Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — H1 FY2009 Earnings Presentation
40 slides from Cedar Woods Properties's earnings presentation, 2009
Slide 1: Half Year Results
Half Year Results 31 December 2008
Slide 2: Presentation Outline
Presentation Outline Current environment Highlights 2009 first half results Property portfolio Residential market Outlook Half 2008Year ResultsGeneral Annual – 31 December 2008 Meeting
Slide 3: Current Environment
Current Environment Economy slowing, deleveraging Property markets impacted Focus on certainty of funding DRP has strengthened balance sheet Cedar Woods well placed to prosper as conditions improve Half Year Results – 31 December 2008
Slide 4: Strategies still appropriate
Strategies still appropriate Development/value add to existing projects – capex consistent with sales Leverage company’s skill base and preserve capital – co-development projects Diversification: WA & VIC an advantage broad product range and price points Longer term acquisition focus Half
Slide 5: Highlights
Highlights $85m pre sales to settle second half year Significant progress on construction, Williams Landing rail station Strong pre sales from Melbourne projects Perth sales improving Three year evergreen facility until September 2011 and new project specific finance in place Half Year Res
Slide 6: Results Summary
Results Summary First half loss of $5.6m July to October – low sales activity sales of premium product impacted settlement program concentrated in second half interest rates peaked in first half $1.7m in non-cash write downs in first half Half Year Results – 31 December 2008
Slide 7: Operating Results – First Half
Operating Results – First Half Dec 2008 Dec 2007 $m $m Revenue 13.3 31.7 58% (Loss) profit before income (7.9) 6.5 N/A tax expense Net (loss) profit after tax attributable to members of (5.6) 4.6 N/A CWPL (Loss) earnings per share (9.9) cents 8.3 cents N/A Half Year Results – 31 December 2008
Slide 8: Operating Results – Forecast
Operating Results – Forecast 25 20.0 Dividends (cents) 18.0 20 16.0 Profit ($m) 14.0 15 12.0 10.0 10 18.6 20.6 8.0 16.2 6.0 10.3 12.4 5 9.0 4.0 2.0 0 0.0 2004 2005 2006 2007 2008 2009F Profit Dividend Half Year Results – 31 December 2008
Slide 9: Earnings Growth versus Target
Earnings Growth versus Target EPS Growth 40 30 cents 20 37.3 30.3 33.9 10 20.2 23.3 16.0 0 2004 2005 2006 2007 2008 2009 F EPS 10% PA Target Seeking consistent growth beyond FY2009 (10% growth target above FY2009 forecast result) Half Year Results – 31 December 2008
Slide 10: Cash Flows
Cash Flows Dec Dec Cash flows related to 2008 2007 Lower revenue due to operating activities $M $M market conditions and Receipts from customers 15.8 34.8 settlement timing Payments to suppliers & (14.2) (13.0) Increased bank facility employees and higher credit Net borrowing cost (4.0) (3.3) ma
Slide 11: Financial Highlights
Financial Highlights Dec Jun 2008 2008 Total assets increased to Total assets $m 196.2 185.0 $196.2m due to investment in Net bank debt $m 105.8 81.9 inventory during first half FY2009 Shareholders’ equity $m 78.3 83.9 Gearing expected to drop to Net bank debt to around 75% at end of FY2009 (%)
Slide 12: Asset values
Asset values Major assets acquired pre boom Review of portfolio, write downs of $1.2m Now de-risked, under development Share price understates value significantly below underlying value now below book NTA (historical cost) Half Year Results – 31 December 2008
Slide 13: Hedging
Hedging Interest rate management Seek to hedge >50% of debt Previous interest rate environment – caps, now largely written off Recent move to swaps 3 year now approximately 3.6% 5 year now approximately 4.1% Half Year Results – 31 December 2008
Slide 14: Dividend Policy
Dividend Policy In light of first half loss, interim dividend suspended Policy unchanged – 50% of full year net profit DRP decision driven by gearing and share price Half Year Results – 31 December 2008
Slide 15: Property Portfolio
Property Portfolio CARINE CARLINGFORD BANBURY VILLAGE WILLIAMS LANDING HARRISDALE WELLARD WATERLINE Half Year Results – 31 December 2008
Slide 16: Project Life - Perth
Project Life - Perth FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Rivergums Cambridge Waters Mariners Cove Mandurah Country Club Kestrels Waterline Helena Valley The Jetty Port Mandurah (Sutton) Forrestdale Cedar Woods Wellard Pinjarra Carine Harrisdale Lots Under Option Half Year
Slide 17: RESIDENTIAL – BUILT FORM
RESIDENTIAL – BUILT FORM Half Year Results – 31 December 2008
Slide 18: Residential
Residential Half Year Results – 31 December 2008
Slide 19: Residential
Residential Half Year Results – 31 December 2008
Slide 20: Residential
Residential Half Year Results – 31 December 2008
Slide 21: New Projects – Carine
New Projects 16km drive from Perth CBD CARINE Half Year Results – 31 December 2008
Slide 22: New Projects – Harrisdale
New Projects 20km south east of Perth CBD HARRISDALE Half Year Results – 31 December 2008
Slide 23: Project Life - Melbourne
Project Life - Melbourne 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Carlingford Williams Landing Banbury Village Half Year Results – 31 December 2008
Slide 24: MELBOURNE PROJECTS
MELBOURNE PROJECTS Half Year Results – 31 December 2008
Slide 25: Half Year Results – 31 December 2008
Half Year Results – 31 December 2008
Slide 26: Half Year Results – 31 December 2008
Half Year Results – 31 December 2008
Slide 27: Half Year Results – 31 December 2008
Half Year Results – 31 December 2008
Slide 28: Melbourne Projects
Melbourne Projects Half Year Results – 31 December 2008
Slide 29: Half Year Results – 31 December 2008
Half Year Results – 31 December 2008
Slide 30: Half Year Results – 31 December 2008
Half Year Results – 31 December 2008
Slide 31: Half Year Results – 31 December 2008
Half Year Results – 31 December 2008
Slide 32: Residential market-drivers
Residential market-drivers Affordability (prices, interest rates) Employment Availability of finance Rental alternative Incentives Confidence Half Year Results – 31 December 2008
Slide 33: Market conditions
Market conditions Victoria sound fundamentals affordability continues to improve strong first and second home buyer sales population growth/lack of rentals WA affordability recovering first home buyer pent up demand higher priced product selling slowly population growth Half Year Res
Slide 34: Market Drivers
Housing market balance: Australia Market Drivers Underlying housing demand outstripping supply Record population growth & employment Underlying Requirement for Housing vs Tight rental market. Rents rising, Forecast Dwelling Starts - Australia vacancies trending down but easing Starts UR Half Y
Slide 35: Average vacant lot price – Perth
Average vacant lot price – Perth Half Year Results – 31 December 2008
Slide 36: Affordability – interest rate effect
Affordability – interest rate effect Repayments as a % of income Half Year Results – 31 December 2008
Slide 37: First Home Owner’s Incentives
First Home Owner’s Incentives Victoria: $21,000 – Federal Government First Home Owners Grant Boost (new homes) $5,000 – State Government First Home Bonus $3,000 – State Government Regional First Home Bonus Principal Place of Residence Stamp Duty Concession Western Australia: $21,000 – Fede
Slide 38: First Home Saver Accounts
First Home Saver Accounts Superannuation style home savings accounts introduced by the Federal Government as a savings incentive for prospective first home buyers The Government contributes 17% on the first $5,000 (indexed) of individual contributions made each year Interest that accrues in th
Slide 39: Company Outlook
Company Outlook $85m in pre sales for second half settlement Melbourne projects pre sales FY2009 & FY2010 Perth sales improving Full year forecast $7m-$9m Dividend policy unchanged at 50% of full year profit Gearing within target range by 30 June 2009 Good product range/locations – rea
Slide 40: Half Year Results
Half Year Results 31 December 2008
Cedar Woods Properties — H1 FY2009 Earnings Presentation on 6ix