Slide 1: FY2016 Financial Results
Cedar Woods Properties Limited For personal use only FY2016 Financial Results 25 August 2016
Slide 2: Agenda
Cedar Woods Presentation | 2 Agenda For personal use only 1 Company Overview 2 FY16 Financial Highlights 3 Operational Overview 4 Market Conditions 5 Company Outlook
Slide 3: Cedar Woods' charter
Cedar Woods Presentation | 3 Cedar Woods’ charter For personal use only Cedar Woods’ Purpose “To create long term value for our shareholders through the disciplined acquisition, development and marketing of properties that meet the needs of our customers.” Cedar Woods’ Objective “To manage our portf
Slide 4: Cedar Woods' strategy
Cedar Woods Presentation | 4 Cedar Woods’ strategy “To grow and develop our national project portfolio, diversified by: For personal use only • geography • product type • price point so that it continues to hold broad customer appeal and performs well in a range of market conditions.” Business Model
Slide 5: Implementing strategy
Cedar Woods Presentation | 5 Implementing strategy For personal use only Growing and developing a diversified national portfolio Geography Product Type Price Points — Brisbane (Ellendale — First apartments at — First homebuyer, 2014, Wooloowin Williams Landing upgrader, investor 2015) all catered fo
Slide 6: Agenda
Cedar Woods Presentation | 6 Agenda For personal use only 1 Company Overview 2 FY16 Financial Highlights 3 Operational Overview 4 Market Conditions 5 Company Outlook
Slide 7: Historical financial performance
Cedar Woods Presentation | 7 Historical financial performance A strong track record of consistent profitability and growth For personal use only Total Assets $m NPAT $m • Consistent growth in NPAT and dividends 450 60.0 — delivered year-on-year 400 50.0 NPAT growth since FY10 350 — sixth consecutive
Slide 8: Strategy delivering continued profit growth
Cedar Woods Presentation | 8 Strategy delivering continued profit growth For personal use only • NPAT consistent with FY16 FY15 Change guidance – Stronger second half as Net Profit after tax $43.6m $42.6m 2.4% expected Earnings per share 55.3 cents 54.3 cents 1.8% • Contribution across portfolio Div
Slide 9: Balance sheet strength and access to funding
Cedar Woods Presentation | 9 Balance sheet strength and access to funding For personal use only 30 June 30 June Gearing (%) 100 2016 2015 $m $m Total assets (book value) 452.7 383.3 80 Net bank debt 50.3 27.9 60 Target Net assets (equity) 307.2 285.6 Gearing 25 – 75% Net bank debt to equity 16.4% 9.
Slide 10: Agenda
Cedar Woods Presentation | 10 Agenda For personal use only 1 Company Overview 2 FY16 Financial Highlights 3 Operational Overview 4 Market Conditions 5 Company Outlook
Slide 11: National footprint with well located projects
Cedar Woods Presentation | 11 National footprint with well located projects For personal use only
Slide 12: Positioned for continued growth
Cedar Woods Presentation | 12 Positioned for continued growth New Projects Contributing to Revenue in Coming Years For personal use only Acquisition Cost Lots / Project Project State Acquired ($m) Units Life (Years) Ellendale - Upper Kedron(1) QLD 2014 68.0 480 10 Wooloowin QLD 2015 24.6 279 6 Jacks
Slide 13: Product mix – settled sales FY16
Cedar Woods Presentation | 13 Product mix – settled sales FY16 For personal use only Housing 15% Apartments 8% Land sales 77% Housing Apartments Land sales • Focus on land and housing, with niche apartment product • Maintaining acquisition focus on well located sites
Slide 14: Anticipated acquisition and development spend FY17
Cedar Woods Presentation | 14 Anticipated acquisition and development spend FY17 For personal use only VIC WA • Geographic diversification strategy providing national footprint in key metropolitan 25% markets 30% • Acquisition focus in 14% Melbourne in FY17 • Majority of portfolio’s value 31% locate
Slide 15: VIC portfolio update
Cedar Woods Presentation | 15 VIC portfolio update For personal use only • Strategy of acquiring well located infill projects has delivered quality portfolio • Melbourne – strongest housing market over the past 5 years • Positive conditions across land and housing with high level of sales, anticipat
Slide 16: VIC project highlights
Cedar Woods Presentation | 16 VIC project highlights For personal use only • Strong price growth on residential lots achieved resulting in WILLIAMS LANDING higher margin • First stage of new Addison neighbourhood released in January with strong price points achieved • Council constructing central sp
Slide 17: Williams Landing remaining life 2026+
Cedar Woods Presentation | 17 Williams Landing remaining life 2026+ For personal use only
Slide 18: Williams Landing Town Centre – indicative stages
Cedar Woods Presentation | 18 Williams Landing Town Centre – indicative stages For personal use only
Slide 19: VIC project highlights
Cedar Woods Presentation | 19 VIC project highlights For personal use only • 350 dwellings planned on 6.5ha site in JACKSON GREEN Melbourne’s south-east • Strong sales achieved in FY16 for settlement in FY18, price range $500 - 960k • Established new price points well above suburb’s median house pri
Slide 20: WA portfolio update
Cedar Woods Presentation | 20 WA portfolio update For personal use only • Market showing early signs of improvement — improvement in HIA new home sales in May and June — CWP sales lifted 4Q FY16 • Sales supported by selective incentives and price discounting in areas of increased competition • Deman
Slide 21: WA project highlights
Cedar Woods Presentation | 21 WA project highlights For personal use only ARIELLA • Master-planned community of 480 lots 17km from Perth CBD in growth corridor • New sales centre recently opened and strong sales in first two stages • Construction of 94-lot second stage completed, stage 3 planned for
Slide 22: WA project highlights
Cedar Woods Presentation | 22 WA project highlights For personal use only MARINERS COVE • Sales and settlements of last remaining stage of 40 lots continuing • Strong sales and buyer interest for remaining canal lots • Planning design advanced for development of group housing site – yield 31 units N
Slide 23: QLD portfolio update
Cedar Woods Presentation | 23 QLD portfolio update For personal use only • Qld new home sales expected to continue at robust levels for the next 3 years • Strength in the established housing sector and inner-city urban developments • Consistent with diversification strategy, CWP has acquired two wel
Slide 24: QLD project highlights
Cedar Woods Presentation | 24 QLD project highlights ELLENDALE • 227 ha situated 12 km west of Brisbane’s CBD For personal use only • Initial approval granted for the first 480 lots with a planning process underway for the remaining 160 hectares • Stage 1, 143 lots - construction commenced in Q4 FY1
Slide 25: SA portfolio update
Cedar Woods Presentation | 25 SA portfolio update For personal use only • Recent entry in to SA market consistent with strategy, places CWP in 4 key Australian metropolitan markets • SA housing market forecast to grow over the next 3 years • Government focus on consolidating growth in existing urban
Slide 26: SA project highlights
Cedar Woods Presentation | 26 SA project highlights For personal use only GLENSIDE • 16.5 hectare site just 3km south-east of Adelaide CBD • Sale approved by SA Gov’t for $25.86M plus GST • Masterplan of 1,000 apartments and townhouses • Rezoning underway, expected to be approved in mid FY17 • Settl
Slide 27: Agenda
Cedar Woods Presentation | 27 Agenda For personal use only 1 Company Overview 2 FY16 Financial Highlights 3 Operational Overview 4 Market Conditions 5 Company Outlook
Slide 28: Residential property market drivers
Cedar Woods Presentation | 28 Residential property market drivers Positive outlook in all CWP markets For personal use only GDP forecast to Changing Interest rates Population Employment Trend grow 2.5-3.5% demographics at historical growth forecast outlook stable pa in 2016 and driving buyer lows, R
Slide 29: Median sales & rental prices
Cedar Woods Presentation | 29 Median sales & rental prices CWP markets more affordable than Sydney For personal use only Median Price Median Price Median Price YOY Median Price Change (House) (Unit) (All) (All) Sydney $1,079,060 $734,060 $996,140 11.3% Melbourne $852,420 $528,380 $803,290 11.5% Bris
Slide 30: Dwelling start forecasts
Cedar Woods Presentation | 30 Dwelling start forecasts Housing markets less volatile than apartments For personal use only VIC QLD WA SA Source: HIA
Slide 31: Agenda
Cedar Woods Presentation | 31 Agenda For personal use only 1 Company Overview 2 FY16 Financial Highlights 3 Operational Overview 4 Market Conditions 5 Company Outlook
Slide 32: Company outlook
Cedar Woods Presentation | 32 Company outlook For personal use only • Positive outlook underpinned by strong pre-sales of $184 million, up 20% on last year • Development program is on track, backed by continued strong pre-sales and disciplined project execution and delivery • Landmark projects in Qu
Slide 33: For personal use only
For personal use only Perth Office Melbourne Office Ground Floor, 50 Colin Street Level 1, 476 St Kilda Road West Perth WA 6005 Melbourne VIC 3004 T: (08) 9480 1500 T: (03) 9820 1777 E: email@cedarwoods.com.au E: melbourne@cedarwoods.com.au Brisbane Office Adelaide Office Level 6, 12 Creek Street Le
Slide 34: Appendices
Cedar Woods Presentation | 34 For personal use only Appendices
Slide 35: Cedar Woods' investment highlights
Cedar Woods Presentation | 35 Cedar Woods’ investment highlights For personal use only ASX 300 company with a proven track record of consistent earnings growth Attractive, fully-franked dividend yield Attractive valuation metrics Strategically located portfolio, diversified by geography, pro
Slide 36: Project Pipeline
Cedar Woods Presentation | 36 Project Pipeline For personal use only
Slide 37: Attractive Valuation
Cedar Woods Presentation | 37 Attractive Valuation For personal use only Cedar Woods P/E over time1 Relative FY16 P/E 18.0x 18.0x 15.6x 15.0x 14.2x 15.0x 13.7x 12.0x 10.4x 12.0x 9.7x 8.5x 8.5x 8.6x 9.0x 7.9x 9.0x 6.0x 6.0x 3.0x 3.0x - - 30-Jun-13 30-Jun-14 30-Jun-15 30-Jun-16 Current CWP ASX Peers 2