CDI 2022 Interim Results

10 August 2022

CDL INVESTMENTS LOOKING TO OVERCOME “DIFFICULT”
TRADING ENVIRONMENT

NZX-listed property development and investment company CDL Investments New Zealand Limited (NZX:CDI) today
released its (unaudited) results for the six months to 30 June 2022 and reported an operating profit after tax of
$22.90 million (2021: $20.75 million) on revenue of $47.81 million (2021: $61.27 million).

“The last six months have seen a dramatic change in the trading environment”, said CDI’s Chair Colin Sim. “The
irony is that those changes have been caused by external factors totally outside of our control and have nothing to
do with our performance or financial position”, he said.

CDI continued to record sales of its residential sections in Auckland and Canterbury and had also acquired a 4.85
hectare parcel of land in north-east Hamilton in the first half of the year. It also reported completion of one of its
warehousing projects in South Auckland with the second not far from being finished.

“The warehousing projects have been the highlight of the year so far”, said CDI’s new Managing Director Jason
Adams. “They’ve been built on time and to budget and our tenants are thrilled with the end product, as are we”,
he said.

Mr. Adams also said that CDI’s commercial local centre developments in Canterbury were also well occupied and
making an impact in their locations.

“We’re pleased that our local centres in Stonebrook (Rolleston) and Prestons Park have made the impact that we
thought they would in their respective locations and the knowledge we’ve gained here will be used for our future
development projects”, he said.

At our AGM the company said that its target for the full year was to try and match its 2021 performance. This
would not be easy given that the easing property market conditions being experienced now were likely to stay the
same well in to 2023. Interest rate increases, tighter bank mortgage lending criteria, resource and material supply
constraints and abnormally high inflation caused by global pressures will likely continue to be felt well in to 2023.


“It’s a realistic goal but to make that target we will need new sales. This year, those sales will come from Auckland
at Christian Road and from new sales at Prestons Park”, said Mr. Adams.

CDI also noted that the current trading environment might provide opportunities for the company going forward.

“We are not under the same pressures as some other developers and owners and this difficult environment will
present unique opportunities for us. Our investment and development timelines have always been focused on the
medium to long term and the Board has therefore asked Management to position CDI in such a way that it can
benefit from those opportunities should they arise”, said Mr. Sim.


ENDS


Issued by CDL Investments New Zealand Limited

Any inquiries please contact:
Jason Adams
Managing Director
CDL Investments New Zealand Ltd
(09) 353 5077

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DIRECTORS’ REVIEW

Financial Performance:

For the six month period ending 30 June 2022 CDL Investments New Zealand Limited (“CDI”) can report that it made an unaudited
operating profit after tax of $22.90 million (2021: $20.75 million). Our operating profit before tax was $31.81 million (2021:
$28.82 million).

Property sales and other income for the period was $47.81 million (2021: $61.27 million). Net Asset Backing (at cost) for the
period under review was 104.08 cents per share (2021: 95.95 cents per share).

These results come despite significant downward changes to market conditions seen over the period. The Board is pleased that
CDI has been able to withstand some of the negative sentiment to date but we are also conscious that the current trading
environment will likely continue for some time and this will impact on our full year results to some extent.


Portfolio update:

The first half of 2022 has seen a lot of activity across our portfolio.

CDI settled sales of residential sections in Auckland and Canterbury from its Kewa Road and Prestons Park subdivisions during
the first half of 2022. The settlement of our sale of commercial development land at Jerry Green Street, Wiri (South Auckland) is
also recognised in the results.

We also purchased 4.85 hectares of land in north-east Hamilton adjacent to some of our existing land holdings and this new
holding gives us further economies of scale.

A particular highlight of the last six months has been the progress with our warehousing ‘design and build’ projects in Wiri. The
first was completed in June and is now occupied by our tenant. The second is rapidly nearing completion and on track to be
occupied and operational in the coming weeks. We have been very pleased with both of these projects, neither of which were
badly affected by labour or supply chain delays. The majority of our units at our other commercial local centre developments at
Stonebrook and Prestons Park are also occupied and operational, and our leasing agents are continuing working on tenanting
the remaining units.

We continue to work on the master planning and consent applications for the Iona Block in Havelock North and we expect that
the stage 1 consents will be issued shortly. This will ensure that we are able to commence earthworks in Q4 2022 as planned. In
addition, the stage 2 resource consent application is on track to be lodged end September 2022.


Commentary and Outlook:

Market conditions for the immediate future will be challenging. Interest rate increases, tighter bank mortgage lending criteria
coupled with abnormally high inflation caused by global pressures will doubtless continue to be felt well in to 2023. For this year,
we are aiming to match our 2021 results overall and to ensure that we have prepared the groundwork for sales into 2023. That
will not be an easy task given the current trading environment but we believe that it is a realistic one given our sales performance
to date. We are targeting new sales in Auckland (Christian Road, West Auckland) and in Canterbury (Prestons Park) to deliver
those results.

At the same time, those market factors will put additional pressure on highly-leveraged developers and owners who will be
looking to offload land or other property holdings. CDI is not under that kind of financial pressure and will be actively positioning
itself to use its resources to take advantage of suitable opportunities should they arise.




Colin Sim
Chairman
10 August 2022

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Results announcement



Results for announcement to the market
Name of issuer CDL Investments New Zealand Limited
Reporting Period 6 months to 30 June 2022
Previous Reporting Period 6 months to 30 June 2021
Currency NZD

Amount (000s) Percentage change
Revenue from continuing
operations
$47,814 (21.96%)
Total Revenue $47,814 (21.96%)
Net profit/(loss) from
continuing operations
$22,899 10.34%
Total net profit/(loss) $22,899 10.34%
Interim Dividend
Amount per Quoted Equity
Security
No interim dividend declared
Imputed amount per Quoted
Equity Security
Not applicable
Record Date Not applicable
Dividend Payment Date Not applicable
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$1.04 $0.96
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
Refer to Shareholder Update
Authority for this announcement
Name of person

authorised
to make this announcement
Takeshi Ito
Contact person for this
announcement
Takeshi Ito
Contact phone number 09 353 5077
Contact email address takeshi.ito@cdli.co.nz
Date of release through MAP

10 August 2022

Unaudited financial statements accompany this announcement.

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CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Comprehensive Income
For the half year ended 30 June 2022
Unaudited 6
Months to
Unaudited 6
Months to
In thousands of dollarsNote30/06/2230/06/21
Revenue47,603 61,181
Cost of sales(14,050) (30,162)
Gross profit33,553 31,019
Other income211 90
Administrative expenses(275) (187)
Property expenses(257) (133)
Selling expenses(1,089) (1,517)
Other expenses(849) (770)
Results from operating activities31,294 28,502
Finance income513 324
Finance costs(2) (2)
Net finance income511 322
Profit before income tax31,805 28,824
Income tax expense(8,906) (8,071)
Profit for the period22,899 20,753
Total comprehensive income for the period22,899 20,753
Profit Attributable to:
Equity holders of the Parent22,899 20,753
Total comprehensive income for the period22,899 20,753
Earnings per share37.94c7.28c
The accompanying notes form part of, and should be read in conjunction with these financial statements.
Page 1

CDL Investments New Zealand Limited and its SubsidiaryCondensed Interim Statement of Changes in Equity
For the half year ended 30 June 2022
GROUP
In thousands of dollars
Note
Unaudited Share
Capital
U
nau
di
te
d

Retained
Earnings
Unaudited Total
Equity
Balance at 1 January 2021
56,654

200,477

257,131

Total comprehensive income for the periodProfit for the period
-

20,753

20,753

Total comprehensive income for the period
-

20,753

20,753

Shares issued under dividend reinvestment plan
2
7,800

-

7,800

Dividend to shareholders
2
-

(9,815)

(9,815)

Supplementary dividend
-

(194)

(194)

Foreign investment tax credits
-

194

194

Balance at 30 June 2021
64,454

211,415

275,869

Balance at 1 January 2022
64,454

221,926

286,380

Total comprehensive income for the periodProfit for the period
-

22,899

22,899

Total comprehensive income for the period
-

22,899

22,899

Shares issued under dividend reinvestment plan
2
1,375

-

1,375

Dividend to shareholders
2
-

(10,063)

(10,063)

Supplementary dividend
-

(204)

(204)

Foreign investment tax credits
-

204

204

Balance at 30 June 2022
65,829

234,762

300,591

Page 2

CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Financial Position
As at 30 June 2022
Unaudited as at
Audited as
at
Unaudited as
at
In thousands of dollarsNote30/06/2231/12/2130/06/21
SHAREHOLDERS' EQUITY
Issued capital65,829 64,454 64,454
Retained earnings234,762 221,926 211,415
Total Equity300,591 286,380 275,869
Represented by:
NON CURRENT ASSETS
Plant, furniture and equipment36 43 51
Development property188,361 164,589 115,865
Investment property33,084 23,332 8,401
Investment in associate172 2 2
Total Non Current Assets221,483 187,966 124,319
CURRENT ASSETS
Cash and cash equivalents15,076 53,025 90,950
Short term deposits60,000 30,000 41,500
Trade and other receivables1,483 5,479 3,384
Development property8,706 21,152 24,550
Total Current Assets85,265 109,656 160,384
Total Assets306,748 297,622 284,703
NON CURRENT LIABILITIES
Deferred tax liabilities74 74 59
Lease liabilities15 18 22
Total Non Current Liabilities89 92 81
CURRENT LIABILITIES
Trade and other payables1,698 7,297 4,933
Employee entitlements83 71 59
Income tax payable4,278 3,771 3,748
Lease liabilities9 11 13
Total Current Liabilities6,068 11,150 8,753
Total Liabilities6,157 11,242 8,834

Net Assets
300,591 286,380 275,869
The accompanying notes form part of, and should be read in conjunction with these financial statements.
Page 3

CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Cash Flows
For the half year ended 30 June 2022
Unaudited 6 Months to
In thousands of dollarsNote30/06/2230/06/21
CASH FLOWS FROM OPERATING ACTIVITIES
Cash was provided from:
Receipts from customers51,949 61,207
Interest received374 490
Cash was applied to:
Payments to suppliers(13,587) (10,399)
Payments to employees(359) (308)
Purchase of development land(19,380) -
Income tax paid(8,195) (7,950)
Net Cash Inflow from Operating Activities10,802 43,040
CASH FLOWS FROM INVESTING ACTIVITIES
Cash was provided from:
Short term deposit maturities30,000 86,620
Cash was applied to:
Purchase of plant and equipment- (3)
Purchase of investment property(9,851) (5,101)
Short term deposits(60,000) (41,500)
Net Cash Inflow/(Outflow) From Investing Activities(39,851) 40,016
CASH FLOWS FROM FINANCING ACTIVITIES
Cash was applied to:
Dividend paid(8,688) (2,015)
Principal repayment of lease liability(8) (8)
Supplementary dividend paid(204) (194)
Net Cash Outflow from Financing Activities(8,900) (2,217)
Net Increase/(Decrease) in Cash and Cash Equivalents(37,949) 80,839
Add Opening Cash and Cash Equivalents53,025 10,111
Closing Cash and Cash Equivalents15,076 90,950
Page 4

CDL Investments New Zealand Limited and its Subsidiary
Condensed Interim Statement of Cash Flows - continued
For the half year ended 30 June 2022
Unaudited 6 Months to
In thousands of dollarsNote30/06/2230/06/21
RECONCILIATION OF CASH FLOWS FROM OPERATING ACTIVITIES
Net profit after taxation22,899 20,753
Adjusted for non cash items:
Depreciation of plant & equipment1 1
Depreciation of right-of-use assets7 7
Depreciation of investment property99 25
Income tax expense8,906 8,071
Adjustments for movements in working capital:
Decrease in receivables3,996 102
Decrease in development properties(11,326) 21,023
Increase in payables(5,585) 1,008
Cash generated from Operations18,997 50,990
Income tax paid(8,195) (7,950)
Cash Inflows from Operating Activities10,802 43,040
The accompanying notes form part of, and should be read in conjunction with these financial statements.
Page 5

Page 6
CDL Investments New Zealand Limited and its Subsidiary
Notes to the Condensed Interim Financial Statements
For the half year ended 30 June 2022 (unaudited)

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 2022
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 2021.

The condensed interim financial statements were authorised for issuance on 10 August 2022.

2. Capital & Reserves

Share Capital
Under the Company’s Dividend Reinvestment Plan, an additional 1,294,674 shares were issued on 13 May 2022
(2021: 7 ,077,888) at a strike price of $1.0624 (2021: $ 1.1020).

At 30 June 2022, the authorised share capital consisted of 288,807,697 fully paid ordinary shares (2021:
287,513,023).

Dividends
The following dividends were declared and paid during the period ending 30 June:
In thousands of dollars 2022 2021
3.5 cents per qualifying ordinary share (2021: 3.5 cents) 10,063 9,815
10,063 9,815

3. Earnings Per Share

The calculation of basic and diluted earnings per share at 30 June 2022 of 7.94 cents (2021: 7.28 cents) was based
on the profit attributable to ordinary shareholders of $22,899,000 (2021: $20,753,000); and weighted average number
of shares of 288,376,139 (2021: 2 85,153,727) on issue in the period.

4. Segment Reporting

Operating segments
The major operating segment of the Group consists of property operations, comprising the development and sale of
residential land sections. The revenue from investment property for the current period is only $84,000 and therefore
is not significant enough to justify a separate segmental disclosure.

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.

Page 7
CDL Investments New Zealand Limited and its Subsidiary
Notes to the Condensed Interim Financial Statements
For the half year ended 30 June 2022 (unaudited)

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 2022 (2021: Nil) that
would require disclosure.

6. Changes in Contingent Liabilities since last Annual Balance Sheet Date

The Group has been named as respondents in a judicial review proceeding which was brought by the Applicant,
Winton Property Investments Limited, in relation to a decision of the Overseas Investment Office relating to the
Group’s acquisition of land in Havelock North. The Applicant was seeking, inter alia, an order setting aside the
decision of the Overseas Investment Office in respect of the approval and/or a declaration that Ministers erred at law
in making their decision to grant consent. The proceedings, which were advised to the market on 21 July 2021, were
heard in February 2022 and a decision in favour of the respondents was handed down at the end of March 2022. The
Applicant has now filed a notice of appeal and a hearing has been set down for May 2023 at this stage. The Group
will continue to vigorously defend its position and still considers the likelihood of the applicant being successful as
low. It is not possible to determine what the financial effect would be, if any, should the application be successful.

7. Related Party Transactions

CDL Investments New Zealand Limited is a subsidiary of Millennium & Copthorne Hotels New Zealand Limited by
virtue of Millennium & Copthorne Hotels New Zealand Limited owning 65.9 9% (2022: 66.29%) of the Company and
having two out of six of the Directors on the Board. Millennium & Copthorne Hotels New Zealand Limited is 70.79%
(2021: 70.79%) owned by CDL Hotels Holdings New Zealand Limited (computed on voting shares), which is a wholly
owned subsidiary of Millennium & Copthorne Hotels Ltd 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 2022 CDL Investments New Zealand Limited has reimbursed its parent,
Millennium & Copthorne Hotels New Zealand Limited, $168,000 (2021: $161,000) for expenses incurred by the
parent on behalf of the Group.

Subsidiary Principal Activity % Holding by
CDL Investments New Zealand Limited
Balance Date
CDL Land New Zealand
Limited
Property Investment
and Development
100.00 31 December

Associate Principal Activity % Holding by
CDL Land New Zealand Limited
Balance Date
Prestons Road Limited Service Provider 33.33 31 March

8. Commitments

As at 30 June 2022, the Group had entered into contractual commitments for development expenditure, construction
of investment properties, 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 2022 in accordance with
the Group’s development programme.

In thousands of dollars 2022 2021
Development expenditure 15,451 12,288
Land purchases - 56,258
Capital expenditure on investment properties 3,100 24,675
18,551 93,821