Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — FY2006 Earnings Presentation
46 slides from Cedar Woods Properties's earnings presentation, Aug 21, 2006
Slide 1: Cedar Woods Properties Limited 2006 Annual Results
CEDAR WOODS PROPERTIES LIMITED 2006 Annual Results
Slide 2: Presentation Outline
Presentation Outline (2 CEDAR WOODS Company objectives Financial highlights Review of recent developments Outlook and 2007 forecast
Slide 3: Company Objectives
(2 CEDAR WOODS Company Objectives Primary objective — growth in earnings per share Aim to be in the top half of listed companies based on annual earnings growth CWPL’s current benchmark is 10% pa earnings growth Gearing (net debt to equity) — target range 20% to 75% Return on equity — minimum of 12%
Slide 4: Financial Highlights — Profit & Loss
CEDAR WOODS Financial Highlights — Profit & Loss Jun 2006 Jun 2005 Jun 2005 $m $m $m AIFRS AGAAP AIFRS Revenue 80.8 75.1 60.6 Profit from ordinary activities 34 17.6 14.6 before income tax expense Income tax attributable to operating 6.9 52 43 profit. Net profit after tax attributable to members of
Slide 5: Financial Highlights — Profit & Loss
() CEDAR WOODS Financial Highlights — Profit & Loss FY2006 FY2005 FY2005 AIFRS AGAAP AIFRS EBIT/Sales 32% 26% 27% ROE 24% 23% 21% ROC 26% 21% 19% * Margins improved due to price growth * ROE/ROC improved due to earnings growth * AIFRS has small impact on these ratios
Slide 6: Profit and Dividend Growth
© CEDAR WOODS Profit and Dividend Growth Profit ($m) =a 8 oa oa oo oO NN Ff OD @ oN FF Dw Reported Profits 2001 2002 2003 2004 2005 fog Actual Dividends 2006 Dividend (cents)
Slide 7: Profit and share price growth
CEDAR WOODS Profit and share price growth 20 , 5.00 18 4.50 16 | 4.00 14 | 3.50 & 12 | 3.00 ° & 10 } 250 8 3 8 | 2.00 6 | 1.50 4 1.00 2 0.50 ty) 0.00 2001 2002 2003 2004 2005 2006 [oz NPAT e=@=Share Price
Slide 8: Financial Highlights — Balance Sheet
©) CEDAR WOODS Financial Highlights — Balance Sheet June 2006 | June 2005 | June 2005 AIFRS AGAAP AIFRS Total assets $m 196.4 130.5 115.6 Bank debt $m 45.7 38.9 38.9 Shareholders equity $m 60.5 55.0 49.1 42.3 Net bank debt to equity (%) | (71.9 excl 68.2 79,2 CWWL) Interest cover (x) 9 12 10
Slide 9: Financial Highlights — Balance Sheet
© CEDAR WOODS Financial Highlights — Balance Sheet ¢ Increase in assets due to acquisitions ¢ Gearing expected to stay at upper end of preferred range until June 2007 ¢ Apartment funding to cause higher gearing from time to time ¢ Nautilus settlements Q2 FY2007
Slide 10: Statement of Cashflows
Statement of Cashflows (2 CEDAR WOODS Jun Jun Cashflows related to operating activities 2006 2005 $M $M Receipts from customers 87.8 64.5 Payments to suppliers & employees (19.7)| (14.8) Net borrowing cost (3.8) (3.1) Income taxes paid (6.1) (6.8) Payments for inventory — new land (14.5) (7.2) Payme
Slide 11: Dividend Policy
(2 CEDAR WOODS Dividend Policy ¢ Commenced interim dividends during FY2006 — interim dividend paid of 6 cents per share ¢ Final dividend of 9 cents, bringing full year to 15 cents per share (increase of 25%) ¢ 50% of net profit plus distributed reserves for full year. ¢ Dividend reinvestment plan in
Slide 12: Capital Management
(2 CEDAR WOODS Capital Management ¢ Dividend reinvestment plan and share purchase plan raised $4.5m in April 2006 ¢ Funds management business provides another funding mechanism.
Slide 13: Funds Management
(2 CEDAR WOODS Funds Management ¢ Wholesale syndicate ¢ CWP taking significant stake ¢ CWP subsidiary to manage projects ¢ Further acquisitions targeted ¢ Provides risk and income diversification
Slide 14: Cedar Woods Wellard Limited
(2 CEDAR WOODS Cedar Woods Wellard Limited ¢ $36m acquisition ¢ 500 lots, 5-7 year project ¢ CWP 25% interest ¢ Other parties 75% including HBOS Australia and Cedar Woods’ shareholders
Slide 15: Melbourne
MELBOURNE PORT PHILLIP BAY
Slide 16: Balance Sheet — June 2006
() CEDAR WOODS Cedar Woods Properties Limited Balance Sheet — June 2006 With CWWL With CWWL Consolidated 25% (associated) $m $m Cash 17 3 Inventory 173 139 Other assets 6 10 Payables (36) (19) Borrowings —~ bank (46) (42) Borrowings — vendors (39) (24) Other liabilities (7) (7) Net assets 68 60
Slide 17: Project Life
CEDAR WOODS Project Life Balcatta Rivergums Cambridge Waters Mariners Cove Mandurah Country Club Aria Nautilus Kestrels Helena Valley Lalor Laverton Paim Beach Halis Head Beach Pinjarra Footscray Port Mandurah (Sutton) Forrestdale Wellard Lots Under Option FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 F
Slide 18: Built Form
Built Form — Rockingham CC THE JETTY APARTMENTS @ AT PALM BEACH
Slide 19: Growth Strategies
(2 CEDAR WOODS Growth Strategies ¢ Properties under option * Increased presence in Melbourne market ¢ Diversification of income stream * Property funds management * Investigating other structures
Slide 20: Built Form
(2 CEDAR WOODS Built Form ¢ Nautilus Stage 1 — 62 units to settle Q2 FY2007 ¢ Nautilus Stage 2 FY2007-08 — 83% sold ¢ Palm Beach — 15 waterfront apartments FY2008-09 ¢ Other sites under investigation
Slide 21: Built Form - Mandurah
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Slide 22: CEDAR WOODS
CEDAR WOODS EX. % ghd
Slide 23: Built Form
(2 CEDAR WOODS Built Form ¢ Halls Head — 18 waterfront apartments FY 2008 — 50% sold ¢ Mandurah Country Club — 25 townhouses FY2007 Goint venture) - 60% sold ¢ The Islands at Mariners Cove — 20 waterfront townhouses commencing FY2007 ¢ Port Mandurah — 45 townhouses expected commencement FY2008
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Slide 25: Residential
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Slide 26: Residential Estates
(2 CEDAR WOODS Residential Estates ¢ Mariners Cove — record prices achieved for canal lots ¢ The Rivergums — successful auction of Stage 5 ¢ The Kestrels — shortage of land in Wanneroo * Helena Valley — construction commencing FY2007 ¢ Forrestdale — boutique subdivision, achieved rezoning ¢ Signific
Slide 27: Cambridge Waters, Canning Vale
CEDAR WOODS CAMBRIDGE WATERS CANNING VALE
Slide 28: Mixed Use/Commercial - Perth
(2 CEDAR WOODS Mixed Use/Commercial - Perth ¢ Cambridge Waters located 17km south of CBD * Approval for 57 lots and 160 apartments ¢ Successful action — 11 March 2006 * Contribution FY06 — FY10
Slide 29: » CEDAR WOODS
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Slide 30: CEDAR WOODS
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Slide 31: Wellard
(2 CEDAR WOODS Wellard ¢ Area 47.6ha, 32km south of the CBD * Rezoning underway (local scheme to be advertised shortly) ¢ Adjacent Kwinana Freeway 32km from Perth * Close to 2 railway stations * Residential, commercial and primary school site ¢ Construction commencement anticipated FY2008
Slide 32: Footscray
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Slide 33: Mixed Use - Melbourne
(2 CEDAR WOODS Mixed Use - Melbourne Footscray 9ha infill site, 6km from the CBD Settlement expected September 2006 Over 240 dwellings, mix of attached and detailed Adjacent to train station and major public sports facilities Commences FY2008, subject to rezoning process already underway
Slide 34: CEDAR WOODS
CEDAR WOODS & AY RDAs A WATERS NEIGHEOUAHOOD Z0+AM< >
Slide 35: Residential - Melbourne
(2 CEDAR WOODS Residential - Melbourne Laverton ¢ 275ha, 18km (20 mins) west of CBD * Rezoning applied for — outcome expected late 2006 * Residential, commercial and retail uses ¢ $22m freeway interchange being constructed now ¢ New rail station announced for delivery in 2010 ¢ Construction commence
Slide 36: AOr >I
AOr >I O01 yg S71 REE; PROPOSED ! MELBOURNE MARKETS WHITTLESEA PUBLIC GARDENS i) CEDAR WOODS |) BUSINESS PARK THE NORTHERN | HOSFUAL EPPING PLAZA SHOPPING CENTRE LALOR RAILWAY STAUION
Slide 37: Residential - Melbourne
(2 CEDAR WOODS Residential - Melbourne Lalor ¢ Infill site 20km north of CBD * Yield of 500 plus dwellings ¢ Adjacent new metro market site * Commencement mid 2007
Slide 38: Housing Demand Driven By
(2 CEDAR WOODS Housing Demand Driven By * Population growth and demographics * Employment and incomes * Interest rates and affordability
Slide 39: Annual Population Growth
©) CEDAR WOODS Annual Population Growth
Slide 40: Economic Outlook
Economic Outlook CEDAR WOODS FY2005 | FY2006 | FY2007 Australia (GDP growth %) — 24 25 3.25 Federal Treasury Western Australia (GSP growth % )— WA Treasury 27 4.75 9.25 Victoria (GSP %) — VIC 23 30 35 Treasury
Slide 41: Average Weekly Earnings
(2 CEDAR WOODS Average Weekly Earnings — May 2006 NSW $1,077.30 +2.1% VIC $1,036.80 +3.6% WA $1,077.20 +4.8% ABS: Full time adult ordinary earnings
Slide 42: WA Resource Projects
(2 CEDAR WOODS WA Resource Projects Iron & steel $16.0 billion Nickel/cobalt $ 3.0 billion Petrochemicals $ 1.5 billion Oil & Gas $37.0 billion Other $11.0 billion Total $68.5 billion
Slide 43: Land Supply - Perth
©) CEDAR WOODS Land Supply - Perth —@—No. of Lots on the Market
Slide 44: Affordability
(2 CEDAR WOODS Affordability oom Perth Melbourne —_< Australia
Slide 45: Profit Drivers — FY2007
() CEDAR WOODS Profit Drivers — FY2007 ¢ Project approvals — in place ¢ Delivery — well underway ¢ Demand level — supported by strong economy and population growth ¢ WA land supply shortage ¢ Pricing: — recent increases improve profitability — quality product will maintain price point
Slide 46: Company Outlook
(2 CEDAR WOODS Company Outlook Strong sales carried into Q1 FY2007 Further growth provided by recent acquisitions New projects undergoing due diligence $60m acquisition and development funding facility plus $23m apartment facilities Funds management business assists medium term growth Forecasting ap
Cedar Woods Properties — FY2006 Earnings Presentation on 6ix