Slide 1: Full Year Results 2022
Full Year Results 2022 March 2023 Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration
Slide 2: Agenda
Agenda ■ Introduction and strategy01 Tim Roberts ■ Financial review06 Darren Littlewood ■ Operational review10 Tim Roberts/Darren Littlewood ■ Outlook20 Tim Roberts Tim Roberts Darren Littlewood Chief Executive Officer Chief Financial Officer Henry Boot PLC | 135 years in the making Our Values | Res
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 through cycles Net Asset Value per share 300p 250p Focus on three key 200p markets driven by Low gearing, and positive long-term track record of 150p structural trends with effectively managing 100p clear approach to balance sheet
Slide 5: Strong operational performance
Strong operational performance ■ Sold 3,869 plots at an average gross profit of £6.1k per plot, including 2,170 at Didcot OPERATING PROFIT LAND ■ Land bank increased to c.96,000 plots, with c.9,400 permitted and c.60% SE/Midlands £17.3m PROMOTION ■ Sales contracts exchanged on 992 plots for completi
Slide 6: Clear medium-term objectives set out in 2021
Clear medium-term objectives set out in 2021 Material progress towards targets Measure Medium-term target FY 22 Capital employed £500m £399m1 and on track to grow Return on average capital 10-15% pa 12.0%, middle of the range employed 3,869, exceeding target, forward sales of 992 Land Promotion plot
Slide 7: Responsible Business Strategy
Responsible Business Strategy Our strategy is to embed ESG into our commercial decision making 2025 Target Performance 2025 Target Performance The development of our Increase gender representation Our Develop and deliver a strategy, in collaboration with in management positions with Strong progress,
Slide 8: Financial Review
Financial Review Speaker Darren Littlewood Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 6
Slide 9: Financial highlights
Financial highlights Higher operating profit driving significant increase in ROCE FY 22 FY 21 Change ■ Revenue increased 48% reflecting higher Revenue £341.4m £230.6m +48% development activity and land and property sales ■ Best ever underlying profit before tax of £56.1m Operating profit £46.5m £35.
Slide 10: Balance sheet
Balance sheet Strong NAV growth whilst gearing Dec 22 Dec 21 maintained within optimal range Investment property1 £106.4m £125.9m ■ Disposals and revaluation deficit reduced investment Property, plant & equipment £28.7m £26.3m property (including share of JVs) to £106.4m Inventories £291.8m £235.3m
Slide 11: Cash generation and change in net debt
Cash generation and change in net debt Selective investments made in the year £m 80 70 4.1 Operations £30.3m 60 (14.6) 50 (8.2) 3.2 40 63.7 30 48.6 20 40.5 (46.5) 10 Non-cash items £0.2m 12.4 (9.8) 0 -10 (5.2) 0.7 2.9 9.8 Investments £38.4m (4.4) -20 Net Debt 1 Jan 2022 Operating profit Depreciation
Slide 12: Operational Review
Operational Review Speakers Tim Roberts and Darren Littlewood Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 10
Slide 13: Land Promotion
Land Promotion Strong sales volume with significant embedded value ■ 3,869 plots sold, including significant disposal at Didcot (2,170 plots) to national housebuilders PLOTS SOLD PROFIT PER PLOT ■ UK greenfield land values increased by 2% in 2022 ■ Added 6,906 plots into the land bank 3,869 £6.1k ■
Slide 14: Land Promotion: one of the largest strategic land banks
Land Promotion Continuing to grow one of the largest strategic land banks in the country Plots Sold Average Gross Profit Per Plot £'000 4,000 3,869 3,500 3,573 3,427 15 3,008 3,000 SCOTLAND TOTAL PLOTS 2,500 10 9 9,630 95,704 2,000 1,500 2,000 8 7 8 6 1,000 500 0 0 NORTH 2018 2019 2020 2021 2022 201
Slide 15: Land Promotion: over 1,800 new homes in Milton Keynes
Land Promotion Providing over 1,800 new homes in Milton Keynes What is it? ■ 342-acre site located south of the A421 in Milton Keynes ■ Long-term option secured in 1998 ■ Promoted as a sustainable urban extension of Milton Keynes as part of the South West Milton Keynes Consortium How we have created
Slide 16: Property Investment & Development
Property Investment & Development Committed development pipeline provides strong platform for growth OPERATING HBD PIPELINE ■ HBD completed £83m of developments PROFIT GDV £25.7m £1.25bn ■ Committed development programme £240m, 63% pre-let/ pre-sold ■ 97% of development costs fixed on committed prog
Slide 17: Committed programme
Committed programme £240m GDV, of which 63% has been pre-let or pre-sold Area GDV Expected Scheme Units HBD Share Status '000 sq ft (£m)* Completion Industrial & Logistics Nottingham, New Horizon 426 - 100% 54 Forward funded Q2 23 Luton, Diploma 85 - 100% 20 Pre-let Q2 23 Preston East, DPD & DHL 122
Slide 18: Strong £1.25bn pipeline with significant value
Strong £1.25bn pipeline with significant value 65% of future pipeline focused on Industrial & Logistics Committed Consented Proposed Total Pipeline Big Box 0.1m sq ft 1.5m sq ft c.2.4m sq ft c.3.9m sq ft Ind & Logistics Mid/Small Box 0.9m sq ft 1.0m sq ft c.1.9m sq ft c.2.9m sq ft Consented Ind & Lo
Slide 19: Inclusive new community in Birmingham's Jewellery Quarter
Property Investment & Development Providing an inclusive new community in Birmingham's Jewellery Quarter What is it? ■ Neighbourhood, a 2.6 acre site with planning permission, located within the Jewellery Quarter area of Birmingham, in a prime city centre location ■ Acquired the site in April 2021 W
Slide 20: Stonebridge
Stonebridge Delivering high-quality homes ■ Average private selling price £503k (Dec 21: £509k) ■ Price improvement 10% offsetting cost inflation at 9% ■ 175 units completed in 2022, an increase of 46% ■ Enter 2023 with 56% reservations secured against delivery target of 250 units ■ Target sales rat
Slide 21: Construction
Construction Segment performed ahead of expectations ■ Comprises Construction, Plant Hire and Road Link (A69) and accounts for just 2% of Group's capital employed OPERATING TURNOVER PROFIT ■ Despite experiencing challenges with the supply chain, both Sheffield city centre sites (combined value £82m)
Slide 22: Outlook
Outlook Speaker Tim Roberts Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 20
Slide 23: Outlook
Outlook We remain in a strong position to achieve our medium-term targets ■ Best ever underlying profits position the business well ■ Encouraging level of order book and pre-sales ● Hallam Land 992 plots exchanged for 2023/24 ● HBD committed programme 63% pre-let/sold ● Stonebridge 56% of units pre-
Slide 24: Well placed for the future
Well placed for the future Investing to support growth Property Land Promotion Development Housebuilding Construction & Investment Multi-Regional Premium c.96,000 Strategic Land c.£1.25bn Development Strong Order Book With Housebuilder - land bank Plots Pipeline Public Sector Focus with 1,094 plots
Slide 25: Appendices
Appendices ■ Group Structure – Segment Composition ■ Group Structure – Board of Directors ■ Group Structure – Business Segments and Executive Committee ■ Business Model ■ Our Strategy ■ The Henry Boot Way ■ Statement of Financial Position ■ Investment Property ■ Movement in NAV per Share ■ Pensions
Slide 26: 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 27: Group structure: Board of Directors
Group structure Board of Directors Peter Mawson Tim Roberts Darren Littlewood Joanne Lake Chair Chief Executive Officer Chief Financial Officer Senior Independent Director Serena Lang Gerald Jennings James Sykes Non-executive Director Non-executive Director Non-executive Director Henry Boot PLC | 13
Slide 28: Group structure: Business Segments and Executive Committee
Group structure Business Segments Executive Committee Land Promotion Hallam Land Management Limited Nick Duckworth Jonathan Fisher Edward Hutchinson Tony Shaw Hallam Land Banner Plant Henry Boot Henry Boot Property Management Limited Limited Developments Limited (trading as Construction Limited Inve
Slide 29: Business model
Business model Track record of generating attractive returns Land Promotion Property Investment & Development Housebuilding SALE OF LAND SALE OF PROPERTY CONSTRUCTION Construction IDENTIFY OBTAIN PLANNING DEVELOPMENT INVESTMENT OPPORTUNITIES PERMISSION OF SITE PORTFOLIO AND ACQUIRE LAND Henry Boot P
Slide 30: Our strategy
Our strategy Clear focus on three key markets with long-term structural trends Long Term Industrial & Logistics Residential Urban Development Markets Value Delivery LAND PROPERTY INVESTMENT HOUSEBUILDING CONSTRUCTION PROMOTION & DEVELOPMENT Returns Grow capital employed to over £500m + ROCE 10-15% p
Slide 31: The Henry Boot Way
The Henry Boot Way Purpose, Vision and Values Henry Boot PLC has been in business for over 135 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 des
Slide 32: Statement of Financial Position
Statement of Financial Position Dec 22 Dec 21 Dec 22 Dec 21 Cash and cash equivalents 17.4 11.1 Property, plant and equipment 28.8 26.3 Borrowings (65.0) (50.0) Investment properties 97.1 104.2 Investment in joint ventures and associates 10.0 12.2 Lease liabilities (1.0) (1.7) Trade and other receiv
Slide 33: Investment property
Investment property Occupancy increased whilst rent collection rates remain high Dec 2022 Dec 2021 Valuation - inc. share of JV's £106.2m £125.3m Number of properties 22 21 Total area – '000 sq ft 856 843 % industrial and alternative 69% 67% Net passing rent £5.3m £5.1m Net initial yield 5.6% 4.1% N
Slide 34: Movement in NAV per share
Movement in NAV per share Growth in profit and pension scheme gain driving NAV growth 310p 300p (0.6p) (5.8p) +10.5% 1.1p (9.3p) 8.4p 290p 34.8p 280p 270p 295p 260p 250p 267p 240p 230p Pension scheme 1 Jan 2022 Operating profit Interest Tax Dividends Other items 31 Dec 2022 Henry Boot PLC | 135 year
Slide 35: Pensions
Financial Pensions ■ Triennial valuation concluded March 2023 130% ■ Recovery contributions now £1.2m pa, 120% previously £3.65m pa 110% ■ 1,326 total membership, 554 deferred and 100% 772 in payment 90% ■ IAS19 surplus £6.2m at 31 December 2022 80% 70% ■ £2.4m deficit on technical provisions 60% va
Slide 36: Shareholding
Shareholding as at 22 February 2023 24.8% 33.0m Main institutional shareholders 8.7m London & Amsterdam Trust Co/Rovida 5.6m Polar Capital 3.0m Dimensional Fund Advisors 2.9m Schroder Investment Management 2.6m abrdn 2.6m Hargreaves Lansdown 2.3m Interactive Investor 46.1% 133m 2.0m BlackRock 1.7m W
Slide 37: Strong track record: Five-year Financial Results
Strong track record Five-year Financial Results 2018 – 2022 Dividends per Turnover Operating Profit Profit Before Tax Ordinary Share 2022 £341.4m 2022 £46.5m 2022 £45.6m 2022 6.66p 2021 £230.6m 2021 £35.6m 2021 £35.1m 2021 6.05p 2020 £222.4m 2020 £17.5m 2020 £17.1m 2020 5.5p 2019 £379.7m 2019 £50.4m
Slide 38: Share price
Share price Henry Boot PLC Share Price vs Benchmark Indices 375 Henry Boot 350 FTSE All Share Real Estate Investment & Services 325 FTSE All Share 300 275 250 225 200 175 150 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 22 22 22 22 22 22 22 22 22 22 22 22 23 23 23 Henry Boot PLC | 135
Slide 39: 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