Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — FY2003 Earnings Presentation
24 slides from Cedar Woods Properties's earnings presentation, Jun 30, 2003
Slide 1: Annual Results to 30 June 2003
Annual Results to 30 June 2003
Slide 2: Presentation Outline
Presentation Outline • Company objectives • Financial highlights • Key strategies • Operating highlights • Outlook and 2004 Forecast Annual Results 2 2003
Slide 3: Company Objectives
Company Objectives • Primary objective - growth in earnings per share • Aim to be in the top half of listed companies • Average eps growth – all industrials from 1998 - 2002 was 6% pa, in 2003 expected to be 5-10% • CWPL’s current target is 10% pa growth, exceeded for FY2003 • Gearing (net debt to e
Slide 4: Financial Highlights – Profit & Loss
Financial Highlights – Profit & Loss Jun 2003 Jun 2002 % $m $m Increase Operating Revenue 36.4 26.2 39 Profit from ordinary activities before 10.9 5.5 95 income tax expense Income Tax attributable to operating 3.8 2.1 81 profit Net profit after tax attributable to 7.1 3.4 108 members of CWPL Earning
Slide 5: Profit Growth
Profit Growth Net Profit After Tax 8 6 $m 4 7.1 2 3.4 2.4 2.4 0 2000 2001 2002 2003 Annual Results 5 2003
Slide 6: Earnings per Share Growth
Earnings per Share Growth 15 10 cents 14.5 5 7.1 5.4 5.0 0 2000 2001 2002 2003 BAS IC EP S 10%Growt h t a rge t Annual Results 6 2003
Slide 7: Financial Highlights – Balance Sheet
Financial Highlights – Balance Sheet June June 2003 2002 Total assets $m 66.8 50.3 Interest bearing liabilities (bank debt) $m 5.9 8.6 Shareholders’ equity $m 36.8 29.0 Net debt to equity (%) 16.0 29.4 Interest cover (x) 43 21 Number of shares on issue 30 June (m) 49.4 48.3 NTA per share – (book val
Slide 8: Statement of Cashflows
Statement of Cashflows June June Cashflows related to operating activities 2003 2002 $m $m Receipts from customers 40.4 25.6 Payments to suppliers & employees (7.9) (4.7) Net interest paid (0.2) (0.2) Income taxes paid (1.6) (1.0) Payments for inventory – new land (14.0) (6.5) Payments for inventory
Slide 9: Statement of Cashflows
Statement of Cashflows June June 2003 2002 $m $m Cashflows related to operating activities 5.4 (1.3) Cashflows from investing (0.2) (0) Cashflow from financing (5.1) (0.8) Net increase in cash 0.1 (2.1) Annual 9 Results 2003
Slide 10: Dividend Policy
Dividend Policy • Provide balance between return to Shareholders and growth of Company • Approximately 50% of net profit after tax plus realised reserves • 7c dividend for FY 2003 (FY 2002 - 5c) • Dividend Reinvestment Plan may be re-introduced in future Annual Results 10 2003
Slide 11: Performance Outcomes
Performance Outcomes 30 Jun 30 June 2003 2002 Earnings per share 14.5c 7.1c EPS including realised reserve 17.5c 9.8c Dividend 7c 5c Return on Equity 19% 12% EBIT/Sales Margin 30% 22% Annual Results 11 2003
Slide 12: Key Strategies
Key Strategies • Diversification of the property portfolio - new residential subdivisions - medium density residential and apartments - industrial and commercial land • Identification and acquisition of new projects • Retaining ownership of income producing assets • Establishing joint venture initia
Slide 13: Port Mandurah
Port Mandurah • “The Promontory” – successful townhouse concept • 6 residential lots in Stage 6 remain in stock • Evaluating development of Sutton Precinct, with up to 40 townhouses - $20 m project Annual Results 13 2003
Slide 14: Mariners Cove
Mariners Cove • Over 100 dry lots sold in year • 221 dry lots to be developed • 331 canal lots to be developed, 67 lots now under way • Future group housing site in canal zone Annual Results 14 2003
Slide 15: Regency Grove
Regency Grove • Located at Ocean Reef Road, Wanneroo • 83 lot subdivision commenced FY 2003 • 60% sold in 2003 • Balance to be sold in FY 2004 • Total revenue $12 m Annual Results 15 2003
Slide 16: The Rivergums, Baldivis
The Rivergums, Baldivis • 115 ha project to yield 815 lots • Well located at end of Kwinana Freeway • Stage 1 - 90 lots, 70 sold in 1 month • Stage 2 - 95 lots, selling well • Project life of 7 years • Display village • Greensmart Accredited Annual Annual Results 16 Results 2002 2003
Slide 17: Rockingham - Aria
Rockingham - Aria • Coastal town 30 mins south of Perth • Council approval obtained for 10 storey, 32 apartment tower plus ground floor commercial - $15 m project, currently 60% sold • Anticipated to contribute to FY 2004 and FY 2005 Annual Results 17 2003
Slide 18: Rockingham - Plaza
Rockingham - Plaza • Council approval obtained for 56 apartments and 24 townhouses • Ground floor commercial • Marketing during 2004 • Anticipate profits arising 2004 and 2005 Annual Results 18 2003
Slide 19: Tapping
Tapping • Major new project announced July 2003 • Adjacent Joondalup townsite • 51 hectares, 540 lots • Seeking Greensmart Accreditation • Commence Stage 1 in first half FY 2004 Annual Results 19 2003
Slide 20: Canning Vale
Canning Vale • 8.35 ha located 17 km south of Perth • Subdivision approval anticipated for 57 lots and 160 apartments • Anticipated profit contribution in 2005-2008 Annual Results 20 2003
Slide 21: Balcatta
Balcatta • 6.3 ha parcel, 12 km north of Perth • Major freeway interchange • Showroom, commercial or bulky goods • Opportunity to develop and lease • Rezoning completed • Currently marketing Annual Results 21 2003
Slide 22: Laverton, Melbourne
Laverton, Melbourne • 275 ha, 18 km (20 mins) west of Melbourne • Mixed use project being masterplanned • Major transit node • Residential, commercial and industrial uses • Fits Melbourne 2030 framework • Negotiations ongoing with Government Annual Results 22 2003
Slide 23: Economic Outlook
Economic Outlook • Local economy robust but subject to global influences • Property market expected to soften – less so in WA • Waterfront and coastal property in demand • Steady industrial sector Annual Results 23 2003
Slide 24: Company Outlook
Company Outlook • Strong sales continuing at Mandurah projects • Further growth provided by new projects • New projects undergoing due diligence • $35 m acquisition and development funding facility • Forecasting $8.0 m net profit after tax in FY 2004, equating to 12% growth in earnings. Annual Resul
Cedar Woods Properties — FY2003 Earnings Presentation on 6ix