Cairn Homes Plc · LSE:CRN
Cairn Homes — H1 2023 Earnings Presentation
35 slides from Cairn Homes's earnings presentation, Sep 7, 2023
Slide 1: Cairn Homes plc 2023 Interim Results Presentation
Cairn Homes plc 2023 Interim Results Presentation
Slide 2: Contents
Michael Stanley Contents Chief Executive Officer 01. H1 2023 Highlights Shane Doherty 02. H1 2023 Financial Results and Guidance Chief Financial Officer 03. Sustainability Update Tara Grimley Company Secretary & Head of Sustainability 04. Outlook Declan Murray Head of Finance 05. Appendices & Treasu
Slide 3: H1 2023 Highlights
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices 01. H1 2023 Highlights
Slide 4: Key Financial Highlights H1 2023 KPIs
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Key Financial Highlights H1 2023 KPIs Exceptional Market Delivery Platform Upgrading Margins Demand for Continuing to Scale Guidance Cairn Product €1.01bn 535 €217.3m 21.2% Record current closed
Slide 5: Key Financial Highlights H1 2023 KPIs
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Key Financial Highlights H1 2023 KPIs Operating Platform Market Demand Asset Backed Commitment Growing Capacity Underpinning Our Balance Sheet to Shareholder Investment in Scaling Returns 1,000 1
Slide 6: Demand and Product Mix
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Demand and Product Mix 2023 YTD Growth in our Closed and Forward Order Book 1,630 new homes agreed for sale this year €370,000 net ASP in our closed and forward order book New Homes €’m 3,000 2,7
Slide 7: Sales Pricing in H1 2023
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Sales Pricing in H1 2023 New Homes Average Selling Prices ASPs €’k (Net of VAT) Period Closed Sales Starter Homes Trade Up/Down Apartments Overall H1 2023 535 342 458 400 406 H1 2022 547 330 509
Slide 8: Key Operational Highlights
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Key Operational Highlights Award Winning Developments “Passive House” Apartment Scheme Griffith Wood Charlestown Residential Project of the Year at the 2023 Irish Construction Excellence Awards C
Slide 9: Supply Chain and Procurement
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Supply Chain and Procurement c. €500m in 2023 labour and materials spend c. €10,000 Profile of our Top 20 will increase to c. €650m in 2024 (c. 4%) expected build cost Subcontractors Since IPO c.
Slide 10: Capital Allocation: Delivering Significant Value For All Stakeholders
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Capital Allocation: Delivering Significant Value For All Stakeholders Continued Balance Sheet Shareholder How this creates value Scaling Discipline Returns for all stakeholders: Continued annual
Slide 11: H1 2023 Financial Results and Guidance
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices 02. H1 2023 Financial Results and Guidance
Slide 12: Strong Macroeconomic Backdrop
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Strong Macroeconomic Backdrop Ireland’s domestic economic growth is outpacing peer economies Continued Robust Growth Irish domestic economy is forecast to grow by 3.7% in 2023, significantly 10%
Slide 13: Supportive Government Policies and Initiatives Delivering for FTBs
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Supportive Government Policies and Initiatives Delivering for FTBs Volume of mortgage approvals up 9% in H1 23 Mortgage drawdown volumes up 7% in H1 23 Record applications 140 140 130 130 Help to
Slide 14: H1 2023 Financial Performance
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices H1 2023 Financial Performance H1 2023 Unaudited H1 2022 Unaudited Movement Strong H1 2023 performance €m €m to deliver record full Revenue 219.5 240.4 (9%) year housing output Cost of Sales (173.
Slide 15: Revenue and Sales Performance KPIs
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Revenue and Sales Performance KPIs Closed and Forward Sales Pipeline (as at 6 September 2023) Units Revenue (Net) Proven track record of covering H1 2023 – closed sales 535 €217m WIP investment t
Slide 16: Balance Sheet as at 30 June 2023
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Balance Sheet as at 30 June 2023 30 June 2023 Unaudited 31 December 2022 Audited Change Asset backed balance sheet €m €m underpinned by committed Land held for development 596.6 628.3 debt facili
Slide 17: Key Cash Flow Movements
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Key Cash Flow Movements Jun-23 Dec-22 Movement Net debt increased by €79.3m in the period to €228.6m, resulting in available liquidity of €120.0m at half year €m €m €m Net Debt 228.6 149.3 (79.3)
Slide 18: Upgraded FY23 Guidance
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Upgraded FY23 Guidance Completions Revenue Core Gross Margin 1,800+ €675m+ c. 21.2% (Previously: 1,750 – 1,800) (Previously: €650m+) (Previously: c. 21.0%) Operating Profit Operating Margin Share
Slide 19: Sustainability Update
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices 03. Sustainability Update
Slide 20: ESG – Tracking Progress
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices ESG – Tracking Progress Environmental Social Governance Scope 1-3 targets approved by Science Founding Partner in the Supply Chain Appointment of new Head Based Targets initiative (SBTi) Sustaina
Slide 21: Seven Mills – Our Commitment to Delivering a Biodiversity Net Gain New Town
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Seven Mills* – Our Commitment to Delivering a Biodiversity Net Gain New Town Overview of Seven Mills 25,000 Residents to be housed 9,000 Mixed tenure homes 10,000 Jobs in commercial and retail Ta
Slide 22: Built for Good: Passivhaus standard
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Built for Good: 1 Highly insulated envelope Passivhaus standard 2 High performance windows 4 3 3 Efficient junctions 4 Airtightness Leading on Decarbonisation: 5 Heat Recovery Passive Apartment S
Slide 23: Outlook
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices 04. Outlook
Slide 24: Seven Mills – Cairn’s €2 Billion GDV New Dublin Suburb
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Seven Mills – Cairn’s €2 Billion GDV* New Dublin Suburb Dec 2022 Sept 2023 Construction Status Update Delivering New Homes From 2023* Sales Update Phase 1 commencement: 1000 First private sales l
Slide 25: A Business Operating at Pace & Scale
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices A Business Operating at Pace & Scale Citywest Phase 3 405 apartments. Final phase of an 834 unit scheme Market Leading Production & Efficiency Levels How We Compare to the Broader Industry Calcul
Slide 26: Outlook and FY23 Guidance Recap
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Outlook and FY23 Guidance Recap Outlook 1,800+ c. 21.2% completions gross margin €115 - €120m Mature and sustainable business platform FY23 committed shareholder returns from a €75m share buyback
Slide 27: Appendices
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices 05. Appendices
Slide 28: Robust Macroeconomic Environment
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Robust Macroeconomic Environment Surpluses of over €50bn are forecast over the coming years Ireland will record the largest budget surplus in the EU this year 20 3.0 General Government Balance Go
Slide 29: Government Incentives and 4x LTI Supporting FTB Demand
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Government Incentives and 4x LTI Supporting FTB Demand FTB approvals grow strongly in H1 Record Help to Buy Applicants in H1 up 18% on 2022 Mortgage Rules Relaxed 29,212 20,000 140 +18% 130 Jan.
Slide 30: Supply is Still Significantly Below Structural Demand
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Supply is Still Significantly Below Structural Demand New home commencements are flat year-on-year (excl. one-off) Annual completions flat, but significantly below demand estimates 29,093 30000 6
Slide 31: Department of Finance forecasts support further investment in housing
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Department of Finance forecasts support further investment in housing Exchequer returns will continue to grow (€bn) Supporting investment in housing (€bn) 2018 2019 2020 2021 2022 2023f 2024f 202
Slide 32: Demographics Driving Strong Structural Demand
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Demographics Driving Strong Structural Demand Strong population growth Strong population growth to sustain demand 6.75m • Population of 5.15m as at April 2022, the highest since 1851, an increase
Slide 33: Housing For All: Plan to Deliver 140,000+ Social & Affordable New Homes
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Housing For All Ambitious Plan to Deliver 140,000+ Social & Affordable New Homes Historic delivery of social housing in Ireland highlights the ambitions of Housing For All 18000 16000 14000 12000
Slide 34: Cairn Brands
Cairn Homes plc | 2023 Interim Results Presentation Highlights Finance Sustainability Outlook Appendices Cairn Brands 34
Slide 35: Cairn Homes plc contact details
Cairn Homes plc. 45 Mespil Road, Dublin, D04 W2F1 01 696 400 www.cairnhomes.com