Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — Shareholder Meeting (2007)
42 slides from Cedar Woods Properties's shareholder meeting presentation, 2007
Slide 1: 2007 Annual General Meeting
2007 ANNUAL GENERAL MEETING
Slide 2: Presentation outline
Presentation outline Company objectives. Financial highlights. Business model and growth strategy. Review of recent developments. Outlook and FY2008 forecast.
Slide 3: Company objectives
Company objectives 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 4: Financial highlights – income statement
Financial highlights – income statement 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 5: Revenue and asset growth
Revenue and asset growth Compound average growth rate Revenue 25% Total assets 23.5% 180.0 160.0 140.0 120.0 100.0 $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 6: Growth in earnings
Growth in earnings 40.0 35.0 30.0 25.0 20.0 15.0 10.0 5.0 14.5 20.2 23.3 30.3 33.9 0.0 2003 2004 2005 2006 2007 Earnings per share
Slide 7: CWP share price and NPAT growth
CWP share price and NPAT growth 25 6.00 5.50 5.00 20 4.50 4.00 NPAT $m 15 Price $ 3.50 3.00 10 2.50 2.00 1.50 5 1.00 0.50 7.1 10.3 12.4 16.2 18.5 20.0 0 0.00 2003 2004 2005 2006 2007 2008F NPAT Share Price
Slide 8: Business model
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Slide 9: Opportunities
Opportunities Drive value from existing projects. Affordable housing and retirement sector. Growth in Melbourne market. Williams Landing town centre - commercial portfolio, trust structure.
Slide 10: Projects under option
Projects under option 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 11: Property syndication and joint ventures
Property syndication and joint ventures Wellard syndicate established. Expect to add 1-2 syndicates annually. Wellard to commence development in FY2008 and on track to deliver first sales in FY2009. One joint venture established and others on the way.
Slide 12: WA & Victoria projects
Western Australia Victoria PORT PHILLIP BAY iby = Cedar @®Woods
Slide 13: Project life – Perth
Project life – Perth 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 Under Option
Slide 14: Project Life - Melbourne
Project Life - Melbourne FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Lalor Laverton Footscray
Slide 15: Built form
NAUTILUS A P A RTM EN T S Cedar<@Wwoods
Slide 16: Built form
WATE ree Ii nce apertments-mandurah Cedar<@ Woods
Slide 17: Built form
Built form POTHE JETTY APARTMENTS ®@ AT PALM BEACH Cedar woods
Slide 18: Built form
Built form THEW Y's WV HALLS HEAD BEACH WATERLINE APARTMENTS PINJARRA ROAD Cedar @®Woods
Slide 19: Residential
Cedar<@Woods
Slide 20: Residential
Residential TheRivergums * TT Te ir EB hiss vundbae @ ® Cedar @®Woods
Slide 21: Residential
7 TIT est — Cedar<@Woods
Slide 22: Melbourne projects
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Slide 23: Melbourne projects
Melbourne projects williamslanding
Slide 24: Melbourne projects
4 Banbury village Cedar Woods
Slide 25: Melbourne projects – Master Plan
Melbourne projects Master Plan – Land Development
Slide 26: Melbourne Projects
BUSINESS PARK THE NORTHERN HOSPITAL PROPOSED MELBOURNE MARKETS EPPING PLAZA SHOPPING CENTRE SCHOOLS ay rie y WHITTLESEA PUBLIC GARDENS Carlingford
Slide 27: Population growth
Population growth Mar 2007 1 year % population increase increase (000’s) (000’s) VIC 5,188 74 1.5 WA 2,095 45 2.2 QLD 4,162 92 2.3 NSW 6,876 68 1.0 AUSTRALIA 20,949 307 1.5
Slide 28: Average weekly earnings – May 2007
Average weekly earnings – May 2007 1 Year AWE Change WA $914.90 + 10.6% Vic $853.40 + 4% Qld $818.90 + 3.2% NSW $909.8 + 5.1%
Slide 29: Residential vacancy rates
Residential vacancy rates 2007 June Average Quarter 1980 to date % % SYD 1.4 2.4 MELB 1.4 2.7 BRIS 1.5 3.4 PERTH 2.1 3.4
Slide 30: Housing sector WA & VIC
Housing sector WA & VIC Strong local economy. Continued population growth. Modest interest rate increases expected. Consumer sentiment holding up. Economic fundamentals positive.
Slide 31: Company outlook
Company outlook All Melbourne projects under development in FY2008. New projects undergoing due diligence. DRP to top up equity. Forecasting approx $20m net profit after tax in FY2008. Further earnings growth anticipated for FY2009 as Melbourne projects deliver profits.
Slide 32: Annual General Meeting 2007
2007 ANNUAL GENERAL MEETING
Slide 33: Growth in profits and dividends
Growth in profits and dividends 25 18.0 16.0 20 14.0 12.0 Dividends (cents) 15 Profit ($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 34: Dividend policy
Dividend policy 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 27%.
Slide 35: Total shareholder returns
Total shareholder returns CWP to 30/6/07 ASX Real Estate Sector (2006) 1 Year 20% 20% 3 Year 52% 17% 5 Year 67% 13%
Slide 36: Residential
Residential The t estrel The aerfeai spat ia west Cedar @®Woods
Slide 37: Economic outlook
Economic outlook 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 38: Consumer confidence
Consumer confidence 130.0 125.0 120.0 115.0 110.0 105.0 100.0 95.0 90.0 85.0 80.0 Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- Dec- Jun- 00 00 01 01 02 02 03 03 04 04 05 05 06 06 07 Months
Slide 39: Growth in established house prices
Growth in established house prices Mar Qtr 07 to Jun Qtr 06 to March median Jun Qtr 07 Jun Qtr 07 price % change % change Sydney $516,500 2.3 3.0 Melbourne $380,000 5.0 11.5 Brisbane $345,000 6.5 15.7 Perth $452,500 -0.9 15.3
Slide 40: New Dwelling Approvals 2006/07
New Dwelling Approvals 2006/07 Top Statistical Subdivisions Rank 1 North Metropolitan Perth 6021 WA 2 Gold Coast West 4440 QLD 3 Melton-Wyndham 4226 VIC 4 South East Metropolitan Perth 4180 WA 5 South West Metropolitan Perth 3477 WA 18 Mandurah 2064 WA 20 Northern Outer Melbourne 2039 VIC
Slide 41: Dwelling unit approvals 2006/07
Dwelling unit approvals 2006/07 Total Dwelling Total Dwelling Units 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 42: Housing supply and demand – Western Australia
Housing supply and demand Western Australia Underlying Requirements for Housing vs Actual & Forecast Dwelling Starts 30.0 25.0 20.0 15.0 10.0 5.0 0.0 2005 (a) 2006 (a) 2007 (f) 2008 (f) 2009 (f) Housing Starts Underlying Requirements Underlying Requirements for Housing vs Actual & Forecast Dwelling