Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — FY2011 Earnings Presentation
27 slides from Cedar Woods Properties's earnings presentation, Aug 23, 2011
Slide 1: FY2011 Results Presentation
FY2011 RESULTS PRESENTATION 23rd August 2011
Slide 2: Award Winning Property Developer
AWARD WINNING PROPERTY DEVELOPER ► Focus on residential land development ► Grow funds management and joint venture opportunities ► Further regional development opportunities ► Medium term expansion into other mainland states ► Maintain strong project pipeline to drive future earnings ► Grow size and
Slide 3: Investment Highlights
INVESTMENT HIGHLIGHTS ► Strategically located and diverse property portfolio – Urban and regional growth areas in VIC and WA – Apartments, integrated housing, mixed use and large master planned communities ► Track record of meeting targets and guidance – Consistent delivery of 10%+ annual profit gro
Slide 4: Agenda
AGENDA 1. Financial Overview 2. Operational Overview 3. Outlook 4. Appendices 4
Slide 5: Financial Overview
FINANCIAL OVERVIEW
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS ► Record NPAT of $28 million, up 63% ► Revenue of $132 million, up 22% ► Earnings per share of 45.8 cents, up 58% ► Full year dividend of 23 cents, up 77% ► Full year payout ratio maintained at 50% of net profit ► Gearing of 43% as at 30 June 2011, within target range of 20 – 75
Slide 7: FY2011 Financial Performance Against Targets
FY2011 FINANCIAL PERFORMANCE AGAINST TARGETS CWP continues to exceed its stated financial targets 7
Slide 8: Track Record of Growth and Balance Sheet Strength
TRACK RECORD OF GROWTH AND BALANCE SHEET STRENGTH Revenue ($m) NPAT ($m) 150.0 30.0 28.0 131.8 107.1 108.4 20.6 100.0 90.0 20.0 18.6 17.2 81.9 10% p.a. 9.3 11% p.a. 50.0 10.0 0.0 0.0 FY07 FY08 FY09 FY10 FY11 FY07 FY08 FY09 FY10 FY11 EPS (cents) Gearing (%)1 50.0 45.8 120.0% 37.3 92.0% 96.1% 40.0 33.
Slide 9: Financial Performance
FINANCIAL PERFORMANCE FY11 FY10 Change $m $m % Revenue 131.8 108.4 21.6% Profit before income tax expense 40.2 24.7 62.7% Net profit after tax 28.0 17.2 62.8% Earnings per share 45.8 cents 29.0 cents 57.9% Dividends per share 23 cents 13 cents 76.9% Growth in net profit of 63% 9
Slide 10: Cash Flow Summary
CASH FLOW SUMMARY FY11 FY10 Cash flows related to operating activities $m $m Receipts from customers 143.8 119.4 Interest received 0.5 0.4 Payments to suppliers and employees (40.1) (34.4) Net borrowing costs (4.7) (4.1) Income taxes paid (5.6) (7.2) Payments for new land (47.7) (7.7) Payments for d
Slide 11: Balance Sheet Strength
BALANCE SHEET STRENGTH FY11 FY10 Asset values ($m) $m $m 250.0 233.6 Total assets 233.6 205.7 205.7 Net bank debt 55.7 39.7 200.0 185.0 Shareholders’ equity 129.5 108.8 162.7 155.6 Net bank debt to equity 43.0% 36.5% 150.0 Interest cover 9.1x 6.4x NTA/share $2.10 $1.80 100.0 FY07 FY08 FY09 FY10 FY11
Slide 12: Operational Overview
OPERATIONAL OVERVIEW
Slide 13: Operating Highlights
OPERATING HIGHLIGHTS ► Projects performing well in respective markets ► Strong result attributed to improved pricing and better margins, particularly in Melbourne ► Strategic acquisitions in urban growth areas including two adjacent parcels of land in Baldivis (WA) totalling 68 hectares ► Major, 20-
Slide 14: Strong Property Portfolio and Mature Land Bank
STRONG PROPERTY PORTFOLIO AND MATURE LAND BANK 14
Slide 15: WA Highlights
WA HIGHLIGHTS ► Residential estates continued to sell steadily ► Acquisition of two adjacent parcels of land in Baldivis (68 hectares) ► First two stages of Harrisdale Green well received ► Construction at The Jetty apartments in Rockingham complete and settlements completed for presales ► Pleasing
Slide 16: VIC Highlights
VIC HIGHLIGHTS ► Continued strong presales across VIC projects for FY12 – Williams Landing – 90% of budget – Banbury Village – 96% of budget – Carlingford – 65% of budget ► Major, 20-year leasing deal signed with Woolworths Limited to open a trio of anchor stores at flagship Williams Landing project
Slide 17: Williams Landing
WILLIAMS LANDING ► More than 200 settlements recorded in FY11, 800 lots sold since 2008 ► Major, 20-year leasing deal signed with Woolworths Limited to anchor Town Centre with a trio of flagship stores totalling 25,400m 2 ► Agreement underpins development of the 50 hectare town centre expected to op
Slide 18: Outlook
OUTLOOK
Slide 19: Market Conditions
MARKET CONDITIONS WESTERN AUSTRALIA VICTORIA Demand in growth corridors where Solid residential housing market CWP projects located fundamentals underpinned by Continued demand underpinned by positive FY12 indicators: positive FY12 indicators: ► Economic growth of 3.0% ► Economic growth of 4.5
Slide 20: Company Outlook
COMPANY OUTLOOK ► Forecast FY12 record net profit of approximately $34 million based on sales at current levels ► FY12 profit underpinned by $130 million in presales already in place ► Positive outlook, bolstered by continued demand for CWP’s projects, strategically located in WA and VIC’s growth re
Slide 21: Appendices
APPENDICES
Slide 22: Sustainable Earnings from Long Term Projects
SUSTAINABLE EARNINGS FROM LONG TERM PROJECTS 2011 PROJECT PIPELINE Notes: 1) I = Independent Valuation; D = Directors’ Valuation; C = Valuation at Cost 2) Estimated market value NTA at H1 2011 and does not take into account corporate tax payable upon the sale of the properties, the value of any othe
Slide 23: Williams Landing (VIC)
WILLIAMS LANDING (VIC) Cedar<@ Woods 23 PROPERTIES LIMITED
Slide 24: Williams Landing (VIC)
ARUP. woderParsone COX 24 Cedar <@ Woods PROPERTIES LIMITED
Slide 25: Baldivis Properties (WA)
25 Perth Cedar >» Woods PROPERTIES LIMITED
Slide 26: Disclaimer
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 in this presentation is free from errors or omissions or is suitable for your intended use. Subject to any ter
Slide 27: Contact details
Level 4, 66 Kings Park Road West Perth WA 6005 Phone: (08) 9480 1500 Email: email@cedarwoods.com.au www.cedarwoods.com.au
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