Slide 1: Cairn Homes plc 2016 Interim Results
Cairn Homes plc 2016 Interim Results 25 August 2016 1 © CAIRN HOMES PLC 2016. WWW.CAIRNHOMES.COM
Slide 2: Disclaimer
Disclaimer This presentation document (hereinafter “this document”) has been prepared by Cairn Homes Plc (“Cairn Homes” or the “Company”). This document has been prepared in good faith, but the information contained in it has not been subject to a verification exercise. No representation or warranty
Slide 3: Agenda
Agenda 1. Key Highlights 2. Operations/Market 3. Financials 4. Appendix 3 © CAIRN HOMES PLC 2016. WWW.CAIRNHOMES.COM
Slide 4: Key highlights
Key highlights Revenues of €16 million, generating gross profit of €2.6 million and a gross profit margin of 16.5% Core land-bank consists of 27 sites and 11,500 units – 90% in Dublin and GDA, with a strong mix of locations/price points Active on 5 sites (Parkside, Albany, Marianella, Ashbourn
Slide 5: Agenda
Agenda 1. Key Highlights 2. Operations/Market 3. Financials 4. Appendix 5 © CAIRN HOMES PLC 2016. WWW.CAIRNHOMES.COM
Slide 6: Geographic overview of core sites
Geographic overview of core sites Ashbourne Swords 354 homes Parkside 433 homes National Maynooth Butterly 597 homes Griffith Ave Adamstown Hanover Quay 1,195 homes 122 homes Marianella 234 homes Clonburris 3,000 homes Galway 2 sites Stillorgan Saggart Ard na Newcastle Gluise Blackrock Kilkenny 1 si
Slide 7: Landbank analysis
Landbank analysis Site commencement plan Confident of ability to deliver 1,200 units by 2019 Site Parkside Albany Marianella Ashbourne Hanover Quay Naas 1 Greystones 1 Adamstown 2017 2017 Naas 2 90% of landbank in Dublin and GDA Greystones 2 Maynooth 10% 2018 Clonburris Cherrywood 26% 64% Other 0 10
Slide 8: Affordability improving
Affordability improving Upward trend in earnings growth Continued positive movement in disposable income Household Debt / Disposable Income 250.0% 3.0% Peak – 214.4% 2.5% 2.5% 2.3% 200.0% 2.0% 2.0% 1.8% 149.4% YoY earnings growth (%) 150.0% 1.5% 1.0% 100.0% 0.5% 50.0% 0.0% (0.1%) 0.0% -0.5% 2002Q4 2
Slide 9: Excess demand (v lack of supply) fuels rent increase
Excess demand (v lack of supply) fuels rent increase Under-supply driving rental growth Significant growth in Dublin rents Under-supply of housing has resulted in significant growth in rental prices with over 40% growth nationally since 2012 Rents in Dublin are up 51.3% from their lowest point i
Slide 10: Mortgage market recovering
Mortgage market recovering Mortgage drawdowns lagging approvals But positive trend in approvals and drawdowns H1 2016 has seen a return to normalised levels which highlight €’m the continued shortage of housing for mortgage approved customers – suggests 23% by volume cannot source product with whi
Slide 11: Supportive demand side fundamentals
Supportive demand side fundamentals Continued improvement in market fundamentals Employment growing from Q4 2012 Irish population increased by 3.7% (170k) to 4.76m between 2011 and 2016 Highest population growth since previous Census recorded in Fingal in Dublin (+22,233/8.1%) – total Dublin inc
Slide 12: Demand continues to significantly exceed supply
Demand continues to significantly exceed supply Completions significantly below medium term Completions significantly below medium term demand (rest of Ireland) demand (Dublin) 2016 activity to date still remains very low 2016 activity to date still remains very low H1 completions +396 on 2015
Slide 13: A sustainable house-building economy
A sustainable house-building economy….. Housing Completions v Economy As outlined in the tables below, the Irish housebuilding sector built and sold an average of 23,871 units per annum in the pre-Celtic Tiger 20 year period to 1995. To put this into context, the Irish economy is now over 3 times la
Slide 14: Helpful Government initiatives
Helpful Government initiatives Government is listening General reduction in development levies across various Dublin councils Change in Planning Guidelines for New Apartments has reduced build costs and improved apartment Previously profitability Announced Levy rebate on affordable homes <€300
Slide 15: Market opportunity continues
Market opportunity continues Strong macro economic trends… …Underpin housing market recovery Ireland continues to be the fastest growing economy in the EU Highly supportive housing demand fundamentals Demand continues to significantly outstrip supply Domestic demand is key driver of economic
Slide 16: Agenda
Agenda 1. Key Highlights 2. Operations/Market 3. Financials 4. Appendix 16 © CAIRN HOMES PLC 2016. WWW.CAIRNHOMES.COM
Slide 17: Financial results: Income Statement
Financial results: Income Statement Income statement for 6 months ended 30 June 2016 Commentary For 6 months ended 30/6/16 For 6 months ended 30/6/15 Revenue predominantly from the sale of 39 houses Before Except Before Except on the Parkside site (€11.6m) and sale of assets (all numbers in €'000)
Slide 18: Financial results: Cash flow Statement
Financial results: Cash flow Statement Cash flow Statement for 6 months ended 30 June 2016 Commentary 6 months ended Period ended Increase in inventories represents acquisition of 3 (all numbers in €'000) 30-Jun-16 30-Jun-15 sites (Hanover Quay, Maynooth and Cherrywood), EBITDA 1,684 (896) plus sp
Slide 19: Financial results: Balance Sheet
Financial results: Balance Sheet Balance sheet as at 31/06/2016 Commentary Inventories represents all owned sites plus WIP plus 30-Jun-16 31-Dec-15 (all numbers in €'000) €'000 €'000 development land collateral (t/f from loan assets in 2016 PP&E & Intangibles 748 260 totalling €212.2m) Restricted
Slide 20: Appendix
Appendix 20 © CAIRN HOMES PLC 2016. WWW.CAIRNHOMES.COM
Slide 21: Marianella
Marianella 234 21 © CAIRN HOMES PLC 2016. WWW.CAIRNHOMES.COM
Slide 22: Hanover Quay
Hanover Quay 6 Hanover Quay Dublin 2 Size Total Units 1.05/0.43 ha 122 22 © CAIRN HOMES PLC 2016. WWW.CAIRNHOMES.COM
Slide 23: Ashbourne
Ashbourne 23 © CAIRN HOMES PLC 2016. WWW.CAIRNHOMES.COM
Slide 24: Parkside
Parkside Parkside Dublin 13 Size Total Units 50ac/20 ha 433 24 © CAIRN HOMES PLC 2016. WWW.CAIRNHOMES.COM
Slide 25: Albany
Albany 25 © CAIRN HOMES PLC 2016. WWW.CAIRNHOMES.COM
Slide 26: Adamstown
Adamstown 26 © CAIRN HOMES PLC 2016. WWW.CAIRNHOMES.COM