CDI: Interim Report 2019

INTERIM REPORT 2019

FINANCIAL PERFORMANCE:
CDL Investments New Zealand Limited (“CDI”) advises that the Company has made an unaudited
operating profit after tax of $15.10 million for the six month period ending 30 June 2019 (2018:
$25.47 million). Operating profit before tax was $20.98 million (2018: $35.38 million).
Property sales and other income for the period was $40.29 million (2018: $60.23 million). Net Asset
Backing (at cost) for the period under review was 77.6 cents per share (2018: 72.8 cents per share).
PORTFOLIO UPDATE:
Compared to the same period last year when sales of its Auckland (Greville Road) and Hamilton
(Magellan Heights) subdivisions contributed to its strong first half results, it is clear that market
conditions for residential sections have softened and this is clearly reflected in these results.
Despite these challenging conditions, CDI was able to adjust its sales programme and recorded
good sales at its Hastings and Christchurch subdivisions in the first half of the year.
CDI has also taken advantage of the current market to purchase an additional 8.17 hectares of
land in the Hawkes Bay region for development in the medium term. Agreements for an additional
25.77 hectares are due to settle before the end of the year subject to fulfilment of conditions.
CDI is also progressing well with its commercial developments at Stonebrook (Rolleston) and
Prestons Park (Christchurch) and remains on target for completion and occupancy by Q3 2020.
COMMENTARY AND OUTLOOK:
The results reflect the current market conditions and both the Board and Management are
conscious that these challenging conditions will continue for the remainder of 2019.
That said, we are optimistic about improving our sales volume in the third and fourth quarters of this year.
CDI has a good inventory of sections for sale across our developments and we are therefore optimising our
sales programme in the areas where demand is the highest in order to maximise our revenue.
In addition, a soft market can present the company with opportunities to grow our land portfolio.
We are therefore actively looking to acquire land in key locations which will add value to our
current and future development programmes together with other development opportunities.
Our focus remains on the delivering the best possible result for 2019 to our shareholders. The
Board is confident that we will deliver a stronger sales performance in the second half of 2019 and
that this will be reflected in the year-end results.
Colin Sim
Chairman
1 August 2019
DIRECTORS’ REVIEW
CDL INVESTMENTS NEW ZEALAND LIMITED AND ITS SUBSIDIARY – INTERIM REPORT 2019

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 2019
FOR THE HALF YEAR ENDED 30 JUNE 2019
In thousands of dollarsNote
Unaudited
6 months
to 30/06/19
Unaudited
6 months
to 30/06/18
Revenue 40,181 60,192
Cost of sales (17,725) (23,090)
Gross profit 22,456 37,102
Other income 110 35
Administrative expenses (134) (140)
Property expenses (171) (185)
Selling expenses (1,099) (1,514)
Other expenses (709) (646)
Results from operating activities 20,453 34,652
Finance income 524 726
Finance costs
9 (2) -
Net finance income
522 726
Profit before income tax 20,975 35,378
Income tax expense (5,873) (9,908)
Profit/(loss) for the period 15,102 25,470
Total comprehensive income/(expense) for the period
15,102 25,470
Profit/(loss) Attributable to:
Equity holders of the Parent 15,102 25,470
Total comprehensive income/(expense) for the period 15,102 25,470
Earnings per share
Basic earnings per share (cents)35.42c9.16c
Diluted earnings per share (cents)35.42c9.16c

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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 2018 54,310 131,802 186,112
Total comprehensive income/(expense) for the period
Profit/(loss) for the period - 25,470 25,470
Total comprehensive income/(expense) for the period - 25,470 25,470
Shares issued under dividend reinvestment plan2 554 - 554
Dividend to shareholders2 - (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
Balance at 1 January 2019 54,864 155,730 210,594
Total comprehensive income/(expense) for the period
Profit/(loss) for the period - 15,102 15,102
Total comprehensive income/(expense) for the period - 15,102 15,102
Shares issued under dividend reinvestment plan2 510 - 510
Dividend to shareholders2 - (9,734) (9,734)
Supplementary dividend - (309) (309)
Foreign investment tax credits - 309 309
Balance at 30 June 2019 55,374 161,098 216,472
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 2019
FOR THE HALF YEAR ENDED 30 JUNE 2019

CONDENSED INTERIM STATEMENT
OF FINANCIAL POSITION
AS AT 30 JUNE 2019
In thousands of dollarsNote
Unaudited
as at
30/06/19
Audited
as at
31/12/18
Unaudited
as at
30/06/18
SHAREHOLDERS' EQUITY
Issued capital 55,374 54,864 54,864
Retained earnings 161,098 155,730 147,559
Total Equity 216,472 210,594 202,423
Represented by:
NON CURRENT ASSETS
Property, plant and equipment9 36 4 5
Development property 138,119 124,652 121,302
Investment in associate 2 2 2
Total Non Current Assets 138,157 124,658 121,309
CURRENT ASSETS
Cash and cash equivalents 16,594 7,280 25,814
Short term deposits 21,120 38,620 31,000
Trade and other receivables 3,314 1,984 3,276
Development property 41,377 45,072 29,229
Total Current Assets 82,405 92,956 89,319
Total Assets 220,562 217,614 210,628
NON CURRENT LIABILITIES
Deferred tax liabilities 71 71 2
Lease liabilities9 17 - -
Total Non Current Liabilities 88 71 2
CURRENT LIABILITIES
Trade and other payables 2,888 2,175 2,730
Employee entitlements 37 32 36
Income tax payable 1,064 4,742 5,437
Lease liabilities9 13 - -
Total Current Liabilities 4,002 6,949 8,203
Total Liabilities 4,090 7,020 8,205
Net Assets 216,472 210,594 202,423
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 2019

CDL INVESTMENTS NEW ZEALAND LIMITED AND ITS SUBSIDIARY – INTERIM REPORT 2019
CONDENSED INTERIM STATEMENT
OF CASH FLOWS
In thousands of dollarsNote
Unaudited
6 months
to 30/06/19
Unaudited
6 months
to 30/06/18
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers 38,731 58,510
Interest received 754 893
Cash was applied to:
Payments to suppliers (20,990) (14,164)
Payments to employees (272) (283)
Purchase of development land (7,624) (36,354)
Income tax paid (9,242) (7,595)
Net Cash Inflow from Operating Activities 1,357 1,007
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Short Term Deposit Maturities 38,620 46,500
Cash was applied to:
Short term deposits (21,120) (31,000)
Purchase of plant, equipment and furniture (2) -
Principal repayment of lease liability9 (8) -
Net Cash Inflow From Investing Activities 17,490 15,500
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was applied to:
Dividend paid (9,224) (9,159)
Supplementary dividend paid (309) (308)
Net Cash Outflow from Financing Activities (9,533) (9,467)
Net Increase in Cash and Cash Equivalents 9,314 7,040
Add Opening Cash and Cash Equivalents 7,280 18,774
Closing Cash and Cash Equivalents 16,594 25,814
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
Net profit after taxation 15,102 25,470
Adjusted for non cash items:
Depreciation 6 -
Amortisation of right-of-use assets 9 2 -
Income tax expense 5,873 9,908
Adjustments for movements in working capital:
Increase in receivables (1,330) (1,550)
Increase in development properties (9,772) (25,832)
Increase in payables 718 606
Cash generated from Operations 10,599 8,602
Income tax paid (9,242) (7,595)
Cash Inflows from Operating Activities 1,357 1,007
The accompanying notes form part of, and should be read in conjunction with these financial statements.
FOR THE HALF YEAR ENDED 30 JUNE 2019

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 2019
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 2018 except
for the adoption of one new standard (see Note 9).
The condensed interim financial statements were authorised for issuance on 1 August 2019.
2. CAPITAL & RESERVES
Share Capital
Under the Company’s Dividend Reinvestment Plan, an additional 687,093 shares were issued on 17 May
2019 (2018: 604,516) at a strike price of $0.7422 (2018: $0.9154).
At 30 June 2019, the authorised share capital consisted of 278,805,580 fully paid ordinary shares (2018:
278,118,487).
Dividends
The following dividends were declared and paid during the period ending 30 June:
In thousands of dollars 2019 2018
3.5 cents per qualifying ordinary share (2018: 3.5 cents) 9,734 9,713
9,734 9,713
3. EARNINGS PER SHARE
The calculation of basic and diluted earnings per share at 30 June 2019 of 5.42 cents (2018: 9.16 cents)
was based on the profit attributable to ordinary shareholders of $15,102,000 (2018: $25,470,000); and
weighted average number of shares of 278,576,549 (2018: 277,916,982) on issue in the period.
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
FOR THE HALF YEAR ENDED 30 JUNE 2019 (UNAUDITED)
CDL INVESTMENTS NEW ZEALAND LIMITED AND ITS SUBSIDIARY – INTERIM REPORT 2019

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 2019 (2018:
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 2019 (2018: Nil). There were no contingent liabilities or contingent assets
as at 30 June 2019 (2018: Nil).
7. RELATED PARTY TRANSACTIONS
CDL Investments New Zealand Limited is a subsidiary of Millennium & Copthorne Hotels New Zealand Lim-
ited by virtue of Millennium & Copthorne Hotels New Zealand Limited owning 66.26% (2018: 66.42%) of
the Company and having three out of six of the Directors on the Board. Millennium & Copthorne Hotels New
Zealand Limited is 70.79% (2018: 70.79%) owned by CDL Hotels Holdings New Zealand Limited (computed
on voting shares), 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 2019 CDL Investments New Zealand Limited has reimbursed
its parent, Millennium & Copthorne Hotels New Zealand Limited, $159,000 (2018: $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
FOR THE HALF YEAR ENDED 30 JUNE 2019 (UNAUDITED)
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
CDL INVESTMENTS NEW ZEALAND LIMITED AND ITS SUBSIDIARY – INTERIM REPORT 2019

FOR THE HALF YEAR ENDED 30 JUNE 2019 (UNAUDITED)
NOTES TO THE CONDENSED INTERIM
FINANCIAL STATEMENTS
CDL INVESTMENTS NEW ZEALAND LIMITED AND ITS SUBSIDIARY – INTERIM REPORT 2019
8. COMMITMENTS
As at 30 June 2019, the Group had entered into contractual commitments for development expenditure and
purchases of land. Contractual agreements for the purchase of land are subject to a satisfactory outcome of
the Group’s due diligence process, board approval, and OIO approval. Development expenditure represents
amounts contracted and forecast to be incurred in the remainder of 2019 in accordance with the Group’s
development programme.
In thousands of dollars 2019 2018
Development expenditure 21,252 26,830
Land purchases 33,717 -
54,969 26,830
9. NEW ACCOUNTING STANDARD
During the period, the Group adopted one new accounting standard, NZ IFRS 16 “Leases”, using the modified
retrospective approach. This standard requires a right-of-use asset and a corresponding lease liability to be
recognised on the balance sheet in respect of the leased assets. The lease expenses will be replaced with an
interest expense and an amortization expense in the income statement. This has no material effect on the
Group’s financial statements.
As at 30 June 2019, the Group recorded two motor vehicle leases as right-of-use assets totalling $30,000
(classified under plant, furniture and equipment). The corresponding lease liabilities are classified under
current liabilities of $13,000 and non-current liabilities of $17,000. The leases had unexpired terms between
26 to 43 months. The incremental borrowing rate of 14.55% was used to discount the leased assets and
liabilities. The incremental borrowing rate used in the transition required significant judgement and is subject
to further review and refinement. During the period, new costs were incurred on the amortization of right-
of-use assets of $2,000 and on the lease interest expense of $2,000. The principal repayment of the lease
liabilities during the period was $8,000.