Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — Shareholder Meeting (October 2006)
34 slides from Cedar Woods Properties's shareholder meeting presentation, Oct 27, 2006
Slide 1: Annual General Meeting
[1] CEDARWOODS' Annual General Meet Page 1 of 34
Slide 2: Presentation
[2] - Presentatio | now turn to our corporate presentation. Consistent with presentations given at previous Annual General Meetings, today we will briefly review the company’s objectives, its recent financial performance and progress. We will then focus on the company’s future strategies and the out
Slide 3: Company Objective
[3] | Company (e) ective * primary. objective growth | in eamnin 2 share + CWPL’s current oo A 10%. pa gro exceeded in FY2006 * gearing (net debt to equity) - ~arge 20% to75% * return on equity - minimum not 12% About five years ago the company set out on a strategy and that strategy was focused on
Slide 4: Earnings growth versus ASX 300 Industrials
[4] 1996-2004 - 2005 2006... 2007 % (forecast) Over recent years the ASX 300 Industrials has achieved earnings growth somewhat less than 10% per annum, while your company has performed above this level. We believe that as a long term objective our 10% target is still appropriate. Page 87 of the annu
Slide 5: NPAT, Revenue, EPS and Dividend 2002-2006
[5] 2002 2003 2004 2005 2006 (emmNPAT — emaRevenue MEPS Dividend | Pyocod - ey200s under AGAAP a | PY¥2006 under AIFS: This graph shows what has been achieved over the last 5 financial years. Revenue has increased from $26.2m to $80.2m, an average growth rate of 32% Net Profit has increased from $3.
Slide 6: Share price performance
[6] We are pleased that our share price has followed our profit growth and that shareholders enjoyed strong returns during the year. Our market capitalization is now approximately $250m. Page 6 of 34
Slide 7: Dividend Policy
[7] Dividend Policy _ + provide balance between return . shareholders and growth of compar y * approximately 50% of net profit ti a plus realised reserves * 15¢ dividend for FY2006 (FY2008 - 4 2 * dividend reinvestment plan has introduced and remains in operatio «interim dividend was introduced i in
Slide 8: Net Bank Debt to Equity
[8] ) Net Bank Deb 2002 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 will climb this year due to t
Slide 9: Key strategies and property portfolio
[9] Having briefly looked at recent financial performance we will now talk about our key strategies and then review the property portfolio that will underpin our earnings going forward. Page 9 of 34
Slide 10: Diversification of Product Range
[10] DIVERSIFICATION OF PRODUCT RANGE z Much of the company’s recent success has been attributable to the diversification of the product range. In our residential estates this range includes canal lots, cottage lots, built form product such as town houses and apartments, and house and land packages.
Slide 11: Commercial developments and market positioning
[11] BALCATTA, The company’s first commercial park at The Axis, Balcatta was very successful and further opportunities for commercial and retail developments exist at a number of the company’s projects in Western Australia and Victoria. The company is not unduly affected by cyclical changes in the l
Slide 12: Acquiring new projects
[12] The company employs its own team that is focussed on identifying and acquiring new projects for the company and its wholesale funds. During the 2006 financial year the company acquired two major projects in Melbourne, added to its land bank in Perth and commenced its first wholesale syndicate.
Slide 13: Funds Management
[13] Funds & Management| The company recently announced the formation of a new funds management business and launched its first wholesale fund, Cedar Woods Wellard Limited. Cedar Woods Wellard has acquired a significant land parcel in Perth's southern suburban corridor which will be developed into 5
Slide 14: Retaining ownership of income producing assets
[14] Retaining: ~ ownership:of | income: producing assets: Investors and analysts rate highly the property companies with recurrent income. Cedar Woods is exploring opportunities at Laverton and will retain the ground floor retail elements at its Rockingham and Mandurah beachfront apartments. Page 1
Slide 15: Expansion into Melbourne
[15] Expansion inte Melbourne Over the last two years the company has been looking to increase its presence in the Melbourne market and during 2006 two major new properties were acquired, at Footscray and Lalor. We have also expanded the management team in Melbourne and have the expertise on board t
Slide 16: Project location maps Perth and Melbourne
[16] (Paul Sadleir) Good morning and thank you all for attending our 2006 Annual General Meeting. These maps show our projects are well located in growth corridors of Perth and Melbourne, and as Bill has mentioned during the last year we have added to our portfolio in both states. In case you have t
Slide 17: Project development timeframes
[17] io FyZou fyeat2 Pre01a Fyaoia Frais FYZ2006:::F¥2007. F¥2008 -FYZ005...F¥2 Rivergurrs (Cumbridge Waters. Mariners Cove Mandurah Country Club: Aciw Hautilux Kestrels Helens Walley Lalor Laverton The Jetty Waterline Pinjarra Footscray Port Mandurah (Sutton) Forrestdule Wellard Lots Under Option A
Slide 18: Mariners Cove
[18] Mariners Cove + Canal Stages 1 & 2 —~ are sold out + Canal Stage 3 ~ now selling * Canal Stage 4 — under construction + 4 group housing sites providing about 75 townhouses in canal zone with the first site under design + Experienced substantial price appreciation in FY2006. Page 18 of 34
Slide 19: Port Mandurah
[19] Port Mandurah * The development of the Sutton precinct, with up to 45 townhouses is expected in FY2009. « Given the proximity to Mandurah’s CBD, this is expected to be highly successful. Page 19 of 34
Slide 20: Rivergums
[20] Rivergums + 120ha project to yield more than 900 lots * More than 400 lots sold + Stages 1, 2, 3 and 4 sold out + Stage 5 selling and stage 6 under construction + Neighbourhood shopping centre site provides develop and hold opportunity + Project life of 7-10 years + GreenSmart accreditation Pag
Slide 21: The Kestrels, Tapping
[21] Mie “aCreen Smart’ esrare The Kestrels, Tapping + Adjacent lake Joondalup « 51 hectares, 525 lots + GreenSmart Accreditation + Stages 1-4 all but sold out + Stage 5 released + Display village open Page 21 of 34
Slide 22: Rockingham Nautilus
[22] Rockingham Nautilus + Stage 1-62 apartments and 4 retail units + Stage 2 - 24 townhouses and 3 retail units + Stage 1 apartments 95% pre-sold and complete - settlements are expected in December. * Stage 2 apartments 83% pre-sold and under construction * Stage 2 completion due in FY2008. Page 22
Slide 23: Waterline
[23] Waterline Mandurah (Halls Head} beach front Approval for 18 luxury apartments Development has commenced and completion expected in early 2008 8 units already presold in August 2006 Page 23 of 34
Slide 24: The Jetty at Palm Beach
[24] VGiwe sorry The Jetty at Palm Beach * Rockingham beach front + Approval for 15 waterfront apartments and a ground floor cafe + Commence development late FY2007. * Marketing to commence shortly. Page 24 of 34
Slide 25: Cambridge Waters
[25] Ye CAMBRIOGE WATERS “Ranford Reed Cambridge Waters, Canning Vale + 8.35ha located 17km south of Perth + Subdivision approval for 57 lots and 160 apartments + Most of the stage 1 residential lots now sold « Anticipated profit contribution in FY2006-2009 5 g 2 ¢ 2 & i g al Page 25 of 34
Slide 26: Forrestdale
[26] Forrestdale + 15 hectares + 140-lot residential subdivision + Rezoning almost complete * Commence development FY2008 * Seeking additional land in the expanding corridor Page 26 of 34
Slide 27: Melbourne Projects
[27] ~ Melbourne Projec GEELONG dé PORT PHILLIP BAY Page 27 of 34
Slide 28: Laverton, Melbourne
[28] 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 commenced + Project commencement anticipated 2007 Page 28 of 34
Slide 29: Lalor
[29] MM THE Hal AGSPETAL ‘aanrer Shows se Lalor - 55 ha site in one of Melbourne's fastest growth corridors + 20km by car to Melbourne CBD - In-excess of 500 residential lots planned - First vacant land release in immediate area for many years - Amenities are already in place Page 29 of 34
Slide 30: rate
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Slide 32: Australian Dwelling Commencements
[32] Australian Dwelling Commencemen The economic outlook remains positive with forecast growth of 3.25% for the 2007 financial year. Western Australia is expected to continue to lead the nation in economic growth. Dwelling commencemenis will grow marginally. Weak growth is expected in the eastern s
Slide 33: Outlook for FY2007
[33] The Company has expanded its portfolio over the last 12 months and is in a strong position to deliver profits from a range of products in different markets, as new projects start to deliver increasing earnings, supplementing those from mature projects. The Company continues to evaluate new oppo
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