Slide 1: Interim Results September 2021
Interim Results September 2021 Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration
Slide 2: Agenda
Agenda ■ Introduction and strategy01 Tim Roberts ■ Financial review08 Darren Littlewood ■ Operational review12 Tim Roberts/Darren Littlewood ■ Outlook24 Tim Roberts Tim Roberts Darren Littlewood Chief Executive Officer Group Finance Director Henry Boot PLC | 135 years in the making Our Values | Resp
Slide 3: Introduction and Strategy
Introduction and Strategy Speaker Tim Roberts Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 1
Slide 4: Investment case
Investment case A long track record of generating attractive returns Net Asset Value per share 250p Responsible business Track record of 200p with clear focus on managing gearing three key markets 150p and the balance driven by positive sheet effectively 100p long-term structural through the cycle t
Slide 5: Strong operational performance
Strong operational performance ■ Sold 2,288 plots in a buoyant housing market OPERATING PROFIT LAND ■ Land bank increased to c.17,300 acres, comprising 92,253 plots with c.60% SE/Midlands £14.8m PROMOTION ■ Unconditionally exchanged on 1,311 plots for 2022/23 H1 2020: £11.1m ■ Completed £44m (HBD sh
Slide 6: Our strategy
Our strategy Focused on three long-term markets Industrial & Logistics Residential Urban Development LAND PROPERTY INVESTMENT HOUSEBUILDING CONSTRUCTION PROMOTION & DEVELOPMENT Grow capital employed by around £150m People Strategy + ESG Henry Boot PLC | 135 years in the making Our Values | Respect |
Slide 7: Significant progress in 2021
Significant progress in 2021 Invested £55m in acquisitions across the group to drive growth Land Developments Asset Acquisitions Construction Feilden Clegg Bradley Studios • Materially grown • £11m of income • Won a £42m urban • Invested £21m in land committed programme producing acquisitions develo
Slide 8: Clear medium-term targets
Clear medium-term targets Good progress on strategic objectives Measure Medium term target H1 2021 Land Promotion plot sales c.3,500 per annum 2,288 in H1 2021 HBD development completions c.£200m per annum £181m committed programme Grow investment portfolio Around £150m £106m as at 30 June 2021 58 u
Slide 9: Net Zero Carbon Framework
Net Zero Carbon Framework The Group has set a target to achieve NZC for directly controlled emissions by 2030 First phase Key Initiatives ■ The Group’s carbon emissions have been decreasing since 2013 but we can do more ■ The first phase of the Framework (2021-2025) An energy and Rapid introduct
Slide 10: Financial Review
Financial Review Speaker Darren Littlewood Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 8
Slide 11: Financial highlights
Financial highlights Strong performance with increased activity levels across the Group ■ Revenue increased 19% as activity and H1 2021 H1 2020 Change transactions have begun to normalise across our operations Revenue £129.0m £108.7m 19% ■ Operating profit of £23.1m benefitted from Operating profit
Slide 12: Balance sheet
Balance sheet Several strategic investments over the period Jun 2021 Dec 2020 ■ Acquisitions and revaluation gains increased Investment property £94.5m £82.7m investment property by £11.8m Property, plant & equipment £25.5m £23.8m ■ Investment of £32.9m in house-builder land, BTR strategic land and
Slide 13: Cash generation and change in net cash/(debt)
Cash generation and change in net cash/(debt) Several strategic investments over the year £m 60 Net Investment £19.8m 2.1 (3.3) 50 (2.5) (0.1) (1.7) (4.9) 40 23.1 (8.5) 30 (8.6) 20 (2.7) 27.0 10 Operations £12.7m (32.8) 0 (13.0) -10 (0.1) -20 1 Jan 2021 Operating profit Depreciation Gain on investme
Slide 14: Operational Review
Operational Review Speakers Tim Roberts & Darren Littlewood Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 12
Slide 15: Land promotion
Land promotion UK greenfield land values increased by 2.6% in H1 ■ Total plots in portfolio 92,253 (Dec 2020: 88,070) TOTAL PLOTS IN PLOTS SOLD ■ £6.6m invested in growing the land bank, now totals PORTFOLIO at 17,357 acres ■ 2,288 plots sold, including key disposals at Burton (950 plots) & Cranbroo
Slide 16: Land promotion
Land promotion Strategic land bank focussed on higher value locations in South and Midlands Plots Sold Average Gross Profit Per Plot £000 3,573 15 15 3,500 3,427 13 3,000 2,500 10 2,288 9 2,000 2,169 2,000 8 8 1,609 7 1,500 SCOTLAND TOTAL PLOTS 9,845 1,000 92,253 500 0 0 2016 2017 2018 2019 2020 202
Slide 17: Land promotion: Pagham, West Sussex
Land promotion Pagham, West Sussex What is it ■ 3 acre site located on the South Coast, 7 miles south of 4 Chichester ■ Originally contracted under a PPA in 2015 How we have created value ■ Allocation secured in 2018 and outline consent in 2019 ■ Developed detailed design of the new development and
Slide 18: Land promotion: Tonbridge, Kent
Land promotion Tonbridge, Kent What is it ■ 24.8 acres of land at Tonbridge, Kent ■ Completed freehold purchase of site in March 2021 How we have created value ■ Site successfully safeguarded for residential development outside the Greenbelt ■ Submitted application for 125 plots, which is set to be
Slide 19: Property investment & development
Property investment & development Industrial market continues to perform strongly ■ HBD completed developments with a GDV of £44m (HBD share £37m), 81% industrial and logistics OPERATING HBD PIPELINE PROFIT GDV ■ Committed schemes increased to £444m (HBD share ■ £181m), 60% is either pre-let/pre-sol
Slide 20: Committed pipeline
Committed pipeline GDV of current schemes £181m of which 73%1 has been pre-let or pre-sold Area ‘000 Share of GDV Expected Scheme sq ft GDV £m Finish Plot 6, Wakefield Hub ■ GDV £21m Industrial & Logistics ■ HBD share 50% Preston East 67 50% 4 H2 21 Enfield, Montagu 406 56 50% 11 H2 21 ■ 260,000 sq
Slide 21: Significant pipeline focused on logistics
Significant pipeline focused on logistics Approximately 8 million sq ft with target hurdle rate 10-15% depending on risk Committed Consented Proposed Total Pipeline Big Box 0.3m sq ft 1.9m sq ft c.2.5m sq ft c.5m sq ft Ind & Logistics Mid/Small Box 0.8m sq ft 1.1m sq ft c.1.2m sq ft c.3m sq ft Ind &
Slide 22: New Horizon, Thane Road, Nottingham
Property investment & development New Horizon, Thane Road, Nottingham What is it ■ Former Imperial Tobacco manufacturing centre on a 45-acre site purchased in 2017 ■ Located on the fringes of Nottingham adjacent to the Boots Campus with direct links to M1 J24/25 What are we doing ■ Secured outline p
Slide 23: Stonebridge
Stonebridge Strong demand within the housing market ■ ointly owned premium house builder focused on J Yorkshire ■ Average private selling price £487k, 5% above budget ■ Achieved a strong sales rate of 0.90 sales per week per outlet ■ Some delays in the consented land bank due to challenging planning
Slide 24: Construction
Construction UK construction output increased by 5.9% ■ ivision consists of Construction, Plant Hire and D Road Link (A69) OPERATING EXTERNAL PROFIT TURNOVER ■ Segment has very low levels of capital employed ■ Construction segment ahead of expectation, as market activity continued to recover £4.3m £
Slide 25: Construction: Heart of the City, Sheffield
Construction Heart of the City, Sheffield Feilden Clegg Bradley Studios What is it ■ A £42m hub for Sheffield's 'Heart of the City' masterplan, creating a vibrant social destination and low-carbon block What are we doing ■ Elshaw House: A 78,000 sq. ft low-carbon office and retail space providing ei
Slide 26: Outlook
Outlook Speaker Tim Roberts Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 24
Slide 27: Outlook
Outlook ■ Strong performance in H1 ■ Actively investing in our three key markets with c.£55m acquisitions to drive growth ■ Recovery in land market has continued with 2,288 plots sold. Land bank at c.92,000 plots continues to grow ■ £181m (HBD share) committed programme, including one million sq ft
Slide 28: Well placed for the future
Well placed for the future Investing to support growth Property Land Promotion Development Housebuilding Construction & Investment Feilden Clegg Bradley Studios c.92,000 Strategic Land c.£1.1bn Development Multi-Regional Premium Strong Order Book With Plots Pipeline House Builder Public Sector Focus
Slide 29: Appendices
Appendices ■ Group Structure – Segment Composition ■ Group Structure – Board of Directors ■ Group Structure – Business Segments & Executive Committee ■ Business Model ■ The Henry Boot Way ■ Strategic Approach to ESG ■ Statement of Financial Position ■ Investment Property ■ Movement in NAV per share
Slide 30: Group structure
Group structure Henry Boot PLC, established over 135 Office years ago, is one of the UK’s leading Depot and long-standing property investment and development, land promotion and construction companies. Based in Sheffield, with regional offices throughout the UK, the Group is comprised of three segme
Slide 31: Board of Directors
Group structure Board of Directors Back row, left to right Tim Roberts Chief Executive Officer Amy Stanbridge General Counsel and Company Secretary Gerald Jennings Non-executive Director and Chairman of the Remuneration Committee Peter Mawson Senior Independent Non-executive Director and Chairman of
Slide 32: Business Segments and Executive Committee
Group structure Business Segments Executive Committee Land Promotion Nick Duckworth Jonathan Fisher Edward Hutchinson Tony Shaw Hallam Land Banner Plant Henry Boot Henry Boot Management Limited Developments Construction Property Limited Managing Director Limited (now trading as HBD) Limited Investme
Slide 33: Business model
Business model Track record of generating attractive returns Land Promotion Property Investment & Development SALE OF LAND SALE OF PROPERTY CONSTRUCTION Housebuilding IDENTIFY OBTAIN PLANNING DEVELOPMENT INVESTMENT OPPORTUNITIES PERMISSION OF SITE PORTFOLIO AND ACQUIRE LAND Henry Boot PLC | 135 year
Slide 34: The Henry Boot Way
The Henry Boot Way Purpose, Vision and Values Henry Boot PLC, has been in business for over 130 years and our financial results and performance Our Values have always been, and will continue to be, dependent on our people. We often use the phrase, ‘The Henry Boot Way’, to explain how we work and to
Slide 35: Strategic approach to ESG
Strategic approach to ESG Two-phase launch aligning all our responsible business activity The first phase of our Responsible Business Strategy is launched and on track Phase one Phase two Launch of 135 Launch of New Launch of our Launch of Henry Boot & Equality, Diversity, Pathway to Net Responsib
Slide 36: Statement of Financial Position
Statement of Intangible assets 4.1 4.3 Financial Position Property, plant and equipment 25.5 23.8 Right of use assets 1.9 2.1 Investment properties 94.5 82.7 Jun 2021 Dec 2020 Investment in joint ventures and associates 8.1 5.8 Cash and cash equivalents 16.9 42.1 Trade and other receivables 20.9 7.2
Slide 37: Investment property
Investment property Rent collection at 96% with increased occupancy MV55, Markham Vale ■ Mid Box logistics Jun 2021 Dec 2020 ■ 55,000 sq ft Valuation £106m £92m ■ HBD share 100% Total area –‘000 sq ft 815 531 ■ Completed in 2019 % industrial and alternative 61% 53% ■ 100% let Net passing rent £4.5m
Slide 38: Movement in NAV per share
Movement in NAV per share Growth in profit and unwind of actuarial loss on defined benefit pension scheme driving NAV growth 260p +8.2% 255p 0.6p (0.3p) (2.5p) 0.1p (2.4p) 8.5p 250p (4.4p) (3.6p) 13.1p 245p 17.3p (9.5p) -1.6% 240p 256p 235p (0.9p) 239p 230p 235p 225p 31 Dec 2019 Operating profit Int
Slide 39: Pensions
Financial Pensions 110% 100% ■ Triennial valuation at 1st January 2019 90% concluded showing a deficit of £19.8m. 80% ■ Recovery contributions agreed at £3.25m 70% rising by £0.1m per annum. 60% Cumulative return ■ IAS 19 deficit £23.4m at 30/06/21, asset 50% performance +4.9%. Discount rate 1.9% 40
Slide 40: Shareholding as at August 2021
Shareholding as at 18 August 2021 26.6% 35.4m Main Institutional Shareholders 6.7m Unicorn Asset Management 5.5m London & Amsterdam Trust Co/ Rovida 5.1m Polar Capital 3.7m Aberdeen Standard Investments 2.9m Schroder Investment Management 2.7m Dimensional Fund Advisors 2.4m Fidelity Management & Res
Slide 41: Strong track record: Five-year financial results
Strong track record Five-year Financial Results 2016 – 2020 Dividends per Turnover Operating Profit Profit Before Tax Ordinary Share 2020 £222.4m 2020 £17.5m 2020 £17.1m 2020 5.5p 2019 £379.7m 2019 £50.4m 2019 £49.1m 2019 5.0p 2018 £397.1m 2018 £50.0m 2018 £48.6m 2018 9.0p 2017 £408.5m 2017 £56.9m 2
Slide 42: Share price
Share price Henry Boot PLC Share Price vs Benchmark Indices 350 330 310 290 270 250 230 Henry Boot 210 FTSE All Share Real Estate Investment & Services 190 FTSE All Share 170 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 2020 2021 Henry Boot PLC | 135 years in t
Slide 43: Forward-looking statements
This presentation contains forward-looking statements. Although the Group believes that the estimates and assumptions on which such statements are based are reasonable, they are inherently uncertain and involve a number of risks and uncertainties that are beyond the Group’s control. The Group does n