Cedar Woods Properties Limited · ASX:CWP
Cedar Woods Properties — Shareholder Meeting (2010)
37 slides from Cedar Woods Properties's shareholder meeting presentation, 2010
Slide 1: Annual General Meeting 2010
Annual General Meeting 2010
Slide 2: Presentation overview
During our presentation today I will comment upon the current economic environment before reviewing the highlights and financial results of the company for the previous financial year. I will then hand proceedings to Paul Sadleir who will provide insight into our property portfolio, the residential
Slide 3: Improved financial year and positive outlook
I am pleased to report that your company had a much improved financial year in 2010 which was reflected in an 86% increase in net profit and a similar increase in distributions to shareholders. Moreover your Board advises that the company is now strongly positioned for further earnings growth, havin
Slide 4: Shares trading at a discount to net tangible assets
Your Board chose to make this announcement because the company’s shares have for some time been trading at a significant discount to the net tangible asset value. The calculation of $6 is based predominantly upon independent property valuations conducted during the 2010 financial year. It is much hi
Slide 5: FY2010 Results
FY2010 Results
Slide 6: Overview of financial position
I will now give a brief overview of our financial position. We achieved a net profit of $17.2m in 2010, which represented an 86% increase on the previous year and allowed us to increase the dividend payout by a similar percentage. Importantly, we again lowered our gearing , which has positioned the
Slide 7: Revenue, net profit and earnings per share
In 2010, revenue increased marginally but our net profit was up by 86% as a result of improved margins, lower operating costs and lower impairment charges. As a result earnings per share was up 79% and dividends to shareholders were up 86% as we resumed the interim dividend. 7
Slide 8: Five-year net profit history
This slide shows the history of our net profits over the last 5 years, the impact of the tough economic conditions during 2009 and the progress of our recovery going into 2011. We have been working hard to rebuild profitability and we are anticipating a record profit in 2011 . Our portfolio of proje
Slide 9: Dividend policy
Our policy is to distribute approximately 50% of the annual net profit after tax to shareholders. This policy has served us well during the last five years and provides a good balance between rewarding shareholders and retaining cash to fund future growth. The interim dividend was suspended in 2009,
Slide 10: Balance sheet highlights
Lets have a quick look at the balance sheet highlights. There was a significant increase in our total assets this year after a small dip in our total assets last year . We prudently did not add any significant projects to our portfolio last year, but in 2010 we made a number of new acquisitions. Pro
Slide 11: Low equity raising and new acquisitions
Cedar Woods raised only a low level of additional equity over the duration of the financial crisis, by way of the dividend reinvestment plan. While a small amount of additional equity was considered to be necessary and in the best interest of shareholders, we were able to rely on our strong operatio
Slide 12: Handover to Paul Sadleir
With those introductory comments, I now handover to Paul to give a brief review of our portfolio and outlook. 12
Slide 13: Property Portfolio
Property Portfolio Cedar @ Woods Melbourne 13
Slide 14: Project Life - Perth
Project Life — Rivergums Cambridge Waters Mariners Cove Mandurah Country Club Kestrels Waterline (including stage 2) The Jetty Port Mandurah (Sutton) Forrestdale Cedar Woods Wellard Carine Harrisdale Bushmead Pinjarra Perth Fy2011 FY2012,»-FY2013.«-FY2014_ «Ss FY2015_ = FY2016 = FY2017-—s FY2018 14
Slide 15: Residential - Built Form
Residential — Built Form Cedar @ Woods 15
Slide 16: Residential - Built Form
a 7 ‘ Cedar @ Woods Residential — Built Form = 16
Slide 17: Residential
Residential Cedar @ Woods PRIVATE/ESTATE 17
Slide 18: Residential
Cedar @ Woods Residential — Le carinevision xs
Slide 19: New Projects - Perth
NEW PROJECTS - PERTH Cedar@ Woods 19
Slide 20: New Projects - Perth
NEW PROJECTS — PERTH Cedar @ Woods 20
Slide 21: Project Life - Melbourne
Cedar@ Woods Project Life — Melbourne Fy2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Carlingford Williams Landing Banbury Village Realm, Camberwell MELWAYS REF-60 F2 MELWAY REF 82 21
Slide 22: Banbury Village
Cedar@ Woods Banbury Village
Slide 23: Carlingford
Carlingford Carlingford Cedar @ Woods 23
Slide 24: Williams Landing town centre opportunity
We see great opportunities arising from the Williams Landing project. Our intention is to develop and retain significant precincts within the town centre which will comprise retail, bulky goods, commercial and residential components. This will add significant assets to the company’s portfolio and pr
Slide 25: Williams Landing infrastructure and potential
The Victorian State Government has now commenced construction of its $100m infrastructure project at Williams Landing including the train station, bus interchange, freeway interchange and 500 bay commuter car park. This infrastructure has been designed to integrate directly with the project’s town c
Slide 26: New Projects - Melbourne
NEW PROJECTS — MELBOURNE Camberwell Cedar @ Woods 26
Slide 27: Residential Market Drivers
Residential Market Drivers » Population growth — long term driver » Housing supply — under supply set to continue » Confidence 7 Employment y Availability of finance 7 Incentives » Affordability (prices, interest rates) » Rental alternative 27
Slide 28: Population Growth
Population Growth Cedar@ Woods 140 220 | 2.1% 2.A% 1.6% 100 -~ 2.7% ‘000 58.7 1.3% Victoria Western Queensland New South South Australia Wales Australia
Slide 29: Market Conditions
Market Conditions Victoria » sound fundamentals, continued state stimulus y — strong first and second home buyer sales > population growth/lack of rentals 7 strong price growth, now easing WA 7 resource projects continuing — new Port Hedland project » population growth to continue » — land supply re
Slide 30: Outlook
Outlook 30
Slide 31: Outlook summary and FY2011 forecast
In summary then, we have substantial presales in place and well on the way to meeting our sales targets for the year. We expect a strong first half. Strong demand continues at our projects and we are already focusing on presales for FY2012. Our new 3 year $110m corporate bank facility provides us lo
Slide 32: Investment Case for CWP
Investment Case for CWP 32
Slide 33: Investment case
Investment case: Well established, stable board and management Clear focus on EPS, ROC and gearing targets, proven profitable business Strong profit growth expected, record FY11 profit Property portfolio in growth states and major projects derisked and mature Company growing and making acquisitions
Slide 34: Share price well below underlying value
Many of our major assets were acquired well before the property boom. The bulk of our portfolio has been de-risked from an approvals point of view and most of the valuable projects are under development. Consequently , the current share price , around $3 is well below the underlying value of our sha
Slide 35: Earnings growth and share price
We anticipate that the higher earnings growth will translate to share price growth and improved distributions to shareholders. 35
Slide 36: Trading below peer group PE ratio
We are currently trading below the PE ratio of our peer group, hence there is an opportunity for a share price re-rating. 36
Slide 37: Annual General Meeting 2010
Annual General Meeting 2010 37