Cedar Woods Properties Limited · ASX:CWP

Cedar Woods Properties — Shareholder Meeting (2010)

37 slides from Cedar Woods Properties's shareholder meeting presentation, 2010

  1. Slide 1: Annual General Meeting 2010

    Annual General Meeting 2010

  2. Slide 2: Presentation overview

    During our presentation today I will comment upon the current economic environment before reviewing the highlights and financial results of the company for the previous financial year. I will then hand proceedings to Paul Sadleir who will provide insight into our property portfolio, the residential

  3. Slide 3: Improved financial year and positive outlook

    I am pleased to report that your company had a much improved financial year in 2010 which was reflected in an 86% increase in net profit and a similar increase in distributions to shareholders. Moreover your Board advises that the company is now strongly positioned for further earnings growth, havin

  4. Slide 4: Shares trading at a discount to net tangible assets

    Your Board chose to make this announcement because the company’s shares have for some time been trading at a significant discount to the net tangible asset value. The calculation of $6 is based predominantly upon independent property valuations conducted during the 2010 financial year. It is much hi

  5. Slide 5: FY2010 Results

    FY2010 Results

  6. Slide 6: Overview of financial position

    I will now give a brief overview of our financial position. We achieved a net profit of $17.2m in 2010, which represented an 86% increase on the previous year and allowed us to increase the dividend payout by a similar percentage. Importantly, we again lowered our gearing , which has positioned the

  7. Slide 7: Revenue, net profit and earnings per share

    In 2010, revenue increased marginally but our net profit was up by 86% as a result of improved margins, lower operating costs and lower impairment charges. As a result earnings per share was up 79% and dividends to shareholders were up 86% as we resumed the interim dividend. 7

  8. Slide 8: Five-year net profit history

    This slide shows the history of our net profits over the last 5 years, the impact of the tough economic conditions during 2009 and the progress of our recovery going into 2011. We have been working hard to rebuild profitability and we are anticipating a record profit in 2011 . Our portfolio of proje

  9. Slide 9: Dividend policy

    Our policy is to distribute approximately 50% of the annual net profit after tax to shareholders. This policy has served us well during the last five years and provides a good balance between rewarding shareholders and retaining cash to fund future growth. The interim dividend was suspended in 2009,

  10. Slide 10: Balance sheet highlights

    Lets have a quick look at the balance sheet highlights. There was a significant increase in our total assets this year after a small dip in our total assets last year . We prudently did not add any significant projects to our portfolio last year, but in 2010 we made a number of new acquisitions. Pro

  11. Slide 11: Low equity raising and new acquisitions

    Cedar Woods raised only a low level of additional equity over the duration of the financial crisis, by way of the dividend reinvestment plan. While a small amount of additional equity was considered to be necessary and in the best interest of shareholders, we were able to rely on our strong operatio

  12. Slide 12: Handover to Paul Sadleir

    With those introductory comments, I now handover to Paul to give a brief review of our portfolio and outlook. 12

  13. Slide 13: Property Portfolio

    Property Portfolio Cedar @ Woods Melbourne 13

  14. Slide 14: Project Life - Perth

    Project Life — Rivergums Cambridge Waters Mariners Cove Mandurah Country Club Kestrels Waterline (including stage 2) The Jetty Port Mandurah (Sutton) Forrestdale Cedar Woods Wellard Carine Harrisdale Bushmead Pinjarra Perth Fy2011 FY2012,»-FY2013.«-FY2014_ «Ss FY2015_ = FY2016 = FY2017-—s FY2018 14

  15. Slide 15: Residential - Built Form

    Residential — Built Form Cedar @ Woods 15

  16. Slide 16: Residential - Built Form

    a 7 ‘ Cedar @ Woods Residential — Built Form = 16

  17. Slide 17: Residential

    Residential Cedar @ Woods PRIVATE/ESTATE 17

  18. Slide 18: Residential

    Cedar @ Woods Residential — Le carinevision xs

  19. Slide 19: New Projects - Perth

    NEW PROJECTS - PERTH Cedar@ Woods 19

  20. Slide 20: New Projects - Perth

    NEW PROJECTS — PERTH Cedar @ Woods 20

  21. Slide 21: Project Life - Melbourne

    Cedar@ Woods Project Life — Melbourne Fy2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Carlingford Williams Landing Banbury Village Realm, Camberwell MELWAYS REF-60 F2 MELWAY REF 82 21

  22. Slide 22: Banbury Village

    Cedar@ Woods Banbury Village

  23. Slide 23: Carlingford

    Carlingford Carlingford Cedar @ Woods 23

  24. Slide 24: Williams Landing town centre opportunity

    We see great opportunities arising from the Williams Landing project. Our intention is to develop and retain significant precincts within the town centre which will comprise retail, bulky goods, commercial and residential components. This will add significant assets to the company’s portfolio and pr

  25. Slide 25: Williams Landing infrastructure and potential

    The Victorian State Government has now commenced construction of its $100m infrastructure project at Williams Landing including the train station, bus interchange, freeway interchange and 500 bay commuter car park. This infrastructure has been designed to integrate directly with the project’s town c

  26. Slide 26: New Projects - Melbourne

    NEW PROJECTS — MELBOURNE Camberwell Cedar @ Woods 26

  27. Slide 27: Residential Market Drivers

    Residential Market Drivers » Population growth — long term driver » Housing supply — under supply set to continue » Confidence 7 Employment y Availability of finance 7 Incentives » Affordability (prices, interest rates) » Rental alternative 27

  28. Slide 28: Population Growth

    Population Growth Cedar@ Woods 140 220 | 2.1% 2.A% 1.6% 100 -~ 2.7% ‘000 58.7 1.3% Victoria Western Queensland New South South Australia Wales Australia

  29. Slide 29: Market Conditions

    Market Conditions Victoria » sound fundamentals, continued state stimulus y — strong first and second home buyer sales > population growth/lack of rentals 7 strong price growth, now easing WA 7 resource projects continuing — new Port Hedland project » population growth to continue » — land supply re

  30. Slide 30: Outlook

    Outlook 30

  31. Slide 31: Outlook summary and FY2011 forecast

    In summary then, we have substantial presales in place and well on the way to meeting our sales targets for the year. We expect a strong first half. Strong demand continues at our projects and we are already focusing on presales for FY2012. Our new 3 year $110m corporate bank facility provides us lo

  32. Slide 32: Investment Case for CWP

    Investment Case for CWP 32

  33. Slide 33: Investment case

    Investment case: Well established, stable board and management Clear focus on EPS, ROC and gearing targets, proven profitable business Strong profit growth expected, record FY11 profit Property portfolio in growth states and major projects derisked and mature Company growing and making acquisitions

  34. Slide 34: Share price well below underlying value

    Many of our major assets were acquired well before the property boom. The bulk of our portfolio has been de-risked from an approvals point of view and most of the valuable projects are under development. Consequently , the current share price , around $3 is well below the underlying value of our sha

  35. Slide 35: Earnings growth and share price

    We anticipate that the higher earnings growth will translate to share price growth and improved distributions to shareholders. 35

  36. Slide 36: Trading below peer group PE ratio

    We are currently trading below the PE ratio of our peer group, hence there is an opportunity for a share price re-rating. 36

  37. Slide 37: Annual General Meeting 2010

    Annual General Meeting 2010 37

Cedar Woods Properties — Shareholder Meeting (2010) on 6ix