CDI 2022 ASM Chairman’s Remarks & Presentation Slides

1
38
th
Annual Meeting of Shareholders
Tuesday 24
th
May 2022
1
WELCOME

Welcome to this Hybrid Meeting

This meeting is being held in person and is being
webcast

The Meeting Chair is John Henderson

Directors are attending in person
BK Chiu │ Managing Director
Eik Sheng Kwek │ Non-Executive Director
Vincent Yeo │ Non-Executive Director

Director attending remotely
Colin Sim │ Chairman
2
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2

Quorum

Apologies from independent director
Desleigh Jameson

Proxies

Minutes of the 37
th
Annual Meeting of
Shareholders

Notice of Meeting taken as read
5
Annual Report & Financial Statements

2021 was another very positive year of sales despite the
ongoing pandemic.

Continued strong demand for residential housing and
development.

Relatively consistent results in terms of property sales
revenue as well as net profit.

Grew land portfolio last year – acquisition of 69 hectares in
Havelock North.

Commercial leasing operations are progressing well.
6
Annual Report & Financial Statements (cont.)

Current market conditions are certainly different compared to
the last two years.

Market is softening and prices are coming off historic high.

Supply-chain issues affecting all developers and builders in
New Zealand.

We still expect to see strong demand from our Auckland and
Canterbury developments this year.

We expects 2022 to be another positive and profitable year
but will be subject to external economic pressures outside
our control.
78

3
CDL Investments 2021 Sales
2021 2020 2019
Sales ($m)92.1 88.8 91.8
Profit before tax ($m)43.4 41.8 47.3
Section sales were from:

Prestons Park, Christchurch

Kewa Road, Auckland

Dominion Road, Auckland
9
Annual Number of Homes Consented
Year-ending March 2022

Record 50,858 new homes consented. 24% increase.

Multi-unit homes up 40%
Stand-alone homes up 12%

Auckland 21,477 (23% increase)
Canterbury 8,557 (41% increase)
Annual Number of Homes Consented (cont.)
Year-ending March 2022
April 2022 YTD Sales

Sales $41.4m ($35.7m in 2021)

Sales were from:
- Roscommon Road, Auckland
- Prestons Park, Christchurch
- Kewa Road, Auckland

Housing market easing

Building material supply & costs increases
12

4

Cash & term deposits: $87.5m (122.4m in 2021)
(as at 30 April 2022)

Quick ratio*10.3 (10.7 in 2021)

Bank borrowings Nil
*
Total current assets less Inventory
Total current liabilities
13
CDI Cash Position
Completed Subdivisions and Work in Progress
Christian/Tram Valley Road,
Swanson, Auckland
•Construction completed
•Titles in Q3, 2022
Kewa Road, North Shore
Auckland
•Construction completed
•Titles issued
•15 lots left for sale
Lot 4, Roscommon Road,
South Auckland
•Completed, Sold and Settled
Prestons Park – Stage 5
Christchurch
•90% completed
•Titles in Q3, 2022
•Balance 85 lots – earthworks and civil works under way
Prestons Park – Stage 6
Christchurch
•Construction of 54 lots completed.
•Tittles to issue in Q2, 2022
Prestons Park – Commercial
Christchurch
•Construction of units completed.
•10 units leased
14
Completed Subdivisions and Work in Progress (cont.)
Stonebrook, Rolleston
Commercial
•Construction of 5 units completed.
•All leased out
Lot 1, Warehouse
Development
Roscommon Road
South Auckland
•Warehouse No. 1, 90% completed
•Warehouse No. 2, 40% completed
•Both fully leased
Arataki Road, Havelock North
Hawkes Bay
•Subdivision consent lodged with council
Iona, Havelock North
Hawkes Bay
•Stage 1 subdivision consent lodged
15
Kewa and Tram Valley Road
16
Tram Valley Road Subdivision
Kewa Road Subdivision

5
Prestons Park Commercial Centre, and
Stonebrook Commercial Centre
17
Preston Park Commercial Centre
Stonebrook Commercial Centre
Roscommon Road Warehouse
18
Hamilton Land
109 124 hectares for
development
Iona Land (69 hectares), Havelock North
20
* Google Earth Image

6
Iona Land
22
Iona Land (cont.)
Iona Land (cont.)
Iona Land (cont.)

7
Summary

Record new home consents in March 2022 YTD

Signs of housing market easing/turning

Strong CDI first 4 months sales & margins

Sections inventory & pipeline development ensure supply to meet
selective demand.

Commercial units at Roscommon Road, Preston Park, Stonebrook
mostly leased.

Two large parcels of development land secured, opportunities for
integrated residential, retirement, healthcare facilities.

CDI in a strong financial position for project development and
acquisition. CDI to deliver a profitable 2022.
25
ELECTION OF DIRECTORS

Re-election of John Henderson as a Director
26
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
2022.
27
GENERAL BUSINESS
28

8
CLOSE OF MEETING
Thank you for attending
29

---

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 24 May 2022

Subject REMARKS BY MEETING CHAIR TO ANNUAL MEETING OF
SHAREHOLDERS

Results to 31 December 2021
On behalf of the Directors, I present the Annual Report and the Statement of Financial Accounts to 31 December
2021. I would like to make a few brief comments about the past year.

2021 was another very positive year of sales despite the ongoing pandemic. The result is a credit to the
management team and also reflects the continued strong demand we have seen in New Zealand for residential
housing and development.

We are particularly pleased that we have been able to deliver relatively consistent results in terms of property
sales revenue as well as net profit.

We have also maintained a consistent dividend in some of the most difficult market conditions and you will have
received your dividend earlier this month.

We grew our land portfolio last year with the acquisition of 69 hectares in Havelock North which we are rapidly
progressing to development. The Iona Block is a very exciting future development which will secure our
revenues into the future.

While demand for residential development is still high across New Zealand, the market conditions we see now
are certainly different to what we have seen over the last two years.

All of the data we have points to a market that is softening with prices coming off historic highs as mortgage rates
increase once again. We expect those conditions and pressures to remain throughout this year.

While we may see some slowing down in sales tempo, we still expect to see strong demand from our
developments in Auckland and Canterbury this year. While we do not expect to make major adjustments to our
pricing, we will be monitoring the market and our competitors carefully and acting accordingly.

Like everywhere else across the world, supply-chain issues remain and this is something that is affecting all
developers and builders in New Zealand.

We believe that we are in a good position with our contractors and sub-contractors to mitigate delays but the
global issues in Europe and Asia are being felt in this part of the world too and some delays and cost escalations
are to be expected.

Our commercial leasing operations are progressing well with the majority of our units tenanted and operational.
The benefits from our commercial tenancies will start to be seen in our results this year.

Overall, the Board expects 2022 to be another positive and profitable year but it is likely to be a year that will be
subject to external economic pressures outside our control.

One final matter - with regard to the ongoing judicial review action initiated by the Winton Group to which we are
a respondent along with the Crown, there is not much I can say as the matter is to be heard by the Court of
Appeal. What I can say is that we were pleased with the High Court judgment and our expectation is that the
Court of Appeal will affirm that the High Court was correct.


Managing Director succession:

BK, as this is your last annual meeting, on behalf of the Board and, I am sure on behalf of all shareholders, I
would like to thank you for your service to the Company over the past seventeen years. You have led CDL
Investments through very interesting and challenging times, not least after the Canterbury Earthquakes. You
have provided shareholders with remarkably consistent growth and solid returns over a long period of time and
I’m sure that everyone will want me to thank you on their behalf and wish you well for the future.

I am delighted that we have appointed Jason Adams to take your place and this is really a seamless transition as
Jason has worked for the company for almost the same length of time you have. Jason, you have big boots to
fill but I am sure that with your depth of knowledge of all of our projects, you will be able to carry on our strong
and profitable track record into the future.