CDI: 2017 Results Announcement

DIRECTORS’ REVIEW

Financial Performance

CDL Investments New Zealand Limited (“CDLI”) is pleased to report a profit after tax of $32.2
million for the year ended 31 December 2017, an increase of 19.0% from the previous year
(2016: $27.0 million). This result is the eighth consecutive year of profit growth for the company.

Profit before tax also increased to $44.7 million (2016: $37.5 million). Property sales & other
income totalled $78.7 million (2016: $74.5 million).

Shareholders’ funds as at 31 December 2017 increased to $186.1 million (2016: $161.8 million)
and the company’s total assets stood at $191.7 million (2016: $168.3 million). The net tangible
asset per share (at book value) was 67.1 cents (2016: 58.4 cents).

Dividend Announcement

Reflecting the record result, CDLI has resolved to increase its fully imputed ordinary dividend to
3.5 cents per share (2016: 3.0 cents per share), payable on 18 May 2018. The record date will
be 4 May 2018. The Dividend Reinvestment Plan will apply to this dividend.

Land portfolio

At 31 December 2017, the independent market value of CDLI’s land holdings was $276.3 million
(2016: $297.0 million). CDLI’s accounting policies require the company to carry the value of its
land portfolio at the lower of cost or net realisable value and at 31 December 2017, the land
portfolio at cost was $124.7 million (2016: $117.8 million).

Summary and Outlook

The New Zealand housing stock and new housing supply remains short of demand. This can
explain why while housing sales have eased, pricing has only evened out. The Reserve Bank’s
LVR restrictions and the availability of finance have both had an effect on the New Zealand
housing market. That said, although not as strong as in 2016, demand for CDLI housing sections
remained steady in 2017.

The Overseas Investment Amendment Bill proposed by the Government last December is
expected to have some but minimal impact on CDLI’s business model of acquiring land for
residential development. The proposed new Government measures classifying residential
housing land as “sensitive land” is a demand-side measure and aimed “not to impede the
broader objective of increasing the supply of residential housing”. As a development company
in housing sections, CDLI has consistently demonstrated its “financial commitment, business
experience and acumen and good character” with its commitment to increasing the supply of
sections for residential housing.

The Overseas Investment Amendment Bill in its current form may however have unintended
consequences. These include the number of consent applications and time required to process
them. Both measures are expected to increase with significant delays and costs to the housing
industry.

CDLI will continue to drive sales activity of its existing housing sections in 2018 with the aim of
delivering another year of growth in 2018. The Board and management will also continue to
progress consents and future development approvals for projects in the pipeline as well as
continue to seek to acquire additional land for future development.

Management and staff

On behalf of the Board I sincerely thank the company’s management and staff for their hard
work during 2017 to deliver these excellent results.




Colin Sim
Chairman
8 February 2018

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19% PROFIT GROWTH FOR
CDL INVESTMENTS NEW ZEALAND

Property development company CDL Investments New Zealand Limited (NZX: CDI) today
reported its results for the year ended 31 December 2017.

CDI increased its profit after tax by 19.0% to $32.2 million with property sales & other income
increasing by 5.6% to $78.7 million over 2016.

“We are very pleased to report another year of increased profit performance” said managing
director Mr. B K Chiu. “Our housing sections in Auckland, Hamilton and Christchurch with their
locations and design remain attractive to buyers despite a less buoyant market compared to
2016.”

“The property market moves in cycles. With new legislation on LVRs, availability of finance
together with the levelling of net migration, 2017 could be seen as a correction year and this can
be viewed as positive in moderating the exuberance of the market. However, supply of housing
remains short of demand notably in the Auckland region. We continue to see a steady but
subdued demand for our sections and this underlying demand is not surprising as home
ownership remains an aspiration dear to New Zealanders. To this end we continue to programme
the development and release of new sections for sale in 2018 and 2019 as well as implementing
our land purchase plans for the future,” said Mr Chiu.

CDI’s Board resolved to increase its dividend to 3.5 cents per share (from 3.0 cents in 2016)
fully imputed which would be released to shareholders on 18 May 2018. The record date would
be 4 May 2018 and the Dividend Reinvestment Plan would apply to this dividend.


Summary of results:

• Profit after tax $32.2 million (2016: $27.0 million)
• Profit before tax $44.7 million (2016: $37.5 million)
• Total revenue & other income $78.7 million (2016: $74.5 million)
• Shareholders’ funds $186.1 million (2016: $161.8 million)
• Total assets $191.7 million (2016: $168.3 million)
• Net tangible asset value (at book value) 67.1 cents per share (2016: 58.4cps)
• Earnings per share 11.60 cents per share (2016: 9.77cps)


About CDL Investments New Zealand Limited:

CDL Investments New Zealand Limited (CDI) has a proud track record of acquiring and
developing residential sections in New Zealand for two decades. With a focus on creating and
developing a range of high-quality residential sections to New Zealanders, CDI has over the past
twenty years successfully completed numerous subdivision projects in Auckland, Hamilton,
Tauranga, Hastings, Havelock North, Taupo, Nelson, Christchurch, Rolleston (Canterbury) and
Queenstown. CDI is a majority-owned subsidiary of NZX-listed Millennium & Copthorne Hotels
New Zealand Limited.

ENDS
Issued by CDL Investments New Zealand Limited

Enquiries to:
B K Chiu, Managing Director
(09) 353 5058

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ndeoendent Auditor's Reoort
To the shareholders of COL Investments New Zealand Limited
Report on the consolidated financial statements
Opinion
In our opinion, the accompanying consolidated
financial statements of COL Investments New
Zealand Limited (the company) and its subsidi ary
(the group) on pages 1 to 16:
i. present fairly in all material respec ts the group's
financial position as at 31 December 2017 and
its financial performance and cash flows for the
year ended on that date; and
ii. comply w ith l\Jew Zealand Equivalents to
International Financial Reporting Standards and
International Financial Reporting Standards.
Basis for opinion
We have audited the accompanying consolidated
financial stateme ts which comprise:
th e consolida ed statement of financial position
as at 3 1 Dec mber 2017;
the consolidated statements of comprehensive
income, cha ges in equity and cash flows for
th e year th en ended; and
notes, including a summary of significant
accounting p licies and other explanatory
information.
We conducted our audit in accordance with International Standards on Auditing (New Zealand) ('ISAs (NZ)'). We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of the group in accordance with Professional and Ethical Standard 1 (Revised) Code of
Ethics for Assurance Practitioners issued by the New Zealand Auditing and .1\ssurance Standards Board and the
International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA
Code). and we have fulfilled our other ethical responsibilities in accordance with these requirements and the
IESBA Code.
Our responsibilities under ISAs (NZ) are further described in the auditor's responsibilities for the audit of the
consolidated financial statements section of our report.
Our firm has also provided other services to the group in relation to taxation compliance and taxation advisory
services. Subject to certain restrictions, partners and employees of our firm may also deal with the group on
normal terms within the ordinary course of trading activities of the business of the group. These matters have
not impaired our independence as auditor of the group. The firm has no other relationship with, or interest in, the
group.
iiiij~ Materiality
The scope of our audit was influenced by our application of materiality. Materiality helped us to determine the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both individually
and on the consolidated financial statements as a whole. The materiality for the consolidated financial
statements as a whole was set at $2.2 million determined with reference to a benchmark of group profit before
tax. We chose the benchmark because, in our view, this is a key measure of the group's performance.
© 20·1 s KPMG, a New Zealand partnership and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. 17

Iii Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements in the current period. We summarise below those matters and our key
audit procedures to address those matters in order that the shareholders as a body may better understand the
process by which we arrived at our audit opinion. Our procedures were undertaken in the context of and solely
for the purpose of our statutory audit opinion on the consolidated financial statements as a whole and we do not
express discrete opinions on separate elements of the consolidated financial statements.
The key audit matter
How the matter was addressed in our audit
Capitalisation and Allocation of Development Costs
Refer to note 8 of the consolidated financial
statements.
The group's development property comprises
land and costs incurred to develop land into
subdivisions and individual properties for sale. At
$124.7m this represents 65% of assets on the
consolidated statement of financial position.
Determining whether to capitalise or expense
costs relating to development of the land is
subjective as it depends whether the costs
enhance the land or maintain the current value. In
addition there is significant judgement in
determining how to allocate the costs to
individual properties.
·--
1 Other information
To assess the capitalisation of development costs we
examined the operating effectiveness of the group's
process to capitalise and record development costs. We
then obtained invoices for a sample of capitalised costs to
check whether the nature of the expense met the
capitalisation criteria in the accounting standards. We found
no exceptions.
Our procedures over the allocation of these development
costs involved considering the costs capitalised to
properties sold versus costs capitalised to the remaining
properties in the portfolio, and in comparison to realised
value upon sale. We also checked for consistency in
approach between periods. The evidence we obtained
demonstrated the allocation of costs was in line with our
expectations.
The Directors, on behalf of the group, are responsible for the other information included in the entity's Annual
Report. Other information includes the Director's review, disclosures relating to corporate governance, the trend
statement and financial summary included in the Annual Report. Our opinion on the consolidated financial
statements does not cover any other information and we do not express any form of assurance conclusion
thereon.
In connection with our audit of the consolid ated financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent w ith the
consolidated financial statements or our knowledge obtained in the audit or otherwise appears materially
misstated. If, based on the work we have performed, we conclude that there is a material misstatement of th is
other information, we are required to report that fact. We have received the Director's Review and have nothing
to report in regards to it. The Annual Report is expected to be made available to us after the date of this
Independent Auditor's Report and we will report the matters identified, if any, to those charged with governance.
$
£il Use of this independent auditor's report
This independent auditor's report is made so lely to the shareholders as a body. Our audit work has been
undertaken so that we might state to the shareholders those matters we are required to state to them in the
independent auditor's report and for no other purpose. To t he fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the shareholders as a body for our audit work, this independent
auditor's report, or any of the opinions we have formed.
18

A Responsibilities of the Directors for the cons.olidated financial
statements
The Directors, on behalf of the company, are responsible for:
-the preparation and fair presentation of the consolidated financial statements in accordance with generally
accepted accounting practice in New Zealand (being New Zealand Equivalents to International Financial
Reporting Standards) and International Financial Reporting Standards;
-implementing necessary internal controls to enable the preparation of a consolidated set of financial
statements that is fairly presented and free from material misstatement, whether due to fraud or error; and
-assessing the ability to continue as a going concern. This includes disclosing, as applicable, matters related
to going concern and using the going concern basis of accounting unless they either intend to liquidate or to
cease operations, or have no realistic alternative but to do so.
x ,R_,.. Auditor's responsibilities for the audit of the consolidated financial
statements
Our objective is:
-to obtain reasonable assurance about whether the consolidated financial statements as a whole are free
from material misstatement, whether due to fraud or error; and
-to issue an independent auditor's report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with ISAs NZ will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of these
consolidated financial statements.
A further description of our responsibilities for the audit of these consolidated financial statements is located at
the External Reporting Board (XRB) website at
htto:Uwww. xrb. govt. nz/sta nda rds-for -assurance-practitioners/a ud itors-respons i bi I ities/aud it-report-1 I
This description forms part of our independent auditor's report.
The engagement partner on the audit resulting in this independent auditor's report is Jason Doherty.
For and on behalf of
Jason Doherty
KPMG Auckland
8 February 2018
19

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Reporting Period
12 months to 31 December 2017
Previous Reporting Period
12 months to 31 December 2016
78,667NZ$ Up5.63%
32,161NZ$ Up18.99%
32,161NZ$ Up18.99%
11.60c Up18.71%
11.60c Up18.71%
67.06c Up14.79%
Final Dividend
* No interim dividend was declared
Record Date
Dividend Payment Date
Comments:
18 May 2018
Fully imputed
Basic Earnings per share (cents)
Diluted Earnings per share (cents)
Net Tangible Assets per share (cents)
Results for announcement to the market
CDL INVESTMENTS NEW ZEALAND LIMITED
Profit (loss) from ordinary activities after tax
attributable to security holders
Revenue from ordinary activities
Please refer to the attached Directors' Review.
Net profit (loss) attributable to security holders
Interim*/Final Dividend
Amount (000s)Percentage change
Amount per security Imputed amount per security
Ordinary dividend of 3.5 cents
per share
4 May 2018
Page 1 of 3

Details of the reporting period and the previous corresponding reporting period:
This report is for the full year ended 31 December 2017 and should be read in conjunction with the most recent
annual financial report. Comparatives are in respect of the full year ended 31 December 2016.
Information prescribed by NZX:
Please refer to “Results for announcement to the market” and below.
--Statement of Financial Performance
Refer to the Annual Financial Statements.
--Statement of Financial Position
Refer to the Annual Financial Statements.
--Statement of Cash Flows
Refer to the Annual Financial Statements.
--Details of individual and total dividends or distributions and dividend or distribution payments
Distributions declared
NZ$ 9.713.50c
Last distribution paid
8.31NZ$ 3.00c
--Details of Dividend Reinvestment Plans in operation
--Net Tangible Assets per security (with comparatives for the previous corresponding period)
Ordinary shares67.06c58.42c
--Details of entities over which control has been gained or lost during the period
Nil.
--Details of associates and joint ventures
% Held
Current Full
Year
% Held
Previous
Corresponding
Full Year
Contributions
to Net Profit
Current Full
Year
Contributions
to Net Profit
Previous Full
Year
Prestons Road Limited33.33%33.33%-$ -$
NZ$ (million)NZ cents per share
Name
In 1998, the Company adopted a Dividend Reinvestment Plan pursuant to which shareholders may elect to receive
ordinary dividends in the form of either cash or additional shares in the Company. The additional shares are issued at
the weighted average market price for the shares traded over the first five business days immediately following the
Record Date.
On 1 February 2018, the Directors declared a final dividend of 3.50 cents per ordinary share payable on 18 May 2018.
The dividend reinvestment plan will apply to this dividend. The total dividend payable will be $9.71 million. The
dividend will be fully imputed and supplementary dividends will be paid to non-resident shareholders. The dividend has
not been recognised for in the 31 December 2017 financial statements.
Final dividend for the 2017 Financial Year (ordinary
shares)
Final dividend for the 2016 Financial Year (ordinary
shares)
NZ cents per shareCurrent full yearPrevious full year
Page 2 of 3

Basis of preparation of financial statements:
Accounting Policies:
Refer to the Annual Financial Statements.
Changes in accounting policies:
There are no changes to accounting policies during the period.
Audit Report:
The Independent Auditor’s report is at pages 17 to 19 of the Annual Financial Statements.
Additional Information:
None.
DATE:8 February 2018
The financial statements have been prepared in accordance with New Zealand Generally Accepted Accounting
Practice (NZ GAAP). They comply with the New Zealand equivalents to International Financial Reporting Standards
(NZ IFRSs) as appropriate for Tier 1 profit-oriented entities. The financial statements also comply with International
Financial Reporting Standards (IFRSs).
Page 3 of 3

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APPENDIX 7 – NZSX Listing Rules
Number of pages including this one
(Please provide any other relevant
NZSX Listing Rule 7.12.2. For rights, NZSX Listing Rules 7.10.9 and 7.10.10. details on additional pages)
For change to allotment, NZSX Listing Rule 7.12.1, a separate advice is required.
Full name
of Issuer
Name of officer authorised to
Authority for event,
make this notice
e.g. Directors' resolution
Contact phone
Contact fax
numbernumberDate
Nature of event
BonusIf ticked,Rights Issue
Tick as appropriateIssuestate whether:Taxable/ Non TaxableConversionInterestRenouncable
Rights IssueCapitalCallDividend
If ticked, stateFull
non-renouncable
change
X
whether:
InterimYear
X
SpecialDRP Applies
X
EXISTING securities affected by this
If more than one security is affected by the event, use a separate form.
Description of theISIN
class of securities
If unknown, contact NZX
Details of securities issued pursuant to this eventIf more than one class of security is to be issued, use a separate form for each class.
Description of theISIN
class of securities
If unknown, contact NZX
Number of Securities toMinimum
Ratio, e.g
be issued following eventEntitlement
1 for 2 for
Conversion, Maturity, Call
Treatment of Fractions
Payable or Exercise Date
Tick if
provide an
pari passu
ORexplanation
Strike price per security for any issue in lieu or date
of the
Strike Price available.
ranking
Monies Associated with Event
Dividend payable, Call payable, Exercise price, Conversion price, Redemption price, Application money.
Source of
Amount per securityPayment
(does not include any excluded income)
Excluded income per security
(only applicable to listed PIEs)
SupplementaryAmount per security
Currencydividendin dollars and cents
details -
NZSX Listing Rule 7.12.7
Total monies
TaxationAmount per Security in Dollars and cents to six decimal places
In the case of a taxable bonusResident
Imputation Credits
issue state strike priceW ithholding Tax(Give details)
Foreign
FDP Credits
W ithholding Tax(Give details)
Timing
(Refer Appendix 8 in the NZSX Listing Rules)
Record Date 5pmApplication Date
For calculation of entitlements -Also, Call Payable, Dividend /
Interest Payable, Exercise Date,
Conversion Date.
Notice DateAllotment Date
Entitlement letters, call notices,For the issue of new securities.
conversion notices mailedMust be within 5 business days
of application closing date.
OFFICE USE ONLY
Ex Date:
Commence Quoting Rights:Security Code:
Cease Quoting Rights 5pm:
Commence Quoting New Securities:Security Code:
Cease Quoting Old Security 5pm:
18/05/18
N/AN/A
04/05/18
N/A
$0.002431$0.013611
N/A
NZD$0.006176
$9,712,989
Date Payable
18/05/18
N/A
Enter N/A if not
applicable
X
KZ KGLE 000 1S8
In dollars and cents
Cashflow
$0.035
09 353 500509 309 3244
08022018
Ordinary
EMAIL: announce@nzx.com
Notice of event affecting securities
1
CDL INVESTMENTS NEW ZEALAND LIMITED
TROY DANDY, GROUP COMPANY SECRETARYBOARD RESOLUTION