Slide 1: Results Presentation cover letter
ABN 47 009 259 081 For personal use only Level 4, 66 Kings Park Road West Perth Western Australia 6005 PO Box 788 West Perth 6872 Telephone: (08) 9480 1500 Facsimile: (08) 9480 1599 www.cedarwoods.com.au email@cedarwoods.com.au 22 August 2007 Australian Stock Exchange Limited Exchange Centre, Level
Slide 2: 2007 Annual Results
For personal use only 2007 Annual Results
Slide 3: Presentation outline
Presentation outline For personal use only ♦ Company objectives ♦ Financial highlights ♦ Review of recent developments ♦ Outlook and FY2008 forecast
Slide 4: Company objectives
Company objectives For personal use only ♦ Primary objective – growth in earnings per share ♦ Aim to be in the top half of listed companies ♦ CWPL’s current benchmark is 10% pa earnings growth ♦ Gearing (net debt to equity) – target range 20% to 75% ♦ Return on equity – minimum of 12%
Slide 5: Financial highlights – income statement
Financial highlights – income statement For personal use only FY2007 FY2006 $m $ Revenue 90.0 80.5 12% Profit before income tax 26.8 23.1 16% expense Net profit after tax attributable 18.5 16.2 14% to members of CWPL Earnings per share 33.9 cents 30.3 cents 12%
Slide 6: Financial highlights – income statement
Financial highlights – income statement For personal use only FY2007 FY2006 EBIT/Sales 34.7% 32.0% ROE 25.9% 23.7% ROC 23.1% 26.5% • Margins improved due to price growth • ROE improved due to earnings growth • ROC reduced due to growth in long term assets.
Slide 7: Growth in profits and dividends
Growth in profits and dividends For personal use only 25 18.0 16.0 20 14.0 12.0 Dividends (cents) 15 Profit ($m) 10.0 8.0 10 20.0 18.5 16.2 6.0 12.4 4.0 5 10.3 7.1 2.0 0 0.0 2003 2004 2005 2006 2007 2008F Actual Forecast Dividends
Slide 8: CWP share price and NPAT growth
CWP share price and NPAT growth For personal use only 25 6.00 5.50 5.00 20 4.50 4.00 NPAT $m 15 3.50 Price $ 3.00 10 2.50 2.00 1.50 5 1.00 7.1 10.3 12.4 16.2 18.5 20.0 0.50 0 0.00 2003 2004 2005 2006 2007 2008F NPAT Share Price
Slide 9: Revenue and asset growth
Revenue and asset growth For personal use only Compound average growth rate 180.0 Revenue 25% 160.0 140.0 Total assets 23.5% 120.0 100.0 $M 80.0 60.0 40.0 20.0 37.1 66.8 57.2 94.7 75.1 130.5 80.2 152.0 90.0 155.6 0.0 2003 2004 2005 2006 2007 Revenue Total Assets
Slide 10: Total shareholder returns
Total shareholder returns For personal use only ASX Real Estate CWP to 30/6/07 Sector (2006) 1 Year 20% 20% 3 Year 52% 17% 5 Year 67% 13%
Slide 11: Financial highlights – balance sheet
Financial highlights – balance sheet For personal use only Jun 2007 Jun 2006 Jun 2006 (Wellard (Wellard Actual 25%) 25%) Total assets $m 155.6 152.0 194.9 Net bank debt $m 63.7 43.4 29.0 Shareholders equity $m 71.6 60.5 68.5 Net bank debt to equity (%) 89.0 71.9 42.3 Interest cover (x) 7 9 9
Slide 12: Financial highlights – balance sheet
Financial highlights – balance sheet For personal use only • Total assets reduced as a result of ‘deconsolidating’ Cedar Woods Wellard Limited, as our interest reduced to 25% post 30 June 2006. • Gearing expected to stay at upper end of preferred range in FY2008 as company commences projects in Melb
Slide 13: Statement of operating cash flows
Statement of operating cash flows For personal use only FY2007 FY2006 Cashflows related to operating activities $M $M Receipts from customers 98.7 87.8 Payments to suppliers & employees (27.2) (19.7) Net borrowing cost (5.8) (3.8) Income taxes paid (6.8) (6.1) Payments for inventory – new land (45.9
Slide 14: Dividend policy
Dividend policy For personal use only • Maintain current balance between interim and full year dividend – approximately 40 / 60. • 50% net profit plus distributed reserves for full year • Dividend reinvestment plan will continue for future dividends. • Current DRP take up 23%
Slide 15: WA & Victoria projects
WA & Victoria projects For personal use only
Slide 16: Project life – Perth
Project life – Perth For personal use only FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 Rivergums Cambridge Waters Mariners Cove Mandurah Country Club Nautilus Kestrels Waterline Helena Valley The Jetty Port Mandurah (Sutton) Forrestdale Cedar Woods Wellard Pinjarra Lots Und
Slide 17: Project Life - Melbourne
Project Life - Melbourne For personal use only FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Lalor Laverton Footscray
Slide 18: Business model
Business model For personal use only Owned Developments Syndications Joint Ventures Other Structures Land Under Options / Owned Property Development Agreements Residential Built Form Industrial Retail / Commercial LANDBANK Western Australia / Victoria
Slide 19: Growth strategies
Growth strategies For personal use only • Drive value from existing projects • Affordable housing and retirement sector • Properties under option • Growth in Melbourne market • Williams Landing town centre - commercial portfolio, trust structure • Property syndication
Slide 20: Projects under option
Projects under option For personal use only • Earnings pipeline in place for 5 years of growth. • Optioning medium – longer term landbank. • Options over significant land parcels in WA - exercisable in 2-3 years time. - development commencing in 3-5 years.
Slide 21: Growth in Melbourne market
Growth in Melbourne market For personal use only • All projects under development in FY2008. • Earnings in FY2009 and growing thereafter. • Further acquisitions focus. • Market experiencing upswing in Victoria.
Slide 22: Commercial portfolio
Commercial portfolio For personal use only • Opportunities from existing portfolio, particularly Williams Landing. • Mixed use sites • Retail developments eg. within apartment projects • Commercial units
Slide 23: Property syndication
Property syndication For personal use only • Wellard syndicate development underway. • Expect to add 1-2 syndicates annually. • CWWL to commence development in FY2008 and on track to deliver first sales in FY2009.
Slide 24: Built Form
For personal use only Built Form
Slide 25: For personal use only
A Q | A LUXURY = N N U T I L LJ S AN APARS \) PavaTeat MENTS on \ ene ere
Slide 26: For personal use only
Ve Tere LIM & epertments:mandureah AWARD WINNING PROPERTY DEVELOPER
Slide 27: The Jetty apartments
THE JETTY APARTMENTS @ AT PALM BEACH Cedar<@ Woods
Slide 28: For personal use only
THE /Li/wulys / i= NDURAH BYPASS Oi PERTA— 7
Slide 29: Residential
For personal use only Residential
Slide 30: The Islands at Mariners Cove
Go The tslands AT MARIMERS gave ay NW, a 3 = = I EVIE Cedar@® Woods A WAR D Weibhean Nine iNGG PRR ORPSES Rieti y BPE Ee OP Esk
Slide 31: For personal use only
For personal use only
Slide 32: The Kestrels
eR oS ‘The Kestrels Barfect spor to — ye
Slide 33: Cambridge Waters, Canning Vale
en WATERS CANNING VALE Cedar@® Woods AWARD WIN
Slide 34: Melbourne Projects
For personal use only Melbourne Projects
Slide 35: Banbury Village, Footscray
Banbury Village, Footscray For personal use only
Slide 36: Banbury Village, Footscray – Master Plan
Banbury Village, Footscray For personal use only Master Plan – Land Development
Slide 37: Banbury Village, Footscray
Banbury Village, Footscray For personal use only
Slide 38: Williams Landing, Laverton
Williams Landing, Laverton For personal use only
Slide 39: Williams Landing, Laverton
Williams Landing, Laverton For personal use only
Slide 40: Carlingford, Lalor
For personal use only Carlingford, Lalor
Slide 41: Carlingford, Lalor
For personal use only Carlingford, Lalor
Slide 42: Economic outlook
Economic outlook For personal use only FY2006 FY2007 FY2008 FY2009 actual estimate forecast forecast Australia (GDP growth %) – 2.8 2.5 3.75 3.0 Federal Treasury Western Australia (GSP 4.9 6.0 4.5 5.0 growth %) – WA Treasury Victoria (GSP %) – VIC 2.7 2.75 3.25 3.25 Treasury
Slide 43: Population growth
Population growth For personal use only Dec 2006 population 1 year increase % increase (000’s) (000’s) VIC 5,165 77 1.5 WA 2,081 43 2.1 QLD 4,132 82 2.0 NSW 6,855 64 0.9 AUSTRALIA 20,852 293 1.4 Source: ABS Cat.3101.0
Slide 44: Average weekly earnings – May 2007
Average weekly earnings – May 2007 For personal use only AWE 1 Year Change WA $914.90 + 10.6% Vic $853.40 + 4% Qld $818.90 + 3.2% NSW $909.8 + 5.1%
Slide 45: Unemployment rate % (July 2007)
Unemployment rate % (July 2007) For personal use only Unemployment Rate % (July 2007) 5 4.5 4 3.5 Rate (%) 3 2.5 2 1.5 1 0.5 0 Victoria Western Queensland New South Australia Australia Wales Source: ABS Cat. 6202.0 Annual Average Rate
Slide 46: Growth in established house prices
Growth in established house prices For personal use only Mar Qtr 07 Jun Qtr 06 to to Jun Qtr 07 Jun Qtr 07 % change % change Sydney 2.3 3.0 Melbourne 5.0 11.5 Brisbane 6.5 15.7 Perth -0.9 15.3
Slide 47: Dwelling unit approvals 2006/07
Dwelling unit approvals 2006/07 For personal use only Total Dwelling Units Total Dwelling Units no. % change NSW 31,119 -6.1 Vic 37,915 3.8 Qld 41,293 8.7 WA 25,077 -3.0 Australia 152,709 1.3
Slide 48: Housing supply and demand
Housing supply and demand For personal use only Western Australia Underlying Requirements for Housing vs Actual & Forecast Dwelling Starts 30.0 25.0 20.0 Victoria 15.0 Underlying Requirements for Housing vs Actual & Forecast 10.0 Dwelling Starts 48.0 5.0 46.0 0.0 44.0 2005 (a) 2006 (a) 2007 (f) 2008
Slide 49: Residential vacancy rates
Residential vacancy rates For personal use only Average 2007 Mar Quarter 1980 to date % % SYD 1.4 2.4 MELB 1.2 2.7 BRIS 1.7 3.4 PERTH 0.8 3.4
Slide 50: Housing sector WA & VIC
Housing sector WA & VIC For personal use only • Strong local economy • Continued population growth • Modest interest rate increases • Consumer sentiment holding up • Economic fundamentals positive
Slide 51: Company outlook
Company outlook For personal use only • All Melbourne projects now under development. • New projects undergoing due diligence. • DRP to top up equity. • Forecasting approx $20m net profit after tax in FY2008. • Further earnings growth anticipated for FY2009 as Melbourne projects deliver profits.
Slide 52: 2007 Annual Results
For personal use only 2007 Annual Results