Harworth Group Plc · LSE:HWG
Harworth — Investor Day (October 2024)
31 slides from Harworth's investor day presentation, Oct 22, 2024
Slide 1: Capital Markets Day 2024: The Industrial & Logistics opportunity
Capital Markets Day 2024 The Industrial & Logistics opportunity 22 October 2024 Harworth Group plc | Capital Markets Day 2024
Slide 2: Today's agenda
Todays agenda 11:30 Introduction to Harworth & its Strategy Site tours The Industrial & Logistics opportunity Skelton Grange Case study: Skelton Grange Site overview: Gascoigne Interchange 12:00 Q&A 12:15 Lunch Gascoigne Interchange 12:45 Site tours 15:45 Arrive back at hotel Harworth Group plc | Ca
Slide 3: Today's speakers
Today’s speakers Lynda Shillaw Jonathan Haigh Matt Smith Chris Davidson Chief Executive Chief Investment Officer Senior Development Regional Director, Manager Yorkshire & Central Harworth Group plc | Capital Markets Day 2024 3
Slide 4: Harworth in the room
Harworth in the room Andrew Blackshaw Dougie Maudsley Chris Birch Luke Passby Chief Operating Officer Interim Chief Financial General Counsel & Head of Investor Relations Officer Company Secretary & Communications Harworth Group plc | Capital Markets Day 2024 4
Slide 5: Introduction to Harworth & its Strategy
Introduction to Harworth & its Strategy Lynda Shillaw, Chief Executive Harworth Group plc | Capital Markets Day 2024
Slide 6: Proven business model
Proven business model Transforming land and property into sustainable places where people want to live and work and consistently delivering market leading returns through the cycle Industrial & Logistics Non-Consented Strategic Land Consented Strategic Land Major Development(1) Grade A Investment Po
Slide 7: Track record of strong returns
Track record of strong returns Harworth consistently delivers market leading returns and outperforms the sector H1 2024 Total Return Cumulative performance (%) Harworth: +4.0% 45 5 year growth 40 strategy launched during in 2021 35 30 25 20 15 10 5 0 -5 2019 2020 2021 2022 2023 Harworth Total Accoun
Slide 8: Road map to £1 billion EPRA NDV in 2027
Road map to £1 billion EPRA NDV in 2027 The path to £1 billion, and scaling beyond that, remains aligned to delivery of the strategic pillars Growth achieved: +33% in 3.5 years since H2 2020, in an unstable economic environment £1 billion Growth targeted: +46% in the next 3.5 years to reach £1 billi
Slide 9: The Industrial & Logistics opportunity
The Industrial & Logistics opportunity Jonathan Haigh, Chief Investment Officer Harworth Group plc | Capital Markets Day 2024
Slide 10: Industrial & Logistics market
Industrial & Logistics market Occupier Market(1) Investment Market(1) • Take-up of Grade A space hit its highest level in 2 years in • Prime yields unchanged over the last 12 months but H1 2024 – a 38% increase compared to H1 2023 - Logistics trending stronger in September 2024 and manufacturing eac
Slide 11: Harworth's ability to unlock the opportunity
Harworth’s ability to unlock the opportunity Deploying specialist expertise, delivery experience and working with stakeholders Advanced Manufacturing, Logistics, and now Data Centres… Harworth’s expertise can unlock the highest value of sites Directly developed circa Masterplanned over Microsoft lan
Slide 12: Evolution of the Investment Portfolio
Evolution of the Investment Portfolio Direct development of Grade A Industrial & Logistics assets and selective acquisitions 2021 2022 2023 2024 LN50 Logistics Bardon Hill Gateway 36 Re-Evolution 4 @ AMP Pre-let @ AMP Catalyst @ AMP North 332,000 sq. ft. 110,000 sq. ft. 83,000 sq. ft. 73,000 sq. ft.
Slide 13: Industrial & Logistics direct development
Industrial & Logistics direct development On-site 2024 Completed build to 73,000 sq. ft. suit UK head office, pre-let research and completed at the distribution facility Advanced for Danieli at the Manufacturing Advanced Park Manufacturing Park 80,000 sq. ft. 169,000 sq. ft. pre-let on site at specu
Slide 14: Industrial & Logistics pipeline progress
Industrial & Logistics pipeline progress Building the platform for growth with a total I&L pipeline of 38.8 million sq. ft. Planning approvals(1) Consented I&L pipeline Potential to deliver 3.3 million sq. ft. 9.6 million sq. ft. £0.8 billion of I&L space for I&L development GDV by the end of 2027 S
Slide 15: Case study: Skelton Grange
Case study: Skelton Grange From industrial wasteland to nationally- significant energy and data technology hub Matthew Smith, Senior Development Manager Harworth Group plc | Capital Markets Day 2024
Slide 16: Skelton Grange – in the spotlight
Skelton Grange – in the spotlight The scheme at Skelton Grange is a prime example of Harworth’s skillset in action Strategic land acquisition with assessment of long-term potential value Major, complex remediation and site preparation required Viable location for high-value use driven by partners
Slide 17: Seeing the potential
Seeing the potential • Former power station site in South East Leeds • Demolished in 1990 and had become industrial wasteland • Various failed proposals for the site in early 2000s; written off by most due to challenging ground conditions and access constraints • Strategic land acquired by Harworth
Slide 18: Success so far
Success so far • 19.5-acre plot sale to enfinium in 2020 with existing industrial planning permission kept alive and leveraged for efficient development • Lease to Catalyst Capital for 5-acre 100MW energy storage battery facility (2021) with freehold maintained; ensuring long-term and continued reve
Slide 19: Power and partnership
Power and partnership • Close partnership with Leeds City Council and West Yorkshire Combined Authority – to champion the vision for this scheme • Worked with National Grid & Northern Power Grid to achieve grid capacity to facilitate data centre • Harworth’s largest ever sale transaction with 48- ac
Slide 20: What's next?
What’s next? • Microsoft presence enhances the 16 acres of retained land at Skelton Grange, which is yet to be developed – future power, logistics or data centre development • Once the development is complete, Skelton Grange is expected to provide: • c.250,000 sq. ft. of Grade A Industrial & Logisti
Slide 21: Skelton Grange
Skelton Grange Harworth Group plc | Capital Markets Day 2024 21
Slide 22: Site overview: Gascoigne Interchange
Site overview: Gascoigne Interchange Chris Davidson, Regional Director Yorkshire & Central Harworth Group plc | Capital Markets Day 2024
Slide 23: Gascoigne Wood – The Past
Gascoigne Gascoigne Wood – TheWood Past Harworth Group plc | Capital Markets Day 2024 23
Slide 24: Gascoigne Interchange – The Present
Gascoigne Interchange – The Present Harworth Group plc | Capital Markets Day 2024 24
Slide 25: Gascoigne Interchange – The Future
Gascoigne Interchange – The Future Harworth Group plc | Capital Markets Day 2024 25
Slide 26: Closing remarks
Closing remarks Lynda Shillaw, Chief Executive Harworth Group plc | Capital Markets Day 2024
Slide 27: Q&A
Q&A As a reminder… Lunch will be available in the room from 12.15pm We will leave for the coach promptly at 12:40pm Arriving back at the hotel for 3:45pm Harworth Group plc | Capital Markets Day 2024
Slide 28: Strategy
Strategy Remain on track to deliver targets announced in 2021, with the strategy evolving to focus on growth in the income generating Industrial & Logistics portfolio 2024 progress(1) 2027 target Strategy evolution Optimised growth strategy 0.1 million sq. ft. complete and pre- 0.8 million sq. ft.
Slide 29: Summary and outlook
Summary and outlook On track to meet strategic targets and very well positioned for expansion in Industrial & Logistics Outlook Self-propelled growth strategy underpinned by our strategic landbank and the skills or our people • Stability of Government with a focus on growth, housing delivery and sup
Slide 30: Disclaimer
Disclaimer For the purpose of the following disclaimer, reference to this ‘presentation’ shall be deemed Actual results may differ materially from those expressed in forward-looking statements. As to include reference to the presentation slides, the presenters’ speeches, the question and such, you a
Slide 31: Harworth Group plc
Harworth Group plc Head Office Birmingham Manchester Leeds Advantage House Waterloo House 6th Floor, Trinity 3rd Floor Poplar Way 20 Waterloo Street 16 John Dalton Street Nine Bond Court Rotherham Birmingham Manchester Leeds S60 5TR B2 5TB M2 6HY LS1 2JZ www.harworthgroup.com Harworth Group plc | Ca