CEDAR WOODS PROPERTIES LIMITED — AGM Information 2017

Nov 8, 2017

Cedar Woods Presentation | 1

Cedar Woods Properties Limited

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2017 Annual General Meeting
9 November 2017
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Cedar Woods Presentation | 2

A enda g

• 1 Chairman’s Address Mr William G Hames

• 2 Managing Director’s Review Mr Nathan J Blackburne

• 3 Formal Business  Ordinary Business: Consideration of financial report  Ordinary Resolution 1: Re-election of retiring director William G Hames  Ordinary Resolution 2: Re-election of retiring director Jane M Muirsmith  Ordinary Resolution 3: Remuneration report  Ordinary Resolution 4: Performance rights for Nathan J Blackburne  Ordinary Resolution 5: Retirement benefits for Paul S Sadleir

• 4 Questions

Cedar Woods Presentation | 3

Chairman’s Address

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Chairman

Mr William G Hames

Cedar Woods Presentation | 4

FY2017 Financial Performance Summar y

	FY17	FY16	Change
Revenue	$222.3m	$175.2m	26.9%
Net profit after tax	$45.4m	$43.6m	4.2%
Earnings per share	57.6 cents	55.3 cents	4.2%
Dividends per share, 100% franked	30.0 cents	28.5 cents	5.3%

HIGHLIGHTS FOR FY2017

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↗ Seventh consecutive
year of record
profit.
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↗ Record
earnings per
share.
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↗ Record
dividends per
share.
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Cedar Woods Presentation | 5

Track record of rowth and balance sheet stren th g g

NPAT ($m) / Total Dividend (cps)

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45.4
42.6 43.6
40.3
36.3
30.0
27.5 28 28.5
26
FY13 FY14 FY15 FY16 FY17
NPAT TOTAL DIVIDENDS
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Gearing (%)

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100.0
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80.0
60.0
Target
Gearing
40.0 25 – 75%
20.0
12.5 35.6 9.8 25.9 16.5 30.2 23.9
0.0
Jun 14 Dec 14 Jun 15 Dec 15 Jun 16 Dec 16 Jun-17
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SHARE $1.40/

Total dividends paid over the last 5 years.

23.9%

Net bank debt to equity at 30/6/17 – expected to be within target range for FY18.

$205m

in finance facilities, more than $100m in headroom at 30 June 17.

13.9x

Strong interest cover confirms comfortable debt servicing ability.

Cedar Woods Presentation | 6

Cor orate Governance p

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Appointment of independent Non-Executive Director Mrs Jane Muirsmith has strengthened the Board and broadened its expertise.

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Managing Director succession was planned and executed effectively, resulting in a smooth transition.

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Feedback from investors and proxy advisors on recent corporate governance initiatives has been positive.

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Proxy advisors supporting all 2017 AGM shareholder resolutions.

Cedar Woods Presentation | 7

A enda g

• 1 Chairman’s Address Mr William G Hames

• 2 Managing Director’s Review Mr Nathan J Blackburne

• 3 Formal Business  Ordinary Business: Consideration of financial report  Ordinary Resolution 1: Re-election of retiring director William G Hames  Ordinary Resolution 2: Re-election of retiring director Jane M Muirsmith  Ordinary Resolution 3: Remuneration report  Ordinary Resolution 4: Performance rights for Nathan J Blackburne  Ordinary Resolution 5: Retirement benefits for Paul S Sadleir

• 4 Questions

Cedar Woods Presentation | 8

Mana in Director’s Review g g

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Managing Director Mr Nathan J Blackburne

Cedar Woods Presentation | 9

Portfolio Overview

 Significant, high quality development pipeline:

• » Strategically located projects near amenity and infrastructure.

• » 11,000+ lots/dwellings in pipeline across 31 projects.

• » 20+ additional mixed use/commercial sites at Williams Landing.

• » 8-10 years of undeveloped stock.

• Product is diverse, consistent with our strategy:

• » Across 4 states – VIC, QLD, WA and SA.

• » Land subdivisions, townhouses, apartments, commercial, mixed use.

• » 3,000 of the 11,000+ lots/dwellings pipeline are townhouses and .

• apartments

• » Diversity of buyer profiles and price points.

Cedar Woods Presentation | 10

Portfolio Overview

PRESALES BY STATE - Q1

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QLD
7%
WA
28%
VIC
65%
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Sales commencing from SA in 2H18

NUMBER OF PRESALES BY PRODUCT – Q1

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Cedar Woods Presentation | 11

New Phase of Growth

• Targeting strong medium term earnings growth:

• » Driven by current portfolio – not dependent on acquisitions.

• » 11 new projects contributing for the first time (FY18-FY20).

• » Sales across 4 states.

• Well-placed to capitalise on WA market recovery.

• Disciplined and methodical acquisition procedures.

• Financing facilities support funding of current portfolio and future growth opportunities.

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Cedar Woods Presentation | 12

Queensland: Portfolio Overview

Ellendale

• Stage 1 completed.

• 135 lots settled; 186 sales.

• Stage 2 construction underway.

• Display village opening H2 FY18.

• Rezoning of the 160ha balance underway; expected FY18.

• Price range $300,000 to $600,000.

Wooloowin

• Approvals anticipated H1 FY18.

• Planning for 279 townhouses and apartments.

• Construction scheduled to commence H2 FY18.

• Price range $380,000 to $1m.

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Ellendale
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Wooloowin
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Cedar Woods Presentation | 13

South Australia: Portfolio Overview

Glenside

• 3kms from Adelaide CBD.

• Blue chip, highly sought after suburb.

• Planning for 1,000 townhouses and apartments.

• Site works underway.

• Sales launch in H2 FY18.

Port Adelaide

• 14km from Adelaide CBD.

• 500 dwellings, mostly town houses.

• Sale to Cedar Woods approved.

• Significant regeneration proposed for local area.

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Glenside
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Port Adelaide
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Cedar Woods Presentation | 14

Victoria: Portfolio Overview

• 12 projects (7 currently at Williams Landing).

• 2,100 lots/dwellings.

• Projects catering for 1st, 2nd and subsequent home buyers, and investors.

• Land subdivision, townhouse, apartment and commercial projects.

• Resilient projects in high performing locations.

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40KM
20KM
CARLINGFORD
BONNIE ST. A
10KM
BROOK
5KM LEVESON STREET
MELBOURNE
CBD
WILLIAMS LANDING
PROJECTS
JACKSON GREEN
Port Phillip Bay
GEELONG
TORQUAY
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• Projects in varying stages of lifecycle.

Cedar Woods Presentation | 15

Victoria: Portfolio Overview cont.

St A (St Albans)

• 250+ townhouses and apartments.

• Excellent presales.

• Construction underway, contributing 1st time in FY18.

• Price range $300,000 - $600,000.

Jackson Green (Clayton South)

• 400+ townhouses and apartments.

• Excellent presales.

• Construction underway, contributing 1st time in FY18.

• Price range $350,000 - $950,000.

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St A
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Jackson Green
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Cedar Woods Presentation | 16

Victoria: Williams Landin g

• 10 years+ remaining.

• Diverse mix of land, townhouses,

• apartments and commercial.

• Residential neighbourhoods: Pipeline of over 500 lots/townhouses/apartments.

• Town centre: Pipeline of approximately 550 apartments.

• 7-8 projects underway at any one time (townhouses, apartments, commercial).

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Oxford Apartments
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• Market for strata offices has been proven; 65% presales and pre-leases on first development.

• Shopping centre: built and retained stage

• 1; planning underway for future stages.

Oxford Apartments (7 November 2017)

Cedar Woods Presentation | 17

Williams Landin : Tar et HQ g g

• 12,600m[2] leased to Target for new HQ.

• 800+ employees.

• Hacer appointed to construct.

• Project running to program and within budget.

• Completion expected early 2019.

• Presold to Centuria Property Funds for $58.23m.

• Settlement in FY19.

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Target HQ Development (7 November 2017)
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Cedar Woods Presentation | 18

Western Australia: Portfolio Overview

• 16 projects and approximately 7,000 lots.

• Projects catering for 1st, 2nd and subsequent home buyers, and investors.

• Land subdivision and built form projects.

• Projects in varying stages of lifecycle.

• Several major new developments starting to contribute to earnings.

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40KM
20KM ARIELLA PRIVATE
ESTATE
10KM
BUSHMEAD
5KM
PERTH
CBD
HARRISDALE
GREEN
KARMARA
THE BROOK
MANGLES BAY AT BYFORD
MARINA
BYFORD ON THE
SCARP
EMERALD PARK
MILLARS LANDING
THE RIVERGUMS
MARINERS COVE
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Cedar Woods Presentation | 19

Western Australia: Portfolio Overview cont.

Bushmead

• 1,050 lots, strong margins, contributing 1st full year FY18.

• Anticipated sales duration a further 7-9 years.

• Price range $240,000 - $350,000

F ~~ebruary 2017~~

Millars Landing

• 1,580 lots.

• Construction underway, contributing for 10-15 years from FY18.

• Price range $190,000 - $210,000

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Millars Landing
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Cedar Woods Presentation | 20

Western Australia: Portfolio Overview cont.

Mangles Bay

• Mixed use, marina-based project.

• Attractive, established location.

• Federal environmental approvals achieved.

• Planning delays experienced - rezoning anticipated mid FY18.

• Early construction works planned for 2019.

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Mangles BayMangles Bay
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Karmara

• 124 lots, 1st stage construction commenced.

• Strong sales recorded, contributing for 2-3 years.

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• Price range $280,000 - $300,000

Cedar Woods Presentation | 21

Outlook

Positive outlook underpinned by pre-sales of $310m, up 35% on last year ($230m).

Development program is on track.

Earnings anticipated to be skewed significantly to the second half of FY18, with first half similar to last financial year.

Given the difficulty of forecasting the exact timing of settlements of pre-sales at a number of projects, earnings guidance will be provided later in the financial year.

New projects commencing, and already under construction, provide positive growth outlook for FY19 and future financial years.

Cedar Woods Presentation | 22

Priorities and O ortunities pp

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Develop and maintain a high performance culture.

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Strive for operational excellence, across all areas of the Company.

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Pursue future growth in a strategic and focussed manner.

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Maintain strong financial discipline.

Cedar Woods Presentation | 23

CWP: Investment Pro osition p



Track record of earnings growth and attractive fully franked dividend yield.  Strong and proven management team, high performance culture.  National portfolio, diversified by product type, price point and geography.  On the cusp of a new growth phase (11 new projects coming online).  Well placed to benefit as WA market recovery continues.  Record level of presales de-risk short to mid-term earnings.  Strong balance sheet and capacity to fund growth.

Cedar Woods Presentation | 24

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Cedar Woods Presentation | 25

A enda g

• 1 Chairman’s Address Mr William G Hames

• 2 Managing Director’s Review Mr Nathan J Blackburne

• 3 Formal Business  Ordinary Business: Consideration of financial report  Ordinary Resolution 1: Re-election of retiring director William G Hames  Ordinary Resolution 2: Re-election of retiring director Jane M Muirsmith  Ordinary Resolution 3: Remuneration report  Ordinary Resolution 4: Performance rights for Nathan J Blackburne  Ordinary Resolution 5: Retirement benefits for Paul S Sadleir

• 4 Questions

Cedar Woods Presentation | 26

1. Ordinar Business y

To receive and consider the financial statements for the year ended 30th June 2017 and the accompanying directors’ report, directors’ declaration and auditor’s report.

Cedar Woods Presentation | 27

Poll rocedure p

A poll will be conducted for Ordinary Resolutions 1-5

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Cedar Woods Presentation | 28

2. Ordinar Resolution 1 y

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Re-election of retiring director That William G Hames, having retired in accordance with the company’s constitution and, being eligible, offers himself for re-election, be re-elected as a director of the company.

Summary of 286 proxy votes received totaling 46,222,005 shares

	#	%
For	42,585,529	92.85
Against	2,407,749	5.25
Open	874,037	1.90
Abstain	354,690	-

Cedar Woods Presentation | 29

3. Ordinar Resolution 2 y

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Re-election of retiring director

That Jane M Muirsmith, having retired in accordance with the company’s constitution and, being eligible, offers herself for re-election, be re-elected as a director of the company.

Summary of 286 proxy votes received totaling 46,222,005 shares

	#	%
For	44,938,742	97.97
Against	61,036	0.13
Open	875,537	1.90
Abstain	346,690	-

Cedar Woods Presentation | 30

4. Ordinar Resolution 3 y

Remuneration Report

That the remuneration report that forms part of the directors’ report for the financial year ended 30 June 2017, be adopted.

Summary of 286 proxy votes received totaling 27,873,471 shares

	#	%
For	26,239,904	95.76
Against	298,145	1.08
Open	866,504	3.16
Abstain	468,918	-

Cedar Woods Presentation | 31

5. Ordinar Resolution 4 y

Approval for the issue of Performance Rights under the LTI Plan to Mr Nathan Blackburne or his nominee

That, for the purposes of Listing Rule 10.14, Chapter 2E of the Corporations Act and for all other purposes, Shareholders authorise and approve the issue of 36,434 Performance Rights under the LTI Plan by the Company to Mr Nathan Blackburne or his nominee on the terms and conditions set out in the Explanatory Memorandum.

Summary of 286 proxy votes received totaling 46,222,005 shares

	#	%
For	44,438,480	97.16
Against	419,979	0.92
Open	879,556	1.92
Abstain	483,990	-

Cedar Woods Presentation | 32

6. Ordinar Resolution 5 y

Approval of retirement benefits for the retired Managing Director, Mr Paul Sadleir

That, for the purposes of Section 200E of the Corporations Act and for all other purposes, Shareholders authorise and approve the giving of the following benefits to Mr Paul Sadleir in connection with his retirement from the office of managing director of the Company:

• (a) the waiver of the “ service condition “ under the LTI Plan in respect of the 18,762 performance rights granted to Mr. Sadleir in 2015 and the 28,965 performance rights granted to Mr Sadleir in 2016 and approved by Shareholders, respectively, at the 2015 AGM and the 2016 AGM ; and

• (b) the exercise of discretion by the Human Resources & Remuneration Committee under the STI Plan, and the consequential payment to Mr Sadleir of the sum of $74,523

on the terms and conditions set out in the Explanatory Memorandum.

Summary of 286 proxy votes received totaling 46,222,005 shares

	#	%
For	43,829,167	95.78
Against	1,057,765	2.32
Open	869,296	1.90
Abstain	465,777	-

Cedar Woods Presentation | 33

A enda g

1	Chairman’s Address Mr William G Hames
2	Managing Director’s Review Mr Nathan J Blackburne
3	Formal Business  Ordinary Business: Consideration of financial report  Ordinary Resolution 1: Re-election of retiring director William G Hames  Ordinary Resolution 2: Re-election of retiring director Jane M Muirsmith  Ordinary Resolution 3: Remuneration report  Ordinary Resolution 4: Performance rights for Nathan J Blackburne  Ordinary Resolution 5: Retirement benefits for Paul S Sadleir
4	Questions

Cedar Woods Presentation | 34

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Perth Office

Melbourne Office

Ground Floor, 50 Colin Street West Perth WA 6005 T: (08) 9480 1500 E: email@cedarwoods.com.au

Level 1, 476 St Kilda Road Melbourne VIC 3004 T: (03) 9820 1777 E: melbourne@cedarwoods.com.au

Brisbane Office

Adelaide Office

Level 6, 12 Creek Street Brisbane QLD 4000 T: (07) 3007 2900 E: brisbane@cedarwoods.com.au

Level 21, 25 Grenfell Street Adelaide SA 5000 T: (08) 8424 2343 E: adelaide@cedarwoods.com.au

Disclaimer of liability

While every effort is made to provide complete and accurate information, Cedar Woods Properties Limited does not warrant or represent that the information in this presentation is free from errors or omissions or is suitable for your intended use. Subject to any terms implied by law and which cannot be excluded, Cedar Woods Properties Limited accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information in this presentation. All information in this presentation is subject to change without notice.

This presentation is not financial advice or a recommendation to acquire Cedar Woods Properties Limited securities and has been prepared without taking into account the objectives, financial situation or needs of individuals.