Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — FY2008 Earnings Presentation
40 slides from Cedar Woods Properties's earnings presentation, 2008
Slide 1: Annual Results 08
Cedar @ Woods PROPERTIES LIMITED ANNUAL RESULTS 08 j ‘ us ABN 47 009 259 081 } \
Slide 2: Presentation outline
Presentation outline ¾ Highlights ¾ 2008 results ¾ Property portfolio ¾ New projects ¾ Residential market ¾ Outlook Annual Results 2008
Slide 3: Highlights
Highlights ¾ Record profits and dividends ¾ Strong pre sales from Melbourne projects ¾ Selected as joint venture party on two State Government projects ¾ Three year evergreen funding facility in place Annual Results 2008
Slide 4: Operating results
OPERATING RESULTS FY2008 FY2007 $m $m Revenue 81.9 90.0 9% Growth in profits and dividends Profit before income tax 29.0 26.8 8% Dividends (cents) 25 20.0 expense 20 Profit ($m) 15.0 15 10.0 Net profit after 10 16.2 18.6 20.6 12.4 5.0 tax attributable 5 10.3 20.6 18.6 11% 0 0.0 to members of 2004 20
Slide 5: Earnings growth vs target
EARNINGS GROWTH vs TARGET 40 ¾ Consistent growth of 10% pa 35 30 25 ¾ Top half of industrial company cents 20 37.3 performance 33.9 15 30.3 10 20.2 23.3 ¾ Meets Corporate objective 5 0 2004 2005 2006 2007 2008 EPS 10% pa cumulative growth Annual Results 2008
Slide 6: Profit ratios
PROFIT RATIOS FY2008 FY2007 45 40 38.1 35 34.8 EBIT/Sales 38.1% 34.7% 30 28.0 32.1 25 25.5 26.5 20 22.5 23.1 20.8 19.0 15 23.7 25.9 24.5 22.6 ROE 24.5% 25.9% 10 5 21.4 0 2004 2005 2006 2007 2008 Return on Equity Return on Capital EBIT/Sales ROC 19.0% 23.1% ¾ Margins improved due to price growth and
Slide 7: Dividend policy
DIVIDEND POLICY ¾ Maintain current balance 20 18 60.00 between interim and full 16 50.00 year dividend – 14 40.00 cents 12 approximately 40 / 60 % 10 30.00 8 6 20.00 4 ¾ 50% net profit plus 2 10.00 0 - distributed reserves for full 2004 2005 2006 2007 2008 year ¾ Dividend reinvestment plan Interim D
Slide 8: Financial highlights
FINANCIAL HIGHLIGHTS Jun Jun 2008 2007 ¾ Total assets increased to $185.0m due to investment in inventory during FY2008 Total assets $m 185.0 155.6 ¾ Corporate facility available until Net bank debt $m 81.9 65.9 September 2010 Shareholders’ ¾ Gearing expected to drop within target $m 83.9 71.6 equit
Slide 9: Cashflows
CASHFLOWS Cashflows related to operating FY2008 FY2007 ¾ Lower revenue from changed activities $M $M product mix Receipts from customers 78.4 98.7 ¾ Increased bank facility and Payments to suppliers & employees (25.1) (27.2) higher credit margins increased borrowing costs Net borrowing cost (7.7) (5
Slide 10: Property portfolio
PROPERTY PORTFOLIO BANBURY VILLAGE CARINE CARLINGFORD BANBURY VILLAGE WILLIAMS LANDING HARRISDALE WELLARD WATERLINE Annual Results 2008
Slide 11: Project life - Perth
PROJECT LIFE - PERTH FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Rivergums Cambridge Waters Mariners Cove Mandurah Country Club Kestrels Waterline Helena Valley The Jetty Port Mandurah (Sutton) Forrestdale Cedar Woods Wellard Pinjarra Carine Harrisdale Lots Under Option Annual Res
Slide 12: Residential – built form
RESIDENTIAL – BUILT FORM Halls Head Golf Course Annual Results 2008
Slide 13: Residential
RESIDENTIAL Annual Results 2008
Slide 14: Residential
RESIDENTIAL Annual Results 2008
Slide 15: Ecovision project
ECOVISION PROJECT Located within the City of Wanneroo at Cedar Woods’ residential estate – The Kestrels Sustainability benchmarks: Affordability benchmarks: ¾ Energy efficiency ¾ $150,000 construction cost target ¾ Passive solar design ¾ $265,000 - $320,00 house & land ¾ Water efficiency target ¾ Wa
Slide 16: Residential
RESIDENTIAL Annual Results 2008
Slide 17: Residential
RESIDENTIAL Annual Results 2008
Slide 18: Residential
RESIDENTIAL Annual Results 2008
Slide 19: New projects: Carine
NEW PROJECTS 16km drive from Perth CBD Carine Annual Results 2008
Slide 20: New projects: Harrisdale
NEW PROJECTS Harrisdale Ranford Rd Rd n to ar W 20km south east of Perth CBD Rd ht rig W Annual Results 2008
Slide 21: Project life - Melbourne
PROJECT LIFE - MELBOURNE FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Carlingford Williams Landing Banbury Village Annual Results 2008
Slide 22: Melbourne projects
MELBOURNE PROJECTS Annual Results 2008
Slide 23: Williams Landing
Proposed Rail Sorte |G Bus Station Palmers Rd Ashcroft Neighbourhood ~~ Cnstoad Netghbourhood williamsianding Hoppers Crossing Xe Annual Results 2008 Cedar @® Woods
Slide 24: Town Centre
Town Centre Annual Results 2008
Slide 25: Melbourne projects
MELBOURNE PROJECTS Annual Results 2008
Slide 26: Banbury Village
Banbury village Annual Results 2008 Cedar <@® Woods
Slide 27: Architecture
ARCHITECTURE Annual Results 2008
Slide 28: Melbourne projects
MELBOURNE PROJECTS Annual Results 2008
Slide 29: Carlingford
CARLINGFORD ¾ 55 hectare infill development site ¾ Approx 600 residential lots ¾ First residential development in the area for several decades ¾ Includes parks and conservation reserves ¾ Convenient location, close to train station, High Street shopping strip, Epping Plaza, Northern Hospital, new Me
Slide 30: Carlingford's second release
ARLINGFORD’S SECOND RELEASE Carlingford Annual Results 2008 Cedar @ Woods
Slide 31: Current market conditions
CURRENT MARKET CONDITIONS AUS Business investment strong but consumer confidence down – multiple interest rate rises, tightening credit market, declining affordability WA Housing market soft, yet economy strongest in the nation VIC Housing market improved, modest growth in prices Annual Results 2008
Slide 32: Current market conditions
CURRENT MARKET CONDITIONS AUS National GDP trending downward WA Strong economic growth still evident in WA, may slow over 2008 VIC Significant improvement in Victoria on past 2 years Annual Results 2008
Slide 33: Market drivers
MARKET DRIVERS Housing market balance: Australia ¾ Underlying housing demand outstripping supply ¾ Record population growth & employment ¾ Tight rental market. Rents rising, vacancies trending down but easing Underlying Requirement for Housing vs Forecast Dwelling Starts - Australia Starts UR Annual
Slide 34: Population growth
POPULATION GROWTH Source: Australian Bureau of Statistics 2007 (000) 2007 (%) (inc. since Dec 06) (inc. since Dec 06) VIC 82.4 1.6 WA 49.5 2.4 AUS 331.9 1.6 Annual Results 2008
Slide 35: Employment
EMPLOYMENT ¾ Unemployment at historically low levels 2007 (%) 2008 (%) VIC 4.8 4.5 WA 3.2 3.3 AUS 4.3 4.3 Annual Results 2008
Slide 36: Vacancy
VACANCY ¾ Rent rising ¾ Vacancies trending down but easing Annual Results 2008
Slide 37: Market outlook WA
MARKET OUTLOOK WA ¾ Dwelling approvals down from the peak in 2006 ¾ Forecast for 2008/09 for Perth & WA is subdued 2003/04 2004/05 2005/06 2006/07 2007/08(f) 2008/09(f) 2009/10(f) 2010/11(f) Houses Units Total Annual Results 2008
Slide 38: Market outlook VIC
MARKET OUTLOOK VIC ¾ Approvals trending upward ¾ Housing starts down in the current year but expected to move upward 2009/10 – 2010/11 Annual Results 2008
Slide 39: Company outlook
COMPANY OUTLOOK ¾ Melbourne projects substantially pre-sold ¾ Good early response to Helena Valley project ¾ Finance facility available until September 2010 ¾ Good product range/locations ¾ WA market fundamentals sound but hampered by interest rates and affordability Annual Results 2008
Slide 40: Annual Results 08
Cedar @ Woods PROPERTIES LIMITED ANNUAL RESULTS 08 j ‘ us ABN 47 009 259 081 } \
Cedar Woods Properties — FY2008 Earnings Presentation on 6ix