Glenveagh Properties Plc · EURONEXT:GVR
Glenveagh Properties — H1 2022 Earnings Presentation
28 slides from Glenveagh Properties's earnings presentation, September 2022
Slide 1: Interim Results – 30 June 2022
Making life better Interim Results – 30 June 2022
Slide 2: Section agenda
Section Key Operational Highlights 3 Alignment With Market Opportunity 7 Enhancing Delivery Capability 13 Financial Review 20 Conclusion 26
Slide 3: Key Operational Highlights
Key Operational Highlights
Slide 4: Growing A Diversified And Sustainable Business Across Three Segments
Key Operational Highlights Growing A Diversified And Sustainable Business Across Three Segments Aligned With Our Stakeholder Enhancing Suburban Market Expectations Delivery Capital Efficiency & All remaining Opportunity Drive Strategy Capabilities 257 units closed units now closed Shareholder Return
Slide 5: Suburban – Starter Homes Targeting The Broadest Segment Of Buyers
Key Operational Highlights Suburban – Starter Homes Targeting The Broadest Segment Of Buyers • Attractive product offering – sustainable, high-quality ✓ Closed unit 257 completions in H1 2022, a 31% Brand Awareness V Other Homebuilders homes in flourishing communities increase versus H1 2021 • Targe
Slide 6: Monetising And De-Risking The Urban Portfolio
Key Operational Highlights Monetising And De-Risking The Urban Portfolio Urban As A % Of Portfolio Assets Monetised Benefits ✓ 208 units at Marina Village for approximately ✓ Approximately €600m of urban revenue 40% €97m generated from these transactions, with 35% approximately €270m yet to be recog
Slide 7: Alignment With Market Opportunity
Alignment With Market Opportunity
Slide 8: Economy, Timing And End-Markets Favourable For Long-Term Success
Alignment With Market Opportunity Economy, Timing And End-Markets Favourable For Long-Term Success GDP- Ireland Best Placed in 2022 Wage Inflation Driving Affordability 8% ✓ Continuing full 4.0% 2,600 6% 3.0% 2,500 employment 4% 2.0% 2,400 levels driving 1.0% 2,300 2% 0.0% 2,200 wage inflation 0% -1
Slide 9: Housing Completions Not Keeping Pace With Demand
Alignment With Market Opportunity Economy, Timing And End-Markets Favourable For Long-Term Success Housing Completions Not Keeping Pace With Demand Fall In Commencements Indicating Delivery Slowdown 35,000 10,000 30,000 8,000 25,000 30,000 20,000 6,000 15,000 25,000 4,000 Completions 10,000 Rolling
Slide 10: Legislation Will Support Future Housing Demand
Alignment With Market Opportunity Legislation Will Support Future Housing Demand Policy Impact On Glenveagh • Scheme launched in July 2022 1. First Home • 29 customers utilising scheme expected to close sales in 2022, with 75% of suburban portfolio qualifying Scheme • Strong demand anticipated with
Slide 11: Affordable Suburban Portfolio – First Home Scheme Example
Alignment With Market Opportunity Affordable Suburban Portfolio – First Home Scheme Example Mortgage v Renting Pre First Post First • The First Home scheme will see the State Home Home • The average cost of renting a home in Co. Kildare now stands at €1,605 take up to a 30% stake in the homes of Sch
Slide 12: Current Land Portfolio
Alignment With Market Opportunity Current Land Portfolio Landbank - Current Landbank - 30 June 2020 Units Delivering In 2023 With Planning 2,044 20% Suburban 4,933 Suburban Planned 2,054 Partnerships Urban Unplanned 11,237 Urban 9,874 80% Land Portfolio – Potential Customer- 2022 Land Portfolio – Po
Slide 13: Enhancing Delivery Capability
Enhancing Delivery Capability
Slide 14: Navigating a Significant Inflationary Environment
Enhancing Delivery Capability Navigating a Significant Inflationary Environment Near Term Inflation Challenges Inflation Challenge Examples Inflation Mitigation Insulation Price Increases • Supply chain integration driving improved construction times and increased cost control, allows for integratio
Slide 15: Sustainable Manufacturing Capability – Progress In Our Focus Areas
Enhancing Delivery Capability Sustainable Manufacturing Capability – Progress In Our Focus Areas Manufacturing Strategy Pillars Universal Benefits 1 2 Integration with site processes 3 Innovation through continuous ✓Critical path items controlled Controlling critical path items to to increase speed
Slide 16: Sustainable Manufacturing Capability – Harmony Timber Solutions Acquisition
Enhancing Delivery Capability Sustainable Manufacturing Capability – Harmony Timber Solutions Acquisition • Harmony employs over 50 people and operates from a purpose-built state-of-the Key Attractions art facility capable of producing 450 high-quality timber-frame homes per year • Harmony managemen
Slide 17: Sustainable Manufacturing Capability – Current Footprint
Enhancing Delivery Capability Sustainable Manufacturing Capability – Current Footprint Suburban North (Timber Suburban South (Timber frame Suburban South (Timber ✓Three strategically Frame) - Dundalk and LGS) - Carlow Frame) - Wicklow located facilities • Guaranteed long-term supply • Strategically
Slide 18: Energy Efficient Homes Leading Our Pathway To Net Zero
Enhancing Delivery Capability Energy Efficient Homes Leading Our Pathway To Net Zero Greenhouse Gas Emissions – Scope 1, 2 and 3 – Demonstrates Progress Commentary • Our high energy standards go beyond regulatory compliance Occupant energy (60 yrs) - Unregulated 1.5% 0.1% • Our Building Energy Ratin
Slide 19: Sustainability - Continues To Be A Key Priority In 2022
Enhancing Delivery Capability Sustainability - Continues To Be A Key Priority In 2022 Our Ambition Strategy and Embedding • ‘To set a new benchmark in our sector by delivering the maximum • Sustainability is being integrated throughout the business strategy informed by possible social benefit at the
Slide 20: Financial Review
Financial Review
Slide 21: Income Statement
Financial Review Income Statement 30 June 2022 30 June 2021 • Total revenue for the period was €200.0m (H1 2021: €127.5m) with €88.9m €’m €’m (2021: €58.7m) in Suburban and €111.1m in Urban. Revenue 200.0 127.5 • The suburban revenue representing an increase of 51% on the same period Cost of sales (
Slide 22: Balance Sheet
Financial Review Balance Sheet 30 June 2022 31 December 2021 €’m €’m • Increase in property, plant & equipment is reflective of our continued investment in our manufacturing capabilities Property, plant and equipment 38.8 27.3 • Inventory is split as follows: Other assets 1.8 26.6 • Land and develop
Slide 23: Improving Capital Efficiency of Land Investment
Financial Review Improving Capital Efficiency of Land Investment €’m €’k € 800 € 60 • The Group’s current land portfolio is approximately €490m and on track € 700 to materially surpass our target of € 50 €500m by year end € 600 • Partnership wins will allow the € 40 € 500 Group to reduce the absolut
Slide 24: Significant Cash Generation & Capital Allocation
Financial Review Significant Cash Generation & Capital Allocation €’m 250 • Significant cash generated by the €35m €3m (€161m) business in the 6 months to 30 June 200 2022 with gross cash inflows of €187m €63m • Unit sales delivering €86m in the period with continued progress on the 150 monetization
Slide 25: Financial Summary
Financial Review Financial Summary Income Balance Cashflow 2022 FY Statement Sheet Statement Guidance €200.0m €513.0m €187.0m Approx. €630m (HY 2021: €127.5m) (December 2021: €562.7m) (HY 2021: €139.0m) (FY 2021: €476.8m) Revenue Development land Cash generated Revenue 17.3% €291.9m €161.0m €73m - €
Slide 26: Conclusion
Conclusion
Slide 27: Conclusion
Conclusion External Factors Glenveagh Advantages Market Opportunity Portfolio Alignment Improved Profitability • Resilient underlying economy, • Strong suburban forward order book & Cash Flow with population & wage growth • Deliberate alignment of product with various Housing for All • Significant p
Slide 28: General Disclaimer / ESG Ratings Disclaimer
General Disclaimer This presentation has been prepared by actual performance of the Company may differ Glenveagh Properties PLC (the “Company” or materially from those reflected or contemplated “Glenveagh”) for information purposes only. in such forward-looking statements. No representation or warra