Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — H1 2012 Earnings Presentation
33 slides from Cedar Woods Properties's earnings presentation, Feb 21, 2012
Slide 1: 1HFY2012 Results Presentation
1HFY2012 RESULTS PRESENTATION 21st February 2012
Slide 2: Award Winning Property Developer
AWARD WINNING PROPERTY DEVELOPER ► Listed 1994, consistently profitable, always paid dividends ► Strategically located and diverse residential portfolio – Urban and regional growth areas in VIC and WA – Apartments, integrated housing, mixed use and large master planned communities ► Flagship William
Slide 3: Cedar Woods' Strategies
CEDAR WOODS’ STRATEGIES Objectives/Targets Strategies Progress/Results Earnings growth > Portfolio management – acquisition, FY12 forecast NPAT growth of 21% 10% pa approvals and delivery. Quick rebound from GFC. Well positioned for future. Customer satisfaction Maintain product quality. High satisf
Slide 4: Investment Highlights
INVESTMENT HIGHLIGHTS ►Forecasting record profit FY2012 of $34m ►Strong balance sheet and prudent gearing ►Market value of assets materially above current share price ►Dividend policy to distribute approximately 50% of full year net profit 4
Slide 5: Total Shareholder Returns (Calendar 2011)
TOTAL SHAREHOLDER RETURNS (CALENDAR 2011) Cedar Woods Peer group average ALL ORDINARIES XJO A-REIT Properties (ex-CWP) 1 5.0% 2.3% 0.0% -1.5% -5.0% -10.0% -11.4% -15.0% -20.0% -18.1% 1 Benchmark group of 12 ASX listed development companies Total shareholder return represents the change in share pric
Slide 6: Agenda
AGENDA 1. Financial Overview 2. Operational Overview 3. Outlook 4. Appendices 6
Slide 7: Financial Overview
FINANCIAL OVERVIEW
Slide 8: Financial Highlights
FINANCIAL HIGHLIGHTS H1FY12 H1FY11 FY12 FY11 Full Yr (A) (A) (F) (A) Change $m $m $m $m % Revenue 77.7 96.0 179.0 131.8 36% NPAT 10.9 24.2 34.0 28.0 21% FY12 will be significantly weighted to 2H due to seasonality and project timing. Record Revenue & NPAT forecast for FY2012 8
Slide 9: Track Record of Growth
TRACK RECORD OF GROWTH Revenue ($m) 200.0 179.0 150.0 131.8 107.1 108.4 100.0 81.9 21.6% p.a. 50.0 0.0 FY08 FY09 FY10 FY11 FY12(F) NPAT ($m) 40.0 34.0 30.0 28.0 20.6 20.0 17.2 10.0 9.3 13.4% p.a. 0.0 FY08 FY09 FY10 FY11 FY12(F) 9
Slide 10: Asset Values
ASSET VALUES ► Majority of land bank acquired well before property Estimated boom and Market GFC, zoned with approvals Value Current NTA ► Major projects Book NTA mature and providing Share income(approx. Price $6.00 ($2.10)1 ► CWP assets are stated at the lower of cost and net realisable ($3.95) 2
Slide 11: Balance Sheet Strength
BALANCE SHEET STRENGTH Assets at book value (cost) ($m) 31 Dec 30 June 250.0 233.6 226.6 2011 2011 205.7 $m $m 200.0 185.0 Total assets (book value) 226.6 233.6 162.7 150.0 Net bank debt 61.5 55.7 Net assets (equity) 136.7 129.5 100.0 FY08 FY09 FY10 FY11 1H FY12 Finance facility headroom 41.8 49.5 G
Slide 12: Cash Flow Summary
CASH FLOW SUMMARY H1FY12 H1FY11 Cash flows related to operating activities $m $m Receipts from customers 83.6 103.5 Interest received 0.3 0.3 Payments to suppliers and employees (18.5) (23.0) Net borrowing costs (2.9) (2.7) Income taxes paid (7.2) (4.0) Payments for development (33.5) (28.2) Operati
Slide 13: Operational Overview
OPERATIONAL OVERVIEW
Slide 14: Strong Property Portfolio and Mature Land Bank
STRONG PROPERTY PORTFOLIO AND MATURE LAND BANK 14
Slide 15: WA Highlights
WA HIGHLIGHTS ► New stages under development at major residential projects at Emerald Park, Rivergums & Harrisdale Green that will contribute to FY12 and FY13 ► New project at Batavia Coast Marina Apartments (joint venture) - over 50% presold with first settlements in FY13 ► New project launches com
Slide 16: Baldivis Properties (WA)
BALDIVIS PROPERTIES (WA) Emerald Park (Wellard) North Baldivis (38 km) The Rivergums (Baldivis)
Slide 17: Batavia Coast Marina Development, Geraldton
BATAVIA COAST MARINA DEVELOPMENT, GERALDTON 17
Slide 18: Piara Waters
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Slide 19: South Hedland
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Slide 20: VIC Highlights
VIC HIGHLIGHTS ► 95% presales in place for FY12, across 3 projects ► Strong presales in place for FY13 – Williams Landing – 50% of budget – Banbury Village – 40% of budget – Realm Camberwell – 57% of budget ► Realm Camberwell has sold 20 of 27 homes released and civil works are underway. Constructio
Slide 21: Realm, Camberwell
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Slide 22: Williams Landing
WILLIAMS LANDING ► Flagship project 19km from CBD - largest infill site in Melbourne (275ha) - 2,500 lots - 50ha town centre (retail bulky goods, office, commercial, residential ► Numerous presold stages under construction for settlement in 2H FY12 ► State Government commenced construction of $100m
Slide 23: Williams Landing
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Slide 24: Williams Landing
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Slide 25: Outlook
OUTLOOK
Slide 26: Market Conditions
MARKET CONDITIONS WESTERN AUSTRALIA VICTORIA Demand in growth corridors where Solid residential housing market CWP projects located fundamentals underpinned by 2013 Continued demand underpinned by indicators: positive 2013 indicators: Economic growth of 2.8% Economic growth of 3.8% Pop g
Slide 27: Company Outlook
COMPANY OUTLOOK ► Forecast FY12 record net profit of approximately $34m, up 21% on 2011 ► Currently $140m in pre-sales vs $130m last year ► 2HFY12 profit underpinned by $89m in presales already in place ► $51m in presales secured for FY13 ► New projects already launched at Realm Camberwell and Batav
Slide 28: Disclaimer
50 Colin Street West Perth WA 6005 Phone: (08) 9480 1500 Email: email@cedarwoods.com.au www.cedarwoods.com.au DISCLAIMER Disclaimer of liability While every effort is made to provide complete and accurate information, Cedar Woods Properties Limited does not warrant or represent that the information
Slide 29: Appendix
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Slide 30: Perth Projects: In Growth Locations
PERTH PROJECTS: IN GROWTH LOCATIONS Kestrels Emerald Park Harrisdale Green Rivergums & Jetty Apartments Source: ABS, ANZ 30
Slide 31: Regional Projects: In Growth Locations
REGIONAL PROJECTS: IN GROWTH LOCATIONS Mariners Cove Hedland Source: ABS, ANZ 31
Slide 32: Victorian Projects: In Growth Locations
VICTORIAN PROJECTS: IN GROWTH LOCATIONS Williams Landing Carlingford Banbury Village Camberwell Source: ABS, ANZ 32
Slide 33: Sustainable Earnings from Long Term Projects
SUSTAINABLE EARNINGS FROM LONG TERM PROJECTS 2012 PROJECT PIPELINE Project Life Pricing Guide Location Project Type Status Total Lots Lots Remaining ($) FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 WA projects Rivergums Baldivis Southern corridor Residential Mature 1200 600 $170k-$240k North Baldivis Sou
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