PEET LIMITED — Investor Presentation 2022

Mar 8, 2022

FY19 RESULTS | AUGUST 2019 1

RESIDENTIAL SALES MOMENTUM UNDERPINS FUTURE EARNINGS

1H22 Results Summary

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Operating [1 ] and
Statutory Profit $20.620.6
After Tax
million
103%
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Statutory Profit $20.620.6
After Tax
million
103% 1,809
LOTS [3 ] SOLD
OPERATING EARNINGS
1,251
19%
OF 4.3 CENTS LOTS [3 ] SETTLED
INCREASE ON
PER SHARE
1H21
103%
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$817m
CONTRACTS
VALUE ON HAND
49%
INCREASE ON
30 JUNE 2021
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DIVIDEND OF
2.25 CENTS
PER SHARE
FULLY FRANKED
GEARING [2 ] OF
27.5%
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CASH AND
UNDRAWN
FACILITIES
>$140m
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26%
EBITDA [4 ] MARGIN 2
NEW PROJECTS
5% COMMENCED SALES/
DEVELOPMENT
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Notes:

• 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

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• 2 Calculated as (Total interest-bearing liabilities (including land vendor liabilities) less cash)/(Total assets less cash, less intangible assets) 3 Includes equivalent lots

• 4 EBITDA is a non-IFRS measure that includes effects of non-cash movements in investments in associates and joint venture

EUROZ HARTLEY’S ROTTNEST CONFERENCE | MARCH 2022 |

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BROAD CUSTOMER AND PRODUCT REACH

SCALE PIPELINE WITH LOW COST BASE

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42,630
LOTS
$14.3bn
END VALUE
NO. OF NO. OF NO. OF
WA PROJECTS VIC PROJECTS NSW PROJECTS 51
21 9 2
PROJECTS
NO. OF NO. OF NO. OF
QLD PROJECTS ACT PROJECTS SA PROJECTS
12 1 6
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Peet manages a broad property
portfolio, encompassing 42,630
lots across 51 projects
Diversified land bank
strategically located in growth
corridors of major cities in every
mainland state of Australia
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Range of affordable product type appealing to all buyer segments

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EUROZ HARTLEY’S ROTTNEST CONFERENCE | MARCH 2022 |3

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Key achievements
• Full ownership of Flagstone City and
University of Canberra on long dated
settlement terms
•
Divestment of QLD broadacre site for $80m
– 83% premium to book value
-
Settlement contracted for 1H23
• Two new projects commenced
development/sales in 1H22 with a further
three projects to be launched 2H22
• Two built form projects acquired in 1H22;
pipeline of approx. 1,000 dwellings
EUROZ HARTLEY’S ROTTNEST CONFERENCE | MARCH 2022 | 4
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GROUP PRIORITIES AND STRATEGIC FOCUS

Executing our strategy for future growth and value creation

• MAINTAIN STRONG

• CAPITAL MANAGEMENT

• • Continue to assess capital recycling opportunities

• • Continue to develop FM/JV initiatives with existing and new capital partners

DIVERSIFY PORTFOLIO

• Continue to increase weighting of portfolio to east coast • Continue to assess capital markets recycling opportunities

• • Balance portfolio between land • Continue to develop FM/JV and built form projects ACCELERATE PIPELINE initiatives with existing and new

• ‒ Remain focussed on the right • Optimising land bank through capital partners product in the right markets •

• continuous master planning Consider selective acquisitions

• ‒ Townhouses and apartments improvements to maintain development

• targeting inner and middle ‒ pipeline in line with the Group’s

• rings of major cities Product diversity to meet strategic focus

• evolving customer needs

• • Executing on $75m non-core ‒ Continue to focus on asset divestment program - improving operating margins

• c.80% complete • Accelerate planning approvals and production levels to meet current and future demand ‒ Continued focus on improving operating cash flows

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14000

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ENQUIRY LEVELS
REMAIN STRONG
•
Substantial uplift in VIC and SA due
to launch of new projects and new
stage releases
•
WA enquiry lower due to capacity
constraints impacting land supply
and builder time frames
-
Expect WA enquiry levels to
improve post border opening
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12000 11,716
10000
8,896
8000 7,838
6,956
6,579
6,202
6000 5,571
4,679
4,132 4,107 4,035
4000 3,831
3,543
3,219
2000
0
1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22
Quarter
FY19 FY20 FY21 FY22
VIC QLD WA NSW/ACT SA
Registrations Of Interest
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EUROZ HARTLEY’S ROTTNEST CONFERENCE | MARCH 2022 | 5

CONTRACTS ON HAND

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CONTRACTS ON HAND [1 ] (LOTS)
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2,506 2,594
1,948
1,786
1,257
FY19 FY20 FY21 1H22 18-Feb-22
CONTRACTS ON HAND (VALUE)
$897 m
$817 m
$547 m
$428 m
$336 m
FY19 FY20 FY21 1H22 18-Feb-22
Notes:
1. Includes equivalent lots
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Contracts on hand[1] increased by 29% since 30 June 2021 to 2,506 lots

• Reflects strong market conditions across all of the Group’s markets

Contracts value of $817m – up 49% since 30 June 2021

Sales momentum continuing into 2H22 resulting in further increased contracts on hand

• Contracts value have increased by 10% to $897m since half year end

EUROZ HARTLEY’S ROTTNEST CONFERENCE | MARCH 2022 |

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NEW PROJECTS PROVIDE MEDIUM TERM EARNINGS VISIBILITY

Pipeline of approximately 43,000 lots providing visibility of future earnings

FY22 – FY24 NEW PROJECT RELEASE SCHEDULE

• Up to six new land community projects and seven townhouse/apartment sites to commence development within the next three years

• Planned project releases will be fully funded from internally generated cash flows and existing debt facilities

PROJECT	STATE	SEGMENT	PROJECT	**LOTS2/ **	GDV	PROJECT LIFE
			START1	UNITS		(YEARS)
Communities
University of Canberra	ACT	Owned	FY23	2,654	$1,992m	15
Fort Largs	SA	Owned	FY22	268	$92m	4
Jumping Creek	NSW	Owned	FY22	218	$162m	3
Ellery	VIC	Owned	FY22	279	$209m	2
Aston West	VIC	Owned	FY23	1,121	$353m	7
Palmview DMA	QLD	Funds	FY24	737	$114m	5
Townhouses
Nudgee	QLD	Owned	FY22	84	$46m	2
Rochedale	QLD	Owned	FY23	36	$25m	1
South Morang	VIC	Owned	FY22	71	$42m	2
Keysborough	VIC	Owned	FY23	100	$92m	3
Cranbourne East	VIC	Owned	FY23	57	$34m	3
Glendalough	WA	Owned	FY23	100	$75m	2
Apartments
Glyde Street	WA	Owned	FY23	51	$47m	3
Total				5,776	$3,283m

Notes:

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1 Commencement of sales / development 2 Refers to lots and/or dwellings

EUROZ HARTLEY’S ROTTNEST CONFERENCE | MARCH 2022 |

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FLAGSTONE CITY - QLD

• A ~11,000 lots[1] master planned community with a GDV of approximately $4 billion

• Located 38km south-west of Brisbane’s CBD and 27km from Springfield in one of the fastest growing corridors in SEQ

• The project includes the only town centre in the 7,000ha Greater Flagstone Priority Development Area (PDA), which will support the region’s expected population of 150,000 people and more than 50,000 homes

• Peet acquired the remaining 50% of the project providing 100% ownership of a large scale, low cost and long-term project in a key SEQ growth corridor

• Purchase consideration of $46.15 million

• Paid in four instalments over three years commencing 19 January 2022 (Settlement Date)

• Peet will assume an additional $21 million of debt representing the previous co-owner’s share of the project’s development loan

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Notes: 1 Includes equivalent lots

EUROZ HARTLEY’S ROTTNEST CONFERENCE | MARCH 2022 | 8

FLAGSTONE CITY - QLD

• Unique opportunity to increase exposure to an actively trading and significantly de-risked project currently generating strong sales and earnings

• FY22 sales expected to be circa 300 lots, assuming current market conditions remain

• Strong price growth achieved in the 12 months to Dec 21

• State and local government Infrastructure Agreement signed for more than $1.2 billion

• Statutory approvals in place including Federal environmental approvals providing ~10 years of unconstrained development.

• The future Town Centre comprises >80ha of land anchored by health, retail, light industrial (bulky goods), education and medium to high density residential uses centrally located in the PDA

• A future Flagstone Passenger Rail Station located within the development core

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EUROZ HARTLEY’S ROTTNEST CONFERENCE | MARCH 2022 | 9

UNIVERSITY CANBERRA - ACT

• During 1H22, Peet acquired approximately 15ha of land from the University of Canberra in Belconnen, ACT for circa $67 million

• The transaction is a restructure of the conditional agreement between the parties for the joint development of that land, announced in April 2016

• Strategic land holding located 7km from the Canberra CBD and adjacent to the Belconnen Town Centre and Lake Ginninderra

• Mixed use urban infill development comprising over 1,650 residences through a mix of townhouses and apartments

• GDV of approx. $1.1 billion

• The acquisition of the Property is subject to the ACT government granting a Crown Lease, with the purchase price expected to be paid in instalments over seven years commencing in 2022

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EUROZ HARTLEY’S ROTTNEST CONFERENCE | MARCH 2022 | 10

UNIVERSITY CANBERRA - ACT

• The development will be a benchmark for contemporary living that demonstrates innovative planning and design in architecture, landscape and streetscape

• The project design will be modern, progressive and sustainable, delivering a diverse mix of townhouses and apartments

• Unique and rare opportunity to develop a site with significant retail, entertainment, transport and employment amenity

• It will provide Peet with a long-term presence in the Belconnen Town Centre growth corridor of Canberra

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Artist impression

• Peet has also entered into an option agreement for the acquisition of a further 6.2ha of land from the University of Canberra (circa 1,000 dwellings with a GDV of approx. $900 million) with the option exercisable between January 2027 and December 2030

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Artist impression

EUROZ HARTLEY’S ROTTNEST CONFERENCE | MARCH 2022 | 11

GROUP OUTLOOK

• Residential markets are expected to remain positive over the medium term supported by improving employment outlook, population growth and current accommodating credit conditions

• Continuing residential sales momentum, a significant development pipeline and a strengthening balance sheet, positions the Group well for future growth

• The Group continues to monitor, assess and manage the ongoing impacts of COVID-19 including tight labour conditions and construction constraints

• These impacts may contribute to:

• Development program timeframes being extended

• Disruption to supply chains

• Increased development and labour costs due to border restrictions and availability of labour

• The balance of FY22 is expected to see a continuing focus on the delivery of a significant number of land lots and townhouses sold along with the commencement of up to three new projects

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Focused on positioning the Group for growth
through a prudent approach to project delivery and
identifying growth opportunities
•
The Group achieved an operating profit after tax
for 1H22 of $20.6 million which was above
guidance
•
Subject to market conditions and the timing of
settlements, the Group is well-positioned for
further earnings growth in 2H22 supported by
substantial contracts on hand, continuing sales
momentum and full ownership of the Flagstone
City project
EUROZ HARTLEY’S ROTTNEST CONFERENCE | MARCH 2022 | 12
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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.

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