2007 Annual Results
Presentation outline Company objectives Financial highlights Review of recent developments Outlook and FY2008 forecast
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 20% to 75% Return on equity minimum of 12%
Financial highlights income statement FY2007 $m FY2006 $ Revenue 90.0 80.5 12% Profit before income tax expense 26.8 23.1 16% Net profit after tax attributable to members of CWPL 18.5 16.2 14% Earnings per share 33.9 cents 30.3 cents 12%
Financial highlights income statement EBIT/Sales ROE ROC FY2007 34.7% 25.9% 23.1% FY2006 32.0% 23.7% 26.5% Margins improved due to price growth ROE improved due to earnings growth ROC reduced due to growth in long term assets.
Growth in profits and dividends 25 18.0 16.0 20 14.0 Profit ($m) 15 10 5 7.1 10.3 12.4 16.2 18.5 20.0 12.0 10.0 8.0 6.0 4.0 2.0 Dividends (cents) 0 2003 2004 2005 2006 2007 2008F Actual Forecast Dividends 0.0
CWP share price and NPAT growth 25 6.00 5.50 20 5.00 4.50 NPAT $m 15 10 4.00 3.50 3.00 2.50 2.00 Price $ 5 1.50 1.00 0 7.1 10.3 12.4 16.2 18.5 20.0 0.50 0.00 2003 2004 2005 2006 2007 2008F NPAT Share Price
Revenue and asset growth $M 180.0 160.0 140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 37.1 66.8 57.2 94.7 75.1 130.5 80.2 152.0 90.0 155.6 2003 2004 2005 2006 2007 Compound average growth rate Revenue 25% Total assets 23.5% Revenue Total Assets
Total shareholder returns 1 Year CWP to 30/6/07 20% ASX Real Estate Sector (2006) 20% 3 Year 52% 17% 5 Year 67% 13%
Financial highlights balance sheet Jun 2007 (Wellard 25%) Jun 2006 (Wellard 25%) Jun 2006 Actual Total assets $m 155.6 152.0 194.9 Net bank debt $m 63.7 43.4 29.0 Shareholders equity $m 71.6 60.5 68.5 Net bank debt to equity (%) 89.0 71.9 42.3 Interest cover (x) 7 9 9
Financial highlights balance sheet Total assets reduced as a result of deconsolidating Cedar Woods Wellard Limited, as our interest reduced to 25% post 30 June 2006. Gearing expected to stay at upper end of preferred range in FY2008 as company commences projects in Melbourne and continues built form projects. Apartments funded by limited or non-recourse facilities will cause higher gearing from time to time. Core debt is stable.
Statement of operating cash flows Cashflows related to operating activities Receipts from customers Payments to suppliers & employees Net borrowing cost Income taxes paid Payments for inventory new land Payment for inventory development Net operating cashflow FY2007 $M 98.7 (27.2) (5.8) (6.8) (45.9) (27.9) (14.9) FY2006 $M 87.8 (19.7) (3.8) (6.1) (14.5) (38.5) 5.2
Dividend policy Maintain current balance between interim and full year dividend approximately 40 / 60. 50% net profit plus distributed reserves for full year Dividend reinvestment plan will continue for future dividends. Current DRP take up 23%
WA & Victoria projects
Project life Perth Rivergums Cambridge Waters Mariners Cove Mandurah Country Club Nautilus Kestrels Waterline Helena Valley The Jetty Port Mandurah (Sutton) Forrestdale Cedar Woods Wellard Pinjarra Lots Under Option FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016
Project Life - Melbourne FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Lalor Laverton Footscray
Business model Owned Developments Syndications Joint Ventures Other Structures Owned Property Land Under Options / Development Agreements Residential Built Form Industrial Retail / Commercial LANDBANK Western Australia / Victoria
Growth strategies Drive value from existing projects Affordable housing and retirement sector Properties under option Growth in Melbourne market Williams Landing town centre - commercial portfolio, trust structure Property syndication
Projects under option Earnings pipeline in place for 5 years of growth. Optioning medium longer term landbank. Options over significant land parcels in WA - exercisable in 2-3 years time. - development commencing in 3-5 years.
Growth in Melbourne market All projects under development in FY2008. Earnings in FY2009 and growing thereafter. Further acquisitions focus. Market experiencing upswing in Victoria.
Commercial portfolio Opportunities from existing portfolio, particularly Williams Landing. Mixed use sites Retail developments eg. within apartment projects Commercial units
Property syndication Wellard syndicate development underway. Expect to add 1-2 syndicates annually. CWWL to commence development in FY2008 and on track to deliver first sales in FY2009.
Built Form
Residential
Melbourne Projects
Banbury Village, Footscray
Banbury Village, Footscray Master Plan Land Development
Banbury Village, Footscray
Williams Landing, Laverton
Williams Landing, Laverton
Carlingford, Lalor
Carlingford, Lalor
Economic outlook FY2006 actual FY2007 estimate FY2008 forecast FY2009 forecast Australia (GDP growth %) Federal Treasury 2.8 2.5 3.75 3.0 Western Australia (GSP growth %) WA Treasury 4.9 6.0 4.5 5.0 Victoria (GSP %) VIC Treasury 2.7 2.75 3.25 3.25
Consumer Confidence 130.0 125.0 120.0 115.0 110.0 105.0 100.0 95.0 90.0 85.0 80.0 Jun-00 Dec-00 Jun-01 Dec-01 Jun-02 Dec-02 Jun-03 Dec-03 Jun-04 Dec-04 Jun-05 Dec-05 Jun-06 Dec-06 Jun-07 Months
Population growth Dec 2006 population (000 s) 1 year increase (000 s) % increase VIC 5,165 77 1.5 WA 2,081 43 2.1 QLD 4,132 82 2.0 NSW 6,855 64 0.9 AUSTRALIA 20,852 293 1.4 Source: ABS Cat.3101.0
Average weekly earnings May 2007 WA Vic Qld NSW AWE $914.90 $853.40 $818.90 $909.8 1 Year Change + 10.6% + 4% + 3.2% + 5.1%
Unemployment rate % (July 2007) Unemployment Rate % (July 2007) 5 4.5 4 3.5 Rate (%) 3 2.5 2 1.5 1 0.5 0 Victoria Western Australia Queensland New South Wales Australia Annual Average Rate Source: ABS Cat. 6202.0
Growth in established house prices March median price Mar Qtr 07 to Jun Qtr 07 % change Jun Qtr 06 to Jun Qtr 07 % change Sydney $516,500 2.3 3.0 Melbourne $380,000 5.0 11.5 Brisbane $345,000 6.5 15.7 Perth $452,500-0.9 15.3
Dwelling unit approvals 2006/07 NSW Vic Qld WA Australia Total Dwelling Units no. 31,119 37,915 41,293 25,077 152,709 Total Dwelling Units % change -6.1 3.8 8.7-3.0 1.3
Housing supply and demand 30.0 Western Australia Underlying Requirements for Housing vs Actual & Forecast Dwelling Starts 25.0 20.0 Victoria 15.0 10.0 5.0 0.0 2005 (a) 2006 (a) 2007 (f) 2008 (f) 2009 (f) Housing Starts Underlying Requirements 48.0 46.0 44.0 42.0 40.0 Underlying Requirements for Housing vs Actual & Forecast Dwelling Starts 38.0 36.0 34.0 2005 (a) 2006 (a) 2007 (f) 2008 (f) 2009 (f) Housing Starts Underlying Requirements Source: HIA
Residential vacancy rates SYD MELB BRIS PERTH 2007 Mar Quarter % 1.4 1.2 1.7 0.8 Average 1980 to date % 2.4 2.7 3.4 3.4
Housing sector WA & VIC Strong local economy Continued population growth Modest interest rate increases Consumer sentiment holding up Economic fundamentals positive
Company outlook All Melbourne projects now under development. New projects undergoing due diligence. DRP to top up equity. Forecasting approx $20m net profit after tax in FY2008. Further earnings growth anticipated for FY2009 as Melbourne projects deliver profits.
2007 Annual Results