Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — H1 FY2010 Earnings Presentation
32 slides from Cedar Woods Properties's earnings presentation, Feb 22, 2010
Slide 1: Half Year Results 31 December 2009
For personal use only Half Year Results 31 December 2009 1
Slide 2: Presentation Outline
For personal use only Presentation Outline Current environment Highlights 2010 first half results Property portfolio Residential market Outlook 2
Slide 3: Current Environment
For personal use only Current Environment Economy now improving Property markets recovering Cedar Woods well placed to prosper as conditions improve Capacity for further acquisitions Numerous opportunities 3
Slide 4: Results Summary
For personal use only Results Summary Strong revenues from Melbourne projects Strong turnaround compared to pcp Perth sales improving $0.9m in non-cash write downs on one minor project in the first half No material ‘mark to market’ adjustments 4
Slide 5: Operating Results – First Half
For personal use only Operating Results – First Half Dec 2009 Dec 2008 $m $m Revenue 59.4 13.3 346% Profit (loss) before income tax 14.2 (7.9) N/A expense Net profit (loss) after tax 9.9 (5.6) N/A attributable to members of CWPL Earnings (loss) per share 16.9 cents (9.9) cents N/A 5
Slide 6: Highlights
For personal use only Highlights First half NPAT of $9.9m – 66% of full year forecast $50m pre sales to settle second half year Significant reduction in gearing from 51.41% at the end of FY2009 to 38.10% at 31 December 2009 Strong inflows and DRP have strengthened balance sheet Resumption
Slide 7: Operating Results – Forecast
For personal use only Operating Results – Forecast 25 20.0 18.0 Dividends (cents) 20 16.0 14.0 Profit ($m) 15 12.0 10.0 10 20.6 8.0 18.6 16.2 15 6.0 5 9.3 4.0 2.0 0 0.0 2006 2007 2008 2009 2010F Profit Dividend 7
Slide 8: EPS History
For personal use only EPS History Seeking consistent 10% growth beyond FY2010 40 30 cents 20 37.3 30.3 33.9 10 25.0 16.2 0 2006 2007 2008 2009 2010 F* * Based on $15m EPS forecast and current shares on issue 8
Slide 9: Cash Flows
For personal use only Cash Flows Dec Dec Higher revenue due to 2009 2008 Cash flows related to more settlements in first operating activities $M $M half of year – Melbourne Receipts from customers 67.2 15.8 projects Payments to suppliers & (18.8) (14.2) Bank facility – significantly employees pa
Slide 10: Financial Highlights
Financial Highlights Dec Jun For personal use only 2009 2009 Total assets increased to Total assets $m 182.2 162.7 $182.2m due to investment in Net bank debt $m 39.3 47.9 inventory during first half FY2010, including Camberwell Shareholders’ equity $m 103.1 93.3 Net bank debt to Gearing dropped
Slide 11: Asset Values
For personal use only Asset Values Major assets acquired before property boom Review of portfolio, write down of $0.9m inventory on one minor project Projects de-risked, under development Share price understates underlying value of portfolio 11
Slide 12: Hedging
For personal use only Hedging Seek to hedge >50% of debt Previous interest rate environment – caps, now largely written off 2 & 4 year swaps at rates between 4.0 to 4.5% Hedged 76% of December 31 debt 12
Slide 13: Dividend Policy
Dividend Policy For personal use only 20 60.00 18 16 50.00 14 cents 40.00 12 % 10 30.00 8 6 20.00 4 10.00 2 0 - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Final Dividend Interim Dividend Payout Ratio Fully franked interim dividend of 5 cents per share payable on 30th April 2010 Policy unc
Slide 14: Bank Finance
For personal use only Bank Finance $100m facility in place until September 2011 Suncorp exiting property finance Anticipate refinancing well before expiry Negotiations with a number of banks 14
Slide 15: Property Portfolio
For personal use only Property Portfolio 15
Slide 16: Project Life – Perth
Project Life – Perth For personal use only FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Rivergums Cambridge Waters Mariners Cove Mandurah Country Club Kestrels Waterline (including stage 2) Helena Valley The Jetty Port Mandurah (Sutton) Forrestdale Cedar Woods Wellard Pinjarra Cari
Slide 17: Built Form
For personal use only Built Form 17
Slide 18: Residential
For personal use only Residential 18
Slide 19: Residential
For personal use only Residential 19
Slide 20: 16km drive from Perth CBD
For personal use only 16km drive from Perth CBD 20
Slide 21: 20km south east of Perth CBD
For personal use only 20km south east of Perth CBD 21
Slide 22: Melbourne Projects
Melbourne Projects For personal use only FY2010 FY2011 FY2012 FY2013 FY2104 FY2015 FY2016 FY2017 FY2018 Carlingford Williams Landing Banbury Village Camberwell 22
Slide 23: For personal use only
For personal use only 23
Slide 24: For personal use only
For personal use only 24
Slide 25: For personal use only
For personal use only 25
Slide 26: Camberwell
For personal use only CAMBERWELL 26
Slide 27: Camberwell Concept Plan
For personal use only Consultant team appointed Urban design & architecture works underway Public consultation process planned for 2010 Settlement January 2011 CAMBERWELL CONCEPT PLAN 27
Slide 28: Residential Market-drivers
For personal use only Residential Market-drivers Affordability (prices, interest rates) Employment – improving Availability of finance – tighter conditions Rental alternative – short supply Reduction of incentives – upgraders now active Confidence – strong 28
Slide 29: Market Conditions
For personal use only Market Conditions Victoria sound fundamentals strong first and second home buyer sales population growth/lack of rentals prices recovering WA resource projects lifting activity prices recovering higher priced product sales improving population growth to continue
Slide 30: Market Drivers
For personal use only Market Drivers 30
Slide 31: Company Outlook
For personal use only Company Outlook $50m in pre sales for second half settlement Pre sales for FY 2011 settlement accumulating Perth sales improving Full year forecast $15m Dividend policy unchanged at 50% of full year profit Gearing to remain within target range Strong profit growth
Slide 32: Half Year Results December 2009
For personal use only Half Year Results 31 December 2009 32
Cedar Woods Properties — H1 FY2010 Earnings Presentation on 6ix