Glenveagh Properties Plc · EURONEXT:GVR
Glenveagh Properties — H1 2024 Earnings Presentation
31 slides from Glenveagh Properties's earnings presentation, Sep 5, 2024
Slide 1: Interim Results 2024
Interim Results 2024 5 SEPTEMBER 2024
Slide 2: Agenda
Agenda H1 2024 Highlights 3 Market Context 11 Strategic & Operating Review 18 Financial Review 25 Q&A 29 IR Contacts & Calendar 30 2
Slide 3: H1 2024 Highlights
Glenveagh H1 2024 Highlights
Slide 4: Strong order book, operational delivery to drive more than doubling in full year EPS
H1 2024 HIGHLIGHTS Strong order book, operational delivery to drive more than doubling in full year EPS Good operational and financial progress ▪ Over 800 completions of our 2,700 full year target in H1 ▪ 190bps improvement in gross margin to 18.2%, driven by Suburban ▪ Third partnership agreement c
Slide 5: Good progress across all business segments
H1 2024 HIGHLIGHTS Good progress across all business segments Suburban Partnerships Urban • H1 completions of 294 units - have • First interim revenue and profits contribution • Completed 510 units, reflecting completion accelerated strongly in the third quarter • Commencing the construction of almo
Slide 6: Disciplined capital allocation supporting growth and returns
H1 2024 HIGHLIGHTS Disciplined capital allocation supporting growth and returns Capital investment policy Capital returns policy Land • Potential landbank opportunities could provide 6,000 units across multiple tenures; attractive return profile Land • Potential to secure partnerships on adjacent si
Slide 7: Strong planning momentum, underpinned by policy initiatives
H1 2024 HIGHLIGHTS Strong planning momentum, underpinned by policy initiatives Strong planning momentum • Permissions granted for approximately 1,500 units year to date • €20bn Permissions in place for >95% of FY 2025 delivery target • On track to lodge applications for >2,000 units this year >1% •
Slide 8: Mapping the next phase of output growth
H1 2024 HIGHLIGHTS Mapping the next phase of output growth Housing completions and output targets Strong foundations in place for output growth ▪ Completions up 3% year on year 90,000 ▪ Commencement growth much faster at 80% year on year, a 80,000 strong indicator of further output increase in 2025
Slide 9: On track to deliver FY 2024 guidance
H1 2024 HIGHLIGHTS On track to deliver FY 2024 guidance FY 2023 FY 2023 FY 2023 €608m 19.3% 8.0 cent underlying ~€950m >20% 17 cent FY 2024 FY 2024 FY 2024 Revenue Suburban Gross EPS Margin FY 2023 FY 2023 FY 2023 €404m €49m 6.9% ~€500m <€200m ~15% FY 2024 FY 2024 FY 2024 Landbank Value* Net Debt RO
Slide 10: Outlook
H1 2024 HIGHLIGHTS Outlook Delivering on our targets Compelling market opportunity ▪ Reiterating FY 2024 guidance for EPS of 17 cent ▪ Highly resilient domestic economy and ROE of approximately 15% Improved ▪ Strong private customer demand ▪ Landbank value of c.€500m at end FY 2024, Profitability &
Slide 11: Market Context
Glenveagh Market Context
Slide 12: Irish economy in good health with scope to invest in housing
MARKET CONTEXT Irish economy in good health with scope to invest in housing GDP Growth Forecasts (%) Budget Surplus as % of GDP/GNI* 4 6.0% 3.5 4.0% 3 2.5 2.0% 2 0.0% 1.5 1 -2.0% 0.5 -4.0% 0 -6.0% France Austria Spain Euro Area Netherlands Germany Sweden Ireland Ireland (GDP) (GNI*) 2024 2025 2024 2
Slide 13: Supportive consumer environment underpins demand
MARKET CONTEXT Supportive consumer environment underpins demand Employment / Wage Inflation Household Deposits €m 15% 165,000 150,000 10% 135,000 5% 120,000 105,000 0% 90,000 -5% 75,000 -10% 60,000 Average Weekly Earnings - YOY % Growth Employment Growth - YOY % Growth By Quarter Source: CSO Source:
Slide 14: First time buyer continues to drive mortgage activity
MARKET CONTEXT First time buyer continues to drive mortgage activity Mortgage Approvals (rolling 12m volume) Residential Transactions (New Homes, rolling 12m) 60,000 20,000 17,500 50,000 15,000 40,000 12,500 30,000 10,000 7,500 20,000 5,000 10,000 2,500 0 - Rolling 12m total First Time Buyers Approv
Slide 15: Existing homes drive increase in overall inflation
MARKET CONTEXT Existing homes drive increase in overall inflation House Price Inflation by Region House Price Inflation by House Type Percentage Growth Over 4 Quarters 18.0% Percentage Growth Over 4 Quarters 16.0% 16.0% 14.0% 14.0% 12.0% 12.0% 10.0% 10.0% 8.0% 8.0% 6.0% 6.0% 4.0% 4.0% 2.0% 2.0% 0.0%
Slide 16: Commencements a promising indicator of increased output
MARKET CONTEXT Commencements a promising indicator of increased output Residential Commencements & Completions Stock of Properties for Sale 70,000 60000 60,000 50000 50,000 40000 40,000 30000 30,000 20000 20,000 10000 10,000 0 0 Dec-10 Dec-12 Dec-14 Dec-16 Dec-18 Dec-20 Dec-22 Jun-24 Rolling 4-Quart
Slide 17: Affordability supported for new home buyers
MARKET CONTEXT Affordability supported for new home buyers Post First Home 2500 Pre First Post First Scheme & CBI Home Scheme Home Scheme changes 2000 € € € Price ceiling (Fingal) n/a 475,000 475,000 1500 3-bed semi-detached, Folkstown Park 400,000 400,000 400,000 1000 Financed by Help to Buy 30,000
Slide 18: Strategic & Operating Review
Strategic & Operating Review
Slide 19: Implementing our strategy
STRATEGIC & OPERATING REVIEW Implementing our strategy Landbank • High quality landbank of over 13,100 units • A disciplined, strategic and sustainable approach to land investment Standardisation • Driving greater efficiencies across value chain • More than doubling output of standardised units in F
Slide 20: Our landbank to execute our strategy
STRATEGIC & OPERATING REVIEW Our landbank to execute our strategy >13,100 UNITS Glenveagh Properties plc | H1 2024 Results | September 2024 20
Slide 21: Delivering our product – increased standardisation across the business
STRATEGIC & OPERATING REVIEW Delivering our product – increased standardisation across the business • In FY 2024 we are more than doubling the number of standard unit • Our progress is underpinned by innovation in off-site manufacturing, housing types that we are supplying and enabled by our compact
Slide 22: Delivering our product – innovative design and compact growth solutions
STRATEGIC & OPERATING REVIEW Delivering our product – innovative design and compact growth solutions Overview Our strong progress • Guidelines published in January • Now implementing compact growth on all suburban schemes • Provides greater flexibility to achieve a broader range of • We have three k
Slide 23: Delivering our product – NUA delivering MMC at scale
STRATEGIC & OPERATING REVIEW Delivering our product – NUA delivering MMC at scale • Operating from three off-site manufacturing facilities in Carlow, Arklow, and Dundalk - strategically located to service all our sites effectively • NUA performed strongly in H1 2024, underpinned by its commitment to
Slide 24: Continued progress with our sustainability ambitions in H1 2024
STRATEGIC & OPERATING REVIEW Continued progress with our sustainability ambitions in H1 2024 Environment Social Governance As at: January 2024 Low Risk As at: June 2023 • Focus on implementing actions in line with our • First business in construction industry to achieve • Strong governance structure
Slide 25: Financial Review
Glenveagh Financial Review
Slide 26: Income Statement
FINANCIAL REVIEW Income Statement 30 Jun 2024 30 Jun 2023 • Total group revenue was €152m (H1 2023: €172m) from three main €’m €’m income streams: Revenue 152.2 171.6 • €102m in our suburban business, a decrease of 6.8%, which is Cost of sales (124.5) (143.7) predominantly due to lower volume unit c
Slide 27: Balance Sheet
FINANCIAL REVIEW Balance Sheet 30 Jun 2024 31 Dec 2023 €’m €’m • Inventory is split as follows: • Land and development rights - €439m (2023: €433m) Property plant and equipment 63.2 64.2 • Development expenditure (WIP) - €441m (2023: €275m) Other assets 9.5 9.3 • The net increase in land of €6m is p
Slide 28: Net Debt remains within prudent levels
FINANCIAL REVIEW Net Debt remains within prudent levels • Net operating cash outflows mainly €’m reflect the significant investment in our WIP which will unwind in H2 2024 • Net debt at period end increased to €244m (December 2023: €49m) • We anticipate that net debt will fall to below €200m by the
Slide 29: Q&A
< Fen) (@) g c < a) 03 ‘U)
Slide 30: IR Contacts & Calendar
IR Contacts & Calendar IR Contacts Michael Rice CFO Jack Gorman Head of IR and Corporate Affairs investors@glenveagh.ie IR Calendar FY 2024 Period End 31 December 2024 FY 2024 Trading Update 9 January 2025 FY 2024 Results 13 March 2025 Glenveagh Properties plc | H1 2024 Results | September 2024 30
Slide 31: General Disclaimer
General Disclaimer This announcement does not constitute or form any part of an invitation to underwrite, subscribe for or otherwise acquire or dispose of any shares of Glenveagh Properties plc ("Glenveagh" or "the Group"). This announcement contains statements that are, or may be deemed to be, forw