Harworth Group Plc · LSE:HWG
Harworth — Corporate Update (June 2018)
20 slides from Harworth's corporate update, Jun 8, 2018
Slide 1: Investor Tour
INVESTOR TOUR 8 JUNE 2018 Transforming - Regenerating - Revitalising
Slide 2: An Overview of the Day: Investor Tour Timetable
AN OVERVIEW OF THE DAY Investor Tour Timetable 10.15am Introduction to Harworth Group plc (Group splits into two) 11.00am Group 1 tour of AMRC Group 2 tour of Waverley 11.40am Groups swap over 12.15pm Lunch at AMRC 1.00pm Travel to and tour of Torne Park, Rossington 2.15pm Travel to and tour of Rive
Slide 3: An Overview of the Day: Contents of presentation
AN OVERVIEW OF THE DAY Contents of presentation Presenting team 4-5 Strategy, business model and markets 6-8 Key financials 9-11 2018 and beyond 12-14 The sites you will see today 15-17 Appendix 18-20 Transforming - Regenerating - Revitalising -3-
Slide 4: Presenting Team Today
1. PRESENTING TEAM TODAY Owen Michaelson Andrew Kirkman Iain Thomson Chief Executive Finance Director Head of Communications Transforming - Regenerating - Revitalising -4-
Slide 5: Presenting Team at Our Sites
1. PRESENTING TEAM AT OUR SITES Ian Ball Gary Owens Executive Director, Income Generation Director, Acquisitions Peter Henry David Travis Duncan Armstrong-Payne Development Director Business Space Director Associate Director Transforming - Regenerating - Revitalising -5-
Slide 6: Our Markets and Government Policy Support Growth
2. OUR MARKETS AND GOVERNMENT POLICY SUPPORT GROWTH BEDS: RESIDENTIAL Projected House Price Growth forecasts 2018-2022 National housing under-supply is driving consistently strong demand for land from housebuilders House price growth in our regions remains positive and is forecast to further gro
Slide 7: Clear Vision and Robust Strategy
2. CLEAR VISION AND ROBUST STRATEGY We aim to be the UK’s leading developer of brownfield land and regeneration partner of choice, delivering a total return to shareholders of over 10% per annum through the property cycle STRATEGIC PRIORITIES STRATEGIC PRIORITIES Development Regions Driving the capi
Slide 8: How We Drive Sector-Leading Returns
2. HOW WE DRIVE SECTOR-LEADING RETURNS Recurring Income Capital Capital Realisation Receipt Asset Management Plot Sale / Build Out Reinvestment of Capital Infrastructure Development Indicative Value Add Land Remediation & Preparation Planning Approval Masterplanning Competitive advantage comes from
Slide 9: Track Record of Market-Leading NNNAV Growth
3. TRACK RECORD OF MARKET–LEADING NNNAV GROWTH Harworth’s stated aim is to deliver a return of over 10% through the property cycle 140.0p 14.6% CAGR 128.9p 120.0p 114.6p 100.0p 101.9p 80.0p 85.6p 60.0p 40.0p 20.0p 0.0p 2014 2015 2016 2017 NNNAV per share Since 2016, we have split value gains between
Slide 10: Further Financing and Market Progress in 2018
3. FURTHER FINANCING AND MARKET PROGRESS IN 2018 RCF EXTENSION PREMIUM LISTING • On 30 April, Harworth extended its • On 29 May, Harworth announced the start Revolving Credit Facility (RCF) from £75m of a process to transfer its shares from to £100m by bringing Santander in standard to premium listi
Slide 11: Portfolio Is Managed to Diversify Risk
3. PORTFOLIO IS MANAGED TO DIVERSIFY RISK PORTFOLIO CONCENTRATION PORTFOLIO SECTOR SPLIT 1 1 Notes: (1) Total value of all property – Investment (£216.6m), Development (£210.5m), Joint ventures (£18.8m), Available for sale (£7.7m), Overages (£2.7m) and Owner Occupied Assets (£0.8m) plus mark to mark
Slide 12: Land Pipeline Provides Significant Latent Value
4. LAND PIPELINE PROVIDES SIGNIFICANT LATENT VALUE Significant future planning pipeline in place to augment existing consented landbank, providing a healthy 10+ year land supply to underpin future sales and direct development programme RESIDENTIAL PIPELINE: PLOT NUMBERS COMMERCIAL PIPELINE: SQ. FT
Slide 13: Future Acquisitions Are Key to Ongoing Growth
4. FUTURE ACQUISITIONS ARE KEY TO ONGOING GROWTH HEADLINE NUMBERS EXAMPLES OF SITES ACQUIRED Harworth effectively re-started its acquisitions in Q4 2014. Between then and the end of 2017: Total number 17 Total cost £79.8m Current value1 £121.3m (£32.7m value gains) Acres acquired 1,472 Residential p
Slide 14: Continuing Momentum via Acquisitions Made in 2018
4. CONTINUING MOMENTUM VIA ACQUISITIONS MADE IN 2018 Site Location Acreage Consideration Existing Proposed Development Development Nufarm West 112 £32.45m 32-acre 80-acres for commercial Yorkshire agrochemical development; quantum to works, generating be determined passing rent of £2.1m per annum Fl
Slide 15: The Sites You Will See Today: Waverley
5. THE SITES YOU WILL SEE TODAY: WAVERLEY Waverley in 1990 Waverley today Transforming - Regenerating - Revitalising - 15 -
Slide 16: The Sites You Will See Today: Rossington
5. THE SITES YOU WILL SEE TODAY: ROSSINGTON Rossington in 2010 Rossington today Transforming - Regenerating - Revitalising - 16 -
Slide 17: The Sites You Will See Today: Wheatley Hall Road
5. THE SITES YOU WILL SEE TODAY: WHEATLEY HALL ROAD Wheatley Hall Rd in 2000 Wheatley Hall Rd today Transforming - Regenerating - Revitalising - 17 -
Slide 18: Appendices
APPENDICES 8 JUNE 2018 Transforming - Regenerating - Revitalising - 18 -
Slide 19: A Brief History
A BRIEF HISTORY 2004-2012 2012-2014 2015 onwards Property division within Harworth Estates was Re-launched as Harworth UK Coal plc 24.9% owned by CfR plc Group plc • In 1994, RJB Mining (founded in • In December 2012, after a complex • In February 2015, Harworth Estates 1974) bought British Coal’s c
Slide 20: Notes
NOTES Transforming - Regenerating - Revitalising - 20 -