Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — FY2013 Earnings Presentation
30 slides from Cedar Woods Properties's earnings presentation, Aug 21, 2013
Slide 1: FY2013 Financial Results Presentation
21 August 2013 For personal use only FY2013 Financial Results Presentation
Slide 2: Agenda
Agenda For personal use only 1. Cedar Woods Properties Overview 2. FY2013 Highlights 3. Financial Overview 4. Operational Overview 5. Market Conditions 6. Company Outlook 2
Slide 3: Strong property portfolio and mature land bank
Strong property portfolio and mature land bank For personal use only
Slide 4: Investment highlights
Investment highlights For personal use only ► Proven track record of consistent earnings growth and meeting targets • 5-year Total Shareholder Return of 19.7% per annum ► Strategically located and diverse residential portfolio • Urban and regional growth areas in VIC and WA • Apartments, integrated
Slide 5: Cedar Woods' strategy
Cedar Woods’ strategy For personal use only FY2013 Achievements Leverage Property Core competency: industry-leading design, Williams Landing and Development delivery and marketing of development Banbury Village nominated as finalists at PCA National Expertise projects Awards 2013 Acquire and develop
Slide 6: Share price performance
Share price performance For personal use only CWP Share price performance FY2013 $6.50 $6.00 $5.50 $5.00 42% increase in share $4.50 price during the 42% $4.00 financial year $3.50 $3.00 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 FY2013 Total Shareholder Retu
Slide 7: Financial overview
For personal use only Financial overview
Slide 8: FY 2013 results highlights
FY 2013 results highlights For personal use only ► Record Net Profit After Tax of $36.3 million ► Full year dividend payout ratio maintained at 50% of net profit: fully franked final dividend of 15 cents declared, taking full year payout to 26 cents fully franked ► Low gearing provides capacity to f
Slide 9: FY 2013 results summary
FY 2013 results summary For personal use only FY13 ($m) FY12 ($m) Change (%) Revenue 172.8 170.5 1% Profit before income tax expense 51.4 49.3 4% Net profit after tax 36.3 34.3 6% Earnings per share 49.9 cents 53.2 cents 6% Dividends per share 26.0 cents 25.0 cents 4% ► Revenue slightly higher compa
Slide 10: Track record of growth and balance sheet strength
Track record of growth and balance sheet strength For personal use only Revenue ($m) NPAT ($m) 200 40 36.3 170.5 172.8 34.3 150 131.8 30 28 107.1 108.4 100 20 17.2 9.3 50 10 0 0 FY09 FY10 FY11 FY12 FY13 FY09 FY10 FY11 FY12 FY13 EPS (cents) Total Dividend (cents) 60 53.2 49.9 30 26 45.8 25 45 25 23 2
Slide 11: Return on Equity and Return on Capital
Return on Equity and Return on Capital For personal use only Target: 14% FY2013 Return on Capital 21.6% Target: 12% FY2013 Return on Equity 17.5% 0% 5% 10% 15% 20% 25% 11
Slide 12: Balance sheet strength
Balance sheet strength For personal use only Assets at book value (cost) 30 June 30 Jun 350 ($m) 2013 2012 301 300 $m $m 250 233.6 238.3 Total assets (book value) 301.0 238.3 205.7 200 Net bank debt 37.8 3.8 162.7 150 Net assets (equity) 207.8 184.6 100 FY09 FY10 FY11 FY12 FY13 Finance facility head
Slide 13: Cash flow summary
Cash flow summary For personal use only FY13 FY12 Cash flows related to operating activities $m $m Receipts from customers 186.1 184.3 Interest received 0.6 0.8 Payments to suppliers and employees (43.5) (38.6) Borrowing costs – lower debt utilisation in FY13 (4.1) (6.0) Income taxes paid – higher i
Slide 14: Operational overview
For personal use only Operational overview
Slide 15: WA overview
WA overview For personal use only ► Strong sales at Emerald Park, Mariners Cove & Piara Central ► Construction of new stages underway at Elements, Emerald Park, Mariners Cove & The Rivergums to meet demand ► Regional projects performing well at South Hedland (Elements) and Geraldton (Batavia Marina
Slide 16: WA project highlights
WA project highlights For personal use only Construction of stage 9 (76 lots) completed; strong sales experienced as Baldivis Secondary College now open Existing Construction of stage 5 (120 lots, mostly presold) progressing; estate has matured and established its market position Projects Constructi
Slide 17: Victorian overview
Victorian overview For personal use only ► Market improved in H2 FY2013, upgrade buyers active, strong sales in premium estates ► Significant progress at Williams Landing residential estate and Town Centre - new display village, train station and freeway interchange open ► Strong FY2013 sales at VIC
Slide 18: Victoria highlights
Victoria highlights For personal use only Construction of first stage of 7 homes completed, construction of Stages 2-6 underway; only one property remaining for sale in an estate of 78 homes. Construction of final Heritage Apartment building and Stages 12,13 and 15 completed; enquiry and sales remai
Slide 19: Market conditions and outlook
Market conditions and For personal use only outlook
Slide 20: Market conditions
Market conditions For personal use only Perth house prices WA dwelling prices havevacancy Low increased by rates approximately 6% over the past 12 months Melbourne Prices in house prices Melbourne increased Ongoing price growth approximately 5% in in Perth and FY2013 as the market Melbourne recovery
Slide 21: Market conditions
Market conditions For personal use only VIC market continues to recover, Low newvacancy rates home sales posting strong growth Private New Home since low in Oct 2012 Sales - VIC WA new home sales Ongoing price growth and approvals remain in Perth and at healthy levels Melbourne Private New Home Sale
Slide 22: Market conditions
Market conditions For personal use only Low vacancy rates Ongoing price growth in Perth and Melbourne 22 Source: Commonwealth Bank Economic Update
Slide 23: Market conditions
Market conditions For personal use only Ongoing shortage of new housing, forecast to increase significantly 23 Source: ANZ Australian Demographics Chartbook, July 2013
Slide 24: Market conditions
Market conditions For personal use only Cedar Woods has projects in many of Australia’s fastest growing urban areas CWP project locations 24 Source: ANZ Australian Demographics Chartbook, July 2013
Slide 25: The year ahead
The year ahead For personal use only ► Perth market is strong, Melbourne market is improving ► Ongoing progress at Williams Landing • Completion of Masters Home Improvement store and commencement of rental income during FY2014 • Potential for developments to commence on other commercial and retail s
Slide 26: FY2014 outlook
FY2014 outlook For personal use only ► $175 million in presales underpinning a positive outlook for Cedar Woods; presales predominantly settling in FY2014 ► Poised to unlock further value at Williams Landing Town Centre ► Subject to current market conditions continuing, Cedar Woods anticipates anoth
Slide 27: Disclaimer
Disclaimer For personal use only Disclaimer of liability While every effort is made to provide complete and accurate information, Cedar Woods Properties Limited does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended u
Slide 28: Appendix
For personal use only APPENDIX
Slide 29: Sustainable Earnings from Long Term Projects
Sustainable Earnings from Long Term Projects For personal use only 29
Slide 30: Award Winning Developer
For personal use only Award Winning Developer
Cedar Woods Properties — FY2013 Earnings Presentation on 6ix