Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — FY2004 Earnings Presentation
27 slides from Cedar Woods Properties's earnings presentation, Aug 13, 2004
Slide 1: Cedar Woods Properties Limited 2004 Annual Results
CEDAR WOODS PROPERTIES LIMITED 2004 Annual Results
Slide 2: Presentation Outline
SHIREIEY EEE ESERT EGER ELEEIELESRIEEEETGEELEIALEESI REET ELA ity Eniteiaactstcteibictts ft lll ccc Presentation Outline ¢ Company objectives * Financial highlights * Operating highlights * Outlook and 2005 Forecast
Slide 3: Company Objectives
oolusicsisatsassceeieeisn|es eo) aase a} oats ono e sje oe 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 10% to 60% * Return on e
Slide 4: EPS Growth Rates
EPS Growth Rates Industrial Sector CWPL 1994-2003 7.4% (actual) 19.9%* 2004 6.0% (estimate) 39.0% 2005 12.7% (projection) |>10.0% * Since 1994 listing
Slide 5: Financial Highlights — Profit & Loss
Sse eee eee ee eee es Financial Highlights — Profit & Loss Tune 2004 | June 2003 % $m $m Increase Total Revenue 57.2 37.1 | 54% Profit from ordinary activities before 14.7 10.9 | 35% income tax expense Income Tax attributable to operating 44 38 | 16% profit Net profit after tax attributable to 10.3
Slide 6: Profit Growth
ST a Profit Growth 12 12.00 10 10.00 8.00 g & 6.00 & oO 4.00 2.00 0.00 Oo NM fF OD @ 2000 2001 2002 2003 2004 (ap Actual Dividends
Slide 7: Financial Highlights — Profit & Loss
Financial Highlights — Profit & Loss *Strong revenue growth from new projects Lower margins on early stages FY 2004 FY 2003 FY 2002 EBIT / Sales 28% 30% 22% ROC 23% 26% 15% ROE 21% 19% 12% «New AASB 1020 Tax Standard - lower tax expense
Slide 8: Returns on Capital Employed
pigiegieaisginaaras|seimasisaimecteclsemeriseuestecignsesh 000000 Returns on Capital Employed 90 30% 80 - + 25% 70 4 60 4 + 20% 50 4 & + 15% 40 30 - + 10% 20 + 5% 10 4 0 ; ; ; ; 0% 2000 2001 2002 2003 2004 Ga Tax Wg Debt CS Equity l= ROE tito ROC
Slide 9: NPAT and Realised Reserves
NPAT and Realised Reserves $ir 12.00 Cedar Woods Share Price vs NPAT plus Realised Reserves 10.00 8.00 6.00 4.00 + 2.00 +4 0.00 4 1994 1995 1996 1997 Year 1998 1999 2000 2001 2002 2003 2004 E23 NPAT ES Realised Reserve =m Share Price + $1.80 + $1.60 + $1.40 + $1.20 + $1.00 + $0.80 + $0.60 + $0.40 +
Slide 10: Financial Highlights — Balance Sheet
Sse eee eee ee eee es Financial Highlights — Balance Sheet June June 2004 2003 $m | 94.7 | 66.8 Interest bearing liabilities (bank debt) $m | 23.3 5-9 Shareholders’ equity $m | 47.8 | 36.8 Net bank debt to equity (%)| 48.4 | 16.0 Interest cover (x) 12 43 Total assets
Slide 11: Financial Highlights — Balance Sheet
Sse eee eee ee eee es Financial Highlights — Balance Sheet ¢ Gearing expected to stay at upper end of preferred range until apartment settlements in 2005 ¢ Apartment funding — limited recourse — construction risk, not sales risk — projects will support higher gearing * Net debt to equity doesn’t ref
Slide 12: Statement of Cashflows
ST a Statement of Cashflows June June Cashflows related to operating activities 2004 2003 $000 $000 Receipts from customers 57.6 41.1 Payments to suppliers & employees (13.1) (8.6) Net borrowing cost (2.2) (0.2) ncome taxes paid (5.1) (1.6) Payments for inventory — new land (21.3)) (14.0) Payments f
Slide 13: Cashflows
Cashflows ¢ Settlement income — major inflows early 2005 ¢ New land $21.3m * Development $34.7m * Improved cashflows in 2" half
Slide 14: Project Life
Project Life Lots 2005 2006 2007 2008 2009 2010 2011 2012 Balcatta Nautilus Sutton Canning Vale Mariners Cove The Kestrels The Rivergums Laverton 8 Years
Slide 15: Rockingham - Aria
Sse eee eee ee eee es Rockingham - Aria * 10 storey, 32 apartment tower plus ground floor commercial ¢ $16 m project * Fully sold * Will contribute to FY 2004 and FY 2005 ¢ Completion early 2005 ¢ $10m limited recourse bank facility
Slide 16: Rockingham - Nautilus
Sse eee eee ee eee es Rockingham - Nautilus * Council approval obtained for 64 apartments and 24 townhouses ¢ Ground floor commercial * Marketing commenced, proceeding well ¢ 80+% pre-sold ¢ Anticipate profits arising FY2005 and FY2006
Slide 17: The Kestrels, Tapping
Sse eee eee ee eee es The Kestrels, Tapping ¢ Major new project announced July 2003 ¢ Adjacent Joondalup townsite ¢ 51 hectares, 540 lots * Greensmart Accreditation ¢ Construction — Stage 1 August completion ¢ Strong sales — stages | & 2 almost sold out * Display Village
Slide 18: Canning Vale
Sse eee eee ee eee es Canning Vale * 8.35 ha located 17 km south of Perth ¢ Subdivision approval for 57 lots and 160 apartments ¢ Anticipated profit contribution in FY2005-2008
Slide 19: Balcatta
SHIREIEY EEE ESERT EGER ELEEIELESRIEEEETGEELEIALEESI REET ELA ity Eniteiaactstcteibictts ft lll ccc Balcatta ¢ 6.5ha, 12km north of Perth * 16 lot subdivision ¢ Showroom, commercial and bulky goods uses * Opportunity to develop and lease ¢ Anticipate sales over 2005 & 2006
Slide 20: Port Mandurah
ST a Port Mandurah * Stage 6 — sold out * “The Promontory” — sold out ¢ Evaluating development of Sutton Precinct, with up to 45 townhouses
Slide 21: Mariners Cove
Stes teat teeter eee teen eee eee eee eee eee et Mariners Cove ¢ All created dry lots sold — pre-selling Stage 8 ¢ 200 dry lots to be developed including stage 8 * 331 canal lots to be developed, 67 lots in Stage 1 complete and mostly sold * Commenced 94 lot Stage 2 ¢ Future group housing sites in c
Slide 22: The Rivergums, Baldivis
Sse eee eee ee eee es The Rivergums, Baldivis ¢ 120 ha project to yield 815 lots ¢ Over 200 lots sold ¢ Stages 1 & 2 - 180 lots complete * Stage 3 under construction * Project life of 7-10 years
Slide 23: Laverton, Melbourne
BEE Laverton, Melbourne ¢ 275 ha, 18 km (20 mins) west of Melbourne * Mixed use project planning complete * Residential, commercial and industrial uses ¢ $22m freeway interchange now funded * Railway station design complete * Seeking formal rezoning
Slide 24: Economic Outlook
SHIREIEY EEE ESERT EGER ELEEIELESRIEEEETGEELEIALEESI REET ELA ity Eniteiaactstcteibictts ft lll ccc Economic Outlook ¢ Australia & WA economics set for further growth * Consumer confidence remains strong * Property market has softened but market remains resilient ¢ Waterfront and coastal property in
Slide 25: Dwelling Commencements
oolusicsisatsassceeieeisn|es eo) aase a} oats ono e sje oe Dwelling Commencements WA ‘000 Australia '000 2001 2002 2003 2004 2005 gums WA —e— AUSTRALIA Projection
Slide 26: Australia's Largest Population Growth LGA's
Sse eee eee ee eee es Australia’s Largest Population Growth LGA’s City/Part of State Additional persons in the 12 months to June 2003 1 Brisbane (C) Brisbane 20,808 2 Gold Coast (C) Qld Balance 16,099 3 Casey (C) Melbourne 10,787 4 Wyndham (C) Melbourne 7,298 Note: Laverton is in Wyndham 5 Melton (S
Slide 27: Company Outlook
oolusicsisatsassceeieeisn|es eo) aase a} oats ono e sje oe Company Outlook * Strong sales continuing ¢ Further growth provided by new projects * New projects undergoing due diligence ¢ $45m acquisition and development funding facility plus $10m Aria facility * Forecasting $11-12 m net profit after t
Cedar Woods Properties — FY2004 Earnings Presentation on 6ix