Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — FY2008 Earnings Presentation
41 slides from Cedar Woods Properties's earnings presentation, Aug 25, 2008
Slide 1: Results presentation cover letter to ASX
For personal use only 25 August 2008 Australian Securities Exchange Limited Exchange Centre, Level 4, 20 Bridge Street Sydney NSW 2000 Dear Sir/Madam, RESULTS PRESENTATION Please find attached our FY2008 results presentation. Yours faithfully, Paul Freedman, Company Secretary
Slide 2: Annual Results 08
For personal use only ANNUAL RESULTS 08
Slide 3: Presentation outline
Presentation outline For personal use only ¾ Highlights ¾ 2008 results ¾ Property portfolio ¾ New projects ¾ Residential market ¾ Outlook Annual Results 2008
Slide 4: Highlights
For personal use only Highlights ¾ Record profits and dividends ¾ Strong pre sales from Melbourne projects ¾ Selected as joint venture party on two State Government projects ¾ Three year evergreen funding facility in place Annual Results 2008
Slide 5: Operating results
OPERATING RESULTS For personal use only FY2008 FY2007 $m $m Revenue 81.9 90.0 9% Growth in profits and dividends Profit before income tax 29.0 26.8 8% Dividends (cents) 25 20.0 expense 20 Profit ($m) 15.0 15 10.0 Net profit after 10 16.2 18.6 20.6 12.4 5.0 tax attributable 5 10.3 20.6 18.6 11% 0 0.0
Slide 6: Earnings growth vs target
EARNINGS GROWTH vs TARGET For personal use only 40 ¾ Consistent growth of 10% pa 35 30 25 ¾ Top half of industrial company cents 20 37.3 performance 33.9 15 30.3 10 20.2 23.3 ¾ Meets Corporate objective 5 0 2004 2005 2006 2007 2008 EPS 10% pa cumulative growth Annual Results 2008
Slide 7: Profit ratios
PROFIT RATIOS For personal use only FY2008 FY2007 45 40 38.1 35 34.8 EBIT/Sales 38.1% 34.7% 30 28.0 32.1 25 25.5 26.5 20 22.5 23.1 20.8 19.0 15 23.7 25.9 24.5 22.6 ROE 24.5% 25.9% 10 5 21.4 0 2004 2005 2006 2007 2008 Return on Equity Return on Capital EBIT/Sales ROC 19.0% 23.1% ¾ Margins improved du
Slide 8: Dividend policy
DIVIDEND POLICY For personal use only ¾ Maintain current balance 20 18 60.00 between interim and full 16 50.00 year dividend – 14 40.00 cents 12 approximately 40 / 60 % 10 30.00 8 6 20.00 4 ¾ 50% net profit plus 2 10.00 0 - distributed reserves for full 2004 2005 2006 2007 2008 year ¾ Dividend reinv
Slide 9: Financial highlights
FINANCIAL HIGHLIGHTS For personal use only Jun Jun 2008 2007 ¾ Total assets increased to $185.0m due to investment in inventory during FY2008 Total assets $m 185.0 155.6 ¾ Corporate facility available until Net bank debt $m 81.9 65.9 September 2010 Shareholders’ ¾ Gearing expected to drop within tar
Slide 10: Cashflows
CASHFLOWS For personal use only Cashflows related to operating FY2008 FY2007 ¾ Lower revenue from changed activities $M $M product mix Receipts from customers 78.4 98.7 ¾ Increased bank facility and Payments to suppliers & employees (25.1) (27.2) higher credit margins increased borrowing costs Net b
Slide 11: Property portfolio
PROPERTY PORTFOLIO For personal use only BANBURY VILLAGE CARINE CARLINGFORD BANBURY VILLAGE WILLIAMS LANDING HARRISDALE WELLARD WATERLINE Annual Results 2008
Slide 12: Project life - Perth
PROJECT LIFE - PERTH For personal use only 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 U
Slide 13: Residential – built form
RESIDENTIAL – BUILT FORM For personal use only Halls Head Golf Course Annual Results 2008
Slide 14: Residential
For personal use only RESIDENTIAL Annual Results 2008
Slide 15: Residential
RESIDENTIAL For personal use only Annual Results 2008
Slide 16: Ecovision project
ECOVISION PROJECT For personal use only Located within the City of Wanneroo at Cedar Woods’ residential estate – The Kestrels Sustainability benchmarks: Affordability benchmarks: ¾ Energy efficiency ¾ $150,000 construction cost target ¾ Passive solar design ¾ $265,000 - $320,00 house & land ¾ Water
Slide 17: Residential
RESIDENTIAL For personal use only Annual Results 2008
Slide 18: Residential
RESIDENTIAL For personal use only Annual Results 2008
Slide 19: Residential
RESIDENTIAL For personal use only Annual Results 2008
Slide 20: New projects - Carine
For personal use only NEW PROJECTS 16km drive from Perth CBD Carine Annual Results 2008
Slide 21: New projects - Harrisdale
NEW PROJECTS For personal use only Harrisdale Ranford Rd Rd n to ar W 20km south east of Perth CBD Rd ht rig W Annual Results 2008
Slide 22: Project life - Melbourne
PROJECT LIFE - MELBOURNE For personal use only FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Carlingford Williams Landing Banbury Village Annual Results 2008
Slide 23: Melbourne projects
MELBOURNE PROJECTS For personal use only Annual Results 2008
Slide 24: For personal use only
For personal use only Annual Results 2008
Slide 25: Town Centre
For personal use only Town Centre Annual Results 2008
Slide 26: Melbourne projects
MELBOURNE PROJECTS For personal use only Annual Results 2008
Slide 27: For personal use only
For personal use only Annual Results 2008
Slide 28: Architecture
ARCHITECTURE For personal use only Annual Results 2008
Slide 29: Melbourne projects
MELBOURNE PROJECTS For personal use only Annual Results 2008
Slide 30: Carlingford
For personal use only CARLINGFORD ¾ 55 hectare infill development site ¾ Approx 600 residential lots ¾ First residential development in the area for several decades ¾ Includes parks and conservation reserves ¾ Convenient location, close to train station, High Street shopping strip, Epping Plaza, Nor
Slide 31: For personal use only
For personal use only Annual Results 2008
Slide 32: Current market conditions
CURRENT MARKET CONDITIONS For personal use only AUS Business investment strong but consumer confidence down – multiple interest rate rises, tightening credit market, declining affordability WA Housing market soft, yet economy strongest in the nation VIC Housing market improved, modest growth in pric
Slide 33: Current market conditions
CURRENT MARKET CONDITIONS For personal use only AUS National GDP trending downward WA Strong economic growth still evident in WA, may slow over 2008 VIC Significant improvement in Victoria on past 2 years Annual Results 2008
Slide 34: Market drivers
MARKET DRIVERS Housing market balance: Australia For personal use only ¾ Underlying housing demand outstripping supply ¾ Record population growth & employment ¾ Tight rental market. Rents rising, vacancies trending down but easing Underlying Requirement for Housing vs Forecast Dwelling Starts - Aust
Slide 35: Population growth
POPULATION GROWTH For personal use only Source: Australian Bureau of Statistics 2007 (000) 2007 (%) (inc. since Dec 06) (inc. since Dec 06) VIC 82.4 1.6 WA 49.5 2.4 AUS 331.9 1.6 Annual Results 2008
Slide 36: Employment
EMPLOYMENT For personal use only ¾ Unemployment at historically low levels 2007 (%) 2008 (%) VIC 4.8 4.5 WA 3.2 3.3 AUS 4.3 4.3 Annual Results 2008
Slide 37: Vacancy
VACANCY For personal use only ¾ Rent rising ¾ Vacancies trending down but easing Annual Results 2008
Slide 38: Market outlook WA
MARKET OUTLOOK WA For personal use only ¾ Dwelling approvals down from the peak in 2006 ¾ Forecast for 2008/09 for Perth & WA is subdued 2003/04 2004/05 2005/06 2006/07 2007/08(f) 2008/09(f) 2009/10(f) 2010/11(f) Houses Units Total Annual Results 2008
Slide 39: Market outlook VIC
MARKET OUTLOOK VIC For personal use only ¾ Approvals trending upward ¾ Housing starts down in the current year but expected to move upward 2009/10 – 2010/11 Annual Results 2008
Slide 40: Company outlook
COMPANY OUTLOOK For personal use only ¾ Melbourne projects substantially pre-sold ¾ Good early response to Helena Valley project ¾ Finance facility available until September 2010 ¾ Good product range/locations ¾ WA market fundamentals sound but hampered by interest rates and affordability Annual Res
Slide 41: Annual Results
For personal use only ANNUAL RESULTS 08
Cedar Woods Properties — FY2008 Earnings Presentation on 6ix