Slide 1: Interim Results September 2022
Interim Results September 2022 Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration
Slide 2: Agenda
Agenda ■ Introduction and strategy01 Tim Roberts ■ Financial review07 Darren Littlewood ■ Operational review11 Tim Roberts/Darren Littlewood ■ Outlook22 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 Clear focus on three 200p key markets driven Low gearing, and by positive long-term track record of 150p structural trends with effectively managing 100p clear approach to balance
Slide 5: Strong operational performance
Strong operational performance ■ Sold 3,447 plots at an average gross profit of £6.0k per plot, including 2,170 plots disposed at Didcot to national OPERATING PROFIT housebuilders LAND ■ Land bank maintained c.93,000 plots with c.60% SE/Midlands £17.2m PROMOTION ■ Contracts exchanged for sale of 1,2
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 HY 22 Capital employed £500m £399m1 and on track to grow Return on average capital 10.1% in H1 22, FY 22 expected 10-15% pa to be top end of stated strategic employed range 3,447 in H1 22, FY 22
Slide 7: Significant activity in 2022
Significant activity in 2022 Hallam Land and HBD sales total £130m, taking advantage of strong markets Land Investments Developments Construction The Cocoa Works, Latimer by Clarion Housing Group© • Hallam Land land sales of • Disposal of Wakefield • Forward funded £21m of • Making good progress on
Slide 8: Responsible Business Strategy
Responsible Business Strategy Our strategy will embed ESG factors into our commercial decision making 2025 Target Performance 2025 Target Performance Increase gender Strategy in collaboration with Develop and deliver a Group- representation in Female representation up 2% our people is progressing Ou
Slide 9: Financial Review
Financial Review Speaker Darren Littlewood Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 7
Slide 10: Financial highlights
Financial highlights Higher operating profit driving significant increase in ROCE ■ Revenue increased 12% reflecting higher levels of development and construction contract activity along with increased development land sales H1 22 H1 21 Change ■ Admin and pension expenses increased by 3% with Revenu
Slide 11: Balance sheet
Balance sheet Strong NAV growth whilst gearing Jun 22 Dec 21 maintained within optimal range Investment property1 £111.9m £104.2m ■ Revaluation gains on retained development Property, plant & equipment £28.0m £26.3m completions increased investment property Investments in joint ventures £15.6m £12.
Slide 12: Cash generation and change in net debt
Cash generation and change in net debt Selective investments made in the year Operations £19.8m Investments (£17.0m) £m Non-cash items £11.3m 0 2.5 (3.4) -10 (10.4) -20 (0.2) (1.0) (6.8) (43.5) 39.1 (42.8) 0.3 -30 (22.1) -40 7.7 (0.7) (1.4) (2.9) -50 1 Jan 2022 Operating profit Depreciation and amor
Slide 13: 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 11
Slide 14: Land Promotion
Land Promotion Strong sales volume and rising land prices ■ 3,447 plots sold, including significant disposal at Didcot (2,170 plots) to national housebuilders PLOTS SOLD PROFIT PER PLOT ■ UK greenfield land values increased by 3.6% in H1 22 ■ 1,282 plots exchanged for sale in 2023/24 3,447 £6.0k ■ T
Slide 15: Land Promotion
Land Promotion Continuing to grow one of the largest strategic land banks in the country Plots Sold Average Gross Profit Per Plot £000 3,500 3,573 3,427 3,447 15 3,000 3,008 2,500 10 SCOTLAND 9 TOTAL PLOTS 2,000 8 10,156 2,000 8 7 92,981 1,500 6 1,000 500 0 0 2018 2019 2020 2021 H1 22 2018 2019 2020
Slide 16: Land Promotion: Didcot
Land Promotion Providing over 2,000 new homes in Didcot What is it ■ 40-acre site located on the western fringe of Didcot, 4 Oxfordshire ■ Took control of just over half of the site in 2013 before promoting in partnership with Taylor Wimpey and Persimmon, who controlled other parts of it How we have
Slide 17: Property Investment & Development
Property Investment & Development Committed development pipeline provides strong platform for growth ■ HBD completed £51m GDV (HBD share £37m) of developments OPERATING HBD PIPELINE PROFIT GDV ■ Committed development programme £343m (HBD share ■ £262m), 73% pre-let/pre-sold 97% of development costs
Slide 18: Committed programme
Committed programme £262m GDV, of which 73% has been pre-let or pre-sold Scheme Units Area '000 sq ft HBD Share GDV (£m)* Expected Finish Industrial & Logistics Nottingham, New Horizon Pool, MKM - 15 100% 4 H2 22 ■ GDV £54m Southend - 75 100% 12 H2 22 ■ HBD share 100% Luton, Diploma - 85 100% 20 H1
Slide 19: Over 7m sq ft and c.800 residential units pipeline
Over 7m sq ft and c.800 residential units, and 0.2m sq ft of commercial 68% of future pipeline: focused on Industrial & Logistics Committed Consented Proposed Total Pipeline Big Box 0.3m sq ft 1.8m sq ft c.2.5m sq ft c.4.3m sq ft Ind & Logistics Mid/Small Box 0.7m sq ft 1.0m sq ft c.1.6m sq ft c.2.6
Slide 20: Property Investment & Development: Rainham
Property Investment & Development Providing sustainable logistics space in Greater London What is it ■ A 20-acre brownfield site in Rainham, located close to Central London and within 5 miles of J30 of the M25 ■ Acquired in August 2021 in an 20-80 joint venture with Barings Real Estate What are we d
Slide 21: Stonebridge
Stonebridge Delivering high-quality homes ■ ointly owned premium housebuilder focused on J Yorkshire and the North East ■ Average private selling price £512k (Jun 21: £487k) ■ Price improvement 11% offsetting cost inflation at 9% ■ 49 units completed in H1 22, expect to meet annual target of 200 uni
Slide 22: Construction
Construction Performance levels back to pre CV-19 ■ Comprises Construction, Plant Hire and Road Link (A69) and accounts for just 2% of Group's capital employed OPERATING TURNOVER PROFIT ■ Kangaroo Works, Sheffield (£38.9m) and Cocoa Works, York (£47m) urban development schemes are progressing on tra
Slide 23: Construction
Construction Headingley Learning Centre, Leeds Allerton High School, Leeds What is it What is it ■ A £7m renovation of the former Rose Court School, ■ An £8m two-storey extension at Allerton High Leeds School, Leeds What are we doing What are we doing ■ Providing further SEN provision in Leeds, whil
Slide 24: Outlook
Outlook Speaker Tim Roberts Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 22
Slide 25: Outlook
Outlook Strong first half and positive future prospects ■ Performed strongly in H1 22, with profits increasing by 68% ■ Strong order book and pre-sales ● Hallam Land 1,282 plots exchanged for 2023/24 ● HBD committed programme 73% pre-let/sold ● Stonebridge 52 units pre-sold for 2023 ● Construction o
Slide 26: 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.93,000 Strategic Land c.£1.2bn Development Strong Order Book With Housebuilder - land bank Plots Pipeline Public Sector Focus with 1,164 plots H
Slide 27: 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 28: 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 29: 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 30: 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 31: 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 32: 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 33: 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 34: Statement of Financial Position
Statement of Financial Position Jun 22 Dec 21 Jun 22 Dec 21 Cash and cash equivalents 21.5 11.1 Property, plant and equipment 28.0 26.3 Borrowings (62.9) (52.8) Investment properties 100.7 104.2 Investment in joint ventures and associates 15.6 12.2 Lease liabilities (1.4) (1.7) Trade and other recei
Slide 35: Investment property
Investment property Occupancy increased whilst rent collection rates remain high Jun 2022 Dec 2021 Montagu 406, Enfield ■ Small/Mid Box logistics Valuation - inc. share of £133.8m £125.3m ■ 55,000 sq ft JV's1 ■ HBD share 50% Number of properties 22 21 ■ Completed in 2021 Total area –‘000 sq ft2 892
Slide 36: Movement in NAV per share
Movement in NAV per share Growth in profit and pension scheme driving NAV growth 310p 300p +11.2% (0.3p) (4.5p) 0.4p 290p 10.6p (5.1p) 280p 29.3p 270p 297p 260p 250p 267p 240p 230p Pension scheme 1 Jan 2022 Operating profit Interest Tax Dividends Other items 30 Jun 2022 Henry Boot PLC | 135 years in
Slide 37: Pensions
Financial Pensions 130% 120% 110% 100% ■ Triennial valuation commenced 1 January 90% 2022 80% ■ Recovery contributions currently £3.45m 70% pa 60% Cumulative return ■ IAS19 surplus £8.4m at 30 June 2022, asset 50% performance -6.2%. Discount rate 3.9% 40% (Dec 21: 2.0%). Scheme breakeven 3.2% 30% (D
Slide 38: Shareholding as at August 2022
Shareholding as at 22 August 2022 26.4% 35.2m Main institutional shareholders 8.4m London & Amsterdam Trust Co/Rovida 6.4m Polar Capital 3.3m abrdn 2.9m Schroder Investment Management 2.9m Dimensional Fund Advisors 2.6m Artemis Investment Management 2.5m Hargreaves Lansdown 45.9% 133m 2.5m Interacti
Slide 39: Five-year Financial Results 2017-2021
Strong track record Five-year Financial Results 2017 – 2021 Dividends per Turnover Operating Profit Profit Before Tax Ordinary Share 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 2019 £49.1m 2019 5.0p 2018 £397.1m 2018 £50.0m
Slide 40: Share price
Share price Henry Boot PLC Share Price vs Benchmark Indices 370 Henry Boot 350 FTSE All Share Real Estate Investment & Services 330 FTSE All Share 310 290 270 250 230 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 21 21 21 21 21 21 21 21 21 21 21 21 22 22 22 22 2
Slide 41: 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