Berkeley Group Holdings Plc · LSE:BKG
Berkeley — The Berkeley Group Holdings — H1 2008/09 Earnings Presentation
37 slides from Berkeley's earnings presentation, Dec 5, 2008
Slide 1: Interim Results Presentation
Interim Results Presentation Half Year ended 31st October 2008 5th December 2008
Slide 2: Tony Pidgley, Managing Director
TONY PIDGLEY MANAGING DIRECTOR
Slide 3: Format of Presentation
Format of Presentation Interim Results for the half year ended 31st October 2008 • Managing Director’s Review Tony Pidgley • Review of Results Rob Perrins • Questions Tony Pidgley (Managing Director) Rob Perrins (Finance Director) Tony Carey (Executive Director) Greg Fry (Executive Director)
Slide 4: Managing Director's Review (1) – Introduction
Managing Director’s Review (1) – Introduction • Berkeley’s Strategy • Berkeley’s Performance • The Market • Outlook 4
Slide 5: Managing Director's Review (2) – Next Generation
Managing Director’s Review (2) - NextGeneration ike Figure 1: Top 20 overall performance Berkeley Group Crest Nicholson Miller Inspace Barratt Zz EX GENERATION PARTNERSHIP TO DEUVER LE HOMES FOR 2! CENTURY t — Countryside Properties Redrow “AINAE Taylor Wimpey Persimmon Fairview R a a] ke d 1 st McC
Slide 6: Managing Director's Review (3) – Royal Arsenal, Woolwich
\2 Managing Director’s Review (3) - A= Royal Arsenal, Woolwich BUA BUILDING FOR STANDARD — Crossrail The Berkeley Group Holdings plc
Slide 7: Managing Director's Review (4) – Gunwharf Quays, Portsmouth
Managing Director’s Review (4) —- Gunwharf Quays, Portsmouth Winner of the BURA Crystal Award for the ‘Best of the Best — Urban Regeneration’ FE SfaNbaro Ziff ; j 0 ey = ——, fee \6 ima tse & The Berkeley Group Holdings plc
Slide 8: Managing Director's Review (5) – Berkeley's Strategy
Managing Director’s Review (5) – Berkeley’s Strategy • Maximise shareholder value through added value developer expertise, not volume growth • Balance sheet strength and cash generation ahead of income statement • London and South-East focus • Minimise development risk - Maintain forward sales - Mat
Slide 9: Managing Director's Review (6)
Managing Director’s Review (6) • Berkeley’s Performance • The Market • Outlook 9
Slide 10: Rob Perrins, Finance Director
ROB PERRINS FINANCE DIRECTOR
Slide 11: Review of Interim Results
Review of Interim Results Six months ended 31st October 2008 • Summary of Performance and Financial Position • Scheme of Arrangement – Revised September 2008 • Cash Flow • Income Statement • Balance Sheet • Inventories • Creditors • Land Holdings 11
Slide 12: Summary of Performance
Summary of Performance 6 months to 6 months to Oct 2008 Oct 2007 Change Operating profit £80.6m £94.7m - £14.1m - 14.9% Operating margin 17.8% 21.5% Profit before tax £79.6m £90.6m - £11.0m - 12.1% EPS – Basic 47.8p 52.6p - 4.8p -9.1% Cash generated £142.7m £31.7m Return on Capital Employed 25.3% 25
Slide 13: Summary of Financial Position
Summary of Financial Position At 31 Oct At 30 Apr 2008 2008 Change Shareholders Funds £714.6m £681.4m + £33.2m + 4.9% Net Asset Value per Share 594.0p 564.0p + 30.0p + 5.3% Closing net cash / (debt) £138.2m (£4.5m) + £142.7m Land Bank - Plots 30,278 31,365 - 1,087 - Gross margin £2,147m £2,728m - £5
Slide 14: Scheme of Arrangement – Current Schedule
Scheme of Arrangement – Current Schedule 2004 B Share £5 single cash payment 3rd December 2004 2006 B Share £2 single cash payment 8th January 2007 2008 B Share £2 single cash payment 4th January 2008 2010 B Share £3 single cash payment by 31st January 2011 Revised to take advantage of current marke
Slide 15: Shares in Issue
Shares in Issue Shares 1 Currently issued (net of 0.5 million EBT shares) 120.3m 87% 2004(b) LTIP shares conditionally vested (Element1) 16.0m Awards delivered on 1st tranche (Element 1A) (4.0m) Outstanding Element 1 shares 12.0m 9% 2004(b) LTIP shares to vest once £3 returned (Element 2) 5.3m 4% 13
Slide 16: Abridged Group Cash Flow
Abridged Group Cash Flow 6 Months to 6 Months to Oct 2008 Oct 2007 Change £m £m £m Profit before tax 79.6 90.6 (11.0) Underlying working capital movements 75.9 (32.4) 108.3 Tax 11.7 (31.5) 43.2 Investing activities (1.1) (3.9) 2.8 Non-cash items and other movements 5.0 8.9 (3.9) 171.1 31.7 139.4 Sha
Slide 17: Homes Completed and Average Selling Price
Homes Completed and Average Selling Price Units ASP 2008/09 HY01 968 £399,000 2007/08 HY02 1,537 £347,000 2007/08 HY01 1,630 £245,000 2006/07 HY02 1,556 £285,000 2006/07 HY01 * 1,737 £296,000 2005/06 HY02 * 1,907 £297,000 2005/06 HY01 * 1,910 £322,000 2004/05 HY02 * 1,389 £351,000 2004/05 HY01 * 1,7
Slide 18: Abridged Group Income Statement (1)
Abridged Group Income Statement (1) 6 Months to 6 Months to Oct 2008 Oct 2007 Change £m £m £m House-building 402.4 409.0 - 6.6 - 1.6% Land Sales 25.5 13.1 + 12.4 + 94.7% Commercial 24.7 19.3 + 5.4 + 28.0% Revenue 452.6 441.4 + 11.2 + 2.5% Gross margin 122.3 27.0% 141.4 32.0% - 19.1 - 13.5% Overheads
Slide 19: Abridged Group Income Statement (2)
Abridged Group Income Statement (2) 6 Months to 6 Months to Oct 2008 Oct 2007 Change £m £m £m Profit before interest and tax 79.3 93.2 - 13.9 - 14.9% - Bank interest 1.7 2.5 - 0.8 - Facility refinancing fees - (1.8) + 1.8 - Other (1.4) (3.3) + 1.9 Net finance income/(costs) 0.3 (2.6) + 2.9 Profit be
Slide 20: Abridged Group Balance Sheet
Abridged Group Balance Sheet At 31 Oct Underlying At 30 Apr 2008 Movements 2008 £m £m £m Non-current assets - Goodwill 17.2 - 17.2 - Other intangibles 0.2 (0.5) 0.7 - Deferred taxation 36.5 (2.6) 39.1 - Other 6.4 (0.6) 7.0 Inventories 1,152.3 (79.6) 1,231.9 Debtors 15.8 (5.0) 20.8 Creditors (652.0)
Slide 21: Inventories
Inventories At 31 Oct Underlying At 30 Apr 2008 Movements 2008 £m £m £m Land not under development 134.0 (50.6) 184.6 Work in progress: Land cost 560.8 (42.1) 602.9 694.8 (92.7) 787.5 Work in progress: Build cost 384.7 (10.2) 394.9 Completed units 72.8 23.3 49.5 Part Exchange units - - - 1,152.3 (79
Slide 22: Creditors
Creditors At 31 Oct Underlying At 30 Apr 2008 Movements 2008 £m £m £m Trade creditors and accruals 255.9 (34.2) 290.1 Deposits and on account receipts 221.2 50.4 170.8 Short-term land creditors 36.0 (29.3) 65.3 Short-term creditors 513.1 (13.1) 526.2 Current tax liability 84.1 27.7 56.4 Long-term la
Slide 23: Land Bank
Land Bank At 31 Oct Variance At 30 Apr 2008 2008 Owned 22,555 - 510 23,065 Contracted 7,723 - 291 8,014 Agreed - - 286 286 Plots * 30,278 - 1,087 31,365 Sales value £7,653m - £1,568m £9,221m Average selling price £253k - £41k £294k Average plot cost £35k - £3k £38k Land cost % 14.0% + 0.9% 13.1% Gro
Slide 24: Questions
Questions Tony Pidgley Managing Director Rob Perrins Finance Director Tony Carey Executive Director Greg Fry Executive Director 24
Slide 25: Beaufort Park
cs, Beaufort Park Beaufort Park ¢ 25 acres on former RAF Hendon site in North London ¢ 2990 homes will be constructed ¢ 542 homes are complete The Berkeley Group Holdings plc
Slide 26: Chelsea Bridge Wharf
<=. Chelsea Bridge Wharf Chelsea Bridge Wharf ¢ 7 acres adjacent to Chelsea Bridge acquired in 1999 ¢ 1,075 homes together with 220 bed hotel and 60,000 sq.ft of office space ¢ 883 homes completed The Berkeley Group Holdings plc
Slide 27: Grosvenor Waterside
Grosvenor Waterside 10 acres of riverside property in SW1 acquired in 2000 ¢ 917 homes and 32,000 sq.ft of commercial space ¢ 295 homes are completed ¢ Fully sold to Qatari Diar ¢ Adjacent to Barracks site ¢ Due for completion by 2012 The Berkeley Group Holdings plc
Slide 28: Holborough
Holborough ¢ 52 acres in Kent acquired in 2001 ¢ 1,279 ‘New England' style homes ¢ Built on site of former quarry around lakeside setting The Berkeley Group Holdings plc
Slide 29: Imperial Wharf
7] a <=. Imperial Wharf Imperial Wharf ¢ 32 acres in Fulham adjacent to the River Thames, acquired in 1997 * 1,828 homes and 300,000 sq.ft of commercial space os ¢ 1,201 new homes completed ¢ 10 acres of landscaped parkland and creation of new railway station The Berkeley Group Holdings plc
Slide 30: Kidbrooke
cz, Kidbrooke Kidbrooke ¢ 269 acres site acquired from Greenwich Council ¢ Major redevelopment of existing Ferrier Estate ¢ The scheme will deliver circa 4,000 new homes when complete The Berkeley Group Holdings plc
Slide 31: Queen Mary's Place
Queen Mary’s Place ¢ 14 acres, the former Queen Mary's Hospital in Roehampton was acquired in 2006 ¢ Planning consent for 448 homes ¢ Includes Grade | listed ‘Queen Mary's House’ 213 homes sold The Berkeley Group Holdings plc
Slide 32: Royal Worcester
Royal Worcester Royal Worcester * 8 acres on site of former Royal Worcester Porcelain site ¢ Acquired in 2004, now has planning for 370 new homes ¢ Includes 68,000 sq.ft of commercial office space The Berkeley Group Holdings plc
Slide 33: Stanmore Place
Stanmore Place Stanmore Place ¢ 12 acres in Stanmore, North London ¢ 798 new homes ¢ 63,000 sq.ft of commercial space The Berkeley Group Holdings plc
Slide 34: St George Wharf
St George Wharf 7 acres of riverside property at Vauxhall, London ¢ 1,828 homes and 150,000 sq.ft of commercial space * 921 homes completed ¢ 275 meter riverside promenade alongside River Thames ¢ 180 meter high ‘St George Tower' to be constructed The Berkeley Group Holdings plc
Slide 35: Sugar House
<=, Sugar House ¢ Site of former Natwest processing centre in E1, a Grade II Victorian building ¢ 294 new homes including 42 refurbished homes in Sugar House ¢ 196 homes completed The Berkeley Group Holdings plc
Slide 36: Royal Arsenal
Jsss Royal Arsenal Royal Arsenal ¢ Site of former Royal Arsenal works from London Development Agency in 2002 ¢ 1,245 new homes now completed ¢ Additional 25 acres acquired on adjacent land for a further 3,700 new homes ¢ Site of proposed new Crossrail Station BUILDING BURA BYLPING.. 2005 The Berkele
Slide 37: Gunwharf Quays
Gunwharf Quays ¢ Asite of former MOD Naval Ordnance in Portsmouth ¢ Acquired in 1996, the development comprises 899 new homes ¢ 809 new homes completed ¢ Gunwharf Quays award winning factory outlet shopping centre completed in 2001 comprising 95 designer outlet stores, 30 bars and restaurants, a cin
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