Slide 1: FY2012 Results Presentation
For personal use only FY2012 RESULTS PRESENTATION 21 August 2012
Slide 2: Investment Highlights
INVESTMENT HIGHLIGHTS For personal use only ► Proven track record of consistent earnings growth and meeting targets ► Strategically located and diverse residential portfolio – Urban and regional growth areas in VIC and WA – Apartments, integrated housing, mixed use and large master planned communiti
Slide 3: Cedar Woods' Strategies
CEDAR WOODS’ STRATEGIES For personal use only Property Development Portfolio Diversity Expertise Strategically located and diverse Core competency: industry- residential portfolio in urban and leading design, delivery and regional growth areas in VIC and marketing of development WA, offering a spect
Slide 4: Agenda
AGENDA For personal use only 1. Financial Overview 2. Operational Overview 3. Market Conditions 4. Company Outlook 4
Slide 5: Financial Overview
For personal use only FINANCIAL OVERVIEW
Slide 6: Financial Highlights
FINANCIAL HIGHLIGHTS For personal use only FY12 ($m) FY11 ($m) Change (%) Revenue 170.5 131.8 29% Profit before income tax expense 49.3 40.2 22% Net profit after tax 34.3 28.0 22% Earnings per share 53.2 cents 45.8 cents 16% Dividends per share 25.0 cents 23.0 cents 9% ► Full year dividend payout ra
Slide 7: Track Record of Growth and Balance Sheet Strength
TRACK RECORD OF GROWTH AND BALANCE SHEET STRENGTH For personal use only Revenue ($m) NPAT ($m) 200.0 40.0 170.5 34.3 150.0 131.8 30.0 28.0 107.1 108.4 20.6 100.0 81.9 20.0 17.2 50.0 10.0 9.3 0.0 0.0 FY08 FY09 FY10 FY11 FY12 FY08 FY09 FY10 FY11 FY12 EPS (cents) Gearing (%)1 60.0 100.0% 96.1% 53.2 45.
Slide 8: Cash Flow Summary
CASH FLOW SUMMARY For personal use only FY12 FY11 Cash flows related to operating activities $m $m Receipts from customers 184.3 143.8 Interest received 0.8 0.5 Payments to suppliers and employees (38.6) (40.1) Borrowing costs (6.0) (4.7) Income taxes paid (9.9) (5.6) Payments for development (74.7)
Slide 9: Balance Sheet Strength
BALANCE SHEET STRENGTH For personal use only Assets at book value (cost) ($m) 30 June 30 June 250.0 233.6 238.3 2012 2011 205.7 $m $m 200.0 185.0 Total assets (book value) 238.3 233.6 162.7 150.0 Net bank debt 3.8 55.1 Net assets (equity) 184.6 129.5 100.0 FY08 FY09 FY10 FY11 FY12 Finance facility h
Slide 10: Asset Values
ASSET VALUES For personal use only ► Market NTA/share of approximately $5.35, based on independent and director valuations ► Significantly higher market vs book NTA value attributed to: Estimated Market – Strong performance of key projects Current Value NTA Book – Acquisition of majority ofShare NTA
Slide 11: Operational Overview
For personal use only OVERVIEW OPERATIONAL
Slide 12: Strong Property Portfolio and Mature Land Bank
STRONG PROPERTY PORTFOLIO AND MATURE LAND BANK For personal use only 12
Slide 13: WA Highlights
WA HIGHLIGHTS For personal use only ► 37% of the FY2013 WA target presold ► New stages under development at major residential projects at Emerald Park, Rivergums & Harrisdale Green that will contribute to FY2013 ► New project at Batavia Coast Marina Apartments – over 50% presold with first settlemen
Slide 14: Batavia Coast Marina
BATAVIA COAST MARINA For personal use only ► Collaboration with local private investors in Geraldton, WA ► Presales of more than 50% achieved ► Contributes to FY13 profit ► Project is fully-funded, including a senior debt facility with Westpac Banking Corporation ► Construction underway, completion
Slide 15: Piara Central
PIARA CENTRAL For personal use only ► Strong demand following launch in 20 km from Perth CBD, with easy access to the Kwinana Freeway and Tonkin and Albany Highways May 2012 ► More than 40 contracts signed ► Construction nearing completion for the first two stages, expected to settle in the first ha
Slide 16: Elements, South Hedland
ELEMENTS, SOUTH HEDLAND For personal use only ► All planning approvals received for Cedar Woods’ new Elements project, comprising 150 residential lots at South Hedland ► Public sales release to commence shortly ► High enquiry levels to Located at the gateway date, strong demand to the growing town e
Slide 17: Harrisdale Green
HARRISDALE GREEN For personal use only ► Development agreement with WA Department of Housing ► Located in SE growth corridor ► Third release launched in September 2011 now fully sold; construction completed with first lots settled in 4QFY12 ► A further release is planned for 1HFY13 Harrisdale Green
Slide 18: VIC Highlights
VIC HIGHLIGHTS For personal use only ► Strong presales in place for FY13 – Williams Landing – 56% of target – Banbury Village – 88% of target – Realm Camberwell – 88% of target ► Williams Landing train station/freeway interchange completion expected early CY13 ► Realm Camberwell – 24 of 27 homes pre
Slide 19: Williams Landing
WILLIAMS LANDING For personal use only ► Flagship project 19km from CBD - largest infill site in Melbourne (275ha) - 2,500 plus residential lots/units - 50ha town centre (retail bulky goods, office, commercial, residential) Williams Landing – one of Melbourne’s premier master-planned communities ► S
Slide 20: Williams Landing
WILLIAMS LANDING For personal use only Railway line construction, Williams Landing Railway Station site Palmers Road overpass under construction 20
Slide 21: Williams Landing
WILLIAMS LANDING For personal use only Williams Landing Masters Home Improvement store - artist’s impression 21
Slide 22: Realm
REALM For personal use only ► Located in Camberwell ► 24 of 27 homes sold in first phase ► 10 further sales in subsequent release ► Civil works are complete ► Builder appointed, construction of first three stages commenced ► Settlements 4Q FY2013 onwards Construction of first phase to commence 1Q FY
Slide 23: Banbury Village
BANBURY VILLAGE For personal use only ► Numerous stages completed in FY2012 including first stage of Heritage Apartments – more than 90 units settled ► Second stage Heritage Apartments complete and settling in 1HFY2013 ► State Government has confirmed upgrade of adjacent railway station, expected to
Slide 24: St Albans
ST ALBANS For personal use only ► Acquired 4Q FY2012 for $12m on 2 year deferred terms ► Will yield 200 dwellings – apartments, townhouses and houses ► Rezoning from industrial to residential underway ► State government has announced a $150m investment in upgrading St Albans train station and other
Slide 25: Market Conditions & Outlook
For personal use only MARKET CONDITIONS & OUTLOOK
Slide 26: Market Conditions – Where Are We Now?
MARKET CONDITIONS – WHERE ARE WE NOW? For personal use only Source: Westpac Economics RBA cash rate, 3 year swap ► Interest rates low ► Affordability has improved ► Market undersupplied - low vacancy rates - strong rental growth 26
Slide 27: Market Conditions – Population Growth
MARKET CONDITIONS – POPULATION GROWTH For personal use only Population Growth - Calender Year 2011 78 3.50% ► WA driven by resources 76 2.90% 3.00% Growth (x 1000) Percentage increase sector 74 2.50% 72 ► Victoria captures large 70 1.40% 1.50% 2.00% 1.00% 1.50% share of immigration 68 1.00% 66 ► Pop
Slide 28: Market Conditions – Employment
MARKET CONDITIONS – EMPLOYMENT For personal use only ► National unemployment 5.2% ► WA 3.6% Source: CBA ► VIC 5.4% ► Wages growth - WA 4.8% - VIC 3.4% 28
Slide 29: House Prices
HOUSE PRICES For personal use only PERTH Source: Westpac ► Perth prices firming after two years of modest decline ► Melbourne prices MELBOURNE - influenced by FHB effects - giving up some of the gains 29
Slide 30: Housing Finance & Dwelling Approvals
HOUSING FINANCE & DWELLING APPROVALS For personal use only ► WA housing finance has been improving for some time ► VIC continues at current levels ► Dwelling approvals finally turning Source: Westpac Source: CBA 30
Slide 31: Residential Lot Sales
RESIDENTIAL LOT SALES For personal use only ► WA land sales slowly improving; new homes sales in June 2012 quarter ► VIC lot sales declined since 2009 peak; new homes sales also at low levels Source: HIA-rpdata.com 31
Slide 32: Company Outlook
COMPANY OUTLOOK For personal use only ► Currently $140m in pre-sales in place vs $130m last year, majority to settle in FY13 ► Positive outlook, bolstered by continued demand for CWP’s projects, strategically located in WA and VIC’s growth regions ► Share price at substantial discount to market NTA
Slide 33: Appendix
For personal use only APPENDIX
Slide 34: Sustainable Earnings from Long Term Projects
SUSTAINABLE EARNINGS FROM LONG TERM PROJECTS For personal use only 34
Slide 35: Disclaimer
DISCLAIMER For personal use only 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 u
Slide 36: For personal use only
For personal use only 50 Colin Street West Perth WA 6005 Phone: (08) 9480 1500 Email: email@cedarwoods.com.au www.cedarwoods.com.au