Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — Shareholder Meeting (October 2005)
31 slides from Cedar Woods Properties's shareholder meeting presentation, Oct 28, 2005
Slide 1: Cedar Woods Properties Limited
CEDAR WOODS PROPERTIES LIMITED H:ASusan Teo\Board\Chairmans Address 2005.doc Page 1 of 31
Slide 2: Company Objectives
[1] Company Objectives Corporate Values Vinancial Lighlights Key Strategies Project Review Outlook and 2006 Forceast In this presentation: « | will recap on the company’s primary objectives and key performance measures and | will discuss the progress made during the year in pursuit of our Corporate
Slide 3: Primary objective — growth in earnings per share
[2] Primary objective — growth in earnings per share CWPL s current large( 1s 10% pa srowth, exceeded in FY 2005 Gearing (net debt to equity) — new target range 20% to 75% Return on equity — minimum of 12% Once again during the financial year, the Corporate Plan was updated by the management team an
Slide 4: Industrial Sector
[3] Industrial Sector YM os 10.2% (oreeast) OX ya, x In the past year the earnings per share performance of the top 500 companies was exceptionally strong, and earnings across the index rose by approximately 10%. The consensus for this year is a similar performance, but with risk on the downside. Lo
Slide 5: Corporate Values
[4] Communicate the Company s prooress to shareholders Satisty customers expectations Align the interesis of the Company and is employees Have our citizenship recounised Maintain the highest ethical standards Our Corporate Values, which we seek to satisfy in pursuit of our Primary Objective, remaine
Slide 6: Net profit after tax and revenue
[5] £ S ° g s 3 @ 2002 2003 2004 Ml Net profit after tax —@— Revenue Now let's look briefly at the financial highlights for 2005. The following graphs show results for the last 5 financial years. Our revenue in 2005 was $75m, a record for the company, showing another year of strong growth. The incre
Slide 7: Cedar Woods Share Price vs NPAT plus Realised Reserves
[6] Cedar Woods Share Price vs NPAT pius Realised Reserves 2001 2002 Share Prices‘. g g A & i i (mare cam] We are pleased that our share price has followed our profit growth and that shareholders enjoyed total returns of 42% for the year. Our market capitalization is now approximately $150m. H:ASusa
Slide 8: Earnings and Dividends per share
[7] Earnings and Dividends per share 2 5 & 5 cs) 2001 2002 2003 2004 2005 |n Earnings per share (cents) Il Dividend per share (fully franked) ] The improved profit resulted in a similar increase in earnings per share, which has also grown considerably over the last 3 years. This growth in earnings a
Slide 9: Provide balance between return to shareholders and growth of Company
[8] Provide balance between return to Shareholders and growth of Company Approximately 50% of net profit after tax plus realised reserves 12¢ dividend for FY 2005 (FP Y2004 — 10c) Dividend remvestment plan may be re- introduced in future Interim dividend in 2006 Our dividend policy is to provide a b
Slide 10: Total Assets - Book Value
[9] Total Assets - Book Value 2002 2003 2004 Our total assets have grown significantly over the last 5 years as the company has invested in a number of new projects. Total assets are up 300% over 2001 — and these assets will provide future earnings in the company. H:ASusan Teo\Board\Chairmans Addres
Slide 11: Net bank debt to equity
[10] Net bank debt to equity 2001 2002 2003 As stated at the start of this presentation, we have a long term target range of 20% to 75% for our net bank debt to equity ratio. This graph shows the ratio for the last 5 year-ends, compared to the target range. As forecast last year, the ratio has climb
Slide 12: Return on Equity
[11] Return on Equity Our return on equity was 23%, again growing strongly since 2001, and well above our minimum target of 12%. H:ASusan Teo\Board\Chairmans Address 2005.doc Page 12 of 31
Slide 13: Diversification of the property portfolio
[12] Diversification of the property portfolio ~ new residential subdivisions ~ medium density residential and apartments — industal and coramercial land Identification and acquisition of new pi Retaining ownership of income producing Establishing joint venture initiatives to capitalise on our skill
Slide 14: The Kestrels
[13] “ne The Lestrels CEDAR WOODS PROPERTIES LIMITED at ad rans Sots Teles saem TheRivergums ee wALDEVES on ere (Paul Sadleir) Good morning and thank you all for attending our 2005 Annual General Meeting. H:\Susan Teo\Board\Chairmans Address 2005.doc Page 14 of 31
Slide 15: Project locations in Perth and Melbourne
[14] CEDAR WOODS PROPERTIES LIMITED I HAL inna These maps show our projects are well located in growth corridors of Perth and Melbourne. H:ASusan Teo\Board\Chairmans Address 2005.doc Page 15 of 31
Slide 16: Project timeframes
[15] EY2008 FY 2002 F¥2008 FY 2008 EY 201 E2011 E2042 E2013 EX20GA £2046 Adeaie amen Rvequnis: Campidge wares Martiers Cove Mandurah Country Club Aula Nasillus Kestres Helena Valley Lawerton Paint Beach Part Mandurah (Sutton) Forrentdale Lots Under Option As you can see, the future of the company is
Slide 17: Mariners Cove
[16] & [17] Mariners Cove + 70 dry lots and over 200 canal lots to be developed + Canal Stages 1 & 2 — all but sold out + Canal Stage 3 ~ under construction + Future group housing sites in canal zone under design + Awarded “Best Residential Estate in Australia” H:ASusan Teo\Board\Chairmans Address 2
Slide 18: Port Mandurah
[18] & [19] Port Mandurah « The development of the Sutton precinct, with up to 45 townhouses is expected in FY2007. « Given the proximity to Mandurah’s CBD, this is expected to be highly successful. H:ASusan Teo\Board\Chairmans Address 2005.doc Page 18 of 31
Slide 19: Rivergums
[20] & [21] Rivergums + 120ha project to yield more than 800 lots * More than 320 lots sold * Stages 1, 2, 3 and 4 sold out + Stage 5 under construction + Project life of 7-10 years * GreenSmart accreditation H:ASusan Teo\Board\Chairmans Address 2005.doc Page 19 of 31
Slide 20: The Kestrels, Tapping
[22] & [23] EAE MOULDS ATER The Kestrels, Tapping + Adjacent lake Joondalup « 51 hectares, 540 lots + GreenSmart Accreditation + Stages 1, 2 and 3 ail but sold out + Stage 4 released + Display village open * Dream Home promotion H:ASusan Teo\Board\Chairmans Address 2005.doc Page 20 of 31
Slide 21: Rockingham — ARIA
[24] & [25] Rockingham — ARIA * $16m project + All apartments sold ~ completed June 2005 * 10 storey, 32 apartment tower plus ground floor commercial H:ASusan Teo\Board\Chairmans Address 2005.doc Page 21 of 31
Slide 22: Rockingham Nautilus
[26] & [27] son aoe: ' i Rockingham Nautilus * Council approval obtained for Stage 1 - 62 apartments and Stage 2 - 24 townhouses + 4 Ground floor commercial units + Marketing to continue this summer * 80% (Stage 1) pre-sold * Construction commenced (Stage 1) * Completion October 2006 (Stage 1) H:ASu
Slide 23: Palm Beach
[28] & [29] Palm Beach * Rockingham Beach front + Currently seeking approval for 15 waterfront apartments and a ground floor cafe + Commence development FY2007/2008 H:ASusan Teo\Board\Chairmans Address 2005.doc Page 23 of 31
Slide 24: Cambridge Waters, Canning Vale
[30] [31] & [32] Cambridge Waters, Canning Vale * 8.35ha located 17km south of Perth + Subdivision approval for 57 lots and 160 apartments + Marketing commenced, proceeding well « Anticipated profit contribution in FY2006-2009 H:ASusan Teo\Board\Chairmans Address 2005.doc Page 24 of 31
Slide 25: Forrestdale
[33] ) CEDAR WO PRS VINE ES LIME yey Forrestdale + 15 hectares + 140-lot residential subdivision * Rezoning almost complete + Commence development FY2007/2008 * Seeking additional land in the expanding corridor H:ASusan Teo\Board\Chairmans Address 2005.doc Page 25 of 31
Slide 26: The Axis, Balcatta
[34] CEDAR WOOT & FUR MED DASCATTA The Axis, Balcatta * 6.5ha, 12km north of Perth * 16 lot subdivision * Showroom, commercial or bulky goods + Fully sold + Profit contributions in FY2005 and FY2006 H:ASusan Teo\Board\Chairmans Address 2005.doc Page 26 of 31
Slide 27: Laverton, Melbourne
[35] i CEDAR WOODS Riles HELENS Laverton, Melbourne + 275ha, 18km (20 mins) west of Melbourne + Mixed used project planning complete and approvals being sought + Residential, commercial and retail uses + $22m freeway interchange with construction commencing by January 2006 + Project commencement ant
Slide 28: Australian & WA economies set for further growth
[36] Australian & WA economies set for further growth Consumer confidence remains strong Property market remains resilient Waterfront and coastal property in demand WA property remains affordable The residential property market has slowed nationally as a response to the tightening in monetary policy
Slide 29: Western Australia (GSP %)
[37] Western Australia (GSP %) Australian Dwelling 156,000 | 151,000 Commencement (#) H:ASusan Teo\Board\Chairmans Address 2005.doc Page 29 of 31
Slide 30: Housing affordability
[38] g e $ g g 2 é 8 é VIC NSW —=— % Income to Repay Average Loan —e— Median House Price H:\Susan Teo\Board\Chairmans Address 2005.doc AUSTRALIA Page 30 of 31
Slide 31: Further growth provided by new projects
[39] Further growth provided by new projects. New projects undergoing duc diligence. sed on delivery of 10% pa eps growth. sting approximately $14.5m net profit after tax in PY 2006, The Company has expanded its portfolio over the last 12 months and is in a strong position to deliver profits from a
Cedar Woods Properties — Shareholder Meeting (October 2005) on 6ix