Harworth Group Plc · LSE:HWG
Harworth — Investor Day (June 2023)
65 slides from Harworth's investor day presentation, Jun 7, 2023
Slide 1: Capital Markets Day
Capital Markets Day 7 June 2023 Image: Waverley & the AMP, South Yorkshire
Slide 2: Welcome to Advantage House
Welcome to Advantage House What we will cover today: ▪ a brief update on strategic and operational progress ▪ a deeper dive into Harworth’s strategic objective to diversify its residential products ▪ an update on Harworth’s sustainability programme and Net Zero Carbon pathway ▪ the progress being ma
Slide 3: Agenda
Agenda Time Item Speaker 11:00 Introduction Lynda Shillaw, Chief Executive 11.15 Diversifying our residential products James Crow, Director of Mixed Tenure 11.35 The Harworth Way: our approach to sustainability Peter Henry, Director of Sustainability 12.00 Yorkshire & Central: regional update Ed Cat
Slide 4: Recap of AGM Statement
Recap of AGM Statement Strong operational and Delivering against all four growth Our focus markets remain strategic momentum continues drivers of £1bn goal despite attractive, and we have significant challenging macro backdrop flexibility and firepower 4
Slide 5: Progressing our growth strategy
Progressing our growth strategy Growth drivers 2022 2023 to date Ambition by 2027 1. Increasing direct 110,000 sq. ft completed 800,000 sq. ft development of industrial 432,000 sq. ft completed developed on average & logistics space 93,000 sq. ft under construction and 72,000 sq. ft build-to-suit op
Slide 6: Diversifying our residential products
Diversifying our residential products James Crow Director of Mixed Tenure
Slide 7: Introduction to Harworth’s mixed tenure team
Introduction to Harworth’s mixed tenure team ▪ Established in 2021 with Andrew Blackshaw appointment of James Crow as Chief Operating Officer Director of Mixed Tenure ▪ Executive responsibility for the delivery of Harworth’s mixed tenure products ▪ Responsible for delivering Harworth’s strategic obj
Slide 8: Overview of Harworth’s mixed tenure products
Overview of Harworth’s mixed tenure products Progressing Launched in Plans progressing towards exchange May 2023 Net Zero Carbon Senior homes living Single-family Affordable Built-to-Rent homes 8
Slide 9: Single-family BTR portfolio: progressing towards exchange
Single-family BTR portfolio Progressing towards exchange ▪ Development of up to 1,150 homes across 10 sites ▪ Progressing towards exchange with funding and delivery partners ▪ Received first planning approval for development at Riverdale Park, Doncaster. Determinations expected in the next few month
Slide 10: Affordable homes portfolio: The opportunity
Affordable homes portfolio The opportunity ▪ Launch of an initial c.400-unit affordable homes portfolio across six Benefits to Harworth and our communities sites, to be delivered through a forward-funding agreement, with a further pipeline of c.300 homes over three sites identified. Accelerates site
Slide 11: Affordable homes portfolio overview
Affordable homes portfolio Portfolio overview East Portfolio spread across a range of mature sites with existing residential development, Midlands amenities and placemaking 13% Yorkshire & Humber West Region 27% Midlands 60% Section 106 41% requirements Delivery 59% Additionality Shared ownership 27
Slide 12: Case study: Thoresby Vale, Nottinghamshire
Affordable homes portfolio Case study: Thoresby Vale, Nottinghamshire Country park, providing recreational space New local centre with community and leisure uses Affordable home units will be spread across Harworth’s single-family BTR product Cycle path connections to local villages Up to 250,000 sq
Slide 13: Net Zero Carbon homes: The opportunity
Net Zero Carbon homes The opportunity ▪ Proposal to develop c.100 Net Zero Carbon homes, spread across The NZC homes market in figures our Waverley and Prince of Wales developments ▪ Emphasis on whole life carbon through both net zero operational 17% 62% carbon emissions and net zero embodied carbon
Slide 14: Net Zero Carbon homes: Waverley pilot site
Net Zero Carbon homes Waverley pilot site Alternative Rationale for developing NZC homes instead land use Land sale to Topography and shape of the parcel not suited to mainstream third party house builders Single-family BTR already provided elsewhere at the site, Single-family would need to wait for
Slide 15: Senior living: The opportunity
Senior living The opportunity ▪ Exploring how to integrate senior living products across our sites, Senior living homes market in figures including care homes, extra care/assisted living and retirement homes with the longer-term objective of developing Integrated Retirement Communities (IRCs) ▪ Curr
Slide 16: Senior living: Potential for development across our sites
Senior living Potential for development across our sites Site Findings of BNP Paribas analysis Potential for care home, assisted living and/or retirement living scheme to be integrated into masterplan; alongside existing mixed-use elements including Olive Lane, affordable housing and Build-to-Rent O
Slide 17: Significant opportunities to diversify products
Significant opportunities to diversify products ▪ Good progress in diversifying our residential products ▪ Strong levels of interest for our launched portfolios of single-family BTR and affordable homes ▪ Market dynamics remain very favourable, supported by Government, supply and demand imbalance an
Slide 18: The Harworth Way: our approach to sustainability
The Harworth Way: our approach to sustainability Peter Henry Sustainability Director
Slide 19: Introducing the Harworth sustainability team
Introducing the Harworth sustainability team ▪ Team was established in 2022 with Lynda Shillaw the appointment of Peter Henry as Chief Executive Director of Sustainability ▪ Executive responsibility for Harworth’s sustainability framework ▪ Harworth’s sustainability programme, the Harworth Way, was
Slide 20: The Harworth Way
The Harworth Way Harworth The eo San Harworth Way e C } } Pillars ] impact areas blocks Outputs 20
Slide 21: Planet
The Harworth Way Planet Commitments for 2023 ▪ Develop a carbon reporting system to allow full emissions reporting to be implemented and target the reporting of Scope 3 emissions ▪ Set 2030 reduction targets for all emissions ▪ Include a requirement for carbon emissions monitoring in all constructio
Slide 22: Communities
The Harworth Way Communities Commitments for 2023 ▪ Monitor usage of transport systems across our sites to evaluate effectiveness and identify areas for improvement ▪ Further enhance our integrated travel plans within all new masterplans ▪ Progress the development of our Olive Lane heart of the comm
Slide 23: People
The Harworth Way People Commitments for 2023 ▪ Continue to cultivate a diverse, inclusive and equitable organisation where everyone has the opportunity to innovate and succeed ▪ Develop the Harworth Academy, supporting the learning and development of our people ▪ Introduce a financial wellbeing supp
Slide 24: Net Zero Carbon pathway
Net Zero Carbon pathway
Slide 25: Reviewing UK commitments
Reviewing UK commitments Extracts from the Climate Change Commission Report on the UK Net Zero Strategy 25
Slide 26: Property industry and planning
Property industry and planning 26
Slide 27: Regulation and legislation
Regulation and legislation 27
Slide 28: How the NZC pathway fits into the Harworth Way
How the NZC pathway fits into the Harworth Way Work with the Above all, always Accept the need to Be authentic changes that will be remember that we Our ethos Accept that we find commercial Understand that required over the need to create cannot sold solutions to the Work in the right Be flexible in
Slide 29: Our NZC commitments
Our NZC commitments 22! 23) To be Net Zero Carbon for our current SECR Operational 1S) Boundary for Scope 1, 2 and 3 emissions by 2030 To be Net Zero Carbon for Scope 1, 2 and 3 (all emissions) by 2040 Report on our Scope 3 emissions from a baseline in 2023 through development of an internal Company
Slide 30: 2022 SECR Operational Boundary emissions flow
2022 SECR Operational Boundary emissions flow 30
Slide 31: Scope 1, 2 and 3 SECR emissions reduction proposals
Scope 1, 2 and 3 SECR emissions reduction proposals 31
Slide 32: Master developer activity emissions
Master developer activity emissions 32
Slide 33: Scope 3 emissions illustration
Scope 3 emissions illustration 33
Slide 34: Scope 3 emissions reduction
Scope 3 emissions reduction 34
Slide 35: The Harworth Way case studies
The Harworth Way case studies
Slide 36: Integrated solar and EV charging at Advantage House
The Harworth Way Integrated solar and EV charging at Advantage House Use Title/Icon Use Diagram Add photo of Adv Hse 36
Slide 37: Delivering efficient buildings through co-ordinated masterplanning
The Harworth Way Delivering efficient buildings through co-ordinated masterplanning Use Title/Icon Use Diagram Add photo of Adv Hse 37
Slide 38: Land remediation & demolition: circular economy in action
The Harworth Way Land remediation & demolition: circular economy in action 38
Slide 39: Plot sales and influencing stakeholders: reducing whole life carbon
The Harworth Way Plot sales and influencing stakeholders: reducing whole life carbon 39
Slide 40: Yorkshire & Central region update
Yorkshire & Central region update Ed Catchpole & Chris Davidson Regional Directors, Yorkshire & Central
Slide 41: Update on selected key developments
Update on selected key developments Gascoigne Wood Skelton Grange Thoresby Vale 42
Slide 42: Skelton Grange
Skelton Grange ▪ 50-acre site adjacent to Junction 45 of the M1, to the south-east of Leeds city centre, formerly the location of the Skelton Grange Power Station Junction 45 Proposed 800,000 ▪ Acquired by Harworth in 2014 of the M1 sq. ft development ▪ In April 2020, sold land to Enfinium for the d
Slide 43: Gascoigne Wood
Gascoigne Wood ▪ 185-acre former colliery site in Sherburn-in-Elmet, North Yorkshire ▪ Benefits from an existing rail connection through the Sherburn Rail Freight Terminal, and also lies in close proximity to the A1(M) and the M62 ▪ In 2021, Network Rail began using part of the site as a logistics h
Slide 44: Thoresby Vale
Thoresby Vale ▪ Site of the former Thoresby Colliery, which closed in 2015 ▪ In 2017, received outline planning to develop 800 homes, alongside a primary school, retail and leisure facilities and 350-acre country park ▪ To date land has been sold to Harron Homes, Barratt and David Wilson Homes and A
Slide 45: Waverley & the AMP
Waverley & the AMP
Slide 46: Waverley & the AMP: Overview
Waverley & the AMP Overview The transformation of the former Orgreave coal mining site into Yorkshire’s largest ever mixed-use development ▪ A 740-acre site located just two minutes from Junction 33 of the M1 and at the heart of the South Yorkshire Mayoral Combined Authority ▪ Following closure of t
Slide 47: Three decades of regeneration
Waverley & the AMP Three decades of regeneration c.1990 2011 48
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Slide 49: Olive Lane, R-evolution Phase 4
Olive Lane Highwall Park R-evolution Phase 4 Potential train station Waverley waterside Net Zero Carbon homes 50
Slide 50: Olive Lane
Waverley & the AMP Olive Lane ▪ A new mixed-use ‘heart of the community’ providing residential, retail, leisure and office space, alongside a medical centre ▪ Scheme will be centred around a new high street, connecting Waverley to the AMP and aimed at reducing car usage ▪ High quality public realm w
Slide 51: Massing plan for Olive Lane
Waverley & the AMP Massing plan for Olive Lane AMP Commercial units – occupiers to include community centre, cafes, pharmacy, local, regional and national users Waverley residential area Medical centre Convenience store 52
Slide 52: Waverley residential area Steps towards the AMP
Waverley residential area Steps towards the AMP 53
Slide 53: Olive Lane
Olive Lane Harworth 54
Slide 54: New medical centre expected to open in September 2024
New medical centre expected to open in September 2024 Waverley residential area
Slide 55: Key
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Slide 56: Gateway 36
Gateway 36
Slide 57: Gateway 36: Overview
Gateway 36 Overview Transforming a 127-acre site, formerly home to the Rockingham colliery, into a major hub for logistics and manufacturing in Yorkshire ▪ Site benefits from adjacency to Junction 36 of the M1, with infrastructure works supported by £3.1m of funding from Sheffield City Region Phase
Slide 58: Gateway 36 phases
Phase 1: developed by Harworth and sold to Mayfair Capital in 2019 Potential next part of Phase 2 Phase 3: 330,000 sq. ft speculative unit now under construction by Firethorn Phase 2: 110,000 sq. ft now complete, with unit 2 let to Lucy & Yak 59
Slide 59: Closing remarks
Closing remarks Lynda Shillaw Chief Executive
Slide 60: Closing remarks
Closing remarks ▪ Delivering against all four growth drivers of £1bn goal despite challenging macro backdrop ▪ Our focus markets remain attractive, and we have significant flexibility and firepower ▪ Diversifying our residential products can accelerate development, add to placemaking and grow strate
Slide 61: Q&A
Q&A
Slide 62: Site tour information
Site tour information
Slide 63: Tour start point
A | SRY Le Tour start point
Slide 64: Tour start point
Tour start point 65
Slide 65: Disclaimer
Disclaimer For the purpose of the following disclaimer, reference to this ‘presentation’ shall be deemed Actual results may differ materially from those expressed in forward-looking statements. As to include reference to the presentation slides, the presenters’ speeches, the question and such, you a