CDI: 2021 ASM Presentation Slides and Chair’s Remarks

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P. O. Box 3248, Auckland 1140, New Zealand
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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 25 May 2021

Subject REMARKS BY MEETING CHAIR JOHN HENDERSON TO
ANNUAL MEETING OF SHAREHOLDERS

Retirement of Roy Austin
Before I turn to the main business of the meeting, I would like to mention that this will be Roy Austin’s last annual meeting as a
director of CDI.

Roy was appointed to the Board in 2015 and has served as the Chair of the Audit Committee as well as more recently Chair of
our Nominations Committee.

As shareholders know, Roy has brought his extensive knowledge of finance and business as well as his governance
experience as the Chair of CureKids for many years and was recognised with a CNZM award for that work in 2017.

As someone who has served with Roy on the Audit Committee, I can certainly say that the company has benefitted greatly from
having someone who is not only highly regarded in the business and governance community but also someone who has been
very open, generous with his time and knowledge and who has been extremely supportive of the company and what it has
achieved over the past few years. Roy, you will be missed and we wish you well for the future.


Annual Report and Financial Statements
On behalf of the Directors, I present the Annual Report and the Statement of Financial Accounts to 31 December 2020. On
behalf of the Board, I would like to make a few brief comments about the past year.

In our 2020 Annual Report, we noted that the previous year has been “extraordinary”. Given the results we achieved in the
circumstances, it is fair to say that this was an understatement.

The level of sales achieved, especially during and after lockdown in March was remarkable and that momentum has carried
through to 2021.

Our core business remains strong. We recorded sales across our developments in Auckland, Hamilton, Hawkes Bay and
Christchurch and that demand has seen us develop additional stages at Prestons Park and Kewa Road which we expect to sell
before the end of this year for settlement in 2022.

Our initial diversification into small-scale commercial tenancies also continued with the first of our commercial centres at
Stonebrook tenanted before the end of 2020. This is now fully operational and providing income. These commercial centres
provide additional amenity to the communities created through our subdivision and development projects. Our Prestons Park
Commercial Centre is on track for completion and operation before the end of this year as well.

In 2020, we also took a harder look at how to optimise our land holdings and other resources. This was part of our response to
what we expected to be very difficult and challenging circumstances. That “harder look” has resulted in the Design Build and
Lease Development at one of our sites in Wiri, Auckland as well as the sale of land nearby which we announced in April. Both
projects were carefully scoped and were the best outcome for those parcels of land.

The Board is therefore pleased with where the company stands at the moment. We have good land holdings and enough
funds to acquire additional land and complete all of the development work we have planned for this year and then some. But
we are not complacent and we remain on the look out for additional opportunities to acquire and develop land across New
Zealand. We feel that there may be some interesting opportunities which may arise in the near future and we will be keen to
pursue them if they eventuate. Our medium term view remains cautious but optimistic in a post-pandemic environment in New
Zealand.

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1
37
th
Annual Meeting of Shareholders
Tuesday 25
th
May 2021
1
WELCOME

Welcome to this Virtual Meeting

The Meeting Chair is John Henderson

Board of Directors are attending
remotely:
Colin Sim │ Chairman
BK Chiu │ Managing Director
Roy Ausn │ nde endent Director
Desleigh Jameson | nde endent Director
Eik Sheng Kwek │ Non-Executive Director
Vincent Yeo │ Non-Executive Director
2

Quorum

A ologies will be recorded in the minutes

Proxies

Minutes of the 36
th
Annual Meeting of
Shareholders

Notice of Meeting taken as read
3
Roy Austin retiring from the Board
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ANNUAL REPORT & FINANCIAL STATEMENTS

2020 has been “extraordinary”

Sales momentum has carried through to 2021

Recorded sales across our develo ments in Auckland, Hamilton,
Hawkes Bay and Christchurch

Diversification into small-scale commercial tenancies also continued

Commercial centres at Stonebrook fully o erational and roviding
income

Design Build and Lease Develo ment at one of our sites in Wiri,
Auckland

We remain on the look out for additional o ortunities to acquire and
develo land

Medium term view remains cautious but o timistic
56

2
CDL Investments 2020 Sales
ncreased demand for residential sections saw
more sales in Christchurch.
2020 2019 2018
Sales ($m)88.8 91.8 85.0
Profit before tax ($m)41.8 47.3 46.7
Section sales were from:

Prestons Park, Christchurch

Magellan Heights, Hamilton

Kewa Road & Dominion Road, Auckland
7
Annual number of new homes consented
March 1938 - 2021
Highest new homes consented

41,028 new homes consented.

Trend towards higher density develo ment e.g. town houses
while stand-alone homes relatively flat.

Auckland accounted for 43% of new homes consented.

Only eight new homes consented er 1000 residents versus
13.4 in 1973.
Annual number of new homes consented
(March 1938 – 2021)
April 2021 YTD Sales
CD sections develo ed in late 2020 enabled a large lift in
sales in first four months of 2021.

Sales $35.7m ($18.8m in 2020)

Sales were from:
Prestons Park, Christchurch
Dominion Road, Pa akura
Kewa Road, Auckland

Last section sold at Magellan Heights, Hamilton.
10

Cash & term de osits: $122m
(as at 30 A ril 2021)

Quick ratio*10.7

No bank borrowings
*
Total current assets less nventory
Total current liabilities
11
WORK IN PROGRESS
Christian/Tram Valley Road,
Swanson, Auckland
•Earthworks drainage & utility services completed.
•Subdivision roads being constructed
•Titles to issue in Q1, 2022
Prestons Park, Marshlands /
Burwood, Christchurch
•Stage 4:
- C1-C2, construction completed. Titles in July
2021. All sold pre-title.
- D1-D3, construction underway. Titles in
September 2021.
•Stage 5: Earthworks underway.
Prestons Commercial
(15 units, F&B + Retail)
•Construction progressing.
•Completion Q4, 2021
Stonebrook, Rolleston, Selwyn
•Last stage 27 all sold bar 1
Stonebrook Commercial
(5 units F&B)
•Construction completed.
•3 units leased
Roscommon Road, Wiri
South Auckland Commercial site
•Lot 1: Warehouse under construction. Leased.
•Lot 2: Sold.
•Lot 3: Sold.
12

3
COMPLETED SUBDIVISIONS
Dominion Road, Papakura,
South Auckland
•All 91 titles issued and sold
Magellan Heights,
Flagstaff, Hamilton
•All sections titled and sold.
Northwood, Mahora,
Hastings, Hawkes Bay
•All sections titled and sold.
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CDL Hamilton Subdivisions
109 hectares for
residential develo ment
Gordonton Road, Hamilton
•Awaiting Hamilton Council decisions.
Hobsonville Road, Auckland
•Awaiting Whenuapai plan change by Auckland
Council.
Arataki Road, Havelock North
•Final decision from Hastings Council forthcoming.
15

Strong financial osition.

Low mortgage rates and availability have increased
demand for ro erty including sections.

New housing olicies, border closure and migration
olicies will tem er housing demand going forward.

CD i eline su ly develo ment will continue with
works in rogress for 2022 sales.

Progress at Auckland, Hamilton and Havelock North
develo ment de endent on s eed of local council
consents.

Continue to increase land ortfolio for develo ment.

CD to deliver a rofitable 2021.
16
ELECTION OF DIRECTORS

Election of Desleigh Jameson as a Director

Re-election of BK Chiu as a Director

Re-election of Colin Sim as a Director

Re-election of Vincent Yeo as a Director
17
ELECTION OF DIRECTORS
To elect Desleigh Jameson
18

4
ELECTION OF DIRECTORS
To elect BK Chiu
19
ELECTION OF DIRECTORS
To elect Colin Sim
20
ELECTION OF DIRECTORS
To elect Vincent Yeo
21
AUDITORS APPOINTMENT & REMUNERATION

No other nomination received - KPMG are
rea ointed as the Com any’s auditors.

Resolution that the Directors be
em owered to fix the remuneration of the
Auditors for the year ending 31 December
2021.
22
GENERAL BUSINESS
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CLOSE OF MEETING
Thank you for attending
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