Slide 1: Roger Lewis, Chairman
ROGER LEWIS CHAIRMAN The Berkeley Group plc
Slide 2: Format of Presentation
Format of Presentation • Introduction Roger Lewis • Review of Results Rob Perrins • Managing Director’s Review Tony Pidgley • Questions The Berkeley Group plc
Slide 3: Financial Highlights
Financial Highlights Year to 30 April 2003 2003 2002 Increase Pre tax profits £221.2m £196.2m + 12.7% Earnings per share 116.0p 105.3p + 10.2% Shareholders’ funds £1,056.2m £968.2m + 9.1% Net asset value per share 829p 717p + 15.6% Dividend £24.9m £22.0m + 13.2% Dividends per share 19.2p 16.5p + 16.
Slide 4: Rob Perrins, Finance Director
ROB PERRINS FINANCE DIRECTOR The Berkeley Group plc
Slide 5: Review of Results
Review of Results • Profit & loss account • Cash flow • Balance sheet • Sales analysis • Land holdings The Berkeley Group plc
Slide 6: Abridged Group Profit and Loss Account
Abridged Group Profit and Loss Account 2003 2002 Change £m £m £m % Turnover (excluding JV’s) 1,150.8 976.8 174.0 + 17.8 Operating profit 215.7 189.5 26.2 +13.8 Joint ventures 16.5 23.5 (7.0) - 29.8 Net interest (11.0) (16.8) 5.8 - 34.5 Profit before tax 221.2 196.2 25.0 + 12.7 The Berkeley Group plc
Slide 7: Interest Cover and EPS
Interest Cover and EPS 2003 2002 Operating profit (inc. JVs) £232.2m £213.0m + 9.0% Interest: Group £8.0m £13.7m JVs £3.0m £3.1m £11.0m £16.8m - 34.5% Cover 21.1 times 12.7 times Profit before tax £221.2m £196.2m + 12.7% EPS 116.0p 105.3p + 10.2% The Berkeley Group plc
Slide 8: Profit Reconciliation
Profit Reconciliation £m £m 2002 Profit before tax 196.2 Group Residential: - housebuilding 48.0 - land (17.4) Commercial (4.4) 26.2 Joint ventures Residential: - housebuilding (15.4) - land 12.1 Commercial (3.7) (7.0) Interest 5.8 2003 Profit before tax 221.2 The Berkeley Group plc
Slide 9: Trading Account Profile - Percentages of Turnover
Trading Account Profile - Percentages of Turnover 2003 2002 % % Turnover 100.0 100.0 Land (21.5) (22.7) Build (46.1) (44.1) Sales & marketing (5.0) (4.9) Gross margin 27.4 28.3 Operating expenses (8.6) (8.9) Operating profit 18.8 19.4 Joint ventures 1.4 2.4 Interest (1.0) (1.7) Profit before tax 19.
Slide 10: Profit Distribution
Profit Distribution • Tax rate of 30.1% down from 30.2% • Dividends per share up 16.4% to 19.2p • Dividend covered 6.2 times (2002: 6.2 times) The Berkeley Group plc
Slide 11: Abridged Group Cash Flow
Abridged Group Cash Flow 2003 2002 £m £m Operating profit 215.7 189.5 Non cash items 3.9 5.5 219.6 195.0 Tax and dividends (68.7) (72.7) Net interest (7.2) (13.6) 143.7 108.7 Movement in working capital (15.2) (145.4) Capex and financial investment 13.7 (16.4) 142.2 (53.1) Share buy-back (42.0) - Sh
Slide 12: Cash Due on Forward Sales
Cash Due on Forward Sales At 30 Apr At 30 Apr 2003 2002 £m £m Debtors taken to sales and due on completion 229.0 266.9 Due on units not yet taken to sales - Exchanged contracts 600.8 681.2 - Reserved units 91.1 103.5 Total cash due 920.9 1,051.6 The Berkeley Group plc
Slide 13: Abridged Group Balance Sheet
Abridged Group Balance Sheet At 30 April At 30 April 2003 2002 £m £m Fixed assets and investments 77.4 80.7 Stocks 1,151.1 1,118.2 Debtors 247.5 280.9 Investments 62.0 55.5 Creditors < 1 year (316.5) (309.0) Creditors > 1 year (22.2) (14.6) Capital employed 1,199.3 1,211.7 Net debt (143.1) (243.5) N
Slide 14: Stocks
Stocks At 30 Apr At 30 Apr 2003 2002 £m £m Land not under development 135.2 188.3 Work in progress: Land cost 746.2 681.9 Build cost 187.1 201.0 Completed units 71.5 40.7 Part exchanges 11.1 6.3 1,151.1 1,118.2 The Berkeley Group plc
Slide 15: Geographical Analysis of Residential Units Sold
Geographical Analysis of Residential Units Sold 2003 2002 No. % No. % London 1,321 37 985 31 South East 1,160 33 1,032 32 North West and Yorkshire 328 9 528 17 Midlands, West England and Wales 735 21 637 20 3,544 100 3,182 100 Joint ventures 637 773 The Berkeley Group plc
Slide 16: Geographical Analysis of Residential Turnover
Geographical Analysis of Residential Turnover 2003 2002 £m % ASP £m % ASP £’k £’k London 521.6 46 381 405.5 43 371 South East 373.9 33 323 295.2 32 265 North West and Yorkshire 87.0 8 259 105.3 11 193 Midlands, West England and Wales 147.6 13 200 121.7 14 202 1,130.1 100 315 927.7 100 273 Joint vent
Slide 17: Land Bank
Land Bank At 30 Apr At 30 Apr 2003 2002 Owned 19,459 16,014 Contracted 3,358 2,612 Agreed 3,033 1,800 Plots 25,850 20,426 Sales value £7,044m £5,995m Average selling price £272k £293k Average plot cost £40k £52k Land cost % 14.5% 17.8% Gross margin £2,005m £1,708m GM% 28.5% 28.5% Includes joint vent
Slide 18: Group Land Holdings by Division
Group Land Holdings by Division At 30 Apr At 30 Apr 2003 2002 No. No. Berkeley Homes (London) 6,361 3,755 Berkeley Homes (Home Counties) 4,216 4,814 St George 6,638 4,426 Crosby Homes 4,815 4,998 College Homes 700 219 St James Group 3,120 2,214 25,850 20,426 The Berkeley Group plc
Slide 19: Largest London Sites Released to Market
15 Largest London Sites Released to Market Total Complete Exchanged Resv’d Available Not Released Imperial Wharf 1,694 61 360 9 40 1,224 Woolwich Arsenal 917 60 318 3 12 524 St George Wharf 766 335 118 1 7 305 Chelsea Bridge Wharf 686 40 315 9 10 312 Battersea Reach 660 0 23 13 7 617 Deptford 636 25
Slide 20: Largest Non-London Sites Released to Market
15 Largest Non-London Sites Released to Market Total Complete Exchanged Resv’d Available Not Released Clarence Dock, Leeds 623 0 126 10 44 443 Knowle Village, Hampshire 497 173 43 14 19 248 Unipart, Oxford 468 223 51 3 8 183 Gunwharf Quays, Portsmouth 364 233 21 3 18 89 Royal Clarence Yard, Gosport
Slide 21: Tony Pidgley, Managing Director
TONY PIDGLEY MANAGING DIRECTOR The Berkeley Group plc
Slide 22: Managing Director's Review
Managing Director’s Review • Berkeley Group • Financial strength • Current trading and the housing market • Land holdings and strategy • Joint ventures • Berkeley’s consistent strategy The Berkeley Group plc
Slide 23: Questions
Questions Roger Lewis Chairman Tony Pidgley Managing Director Rob Perrins Finance Director The Berkeley Group plc