Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — FY2007 Earnings Presentation
52 slides from Cedar Woods Properties's earnings presentation, 2007
Slide 1: 2007 Annual Results
Cedar (@® Woods PROPERTIES LIMITED 2007 Annual Results
Slide 2: Presentation outline
Presentation outline ♦ Company objectives ♦ Financial highlights ♦ 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: Financial highlights – income statement
Financial highlights – income statement FY2007 FY2006 EBIT/Sales 34.7% 32.0% ROE 25.9% 23.7% ROC 23.1% 26.5% • Margins improved due to price growth • ROE improved due to earnings growth • ROC reduced due to growth in long term assets.
Slide 6: 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 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 3.50 Price $ 3.00 10 2.50 2.00 1.50 5 1.00 7.1 10.3 12.4 16.2 18.5 20.0 0.50 0 0.00 2003 2004 2005 2006 2007 2008F NPAT Share Price
Slide 8: Revenue and asset growth
Revenue and asset growth Compound average growth rate 180.0 Revenue 25% 160.0 140.0 Total assets 23.5% 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 9: Total shareholder returns
Total shareholder returns ASX Real Estate CWP to 30/6/07 Sector (2006) 1 Year 20% 20% 3 Year 52% 17% 5 Year 67% 13%
Slide 10: Financial highlights – balance sheet
Financial highlights – balance sheet Jun 2007 Jun 2006 Jun 2006 (Wellard (Wellard Actual 25%) 25%) Total assets $m 155.6 152.0 194.9 Net bank debt $m 63.7 43.4 29.0 Shareholders equity $m 71.6 60.5 68.5 Net bank debt to equity (%) 89.0 71.9 42.3 Interest cover (x) 7 9 9
Slide 11: Financial highlights – balance sheet
Financial highlights – balance sheet • Total assets reduced as a result of ‘deconsolidating’ Cedar Woods Wellard Limited, as our interest reduced to 25% post 30 June 2006. • Gearing expected to stay at upper end of preferred range in FY2008 as company commences projects in Melbourne and continues bu
Slide 12: Statement of operating cash flows
Statement of operating cash flows FY2007 FY2006 Cashflows related to operating activities $M $M Receipts from customers 98.7 87.8 Payments to suppliers & employees (27.2) (19.7) Net borrowing cost (5.8) (3.8) Income taxes paid (6.8) (6.1) Payments for inventory – new land (45.9) (14.5) Payment for i
Slide 13: 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 23%
Slide 14: WA & Victoria projects
WA & Victoria projects MELBOURNE CBD PORT PHILLIP BAY GEELONG Projects Projects Cedar @ Woods PROPERTY DEVELOPER
Slide 15: 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 16: Project Life - Melbourne
Project Life - Melbourne FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Lalor Laverton Footscray
Slide 17: Business model
Business model Owned Developments Syndications Joint Ventures Other Structures Land Under Options / Owned Property Development Agreements Residential Built Form Industrial Retail / Commercial LANDBANK Western Australia / Victoria
Slide 18: Growth strategies
Growth strategies • Drive value from existing projects • Affordable housing and retirement sector • Properties under option • Growth in Melbourne market • Williams Landing town centre - commercial portfolio, trust structure • Property syndication
Slide 19: 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 20: Growth in Melbourne market
Growth in Melbourne market • All projects under development in FY2008. • Earnings in FY2009 and growing thereafter. • Further acquisitions focus. • Market experiencing upswing in Victoria.
Slide 21: Commercial portfolio
Commercial portfolio • Opportunities from existing portfolio, particularly Williams Landing. • Mixed use sites • Retail developments eg. within apartment projects • Commercial units
Slide 22: Property syndication
Property syndication • Wellard syndicate development underway. • Expect to add 1-2 syndicates annually. • CWWL to commence development in FY2008 and on track to deliver first sales in FY2009.
Slide 23: Built Form
Built Form
Slide 24: Slide 24
Slide 25: Wwe Te reli me
Wwe Te reli me epersments>mandurahk AWAR WINNING PROPERTY EVE 0 Pp ER
Slide 26: The Jetty
THE JETTY APARTMENTS @ AT PALM BEACH wei A ‘ “es Cedar @ Woods
Slide 27: THE/ZL/ ays
THE/ZL/ ays y
Slide 28: Residential
Cedar @ Woods AWARD WINNING PROPERTY DEVELOPER
Slide 29: The Islands at Mariners Cove
@eThe tslands AT MARINERS COovE Cedar@® Woods AWARD WINNING PUR OP TE BR TY DRESV ESE ORR EaR Ww
Slide 30: Mariners Cove
MARINERS COVE AWARD WINNING PROPERTY DE oO Ae)
Slide 31: Rivergums
ivergums i ™ The N, Ed BALDIVIS LT” The perfect spot ta nest ie 0
Slide 32: Cambridge Waters, Canning Vale
Le ‘WATERS CANWING VALE
Slide 33: Melbourne Projects
emi oe LON EKP ALIS tot >
Slide 34: Banbury Village, Footscray
Banbury Village, Footscray
Slide 35: Banbury Village, Footscray
Banbury Village, Footscray Master Plan – Land Development
Slide 36: Banbury Village, Footscray
Banbury Village, Footscray
Slide 37: Williams Landing, Laverton
DRERVS ESE Oe) ER PUR OP TE BR TY C O o c — ing, Land Cedar@® Woods Williams
Slide 38: Williams Landing, Laverton
Cedar @ Woods AWARD WINNING PROPERTY DEVELOPER
Slide 39: Carlingford, Lalor
Carlingford, Lalor BUSINESS PARK THE NORTHERN Oh 9 sree Sy vosrrrat PROPOSED : MELBOURNE MARKETS EPPING PLAZA SHOPPING CENTRE SCHOOLS LALOR RAILWAY STATION \S \S . WHITTLESEA PUBLIC GARDENS c 7) c = 3 = a y f | {i METROPOLITAN RING ROAD ma V PROPERTY DEVELOPER
Slide 40: Carlingford, Lalor
Carlingford, Lalor
Slide 41: 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 42: 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-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Months
Slide 43: Population growth
Population growth Dec 2006 population 1 year increase % increase (000’s) (000’s) VIC 5,165 77 1.5 WA 2,081 43 2.1 QLD 4,132 82 2.0 NSW 6,855 64 0.9 AUSTRALIA 20,852 293 1.4 Source: ABS Cat.3101.0
Slide 44: Average weekly earnings – May 2007
Average weekly earnings – May 2007 AWE 1 Year Change WA $914.90 + 10.6% Vic $853.40 + 4% Qld $818.90 + 3.2% NSW $909.8 + 5.1%
Slide 45: Unemployment rate % (July 2007)
Unemployment rate % (July 2007) Unemployment Rate % (July 2007) 5 4.5 4 3.5 Rate (%) 3 2.5 2 1.5 1 0.5 0 Victoria Western Queensland New South Australia Australia Wales Source: ABS Cat. 6202.0 Annual Average Rate
Slide 46: 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 47: Dwelling unit approvals 2006/07
Dwelling unit approvals 2006/07 Total Dwelling Units Total Dwelling 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 48: Housing supply and demand
Housing supply and demand Western Australia Underlying Requirements for Housing vs Actual & Forecast Dwelling Starts 30.0 25.0 20.0 Victoria 15.0 Underlying Requirements for Housing vs Actual & Forecast 10.0 Dwelling Starts 48.0 5.0 46.0 0.0 44.0 2005 (a) 2006 (a) 2007 (f) 2008 (f) 2009 (f) 42.0 Hou
Slide 49: Residential vacancy rates
Residential vacancy rates Average 2007 Mar Quarter 1980 to date % % SYD 1.4 2.4 MELB 1.2 2.7 BRIS 1.7 3.4 PERTH 0.8 3.4
Slide 50: Housing sector WA & VIC
Housing sector WA & VIC • Strong local economy • Continued population growth • Modest interest rate increases • Consumer sentiment holding up • Economic fundamentals positive
Slide 51: Company outlook
Company outlook • All Melbourne projects now under development. • 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 52: 2007 Annual Results
Cedar (@® Woods PROPERTIES LIMITED 2007 Annual Results
Cedar Woods Properties — FY2007 Earnings Presentation on 6ix