Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — H1 2005 Earnings Presentation
24 slides from Cedar Woods Properties's earnings presentation, March 2005
Slide 1: Half Year Results to 31 December 2004
Half Year Results to 31 December 2004
Slide 2: Presentation Outline
Presentation Outline • Company objectives • Financial highlights • Operating highlights • Outlook and 2005 Forecast
Slide 3: Company Objectives
Company Objectives • Primary objective – growth in earnings per share • Aim to be in the top half of listed companies • CWPL’s current benchmark is 10% pa earnings growth • Gearing (net debt to equity) – target range 10% to 60% • Return on equity – minimum of 12%
Slide 4: Financial Highlights – Profit & Loss
Financial Highlights – Profit & Loss Dec 2004 Dec 2003 % $m $m increase Revenue 31.3 26.3 19% Profit from ordinary activities 7.5 6.5 17% before income tax expense Income tax attributable to 2.2 1.9 16% operating profit. Net profit after tax attributable to 5.3 4.5 17% members of CWPL Earnings per s
Slide 5: Financial Highlights – Profit & Loss
Financial Highlights – Profit & Loss •Strong revenue growth from all projects •Lower margins on early stages FY2005 F FY2004 EBIT/Sales 25% 28% ROE 22% 21% ROC 23% 23% •Emerging profit “built in” from existing sales contracts.
Slide 6: Profit Growth and Dividend (cents)
Profit Growth 14 12.00 12 10.00 10 Dividend (cents) 8.00 Profit ($m ) 6.7 8 6.00 6 10.3 4.00 4 7.1 5.3 2.00 2 3.4 2.4 2.4 0 0.00 2000 2001 2002 2003 2004 2005 Actual Forecast Dividends
Slide 7: Cedar Woods Share Price vs NPAT plus Realised Reserves
Cedar Woods Share Price vs NPAT plus Realised Reserves 14.00 $2.40 N P A T a n d R e a lis e d 12.00 R e s e rv e s $ m 10.00 $1.90 S h a re P ric e $ 's 8.00 $1.40 6.00 4.00 $0.90 2.00 0.00 $0.40 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005F Year NPAT Realised Reserve Share Price
Slide 8: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet Dec 2004 June 2004 Total Assets $m 109.8 94.7 Interest bearing liabilites (bank $m 42.3 23.3 debt) Shareholders equity $m 47.9 47.8 Net bank debt to equity (%) 87.1 48.4 Interest cover (x) 20 12
Slide 9: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet • Gearing expected to stay at upper end of preferred range until June 2005. • Apartment funding to cause higher gearing from time to time.
Slide 10: Statement of Cashflows
Statement of Cashflows Dec Dec Cashflows related to operating activities 2004 2003 $000 $000 Receipts from customers 22,217 21,228 Payments to suppliers & employees (6,071) (4,333) Net borrowing cost (1,328) (776) Income taxes paid (3,536) (3,499) Payments for inventory – new land (3,487) (14,974) P
Slide 11: Cashflows
Cashflows • Settlement income – $9m received in January 2005 • New land $3.5m • Improved cashflows in 2nd half
Slide 12: Port Mandurah
Port Mandurah • Sold out • Development of Sutton precinct, with up to 45 townhouses expected in FY2007.
Slide 13: Mariners Cove
Mariners Cove • Stage 8 dry lots sold out • 125 dry lots to be developed • Canal Stage 1 – sold out • Canal Stage 2 – 50 % sold • Canal Stage 3 – under construction • Future group housing sites in canal zone
Slide 14: Rockingham - Aria
Rockingham - Aria • 10 storey, 32 apartment tower plus ground floor commercial. • $16m project • All apartments sold: – Completion April 2005 • $10m limited recourse bank facility
Slide 15: Rockingham - Nautilus
Rockingham - Nautilus • Council approval obtained for 62 apartments and 24 town houses • 4 Ground floor commercial units • Marketing campaign proceeding well • 60% + presold • Construction commenced • Completion October 2006
Slide 16: Palm Beach
Palm Beach • Rockingham Beach front • 12 waterfront apartments • Commence development FY 2007/2008
Slide 17: The Rivergums, Baldivis
The Rivergums, Baldivis • 120ha project to yield 815 lots • Almost 250 lots sold • Stages 1, 2 and 3 sold out • Stage 4 under construction • Project life of 7-10 years
Slide 18: Cambridge Waters, Canning Vale
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 FY2005-2008.
Slide 19: The Axis, Balcatta
The Axis, Balcatta • 6.5ha, 12km north of Perth • 16 lot subdivision • Showroom, commercial or bulky goods • 50% pre-sold • Marketing continuing • Profit contribution in FY2005-2006
Slide 20: The Kestrels, Tapping
The Kestrels, Tapping • Adjacent Joondalup townsite • 51 hectares, 520 lots • Greensmart Accreditation • Stage 1 and 2 – 85% sold • Strong sales – stage 3 • Display village
Slide 21: Laverton, Melbourne
Laverton, Melbourne • 275ha, 18km (20 mins) west of Melbourne • Mixed used project planning complete • Residential, commercial and retail uses • $22m freeway interchange now funded • Railway station design complete • Seeking formal rezoning
Slide 22: Forrestdale
Forrestdale • 15 hectares • 140-lot residential subdivision • To undergo rezoning • Commence development FY 2007/2008
Slide 23: Economic Outlook
Economic Outlook • Australia & WA economics set for further growth • Consumer confidence remains strong • Property market has softened but market remains resilient • Waterfront and coastal property in demand • WA property remains affordable
Slide 24: Company Outlook
Company Outlook • Strong sales continuing • Further growth provided by new projects • New projects undergoing due diligence • $45m acquisition and development funding facility plus $23m apartment facilities • Forecasting $12m net profit after tax in FY 2005
Cedar Woods Properties — H1 2005 Earnings Presentation on 6ix