Slide 1: Full Year Results 2020
Full Year Results 2020 March 2021 Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration
Slide 2: Agenda
Agenda ■ Introduction and strategy01 Tim Roberts ■ Financial review08 Darren Littlewood ■ Operational review12 Tim Roberts/Darren Littlewood ■ Outlook24 Tim Roberts Tim Roberts Darren Littlewood Chief Executive Officer Group Finance Director Henry Boot PLC | 135 years in the making Our Values | Resp
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 Net Asset Value per share 250p Responsible business Cash generative 200p with clear focus on with track record of three key markets managing gearing 150p driven by positive and the balance 100p long-term structural sheet effectivel
Slide 5: Operational performance remained robust
Operational performance remained robust ■ Sold 2,000 plots and a significant JV site OPERATING PROFIT ■ Land bank of c.16,600 acres comprising 88,070 plots LAND with c.60% SE/Midlands ■ Planning consents on 2,708 plots (2019: 1,651) in the £14.2m PROMOTION year 2019: £31.0m ■ Completed £58m of devel
Slide 6: Our strategy
Our strategy Focused on three long-term markets Industrial & Logistics Residential Urban Development LAND PROPERTY INVESTMENT HOUSEBUILDING CONSTRUCTION PROMOTION & DEVELOPMENT Grow capital employed by around £150m Target ROCE of 10–15% ESG + People Strategy Henry Boot PLC | 135 years in the making
Slide 7: Opportunities for growth
Opportunities for growth Significant embedded value across the business Property Land Promotion Development Housebuilding Construction & Investment c.£1.4bn development Multi-regional premium Full order book with 16,600 acres or c.88,000 pipeline (HBD share house builder with 1,119 focus on public s
Slide 8: Our targets
Our targets Clear medium-term operational targets Measure Medium term target Current Land Promotion plot sales c.3,500 per annum 2,000 in 2020 HBD development completions HBD share c.£200m per annum HBD share £85m in 2021 Grow investment portfolio To around £150m £83m as at 31 Dec 2020 Stonebridge h
Slide 9: Strategic approach to ESG
Strategic approach to ESG Two-phase launch aligning all our responsible business activity Phase one Phase two Launch of 135 Launch of New Launch of our Launch of Henry Boot & Equality, Diversity, Pathway to Net Responsible the Community and Inclusion Zero Carbon Business Strategy Partnership Plan St
Slide 10: Financial Review
Financial Review Speaker Darren Littlewood Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 8
Slide 11: Financial highlights
Financial highlights Robust performance against the challenging backdrop of 2020 ■ Revenue decreased 41% as all segments 2020 2019 Change saw delays in activity caused by the global pandemic Revenue £222.4m £379.7m -41% ■ Administration and pension expenses down 3% Operating profit £17.5m £50.3m -65
Slide 12: Balance sheet
Balance sheet Maintained strong cash position 2020 2019 ■ Retained developments increased investment property Investment property £82.7m £70.0m ■ Increase in house-builder land, strategic land and urban Property, plant & equipment £23.8m £22.0m development opportunities within inventories Investment
Slide 13: Cash generation and movement in net cash
Cash generation and movement in net cash Several strategic investments over the year £m 50 4.6 (0.2) (6.6) Investments £43.6m 40 (5.8) 17.5 30 (11.3) (3.2) 20 Operations £9.5m (31.3) 27.0 27.0 37.3 10 0 (1.0) -10 1 Jan 2020 Operating profit Depreciation Interest Tax Dividends paid Investment propert
Slide 14: Operational Review
Operational Review Speakers Tim Roberts & Darren Littlewood Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 12
Slide 15: Land promotion
Land promotion UK greenfield land values remained relatively stable ■ Continued to received bids at pre-CV-19 prices OPERATING PROFIT PER PLOT ■ Inventories held at the lower of cost, no uplift in value PROFIT from securing planning until disposal is made ■ deals completed, including key disposals a
Slide 16: Land promotion: strategic land bank
Land promotion Strategic land bank focussed on higher value locations in South and Midlands Plots Sold 3,573 3,427 3,500 3,000 2,792 2,500 SCOTLAND TOTAL PLOTS 2,169 2,010 2,000 2,000 8,855 1,609 1,731 88,070 1,186 1,144 1,025 1,417 1,500 1,000 781 423 500 269 0 2016 2017 2018 2019 2020 NORTH 7,260
Slide 17: Land promotion: Wellingborough, Northamptonshire
Land promotion Wellingborough, Northamptonshire What is it ■ A 71 acre land parcel located 1.5 miles south west of Wellingborough town centre, north east of Northampton ■ Held under a planning promotion agreement How we have created value ■ An outline planning application for up to 600 plots upon a
Slide 18: Land promotion: Bathgate, West Lothian
Land promotion Bathgate, West Lothian What is it ■ ite adjacent to the M8 motorway 20 miles west of S Edinburgh City Centre ■ riginally held under an Option Agreement and O subsequently purchased in 2012 How we have created value ■ lanning application submitted in 2018 and initially P refused, permi
Slide 19: Property investment & development
Property investment & development Continued focus on the industrial and logistics sector ■ Industrial sector delivered positive capital growth with investors after high demand in the market OPERATING HBD PIPELINE PROFIT GDV ■ Completed developments with a GDV of £58m (HBD ■ share £55m), 90% in indus
Slide 20: Committed pipeline
Committed pipeline GDV of current schemes £85m of which 69% has been pre-let or pre-sold Area ‘000 Share of GDV Pre-let/ Expected Kampus, Manchester ■ GDV £216m Scheme sq ft GDV £m Sold Finish ■ HBD share 5% Industrial & Logistics ■ 60 residential 4 Markham Vale, Orion 297 100% 22 100% H1 21 units W
Slide 21: Significant pipeline focused on logistics
Significant pipeline focused on logistics Approximately 10 million sq ft with target hurdle rate 10-15% depending on risk Committed Consented Proposed Total Big Box 2.3m sq ft 1.7m sq ft c.3m sq ft c.7m sq ft Ind & Logistics Mid/Small Box 0.3m sq ft 1.6m sq ft c.1m sq ft c.3m sq ft Ind & Logistics C
Slide 22: Property investment & development: Wakefield Hub
Property investment & development Wakefield Hub What is it ■ A 200 acre industrial site located at J30 of the M62 close to both the M1 and A1 ■ Joint venture between HBD and developer Yorkcourt What are we doing ■ Unit already completed for NewCold with 65,000 sq ft pre-let to Kitwave currently unde
Slide 23: Stonebridge
Stonebridge Jointly owned premium house builder focused on Yorkshire ■ verage private selling price £368k – 2.7% ahead of A budget ■ espite CV-19 disruption maintained strong sales D rate of 0.61 private units per site per week – or 0.71 excluding April and May ■ ome delays due to challenging planni
Slide 24: Construction
Construction Robust performance despite lower activity levels ■ ivision consists of Construction, Plant Hire and D Road Link (A69) OPERATING EXTERNAL PROFIT TURNOVER ■ Construction currently running at 95% of planned ■ output ecured £40m BTR scheme and £42.5 mixed use S £6.5m £115.9m urban developme
Slide 25: Construction: Kangaroo Works, Sheffield
Construction Kangaroo Works, Sheffield What is it ■ A 364 unit residential build to rent scheme, the only privately developed scheme of Sheffield City Council's Heart of the City II regeneration programme What are we doing ■ Henry Boot Construction has secured the £40m contract to build the BTR sche
Slide 26: Outlook
Outlook Speaker Tim Roberts Henry Boot PLC | 135 years in the making Our Values | Respect | Integrity | Loyalty | Delivery | Adaptability | Collaboration Page 24
Slide 27: Outlook
Outlook ■ Resilient balance sheet, profits ahead of expectations ■ Strong financial and operating position allowed us to continue to invest ■ Recovery in our markets with strong forward sales and very healthy order book ■ Recovery in land market has continued with 2,309 plots exchanged ■ ommitted de
Slide 28: Well placed for the future
Well placed for the future Investing to support growth Property Land Promotion Development Housebuilding Construction & Investment c.£1.4bn development Multi-regional premium Full order book with 16,600 acres or c.88,000 pipeline (HBD share house builder with 1,119 focus on public sector plots of st
Slide 29: Appendices
Appendices ■ Group Structure – Segment Composition ■ Group Structure – Board of Directors ■ Group Structure – Senior Management ■ Business Model ■ Investment Property ■ Shareholding as at 1st March 2021 ■ Movement in NAV per share ■ Five-year Track Record of Strong Growth ■ Henry Boot PLC Share Pric
Slide 30: Group structure
Group structure Henry Boot PLC, established over 130 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 31: Group structure: Board of Directors
Group structure Board of Directors Back row, left to right Tim Roberts Chief Executive Officer Amy Oakley Company Secretary Gerald Jennings Non-executive Director and Chairman of the Remuneration Committe Peter Mawson Senior Independent Non-executive Director and Chairman of the Nomination Committee
Slide 32: Group structure: Senior Management
Group structure Senior Management Land Property Construction Promotion Investment & Development Nick Duckworth Edward Hutchinson Darren Stubbs Simon Carr Giles Boot Trevor Walker Hallam Land Henry Boot Stonebridge Henry Boot Banner Plant Road Link (A69) Management Limited Developments Homes Limited
Slide 33: Business model
Business model Track record of generating attractive returns Land Promotion Property Investment & Development SALE OF LAND SALE OF PROPERTY CONSTRUCTION Housebuilding IDENTIFY OBTAIN PLANNING DEVELOPMENT INVESTMENT OPPORTUNITIES PERMISSION OF SITE PORTFOLIO AND ACQUIRE LAND Henry Boot PLC | 135 year
Slide 34: Investment property
Investment property Rent collection at 88% with increased weighting to industrial and logistics sector MV55, Markham Vale ■ Mid Box logistics 2020 2019 ■ 55,000 sq ft Valuation £81.8m £65.3m ■ HBD share 100% Number of properties 14 1 10 ■ Completed in 2019 Total area –‘000 sq ft 531 338 ■ 100% let P
Slide 35: Shareholders
Shareholders 26.8% 35.6m Main Institutional Shareholders 7.2m Unicorn Asset Management 5.5m London & Amsterdam Trust Co/ Rovida 5.1m Polar Capital 3.7m Aberdeen Standard Investments 2.9m Schroder Investment Management 2.6m Dimensional Fund Advisors 2.5m Fidelity Management & Research 46.7% 133m 2.2m
Slide 36: Movement in NAV per share
Movement in NAV per share Reduction in net assets as a result of actuarial loss on defined benefit pension scheme 260p 255p (0.3p) (2.5p) 250p (3.5p) 13.1p 245p (9.5p) -1.6% 240p 235p (0.9p) (0.2p) 239.1p 230p 235.4p 225p 31 Dec 2019 Operating profit Interest Tax Dividends Pension Scheme Non- contro
Slide 37: Strong track record: Five-year Financial Results
Strong track record Five-year Financial Results 2016 – 2020 Dividends per Net Asset Value Ordinary Share Net Assets per Share ROCE 2020 5.5p 2020 £313.5m 2020 235p 2020 4.9% 2019 5.0p 2019 £318.5m 2019 239p 2019 14.8% 2018 9.0p 2018 £302.3m 2018 227p 2018 15.8% 2017 8.0p 2017 £270.0m 2017 203p 2017
Slide 38: Pensions: Cumulative return
Financial Pensions 110% 100% ■ Triennial valuation at 1st January 2019 90% concluded showing a deficit of £19.8m. 80% ■ Recovery contributions agreed at £3.25m 70% rising by £0.1m per annum. 60% Cumulative return ■ IAS 19 deficit £36.4m at 31/12/20, asset 50% performance +6.9%. Discount rate 1.4% 40
Slide 39: Share price
Share price Henry Boot PLC Share Price vs Benchmark Indices 350 330 310 290 270 250 Henry Boot FTSE All Share Real Estate 230 Investment & Services FTSE All Share 210 190 170 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 2020 2021 Henry Boot PLC | 135 years in the making Our Values | R
Slide 40: The Henry Boot Way
The Henry Boot Way Purpose, Vision and Values Henry Boot PLC, has been in business for over 130 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
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