CDI: 2019 Annual Meeting Presentation and Remarks

Level 13, 280 Centre, 280 Queen Street,
P. O. Box 3248, Auckland 1140, New Zealand
Ph (09) 353 5005 Fax (09) 309 3244 Email: admin@cdli.co,nz
S T O C K E X C H A N G E A N N O U N C E M E N T

Date 28 May 2019

Subject REMARKS BY CHAIR COLIN SIM TO
ANNUAL MEETING OF SHAREHOLDERS

On behalf of the Directors, I present the Annual Report and the Statement of Financial Accounts to 31 December
2018.

In summary, 2018 saw the Company report its ninth consecutive growth in profit; with a profit after tax of $33.6
million. We are pleased that we were able to achieve this result

The annual report showed increases in the Company’s property sales & other income, total assets, and net
tangible asset per share. All of these metrics show a company in good health and performing well.

In 2018, we acquired 86.4 hectares of land in Hamilton and Christchurch for future development. As I said in the
annual report, we are confident that the future of the company and our core business is secure.

As you know, the Board maintained the dividend at 3.5 cents per share for 2018. We chose to maintain the
dividend at this level as the increase in profit was relatively small and because we wanted to ensure that CDI
retained enough cash for development costs and to purchase land.

This year, it is impossible to ignore that property markets are slowing and we are making adjustments to our
operations to take account of slowing demand. Not all areas are slowing down and we are looking to increase
sales and complete development at developments where we know demand continues to be positive.

A slowing market may also present CDI with opportunities to acquire additional land and we will continue to look
out for suitable opportunities.

And as noted, since our last meeting we lost two long-serving members of the CDL Investments family in Rob
Challinor and John Lindsay and I’m sure that shareholders would want the Board to publicly acknowledge their
contributions to the company over many years.

-ENDS-

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1
35
th
Annual Meeting of Shareholders
Tuesday 28
th
May 2019
WELCOME

Board of Directors
Colin Sim │ Chairman
BK Chiu │ Managing Director
Vincent Yeo │ Non-Executive Director
#o$ Aus%n │ &nde'endent Director
John Henderson │ &nde'endent Director

Quorum

A'ologies

Proxies

Minutes of the 34
th
Annual Meeting of
Shareholders

Notice of Meeting
ANNUAL REPORT &
FINANCIAL STATEMENTS

O'erating Profit After Tax - $33.6m

Pro'ert$ Sales & Other &ncome - $85.0m

Total Assets - $217.6m

Net Tangible Asset – 75.7 cents 'er share

Dividend Declared – 3.5 cents 'er share
Financial Summary
2014 2015 2016 2017 2018
Revenue ($m)44.247.674.578.785.0
Profit before tax ($m)20.524.237.544.746.7
Earnings per share (cents)5.356.339.7711.6012.10
Dividends per share (cents)2.22.23.03.53.5
Total Assets ($m)130.5142.7168.3191.7217.6
Group Equity128.5140.3161.8186.1210.6

2
Source: CDL &nvestments NZ Ltd Annual #e'ort
2018 Sales

Sales from:

Greville #oad, Auckland

Magellan, Hamilton

Prestons Park, Christchurch
MARCH 2019 YTD TRADING

Sales $14.1m ($18.2m in 2018)

Sales settled from:
Greville #oad, Auckland
Magellan Heights, Hamilton
Prestons Park, Christchurch

Pro'ert$ market continues to soften. #isk off
a''roach b$ bu$ers and banks.

Underl$ing demand factors of home ownershi'
are 'ositive.
New Homes Consented
January 1995 to March 2019 (Monthly)

New dwelling consents u' 10% (34,516) for
March 2019 YTD

40% of consents in Auckland

14% in Canterbur$

11% in Waikato
New Homes Consented (selected regions)
Year ended March 2015 to 2019
Net Migration (Mean Estimate)
June 2014 to March 2019

Annual net migration gain: 56,100 from 50,600

3
WORK IN PROGRESS
Greville Road, Auckland
All stages titled and sold.
Kewa Road, Auckland
Earthworks complete.
Road upgrade complete.
Stage 1 infrastructure underway.
Titles expected November 2019.
Dominion Road, Papakura
Earthworks, infrastructure underway.
Titles expected December 2019.
Crestview, Auckland
Complete, titles in March 2019.
Sold.
Roscommon Road, Auckland
Earthworks, stormwater work near completion.
Titles in September 2019.
Christian Road, Swanson
Resource consent granted. Construction can start
October 2019.
WORK IN PROGRESS
Magellan Heights, Hamilton
Titles for stages 1 – 3 issued.
Stage 4 earthworks & infrastructure complete.
Retaining walls underway.
Northwood, Hastings
Stage 8B – Complete, titled May 2019.
Stage 8C – Titles October 2019.
Prestons Park, Christchurch
Earthworks close to completion.
Remaining stages for infrastructure underway.
Prestons Park Urban Village resource consent being
processed.
Scheme plans for recently acquired land underway.
Stonebrook, Rolleston
Construction of last 34 lots completed, on sale now.
Resource and Building consent Commercial Centre being
processed.
Prestons Park Commercial Village
Site area 6506 sqm
Building area 2608 sqm
No. of units 15
Tenanc$ from Q3 (2020)
Stonebrook Commercial Area
Site area 1802 sqm
Building area 713 sqm
No. of units 5
Tenanc$ from Q3 (2020)
Land acquisitionsCDL Land Historic Hamilton Subdivision
•Flagstaff
FlagstaffFlagstaff
Flagstaff
•Ashmore
AshmoreAshmore
Ashmore
•Magellan
MagellanMagellan
Magellan

4
•#ecent reform of the Overseas &nvestment Act does notaffect
CD&’s current business model but does add la$ers of com'lexit$
•O&O consent remains time-consuming and costl$ 'rocess
•CD& has made a submission on the Treasur$ Consultation Pa'er
(Ma$ 2019)
•An$ changes to the O&A must balance im'roving efficienc$ of the
a''lication 'rocess and decreasing the administrative burden
CD& against the 'olic$ reasons for restricting overseas investment
•We also think that there should be an exem'tion available for NZ
listed com'anies if the$ can demonstrate a strong and long-
established connection to NZ, inde'endent directors, and a track
record of business in NZ.
Overseas Investment Act

#esidential sections market easing

Areas of demand remain

Commercial Centre develo'ment for tenanc$ in 2020

Ongoing subdivision in Auckland, Hamilton, Hawkes
Ba$ and Christchurch. Time develo'ment
commitments.

Land acquisition o''ortunities in Hamilton, Hawkes
Ba$ and Auckland
SUMMARY
CDL Director John Lindsay
John Lindsay Reserve
John Lindsay Reserve John Lindsay Reserve
John Lindsay Reserve –
––
–Plaque Location
Plaque LocationPlaque Location
Plaque Location
ELECTION OF DIRECTORS

#e-election of Mr John Henderson as a Director

#e-election of Mr Kian Seng Tan as a Director
RE-ELECTION OF DIRECTOR

To re-elect Mr John Henderson

5
RE-ELECTION OF DIRECTORS

To re-elect Mr Kian Seng Tan
Constitution
That the existing constitution be revoked and
the com'an$ ado't a new constitution in the
form tabled at the meeting and signed b$ the
Chairman for the 'ur'ose of identification.
AUDITORS APPOINTMENT & REMUNERATION

No other nomination received - KPMG are
rea''ointed as the Com'an$’s auditors

#esolution that the Directors be
em'owered to fix the remuneration of the
Auditors for the $ear ending 31 December
2019
GENERAL BUSINESS
CLOSE OF MEETING
Thank you for attending