1

Half year
FY21 results.
25 February 2021.

Waterline Place,
Williamstown, VIC
Artist Impression
 2

Housing
matters.
Community
matters.

Riverton,
Jimboomba, QLD
Artist Impression
 3

What we do.

• We acquire an interest in land. • We don’t do inner city high-rise or

• Develop and sub-divide it. contract building.
• Then sell a mix of land and AVJennings
built homes on our land.
 4

We moderated production levels during

2020 in response to the uncertainty
brought on by COVID-19.
Work in Progress (Lots)
• Focus shifted to completing
1500 existing WIP and unsold
1,480 completed inventory.
1000
60

1200 1,225

1,117
750
500
900

500

600

250 450
300

0
0
1H FY20 2H FY20 1H FY21
 5

Our customers are mainly owner occupiers –

our focus is the traditional residential market.
1H FY21 customer segmentation. FY20 customer segmentation.

First Home Subsequent

AVJennings customer Buyers Home Buyers
Subsequent
31% First Home

segmentation.
Home Buyers
46% Buyers
33%
35%

Builders /
Builders / Investors Developers
11%
Developers 21%

14%
Investors
9% Zero foreign buyers.
 6

We maintain a large and geographically

diverse Australia & New Zealand portfolio.
Diverse geographic allocation of funds employed
helps mitigate market risk.

Portfolio dynamics
• Total NFE $567 million
• 12.7k lots in the portfolio
• Largest by lot size is Caboolture
PCP in SEQ – 3.5k lots under option
19%

QLD • Strong focus on horizontal

20% development

PCP
PCP
1%
10%

WA SA PCP NZ
PCP
17%
28%
3% 9% NZ
NSW
PCP 24% 18%
25%

VIC
26%

PCP = Prior corresponding period (1H FY20)

 7

Review of
1H FY21.

St Clair,
St Clair, SA
Artist Impression
 8

Headline numbers.

1H FY21 1H FY20 Change

Total revenue $114.6m $171.4m (33.2%)

Statutory profit before tax $9.5m $12.6m (24.9%)

Statutory profit after tax $5.5m $8.9m (37.7%)

Gross margins 24.3% 22.2% +2.1pp

Net tangible assets (NTA) $396.4m $396.2m 0.1%

NTA per share $0.98 $0.98 0.1%

EPS (cents per share) 1.4 2.2 (37.9%)

Dividend fully franked (cents per share) 0.7 1.2 (41.7%)

 9

Results summary.

Settlements (Lots) Revenue ($m) Contracts signings ($m)

600 200 150

566
139
500 171
120
150 Contract signings
112
400 growth exceeds revenue
395 90 growth for
115
300 100 1H FY21, reversal of
60
FY20 position - this is
200 a positive indicator for
50
future revenue growth.
30
100

0 0 0
1H FY20 1H FY21
1H FY20 1H FY21 1H FY20 1H FY21 1H FY20 1H FY21
 10

48% growth in contracts signed provides

solid platform for future earnings.
Contract Signings (Lots)
450 • 408 pre-sales carried over at
31 December 2020.
416 415
400 • 331 contracts signed at
31 December 2020 with a pre-sale
350 value of $121 million are expected to
settle before 30th June 2021.
300

281
250 260 259 +47.7%

200

150

100

50

0
1H FY19 2H FY19 1H FY20 2H FY20 1H FY21
 11

Revenue by region.

Revenue by region ($m)

• Total settlements down 30%
80 to 395 lots.
• Results heavily impacted
70 by the timing of completed
projects and revenue
60 recognition in NSW and NZ.

50

40

30

20
1H FY20
1H FY20
10
1H FY21

0
1H FY21
NSW VIC QLD SA WA NZ
 12

Product revenue mix.

Product Revenue Mix ($m)

100 • Apartment revenue mainly 2H FY21
(Waterline Place).
• Land revenue linked to timing of
80
projects in NSW and NZ.

60

40

20
1H FY20

1H FY21
0
Land Housing Apartments

H1 21
 13

Balance Sheet.

$Millions December 2020 June 2020

CURRENT ASSETS    
Cash and cash equivalents 9.4 5.7
Receivables 7.0 23.0
Inventories 208.2 185.4
Total Current Assets 231.1 219.5
NON-CURRENT ASSETS
Inventories 416.9 402.0
Total Non-Current Assets 448.2 435.7
TOTAL ASSETS 679.3 655.2
CURRENT LIABILITIES
Payables 53.5 16.5
Borrowings 30.0 -
Total Current Liabilities 90.7 24.4
NON-CURRENT LIABILITIES
Borrowings 147.0 190.1
Total Non-Current Liabilities 189.3 237.7
TOTAL LIABILITIES 280.0 262.1
NET ASSETS 399.3 393.1
 14

Cash Flow Statement.

$Millions 1H FY21 1H FY20

CASH FLOWS FROM OPERATING ACTIVITIES    

Receipts from customers 145.4 173.0

Payments to suppliers, land vendors and employees (120.1) (134.8)

Net cash from operating activities 17.4 25.0

CASH FLOWS FROM INVESTING ACTIVITIES

Net cash from investing activities 0.2 0.1

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from borrowings 40.2 36.7

Repayment of borrowings (53.3) (57.0)

Net cash used in financing activities (13.9) (27.6)

NET INCREASE/(DECREASE) IN CASH HELD 3.7 (2.5)

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Gearing is in the middle of our target

range, providing capacity to fund growth.

Gearing Ratio - Net Debt To Total Assets (%)

40 • Target range is 15% to 35%
net debt to total assets.
35

30

25

20

15

10

0
June '19 Dec '19 June '20 Dec' 20
 16

Work in progress and

completed unsettled inventory.

Work in Progress (Lots) Completed unsettled • Considerable escalation in

inventory (Lots) early months of CY21
60 60

2241 400 1000 • Focus in latter part of CY21

2161 and selling existing WIP and
378 completed inventory.
1991 1949
1880

1681 300 750 599

1623 1600
1539 1512 1480

1264 1225
200 500
1117
191 *
974

715

100 250 450

554

*Excludes WA assets which at 30 June 2020

0 were all treated as investments.
0
1H FY13 2H FY13 1H FY14 2H FY14 1H FY15 2H FY15 1H FY16 2H FY16 1H FY17 2H FY17 1H FY18 2H FY18 1H FY19 2H FY19 1H FY20 2H FY20 1H FY21 30 Jun 31 Dec
2020 2020
 17

Effective land acquisition strategy

through the cycle.

Total lots controlled by AVJennings

12669
12134

11259
10876 10837

10198 10048
9825 9952
9654 9530
9480 9373
9219

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 1H FY21
 18

Dividend re-commences;
linked to stronger earnings.

Earnings and Dividend History (cents per share)

4.5

4.03 4.10

4.0 3.73

3.5
3.0
3.0

2.5
2.19
2.0
2.0

1.50
1.5 1.36
1.20
1.0
EPS
1.0
0.7
EPS
0.36
0.5
DPS
0.04 0 DPS
0.0
1H FY18 2H FY18 1H FY19 2H FY19 1H FY20 2H FY20 1H FY21
 19

Market outlook.

• Market was forecast to rebound strongly in CY20 (Pre-COVID-19)

• Backed up by sales in early part of CY20
• COVID-19 impact
• After initial slump sales have continued
• Stronger than most first thought/feared
• But lower than forecasts pre-pandemic
• HomeBuilder and other government support/stimulus
• Has been vital to encouraging existing underlying demand to
continue which buying intentions
• Has particularly stimulated first home buyers
 20

Market outlook.

• Post HomeBuilder
• Existing demand underlying the forecast market recovery pre-
pandemic remains main driver
• Supported by low levels of supply, especially of traditional
housing, in recent years
• Market will now be supported by growing confidence in:
• Economic recovery
• Strongly supported by significant government budget
programs
• Second wave when tourism, entertainment and education
sectors move to stronger recovery
• Job growth/security
• Continuing low interest rate environment
• Confidence in less risk of future lockdowns and restrictions as
vaccine program rolled out
 21

Sales volumes in the last 6 months highlight

demand resilience in the market.

Contract Signings (Lots) July 2018 - December 2020

100

80

60

40

20

0
Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2018 2019 2020

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AVJennings outlook.

• The second half of FY21 is expected to

be the stronger of the two halves
• Pre-sales of 408 were carried over
from 31 December 2020, of which
331 with a contract value of $121
million are expected to settle or be
revenue-recognised in the second
half.
• Around 118 additional contracts to
23 February 2021 have so far been
signed in calendar 2021. This level
of sales activity and expected
settlements forms a solid base for
the second half of FY21.
 23

AVJennings outlook.

• The second half of FY21 is also forecast to see Warnervale, NSW Kogarah, NSW
the commencement of three new projects:
• Prosper at Kogarah in Sydney;
• Rosella Rise at Warnervale on the NSW
Central Coast; and
• Aspect at Mernda in Melbourne’s strong
northern corridor.
All due to commence on-site development.
Mernda, VIC
 24

AVJennings outlook.

• AVJennings is cautiously optimistic that the recovery

will consolidate through calendar 2021, with consumer
confidence returning with the support of access to low
cost finance, slowly rising employment levels and the
rollout of COVID-19 vaccines which are now underway
in Australia and New Zealand.
• Longer term the resumption and level of immigration into
Australia and New Zealand will be important drivers of
activity for the sector.
• Product and customer profile well suited to post
COVID-19 conditions.
• Strong financial position to support growth.
 25

Community
and trust.
 26

Community engagement.
Supporting women in sport. Commitment to recreational spaces Steve Waugh Foundation and
in our communities. Captains Ride sponsorship

Started in

2012.
Proud sponsors of
5
completed
homes.
Raised over Founding Sponsor for

$1million. Corporate Captains

throughout the partner Ride
partnership. of the foundation. in 2018 & 2019.
New project in
Riverton, QLD.
 27

Our people.
 28

Project pipeline
update.

Creekwood,
Meridan Plains, QLD
 29

Queensland
business overview.
• Arbor (Rochedale) – sales and
MACKAY
settlements for majority of the
project in first half.
CALOUNDRA

CABOOLTURE
• Riverton (Jimboomba) –
commencement of standalone
BRIDGEMAN
DOWNS housing under AVJ spec building
BRISBANE
ROCHEDALE model in stage 1 with 9 houses and
LEICHHARDT
RIPLEY & BETHANIA
a sales office under construction.
DEEBING
HEIGHTS JIMBOOMBA
Stage 2a land lots under
construction.

• Cadence (Ripley) – First stages (1a

& 1b) completed with settlements in
NFE $114m first half.

Total Lots 5,893 *

• Acquisition of Ripley 3 (449 lots)
secured as an extension to the
Cadence project.
1H FY21
$34m
Revenue • Bethania project recommenced
with construction after a 3 year
hold.

• Creekwood project a finalist

in the QLD UDIA Awards in the
*Includes 3,500 at Caboolture & 449 at Ripley
Environmental Excellence category. Anise,
Bridgeman Downs, QLD
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New South Wales

Headline. Arcadian Grove,
Cobbitty, NSW

business overview.
Sub-headline. • Increase in development housing
construction.
SANDY BEACH
• Warnervale stage 1 commenced
WARNERVALE HAMLYN TERRACE
construction.
CENTRAL COAST
• Sandy Beach sold and settled its
SYDNEY last lot.
KOGARAH
COBBITTY
SPRINGFARM
ELDERSLIE • Acquisition of Calderwood (Shell
HUNTLEY
Harbour) land parcel.

NFE $140m

Total Lots 1,931

1H FY21
$39m
Revenue
 31

Victoria
Headline. Lyndarum North Townhomes,
Wollert, VIC

business overview.
Sub-headline. • Waterline Place
• Liley Town homes shortlisted for
Vic UDIA award for Best Medium
WOLLERT MERNDA
Density Development.
BRUNSWICK WEST
WILLIAMSTOWN MELBOURNE
• Empress Apartments topped
out with construction on track
for settlements in FY21.
• First of Bower townhomes sold.
• Lyndarum North
• Strong sales in Q3.
• Main park opened providing
local residents a great place to
NFE $151m play and relax during COVID
lockdown periods.
Total Lots 2,437
• Mernda
1H FY21 • Land rezoned by state
$28m government and development
Revenue
plan lodged for the site.
• Brunswick West
• Development Plan lodged with
DELWP for approval.
• Works to commence in Mid
2021.
Artist Impression
 32

New Zealand
Headline. Ara Hills,
Orewa, NZ

business overview.
Sub-headline. • Ara Hills at Orewa

• Stage construction works have

completed in Stage 1a, 1b and
OREWA
HOBSONVILLE POINT 1c. Final infrastructure works are
AUCKLAND now been completed to enable
titling which will positively
impact on full year results.

• Strong sales and enquiry with

limited stock now available.

NFE $105m

Total Lots 637

1H FY21
$2m
Revenue
 33

South Australia
Headline. Eyre,
Eyre, SA

business overview.
Sub-headline. • Goolwa North and Murray Bridge
EYRE
• Works commenced on both
ST CLAIR regional projects with titles
ADELAIDE
secured in Q2 after long
hiatus between stages.
MURRAY BRIDGE

• Consistent sales taking

GOOLWA NORTH advantage of Federal
Government Homebuilder
stimulus.  

• Eyre

• Built form commencement on

NFE $51m Duplex product well received
by the market.
Total Lots 1,596
• 2 stages of construction
1H FY21 completed with strong sales.
$11m
Revenue

Artist Impression
 34

Detailed project pipeline by region.

Remaining# of
Communities
Lots
Pre FY21 FY22 FY23 FY24 FY25 Post

Argyle, Elderslie 114

Evergreen, Spring Farm (South) 38
New South Wales

Evergreen, Spring Farm (East Village) 432

Arcadian Hills, Cobbitty Stages 1 – 8/11 130
Arcadian Grove, Cobbitty 28
Rosella Rise, Warnervale 526
Evergreen, Spring Farm (Starhill) 19
Prosper, Kogarah (apartment project) 56
Huntley 194
Calderwood 390
Creekwood, Caloundra 35
Glenrowan, Mackay 177
Essington Rise, Leichardt 5
Queensland

Parkside, Bethania 42
Anise, Bridgeman Downs 33
Arbor, Rochedale 2 24
Riverton, Jimboomba 1,127
Deebing Springs, Deebing Heights 205
Arbor, Rochedale 1 20
Cadence, Ripley
Ripley 3
276
449
Pre-delivery phase
N.Z.

Ara Hills, Orewa 637

Lyndarum, Wollert 95 Development phase
Lyndarum North, Wollert JV 1,746
Victoria

Aspect, Mernda 231

Harvest Square, Brunswick
Waterline Place, Williamstown
87
278
Project pipeline as at
Pathways, Murray Bridge 38 31 Dec 2020.
River Breeze, Goolwa North 93
S.A.

St Clair 189
Eyre 1,276
Indigo China Green, Subiaco Fine China Precinct 66
Viridian China Green, Subiaco Fine China Precinct 10
W.A.

The Heights Kardinya 71

Parkview, Ferndale 28

Excludes 3,500 lots at Caboolture, Queensland

 35

Headline.

Sub-headline.