CDI: 2018 Interim Report

INTERIM REPORT 2018

FINANCIAL PERFORMANCE:
The Directors of CDL Investments New Zealand Limited (“CDI”) advise that the Company has made
an unaudited operating profit after tax of $25.47 million for the six month period ending 30 June
2018 (2017: $20.39 million). Operating profit before tax was $35.38 million (2017: $28.32 million).
Property sales and other income for the period was $60.23 million (2017: $51.04 million). Net Asset
Backing (at cost) for the period under review was 72.8 cents per share (2017: 62.8 cents per share).
PORTFOLIO UPDATE:
As advised at the annual meeting of shareholders, CDI has settled agreements for over 100 hectares
of land in Hamilton and Christchurch to further its development projects in the medium term.
CDI recorded strong sales from Hamilton, Canterbury and Auckland notably at the Magellan
Heights, Prestons Park and Greville Road subdivisions respectively. Further stages will be
progressively developed to meet demand.
As part of the Prestons Park project, CDI is also looking at developing small scale commercial
tenancies for lease on its land to enhance the amenity value of its holdings as well as produce
a new income stream for CDI. Management is working with designers and agents to secure
potential tenants with a view to commencing leases in 2020.
COMMENTARY AND OUTLOOK:
The Board is pleased with the level of sales activity to date and also pleased to secure land to
ensure its development future in the medium term. Diversification into commercial tenancies will
also provide the company with new possibilities for development in the future.
The Board has noted that forward demand for sections in certain areas is softening but will not
affect CDI’s 2018 performance or results.
With steady demand for high quality residential sections still apparent, we believe that we will
better our 2017 year end results at this stage.

Colin Sim
Chairman
CDL Investments New Zealand Limited
2 August 2018
CHAIRMAN’S REVIEW
CDL INVESTMENTS NEW ZEALAND LIMITED AND ITS SUBSIDIARY – INTERIM REPORT 2018

CONDENSED INTERIM STATEMENT
OF COMPREHENSIVE INCOME
The accompanying notes form part of, and should be read in conjunction with these financial statements.
CDL INVESTMENTS NEW ZEALAND LIMITED AND ITS SUBSIDIARY – INTERIM REPORT 2018
FOR THE HALF YEAR ENDED 30 JUNE 2018
In thousands of dollarsNote
Unaudited
6 months
to 30/06/18
Unaudited
6 months
to 30/06/17
Revenue 60,192 51,021
Cost of sales (23,090) (21,407)
Gross profit 37,102 29,614
Other income 35 18
Administrative expenses (140) (150)
Property expenses (185) (218)
Selling expenses (1,514) (1,390)
Other expenses (646) (559)
Results from operating activities
34,652 27,315
Interest income 726 1,000
Finance income
726 1,000
Profit before income tax
35,378 28,315
Income tax expense (9,908) (7,928)
Profit for the period
25,470 20,387
Total comprehensive income for the period
25,470 20,387
Profit attributable to:
Equity holders of the Parent 25,470 20,387
Total comprehensive income for the period 25,470 20,387
Earnings per share
Basic earnings per share (cents) 39.16c7.35c
Diluted earnings per share (cents) 39.16c7.35c

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CONDENSED INTERIM STATEMENT
OF CHANGES IN EQUITY
In thousands of dollarsNote
Unaudited
Share
Capital
Unaudited
Retained
Earnings
Unaudited
Total
Equity
Balance at 1 January 2017 53,846 107,949 161,795
Total comprehensive income for the period
Profit for the period - 20,387 20,387
Total comprehensive income for the period - 20,387 20,387
Shares issued under dividend reinvestment plan2 464 - 464
Dividend to shareholders - (8,308) (8,308)
Supplementary dividend - (253) (253)
Foreign investment tax credits - 253 253
Balance at 30 June 2017 54,310 120,028 174,338
Balance at 1 January 2018 54,310 131,802 186,112
Total comprehensive income for the period
Profit for the period - 25,470 25,470
Total comprehensive income for the period - 25,470 25,470
Shares issued under dividend reinvestment plan2 554 -
554
Dividend to shareholders - (9,713) (9,713)
Supplementary dividend - (308) (308)
Foreign investment tax credits - 308 308
Balance at 30 June 2018 54,864 147,559 202,423
The accompanying notes form part of, and should be read in conjunction with these financial statements.
CDL INVESTMENTS NEW ZEALAND LIMITED AND ITS SUBSIDIARY – INTERIM REPORT 2018
FOR THE HALF YEAR ENDED 30 JUNE 2018

CONDENSED INTERIM STATEMENT
OF FINANCIAL POSITION
AS AT 30 JUNE 2018
In thousands of dollars
Unaudited
as at
30/06/18
Audited
as at
31/12/17
Unaudited
as at
30/06/17
SHAREHOLDERS' EQUITY
Issued capital 54,864 54,310 54,310
Retained earnings 147,559 131,802 120,028
Total Equity 202,423 186,112 174,338
Represented by:
NON CURRENT ASSETS
Property, plant and equipment 5 5 5
Development property 121,302 90,595 79,848
Investment in associate 2 2 2
Total Non Current Assets 121,309 90,602 79,855
CURRENT ASSETS
Cash and cash equivalents 25,814 18,774 19,584
Short term deposits 31,000 46,500 52,000
Trade and other receivables 3,276 1,726 1,888
Development property 29,229 34,104 26,666
Total Current Assets 89,319 101,104 100,138
Total Assets 210,628 191,706 179,993
NON CURRENT LIABILITIES
Deferred tax liabilities 2 2 2
Total Non Current Liabilities 2 2 2
CURRENT LIABILITIES
Trade and other payables 2,730 2,133 2,473
Employee entitlements 36 27 28
Income tax payable 5,437 3,432 3,152
Total Current Liabilities 8,203 5,592 5,653
Total Liabilities 8,205 5,594 5,655
Net Assets 202,423 186,112 174,338
The accompanying notes form part of, and should be read in conjunction with these financial statements.
CDL INVESTMENTS NEW ZEALAND LIMITED AND ITS SUBSIDIARY – INTERIM REPORT 2018

CDL INVESTMENTS NEW ZEALAND LIMITED AND ITS SUBSIDIARY – INTERIM REPORT 2018
CONDENSED INTERIM STATEMENT
OF CASH FLOWS
In thousands of dollars
Unaudited
6 months
to 30/06/18
Unaudited
6 months
to 30/06/17
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers 58,510 52,587
Interest received 893 582
Cash was applied to:
Payments to suppliers (14,164) (14,110)
Payments to employees (283) (197)
Purchase of development land (36,354) -
Income tax paid (7,595) (6,670)
Net Cash Inflow from Operating Activities 1,007 32,192
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Short term deposits 46,500 45,500
Cash was applied to:
Short term deposits (31,000) (52,000)
Net Cash Inflow/(Outflow) from Investing Activities 15,500 (6,500)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was applied to:
Dividend paid (9,159) (7,844)
Supplementary dividend paid (308) (253)
Net Cash Outflow from Financing Activities (9,467) (8,097)
Net Increase in Cash and Cash Equivalents 7,040 17,595
Add Opening Cash and Cash Equivalents 18,774 1,989
Closing Cash and Cash Equivalents 25,814 19,584
RECONCILIATION OF PROFIT FOR THE PERIOD
TO CASH FLOWS FROM OPERATING ACTIVITIES
Net profit after taxation 25,470 20,387
Adjusted for non cash items:
Depreciation - 1
Income tax expense 9,908 7,928
Adjustments for movements in working capital:
(Increase)/decrease in receivables (1,550) 1,130
(Increase)/decrease in development properties (25,832) 11,249
Increase/(decrease) in payables 606 (1,833)
Cash generated from Operating Activities 8,602 38,862
Income tax paid (7,595) (6,670)
Cash Inflow from Operating Activities 1,007 32,192
The accompanying notes form part of, and should be read in conjunction with these financial statements.
FOR THE HALF YEAR ENDED 30 JUNE 2018

1. SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
CDL Investments New Zealand Limited (the “Company”) is a company domiciled in New Zealand, registered
under the Companies Act 1993 and listed on the New Zealand Stock Exchange. The Company is a FMC
Reporting Entity in terms of the Financial Markets Conduct Act 2013 and the Financial Reporting Act 2013.
The condensed interim financial statements of the Company as at and for the half year ended 30 June 2018
comprises the Company and its subsidiary (together referred to as the “Group”).
The principal activity of the Group is the development and sale of residential land properties.
(a) Statement of compliance
The condensed interim financial statements have been prepared in accordance with New Zealand
Generally Accepted Accounting Practice (“NZ GAAP”). They comply with NZ IAS 34 Interim Financial
Reporting. The condensed interim financial statements do not include all of the information required for
full annual financial statements.
The accounting policies applied by the Group in these condensed financial statements are the same as
those applied by the Group in its consolidated financial statements for the year ended 31 December 2017.
The condensed interim financial statements were authorised for issuance on 2 August 2018.
2. CAPITAL & RESERVES
Share capital
Under the Company’s Dividend Reinvestment Plan, an additional 604,516 shares were issued on 18 May
2018 (2017: 566,646) at a strike price of $0.9154 (2017: $0.8198).
At 30 June 2018, the authorised share capital consisted of 278,118,487 fully paid ordinary shares (2017:
277,513,971).
Dividends
The following dividends were declared and paid during the period ending 30 June:
In thousands of dollars 2018 2017
3.5 cents per qualifying ordinary share (2017: 3.0 cents) 9,713 8,308
9,713 8,308
3. EARNINGS PER SHARE
The calculation of basic and diluted earnings per share at 30 June 2018 of 9.16 cents (2017: 7.35 cents)
was based on the profit attributable to ordinary shareholders of $25,470,000 (2017: $20,387,000); and
weighted average number of shares of 277,916,982 (2017: 277,325,089) on issue in the period.
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 30 JUNE 2018 (UNAUDITED)
CDL INVESTMENTS NEW ZEALAND LIMITED AND ITS SUBSIDIARY – INTERIM REPORT 2018

4. SEGMENT REPORTING
Operating segments
The single operating segment of the Group consists of property operations, comprising the development and
sale of residential land sections.
The Group has determined that its chief operating decision maker is the Board of Directors on the basis that
it is this group which determines the allocation of resources to segments and assesses their performance.
Geographical segments
Segment revenue is based on the geographical location of the segment assets. All segment revenues are
derived in New Zealand.
Segment assets are based on the geographical location of the development property. All segment assets are
located in New Zealand. The Group has no major customer representing greater than 10% of the Group’s
total revenues.
5. MATERIAL EVENTS SUBSEQUENT TO THE END OF THE INTERIM PERIOD
There were no material events subsequent to the end of the six month period ended 30 June 2018 (2017:
Nil) that would require disclosure.
6. CHANGES IN CONTINGENT LIABILITIES AND CONTINGENT ASSETS SINCE LAST
ANNUAL BALANCE SHEET DATE
There were no changes in contingent liabilities and contingent assets that would require disclosure for the
six month period ended 30 June 2018 (2017: Nil). There were no contingent liabilities or contingent assets
as at 30 June 2018 (2017: Nil).
7. RELATED PARTY TRANSACTIONS
CDL Investments New Zealand Limited is a subsidiary of Millennium & Copthorne Hotels New Zealand
Limited by virtue of Millennium & Copthorne Hotels New Zealand Limited owning 66.42% (2017: 66.56%)
of the Company and having three out of six of the Directors on the Board. Millennium & Copthorne Hotels
New Zealand Limited is 70.79% (computed on voting shares) owned by CDL Hotels Holdings New Zealand
Limited, which is a wholly owned subsidiary of Millennium & Copthorne Hotels plc in the United Kingdom.
The ultimate holding company is Hong Leong Investment Holdings Pte Ltd in Singapore.
During the six month period ending 30 June 2018 CDL Investments New Zealand Limited has reimbursed
its parent, Millennium & Copthorne Hotels New Zealand Limited, $157,000 (2017: $157,000) for expenses
incurred by the parent on behalf of the Group.
% Holding by
CDL Investments New Zealand
Subsidiary Principal Activity Limited Balance Date
CDL Land New Zealand Property Investment 100.00 31 December
Limited and Development

% Holding by
CDL Land New Zealand
Associate Principal Activity Limited Balance Date
Prestons Road Limited Service Provider 33.33 31 March
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
CDL INVESTMENTS NEW ZEALAND LIMITED AND ITS SUBSIDIARY – INTERIM REPORT 2018

DISCLOSURES
CDL INVESTMENTS NEW ZEALAND LIMITED AND ITS SUBSIDIARY – INTERIM REPORT 2018

On 19 March 2018, NZX also granted CDI a waiver from Listing Rule 5.2.3 in respect of its ordinary shares
for a period of twelve months from 19 March 2018 (the Ordinary Shares Waiver).
Listing Rule 5.2.3 provides that a class of securities will generally not be considered for quotation unless
those securities are held by at least 500 members of the public, holding at least 25% of the number of
securities of the class issued, with each member holding at least a minimum holding.
NZX granted the Ordinary Shares Waiver on the following conditions:
(a) that the Company clearly and prominently discloses the waiver, its conditions and the implications in its
half-year and annual reports and in any offer documents relating to any offer of shares undertaken by CDI
during the period of the waiver;
(b) that the Company consistently monitors the spread of its ordinary shares and notifies NZX Regulation
as soon as practicable of any material changes to the percentage of ordinary shares held by Members of
the Public.
The implication of this waiver is that the Company’s ordinary shares may not be widely held and there may
be reduced liquidity in CDI’s ordinary shares.