CEDAR WOODS PROPERTIES LIMITED — AGM Information 2021

Nov 2, 2021

Annual General Meeting 2021

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Agenda

1 Chairman’s Address

Mr William Hames

2 Managing Director’s Review

Mr Nathan Blackburne

• 3 Formal Business

• Ordinary Business: Consideration of financial report

• Ordinary Resolution 1: Re-election of retiring director – Valerie A Davies

• Ordinary Resolution 2: Confirmation of appointment of director – Paul G Say

• Ordinary Resolution 3: Adoption of remuneration report

• Ordinary Resolution 4: Zero-Price options (ZEPOs)

• Ordinary Resolution 5: Performance rights

4 Questions

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CHAIRMAN'S ADDRESS

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Mr William G Hames

CHAIRMAN’S ADDRESS

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Strategy

To grow our national project portfolio, diversified by geography, product type and price point, so that it continues to hold broad customer appeal and performs well in a range of market conditions

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Geography Good geographic spread of well-located projects in 4 states

Product Type

Range of housing lots, townhouses, apartments & commercial

Price Point

Wide range of price points offered throughout the portfolio

4

CHAIRMAN’S ADDRESS

ESG Strategy

• Significant enhancement of ESG strategy & reporting in FY21

• Informed by the Task Force on Climate-related Financial Disclosures (TCFD)

• Builds on Cedar Woods’ strong track record on sustainability and social responsibility

• Performance against metrics and targets will evolve over coming years

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PURPOSE
Our purpose is to create
long-term value for shareholders
through the development of
vibrant communities.
VISION
Our vision is to be the best
Australian property company
renowned for performance
and quality.
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CHAIRMAN’S ADDRESS

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FY21 Results Summary

NET PROFIT AFTER TAX $32.8m

TOTAL REVENUE $299.8m

EARNINGS PER SHARE

40.7c

FULL YEAR DIVIDENDS

26.5c

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2017 2018 2019 2020 2021
2017 2018 2019 2020 2021
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2017 2018 2019 2020 2021
2017 2018 2019 2020 2021
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RETURN
ON EQUITY
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8.2%
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Above FY2021 target return

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NET BANK DEBT
TO EQUITY
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28.3%

At the lower end of target range of 20%-75%

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NET
SALES
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1,111

SETTLEMENTS

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1,065

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CHAIRMAN’S ADDRESS

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Total Shareholder Return Performance

	CWP	S&P ASX 300	PEER GROUP AVERAGE
FY21	31.9%	28.5%	35.5%
FY20-21	13.5%	8.9%	6.9%
FY19-21	10.5%	9.8%	VALUES 5.7%
FY17-21	14.9%	11.3%	8.4%

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Agenda

1 Chairman’s Address

Mr William Hames

2 Managing Director’s Review

Mr Nathan Blackburne

3 Formal Business

• Ordinary Business: Consideration of financial report

• Ordinary Resolution 1: Re-election of retiring director – Valerie A Davies

• Ordinary Resolution 2: Confirmation of appointment of director – Paul G Say

• Ordinary Resolution 3: Adoption of remuneration report

• Ordinary Resolution 4: Zero-Price options (ZEPOs)

• Ordinary Resolution 5: Performance rights

4 Questions

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MANAGING DIRECTOR'S REVIEW

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Mr Nathan Blackburne

MANAGING DIRECTOR’S REVIEW

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FY21 Overview

 Financial Strength – Solid FY21 results; record Geography presales supporting FY22 & FY23; Low gearing; Ability to perform through the cycles

• Settlements – Settled over 1000 apartments, townhouses, land lots & strata offices in FY21

• Operational Excellence – Investment in systems is paying off; ESG strategy enhanced

• COVID 19 – Disruptions & opportunities

• High Performance Culture – Purpose driven, values-based company with cohesive, highspirited team

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VALUES
PURPOSE
Our purpose is to create
long-term value for
shareholders
through the development
of vibrant
communities
VISION VALUES
Our vision is to be the
We do what we say we’ll do
best Australian
We are people developers
property
company renowned for We think about tomorrow
performance & quality We create community connection
We strive to succeed
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MANAGING DIRECTOR’S REVIEW

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Earnings Growth: Acquisitions



Portfolio built up to 9500 dwellings, lots, offices

Geography 

4 acquisitions in past 15 months:Our purpose is to create long-term value for

• Wollert, VIC

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• Burpengary, QLD – conditional acquisition

• VISION VALUES

• Fieldstone VIC – conditional acquisition

best Australian property • Fraser Rise, VICcompany renowned for

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• Acquisitions being made now to support FY25+ to maintain earnings growth in longer term

• More dedicated acquisitions resources

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Townhouses, St A Glenside, SA

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Monarch Apartments, Glenside

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Townhouses, St A
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Glenside Townhouses
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Townhouses, St A
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Townhouses at Mason Quarter, VIC

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Incontro, Subiaco

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Townhouses, St A
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Incontro Townhouses, Subiaco

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Townhouses, St A
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Incontro Apartments, Subiaco

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Townhouses, St A
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MANAGING DIRECTOR’S REVIEW

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Market Conditions – New Housing Sector

• Strong conditions across apartments, townhouses, land estates & strata offices

• All state portfolios performing well

• Low interest rates, supply shortages, job security & pent-up demand are the fundamentals supporting the new housing sector

• Price growth is outpacing cost increases in most markets, but we are watching costs closely as the construction industry continues to process significant volumes

• Immigration is expected to return and sustain the new housing sector’s performance, & there is potential for this to create strong demand

• Demand for new housing is expected to be elevated for at least the medium term, but with some interim volatility due to COVID-19 and by location variations

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MANAGING DIRECTOR’S REVIEW

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Outlook

• Solid fundamentals supporting the new housing sector & this is expected to continue for some time

• Our national pipeline of more than 9,500 dwellings, offices & lots, many in high demand locations with low competition, positions the Company well for the future

• Demand is strong across the company's geographies & product types & strong earnings growth is expected for FY22

• Continued growth in earnings is expected into the medium term, underpinned by pre-sales of $460m & new projects delivering first contributions

• Earnings projections are subject to COVID-19 related impacts & general economic conditions

• Actively restocking the pipeline with major new acquisitions already announced & additional prospects under consideration

• Townhouses, St A

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Agenda

1 Chairman’s Address

Mr William Hames

2 Managing Director’s Review

Mr Nathan Blackburne

3 Formal Business

• Ordinary Business: Consideration of financial report

• Ordinary Resolution 1: Re-election of retiring director – Valerie A Davies

• Ordinary Resolution 2: Confirmation of appointment of director – Paul G Say

• Ordinary Resolution 3: Adoption of remuneration report

• Ordinary Resolution 4: Zero-Price options (ZEPOs)

• Ordinary Resolution 5: Performance rights

4 Questions

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FORMAL BUSINESS

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FORMAL BUSINESS PROJECT Ordinary Business TITLE To receive and consider the financial statements for the year ended 30th June 2021 and the accompanying directors’ report, directors’ declaration and auditor’s report.

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FORMAL BUSINESS

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Poll Procedure

A poll will be conducted for Ordinary Resolutions 1 – 5

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FORMAL BUSINESS

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Ordinary Resolution 1

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Re-election of retiring director

That Ms Valerie A Davies, having retired in accordance with the company’s constitution and, being eligible, offers herself for re-election, be reelected as a director of the company.

Summary of proxy votes received totaling 52,343,121 shares

	#	%
For	51,098,954	97.83
Against	302,805	0.58
Open	832,395	1.59
Abstain	108,967	-	27

FORMAL BUSINESS

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Ordinary Resolution 2

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Appointment of director

That Mr Paul G Say FRICS, FAPI, having been appointed as a director of the Company since the Company’s last annual general meeting and, being eligible, offering himself for election, be elected as a director of the Company.

Summary of proxy votes received totaling 52,343,121 shares

	#	%
For	51,283,134	98.17
Against	124,304	0.24
Open	830,040	1.59
Abstain	105,643	-

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FORMAL BUSINESS

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Ordinary Resolution 3

Adoption of Remuneration report

That the remuneration report that forms part of the directors’ report for the financial year ended 30 June 2021, be adopted.

Summary of proxy votes received totaling 35,932,777 shares

	#	%
For	34,679,206	96.82
Against	321,202	0.89
Open	819,727	2.29
Abstain	112,642	-

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FORMAL BUSINESS

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Ordinary Resolution 4

Approval for the issue of Zero-Price Options (ZEPOs) under FY21 deferred STI Plan to Mr Nathan Blackburne or his nominee

That, for the purposes of Listing Rule 10.14 and for all other purposes, shareholders of the Company authorise and approve the issue of 32,182 Zero Price Options under the FY21 DSTI Plan by the Company to Mr Nathan Blackburne, the Company’s Managing Director, or his nominee on the terms and conditions set out in the Explanatory Memorandum.

Summary of proxy votes received totaling 52,343,121 shares

	#	%
For	51,018,213	97.64
Against	383,227	0.73
Open	848,446	1.63
Abstain	93,235	-

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FORMAL BUSINESS

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Ordinary Resolution 5

Approval for the issue of Performance Rights under FY22 LTI Plan to Mr Nathan Blackburne or his nominee

That, for the purposes of Listing Rule 10.14 and for all other purposes, shareholders of the Company authorise and approve the issue of 102,895 Performance Rights under the FY22 LTI Plan by the Company to Mr Nathan Blackburne, the Company’s Managing Director, or his nominee on the terms and conditions set out in the Explanatory Memorandum.

Summary of proxy votes received totaling 52,342,252 shares

	#	%
For	45,742,010	87.55
Against	5,654,452	10.82
Open	848,446	1.63
Abstain	97,344	-

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Agenda

1 Chairman’s Address

Mr William Hames

2 Managing Director’s Review

Mr Nathan Blackburne

• 3 Formal Business

• Ordinary Business: Consideration of financial report

• Ordinary Resolution 1: Re-election of retiring director – Valerie A Davies

• Ordinary Resolution 2: Confirmation of appointment of director – Paul G Say

• Ordinary Resolution 3: Adoption of remuneration report

• Ordinary Resolution 4: Zero-Price options (ZEPOs)

• Ordinary Resolution 5: Performance rights

4 Questions

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QUESTIONS

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CLOSE OF BUSINESS

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Perth Office

Melbourne Office

Ground Floor, 50 Colin Street West Perth WA 6005 T: (08) 9480 1500 E: perth@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

220 Fullarton Road Glenside SA 5065 M: 0418 814 479 E: adelaide@cedarwoods.com.au

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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.

“To the extent this Presentation contains certain forward-looking statements and comments about future events (including for example, projections as to project life, number of lots or price ranges), these statements are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Forward looking statement are impacted by both known and unknown risks and external factors that are outside the control of Cedar Woods. As such, undue reliance should not be placed on any forward looking statement and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward looking statements, forecast financial information or other forecast.”

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.