Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — H1 FY2008 Earnings Presentation
40 slides from Cedar Woods Properties's earnings presentation, Feb 26, 2008
Slide 1: Half Year Results Presentation cover letter
For personal use only 26 February 2008 Australian Securities Exchange Limited Exchange Centre, Level 4, 20 Bridge Street Sydney NSW 2000. Dear Sir / Madam, HALF YEAR RESULTS PRESENTATION Please find attached our half year results presentation. Yours faithfully, Paul Freedman, Company Secretary
Slide 2: Half Year Results to 31 December 2007
For personal use only Half Year Results to 31 December 2007
Slide 3: Presentation outline
Presentation outline For personal use only ♦ Company objectives. ♦ Financial highlights. ♦ Review of recent progress. ♦ Outlook and FY2008 forecast.
Slide 4: Company objectives
Company objectives ♦ Primary objective – growth in earnings per share. For personal use only ♦ Aim to be in the top half of listed companies. ♦ CWPL’s current benchmark is 10% pa earnings growth. ♦ Gearing (net debt to equity) – long term target range 20% to 75%. ♦ Return on equity – minimum of 12%.
Slide 5: Financial highlights – income statement
Financial highlights – income statement For personal use only Dec 2007 Dec 2006 $m $m Revenue 31.6 63.5 50% Profit before income tax 6.5 20.0 67% expense Net profit after tax attributable 4.6 13.8 67% to members of CWPL Earnings per share 8.3 cents 25.3 cents 67%
Slide 6: Half year results ($m)
Half year results ($m) For personal use only Full Year FY H1 H2 Profit 2006 9.9 6.3 16.2 2007 13.8 4.8 18.6 2008 4.6 15.4 * 20.0 * IFRS introduced in FY2006 – revenue based on settlement * Forecast
Slide 7: Half year results
Half year results ♦ First half – 23% of full year profit forecast. For personal use only ♦ Last year 26% in second half. ♦ Substantial pre-sales in place for second half. ♦ Uneven halves set to continue in short term. ♦ Timing of earnings dependent upon project delivery and settlement timetable.
Slide 8: Financial highlights – income statement
Financial highlights – income statement For personal use only FY2008 FY2007 Forecast Actual EBIT Margin 33% 34.8% ROE 24% 25.9% ROC 20% 23.0% ♦ Ratios forecast to be marginally lower than prior year as the company prepares for launches of Melbourne projects.
Slide 9: Growth in profits and dividends
Growth in profits and dividends For personal use only 25 18.0 16.0 20 14.0 12.0 Dividends (cents) 15 Profit ($m) 10.0 15.4 8.0 10 18.6 16.2 6.0 12.4 5 10.3 4.0 4.6 2.0 0 0.0 2004 2005 2006 2007 2008F Actual Forecast Dividends
Slide 10: CWP share price and NPAT growth
CWP share price and NPAT growth For personal use only 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 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 * share price as at 22 February 2008
Slide 11: Share price movements
Share price movements Listed property sector (December peak to 22 February 2008) For personal use only Stockland 23% Sunland 23% Cedar Woods 28% Australand 29% Devine 33% Mirvac 35% Peet 35% Aspen 45% FKP 48%
Slide 12: Financial highlights – balance sheet
Financial highlights – balance sheet Dec June For personal use only 2007 2007 Total assets $m 161.0 155.6 Net bank debt $m 75.1 63.7 Shareholders equity $m 72.3 71.6 Net bank debt to equity * (%) 103.9 89.0 Interest cover (x) 7 7 * debt/equity based on historical costs – much lower on market values.
Slide 13: Financial highlights – balance sheet
Financial highlights – balance sheet For personal use only ♦ Strong current ratio >2. ♦ Corporate facility available until September 2010. ♦ Gearing expected to be lower at 30 June but at upper end of preferred long term range in FY2008 as company commences projects in Melbourne and continues built
Slide 14: Statement of operating cash flows
Statement of operating cash flows For personal use only Dec 2007 Dec 2006 Cash flows related to operating activities $M $M Receipts from customers 34.8 69.3 Payments to suppliers & employees (13.0) (10.1) Net borrowing cost (3.3) (3.1) Income taxes paid (4.8) (3.0) Payments for inventory – new land
Slide 15: Dividend policy
Dividend policy For personal use only ♦ Maintain current balance between interim and full year dividend – approximately 40 / 60. ♦ 50% net profit plus distributed reserves for full year ♦ Dividend reinvestment plan (DRP) suspended for interim dividend. ♦ DRP will be reinstated when financial market
Slide 16: WA & Victoria projects
WA & Victoria projects For personal use only
Slide 17: Project life – Perth
Project life – Perth For personal use only 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 Opti
Slide 18: Project Life - Melbourne
Project Life - Melbourne For personal use only FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Carlingford Williams Landing Banbury Village
Slide 19: Business model
For personal use only Business model
Slide 20: Growth strategies
Growth strategies For personal use only ♦ 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 21: Projects under option
Projects under option ♦ Earnings pipeline in place for 5 years of growth. For personal use only ♦ Optioning medium – longer term landbank. ♦ Options over significant land parcels in WA ¾ exercisable in 2-3 years time. ¾ development commencing in 3-5 years.
Slide 22: Growth in Melbourne market
Growth in Melbourne market For personal use only ♦ All projects under development in 2008. ♦ Earnings in FY2009 and growing thereafter. ♦ Further acquisitions focus. ♦ Market experiencing upswing in Victoria.
Slide 23: Built form
For personal use only Built form
Slide 24: Built form
For personal use only Built form
Slide 25: Built form
For personal use only Built form
Slide 26: Built form
For personal use only Built form
Slide 27: Residential
For personal use only Residential
Slide 28: Residential
For personal use only Residential
Slide 29: Residential
For personal use only Residential
Slide 30: Residential
For personal use only Residential
Slide 31: Melbourne projects
For personal use only Melbourne projects
Slide 32: Melbourne projects
For personal use only Melbourne projects
Slide 33: Melbourne projects
For personal use only Melbourne projects
Slide 34: Melbourne projects – Master Plan – Land Development
Melbourne projects For personal use only Master Plan – Land Development
Slide 35: Melbourne Projects
For personal use only Melbourne Projects
Slide 36: Population growth
Population growth For personal use only June 2007 1 year % population increase increase (000’s) (000’s) VIC 5,205 76.9 1.5 WA 2,106 46.7 2.3 QLD 4,182 90.5 2.2 NSW 6,889 71.9 1.1 AUSTRALIA 21,017 315.7 1.5 Source: ABS
Slide 37: Residential vacancy rates
Residential vacancy rates For personal use only 2007 Sep Average Quarter 1980 to date % % SYD 1.4 2.4 MELB 1.2 2.7 BRIS 1.6 3.4 PERTH 2.5 3.4 Source: HIA
Slide 38: Housing sector WA & VIC
Housing sector WA & VIC For personal use only ♦ Strong local economy. ♦ Continued population growth. ♦ Interest rates expected to peak in 2008. ♦ Consumer sentiment holding up. ♦ Economic fundamentals positive.
Slide 39: Company outlook
Company outlook ♦ Melbourne projects under development. For personal use only ♦ Finance facility available until September 2010. ♦ DRP suspended for interim but will be reinstated. ♦ Forecasting approx $20m net profit after tax in FY2008. ♦ Further earnings growth anticipated for FY2009 as Melbourne
Slide 40: Half Year Results to December 2007
For personal use only Half Year Results to 31 December 2007
Cedar Woods Properties — H1 FY2008 Earnings Presentation on 6ix