end of the market has seena decline
• » More positive indicators in the medium to long‐term ‐ household savings high, dwelling approvals below long‐term average, population growth, shortage of skilled labour, wages growth and low unemployment

VIC
Weighting	»	foigh‐inkeinHtt yperrmgmarrecenears
21%	»	kehafddshedfddshllevls2iviinisicaMH11.Acttetotttytretotoarssonewarenongwarmorere
	»	dludePriceintsanvomesmorag
	»	fudalsdLoin‐tetangerrmnmenremasoun
WA
Weighting	»	delkeflowdodwlldfallhoReiiainFY11inininicettttatssnmarsoswnegsrangmeprs–
42%	»	fufddallslluddllahhiiiveiiiciiniiniioPPottttattttseconomnmencgpopungrow
	»	dbohelabokedhSinininininintrotottttngmganengeergsecrsosgurmarancomegrow
QLD
Weighting	»	fokeffeheflddflowffePoininFY11inimisattttutetsorperrmgmarsurgpaconarasrsan‐onec–
37%	»	hdlofudalsSitrotot‐tetangresourcesecr wgoongerrmnmen
	»	$()ildindhelpimlahekeNeSGoBuBoGr10,000tatettttetottettwvernmengosanexpecsumar
	»	irylevlsimininlyEnJu2011queprovgsce
Notes:

Stateweighted by land bank by lots

Outlook

FY12 remains challenging, however Peet is optimistic given its pipeline mix and earnings fromits funds management platform1

• » Focus remains onthe affordable market segment in identified growth corridors
• » Settlements and sales for FY12 expected to be greater than FY11
  • » FY12performance underpinned by key high q y ualit p j ro ects entering production
  • » FY12pipeline weighted towards strongest markets (Vic and WA)
  • »However, may be some short‐term moderation in company owned development margins
• » Contribution from all businesses – company owned d l eve opment, retail syndication and wholesalefunds management
• »Longer term outlook to benefit from increased scale of Funds Management platform

Notes:

1 Subject to continuation of current market conditions

Strategy

Peet is focused on delivering the right projects to the right markets under a capital efficientmodel

• » Peet's strategic priorities remain
  • » Focusedbusinesses of residential land development and funds management
  • » Continuedfocus on customer, product and community to drive competitive advantage
  • » Work withwholesale partners to acquire large‐scale greenfield development projects
  • »Continuing expansion of retail syndication and wholesale funds platform nationally
  • » Prudentcapital management
  • » Continued commitment tobeing environmentally responsible across all operations

Success through experience

FY11 Annexures

Success through experience

Summary income statement

$m	FY11	FY10	()V%ar
dFtunsmanagemen	464.	367.	%26
lDteveopmen	120.6	117.7	2%
1hOter	21.7	23.6	()8%
Revenue	188.7	178.0	6%
()dEBITDAiittprenvenorywre‐owns	81.2	75.8	7%
2iFtnancecoss	()15.6	()12.0	()%30
iidiiDttteprecaonanamorsaon	()1.6	()1.5	()%7
(d)iiNPBTttpre‐nvenorywre‐own	64.0	62.3	%3
Itncomeaepensexx	()20.0	()9.15	()3%
3OiNPATtperang	44.0	42.8	3%
()OiEPSttperangcens	14.6	14.3	2%
f(f)ddAjiittttttusmensornvenorywre‐ownneoax	()21.9	()0.7	()%3,029
3SNPATtttauory	22.1	42.1	()%47
()SEPSttttauorycens	73.	141.	()%48
()SDPSttttauorycens	8.5	8.5	0%

Notes:

3 Attributable tothe owners of Peet Limited

1 Includesjoint ventures, interest income and elimination entries

l d d f h d h h f l 2 Financecosts includes interest andfinance charges amortisedthroughcost ofsales

Summary balance sheet

$m	30J11une	30J10une
Atsses
hCas	57.2	41.1
blRiecevaes	82.3	64.3
Iitnenoresv	421.4	418.4
fhhdiidIttttttnvesmensaccouneorusngeequymeo	36.1	32.6
hOter	13.1	9.5
lfdhldflAiitssecasseaseorsae	69.5	0.0
lTttoaasses	69.67	565.9
ibiliiLtaes
ddhblTtraeanoerpaaesy	30.4	25.0
ddlbliiiiLtanvenoraes	6.44	60.3
blblIiiiiitttneresearngaes	274.2	219.8
hOter	274.	27.9
bldldhlfdhldflLiiiiiiiiitttttaesrecyassocaewassescasseaseorsae	29.4	0.0
llibiliiTttoaaes	407.8	333.0
Ntteasses	271.8	232.9
1 ()Gi%earng	33.%5	36.0%
2 ($)hNTApersare	1.37	1.24

Notes:

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

2 Net Assetsadjusted for market value of inventory

Cash flowanalysis

Notes:

1 Includespayment for Yanchep Land Syndicate project

Development operating performance

$m	FY11	FY10	()V%ar
Reenevu	120.6	117.7	%2
1Oitperangexpenses	()80.5	()76.6	()5%
2IAEBTD	40.1	41.1	()%2
2iNEBITDAtemargn	33%	35%	()2%

Key operating statistics

	FY11	FY10	()V%ar
lLtosaes	423
lLttttoseemens	598	449	33%
fhdNtto.oconraconan30Jtaune	178	352	()%49
fdNjto.oowneproecsfbiiittttconrungopro	8	13

Notes:

1 Excludes interest andfinance costs expensed through cost of sales

2 Prewrite‐downs

Key performance statistics FY11 revenue composition by geography (%)

FMoperating performance

$m	FY11	0FY1	()%Var
Reenevu	46.4	36.7	%26
iOtperangexpenses	()15.7	()11.3	()39%
EBITDA	30.7	25.4	21%
NEBITDAitemargn	66%	69%	()3%

Key operating statistics

	FY11	FY10	()V%ar
lLtosaes	66222211,	229911,77	()6%
lLttttoseemens	1,463	1,651	()11%
fhdNtto.oconraconan30Jtaune	852	850	%0
fdiNto.osnaesycbfiiittttconrngoprou	23	21

Key performance statistics FY11 FM revenue composition by type

FY11 FMrevenue composition by geography

JVoperating performance

Key performance statistics

$m	FY11	FY10	()V%ar
Revenue	17.0	20.0	()%15
Oitperangexpenses	()11.4	()14.4	21%
EBITDA	6.5	6.5	0%
iNEBITDAtemargn	%33	%28	%5

K ti t ti ti Key operating statistics

	FY11	0FY1	()%Var
lLtosaes	164	246	()33%
lLttttoseemens	137	266	()%48
fNtto.oconracsonhd30Jtanaune	95	68	40%
fNJVjto.oproecsbfiiittttconrungopro	2	2

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.