CDI: 2020 Annual Shareholder Meeting Presentations

36
th
Annual Meeting of Shareholders
Tuesday 26
th
May 2020
1

WELCOME
The Meeting Chair is John Henderson
Board of Directors are attending
remotely:
Colin Sim │ Chairman
BK Chiu │ Managing Director
Vincent Yeo │ Non-Executive Director
Eik Sheng Kwek │ Non-Executive Director
Roy Austin │ Independent Director
Welcome to this Virtual Meeting
2

Quorum
Apologies will be recorded in the minutes
Proxies
Minutes of the 35
th
Annual Meeting of
Shareholders
Notice of Meeting taken as read
3

Tribute to Mr Wong Hong Ren
4

ANNUAL REPORT &
FINANCIAL STATEMENTS
Operating Profit After Tax $34.1m
Property Sales & Other Income $91.8m
Total Assets $240.7m
Net Tangible Asset 84.5 cents per share
Dividend Declared3.5cents per share
5

6

CDL Investments 2019 Sales
Best year in CDI’s history despite the softening
property market in 2019.
20192018
Sales ($m)91.885.0
Profit before tax ($m)47.346.7
Section sales similar to 2018 from:
Greville Road, Auckland
Magellan, Hamilton
Prestons Park, Christchurch
Lower margin sales at Northwood, Hawkes Bay
7

April 2020 YTD Sales
Well designed, constructed and located CDI sections meet market demand
despite a sobering economic outlook.
Sales $18.8m ($14.9 in 2019)
Sales from:
Greville Road, Auckland
Magellan Heights, Hamilton
Prestons Park, Christchurch
Steady demand for CDI sections in Christchurch and Auckland.
Pre-titled sales at KewaRoad and Dominion Road –both in
Auckland are encouraging with settlements in 2020 and 2021.
8

CDL Investments has sufficient cash to
meet current and future obligations.
Cash & term deposits: $61.1m
(as at 30 April 2020)
Quick ratio*21.7
No bank borrowings
No plans to raise capital, cash issue.
*
Total current assets less Inventory
Total current liabilities
9

Economic downturn and unemployment will
eventually impact demand for residential property.
However a low interest environment (OCR 0.25%),
lower mortgage rates, removal of 20% LVR are all
positive for home ownership aspirations.
There is selective demand for well located and
reputable subdivisions with CDI sections priced at
different points.
Manage works in progress for these markets.
CDI organization remains at three FTEs.
10

WORK IN PROGRESS
Kewa Road, Albany,
Auckland
•Construction all 92 Lots complete.
•To date 55 Lots from stages 1-3 sold pre-title.
•Stage 4 not yet released for sale.
Christian/Tram Valley Road,
Swanson, Auckland
•Subdivision Consent for 48 Lots approved.
•Earthworks underway over whole site
Dominion Road, Papakura
Auckland
•Construction all 91 Lots complete.
•Stages 1 & 2 (45 Lots). All sold pre-title.
•Stages 3, 4 & 5 (46 Lots) –to date 38 Lots sold pre-
title.
Roscommon Road, Wiri
South Auckland
•Construction complete.
•Lot 2 sold.
Magellan Heights,
Flagstaff, Hamilton
•Construction all 85 Lots complete.
•To date 50 Lots sold
11

WORK IN PROGRESS
Prestons Park, Marshlands /
Burwood, Christchurch
•Earthworks over whole site complete.
•Stages 1 & 2 complete and titles issued.
•Stage 3 construction complete & titles issued.
•Resource consent for Commercial Centre approved.
•Resource consents approved for 2 x neighbouring
acquired land i.e. Stage 4 (144 Lots) and Stage 5 (118
Lots).
•Stage 4 earthworks underway.
Stonebrook, Rolleston
•Construction of remaining 34 Lots complete & titles
issued.
•To date 24 Lots sold.
•Commercial Centre under construction, 85%
complete.
Greville Road, Albany,
Auckland
•Development completed. All sections sold.
Crestview, Massey,
West Auckland
•Development completed. All Lots sold
Northwood, Hastings
Hawkes Bay
•Development completed. All Lots sold.
12

2019 results were best in CDI’s history.
2020 tracking positively to date.
Can expect economic downturn to impact section
sales in Q4 and 2021.
Must plan and manage CDI pipeline supply of
sections with different price points.
CDI has a strong balance sheet.
Continue to increase land portfolio for residential
sections development.
CDI to deliver a profitable 2020.
13

ELECTION OF DIRECTORS
Election of Mr Eik Sheng KWEK as a Director
Re-election of Mr Roy AUSTIN as a Director
14

ELECTION OF DIRECTOR
To elect Mr Eik Sheng KWEK
15

ELECTION OF DIRECTORS
To elect Mr Roy AUSTIN
16

AUDITORS APPOINTMENT & REMUNERATION
No other nomination received -KPMG are
reappointed as the Company’s auditors.
Resolution that the Directors be
empowered to fix the remuneration of the
Auditors for the year ending 31 December
2020.
17

GENERAL BUSINESS
18

CLOSE OF MEETING
Thank you for attending
19

---

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 26 May 2020

Subject REMARKS BY CHAIR TO ANNUAL MEETING OF SHAREHOLDERS

Passing of Wong Hong Ren
Before I turn to the main business of the meeting, I would like to mention and note the recent passing
of our former Chair Mr. Wong Hong Ren.

Many shareholders have met or spoken with Hong Ren over many CDI, MCK and Kingsgate
International Corporation shareholder meetings from the early 1990s through to his retirement in 2017.

Hong Ren was not only our longest-serving Chairman, he was also the CEO and Executive Director of
the Millennium & Copthorne Hotels Group until his retirement in 2015 from the London board.

He was always very interested in our New Zealand property developments and was very supportive of
this company’s development from the very beginning.

Sadly, due to the COVID-19 lockdowns in both New Zealand and Singapore, we were unable to
acknowledge his passing in the customary way but I would ask all shareholders to join with me in
sending our sincere condolences to his family at this time.


Annual Report and Financial Statements
On behalf of the Directors, I present the Annual Report and the Statement of Financial Accounts to 31
December 2019. On behalf of the Board, I would like to make a few brief comments about the past
year.

As we said in our 2019 Annual Report, 2019 saw CDL investments mark ten consecutive years of profit
growth which is a remarkable achievement for any company.

We saw growth in our property sales and other revenue, profit before tax, total assets and NTA which
all reflected the positive trading conditions we saw then.

We continued to ensure that we added to our development portfolio and acquired a further 9.7
hectares of land in Hawkes Bay and we also started selling sections at our Auckland developments at
Dominion Road, Papakura and Kewa Road at the end of 2019.

Despite a slowing market and forecasted market conditions that we said were “challenging”, your
Board felt positive that 2020 would be a good year and that we could achieve a result that would
“reflect market conditions”.

When we released our results in February, the lockdown which we have all gone through over the past
few weeks was not even contemplated. It became apparent very quickly that this year’s market
conditions generally would be radically different to anything we had seen in our lifetimes.

BK will be speaking in more detail about what has happened over the lock down period and what we
expect to happen over the coming months. From a Board perspective, I would like to provide you with
a sense of how the Board sees the year ahead.

Obviously the effects of COVID-19 on the New Zealand economy will be felt for a long time to come.
We are well aware of what rising unemployment and a struggling economy will mean for the housing
market. We are starting to see the signs already.

Fortunately, we are nimble and able to act quickly to accelerate development work where demand
warrants it and turn the switch off where it doesn’t. Not every company has that luxury and it remains
one of our competitive advantages.

Looking at where things stand today, your Board is quietly optimistic that New Zealand will emerge
quicker than most of the rest of the world and that demand for housing and residential sections will
remain in the areas where we have sections for sale and where we are undertaking development.

While we do not expect to set an eleventh consecutive year of profit growth, we believe that based on
the sales activity we have seen to date, 2020 will be a profitable year. What the exact level of profit will
be remains to be seen but we will endeavour to provide firm guidance towards the end of the year
when we have settled the majority of our forecast sales.

-ENDS-