Investors seminar 2013 presentation

Annual Investors’ Seminar 2013

WELCOME & OPENING ADDRESS

Chris PhillipsGroup Chairman

FINANCIAL PERFORMANCE 2012/13

Simran SoinGroup Executive Director -

Finance

HEADLINE FIGURES2012/13 2011/12

Turnover £380.0m £369.0m

Income from lettings £254.0m £237.0m

Operating Profit before interest

£97.8m £96.2m

Profit before Tax £17.1m £17.4m

TREASURY HIGHLIGHTS

• Credit ratings– Moody’s A2 / stable– Standard & Poor’s A+ / stable

• 1.5x Interest Cover before depreciation• 1.2x Interest Cover after depreciation• Interest rate risk contained at 20.4%• Gearing at 52%

TREASURY HIGHLIGHTS

• Continue to match spending to available funding• Undrawn committed facilities £198m in place• Investors continue to support Places for People

notwithstanding volatility in financial markets• Continued diversification of Investor base both in

the UK and overseas

RESULTS ANALYSIS 2012/13

236.0

255.0

269.5

248.3 248.4

210.0

220.0

230.0

240.0

250.0

260.0

270.0

280.0

2009 2010 2011 2012 2013

£’m

Revenue reserves including pension liability

RESULTS ANALYSIS 2012/13

239.2256.4 271.2

291.6310.5

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

2009 2010 2011 2012 2013

£’m

Revenue reserves excluding pension liability and mark to market

KEY ACHIEVEMENTS

2.9

3.1 3.1 3.1

3.3

2.7

2.8

2.9

3

3.1

3.2

3.3

3.4

2009 2010 2011 2012 2013

£’bn

Gross Fixed Asset Base

FUNDING STRATEGY

Core funding strategy to: • Diversify Investor Base• Rebalance Debt Portfolio to targeted 60%

unsecured• Up from a base of 5% of total debt to 36.3%• JPY 5b (£35m) loan notes issued Jan 13

Debt Portfolio Profile as at 31 March 2013

PENSIONS

2013 2012

Pension deficit £40.1m £35.2m

• Pension scheme has been closed to future accrual as of October 2010

• Increase in deficit reflects reduction in discount rates affecting most schemes

• Plan agreed to eliminate deficit in the current year

2013/14

• Another challenging year but on course to deliver business plan

• No material financial impact due to Welfare Reform

• Robust Liquidity• Cash flow, investment and cost control• Interest rate, liquidity and refinancing risk all

contained within strategic target

GROUP ACHIEVEMENTS2012/13

David CowansGroup Chief Executive

Last year – 2012/13

• Growing the Group

• Business diversification

• Strong performance

• Supporting customers

The Housing ChallengeDwelling Completions (England) 1946 - 2012

Source : DCLG Housing Statistics, Historical data series

Trends in Housing Tenure (England)1981 to 2012

Owner occupiers

Social renters

Private renters

Source: English Housing Survey 2011-12

200

9

201

02

011

2012

Housing Tenure

??

2016

?

?

?

A range of requirements

A range of solutions

Affordable Rent

Market Rent

Try before

you buy

Share

d ow

ners

hip

Sha

red

equi

tyStaircasing

Supported Housing

Equity Release

Buy outright

AccessAffordable rent

Rent conversionSave a deposit scheme

Try before you buyMarket rent

Our Approach

ServicesPlace management

Facilities managementProperty management

Individual SupportLeisure management

Development

MasterplanningPartnerships & JVs

Ensuring successful places

and enabling people to reach their potential

FacilitiesManagement

Sales Regeneration

New businesses

2011/2012

2012/2013

61,978homes81,556homes 2,000+ FTE

employees5,000+ FTEemployees

£369mturnover£380m

turnover

31% increase Increase of more than 2500

£11m increase

Plus RMG =

143,000 homes

A year of growth…

Homes• Targeted support for

customers facing Welfare Reform

• Direct debit success• Sustaining tenancies• Involving customers

Housing Managementand RepairsPerformance:•Occupation 99%•Rent collection 100%•Gas servicing 100%•Stock turnover reduced by 7%

Neighbourhoods• 21 out of 47 targeted

areas moved from ‘Amber’ to ‘Green’

• Helped 283 people into employment and 1538 into learning

• £16m asset management investment in the year

Individual Support• Focus on service

improvement• 91% customer

satisfaction• Exploring new

markets

New Markets

• Developing new services

• Strengthening market position

• Looking to the future

Corporate Responsibility• Retained Platinum Award in the BiTC

2013 Corporate Responsibility Index• Retained ISO14001 environmental

management certification• Helped over 2,600 customers increase

their household income by over £1.5m in total

• 11 Community Games events held – attended by over 1,800 people

• 829 tonnes carbon saved across housing stock through asset investment

Awards• Housebuilder of the Year – Building Awards 2013• Property Manager of the Year - RESI• Homes for Scotland – Best Partnership in Planning• Best Landlord – Landlord and Lettings Awards• Housing Association National Accountancy Award

from NHF for Financial Innovation

Creating and realising value• Property Management

• Development of places and long term investment

• Synergies and efficiencies

• Selling products and services into new and existing markets

• Our people

Deliver ing our Vision • Deliver 2013/14 Business Plan and budgets

• Long-term strategy

• Managing risks

• Opportunities arising from changes in the housing market and government policy

“The best way to predict the future is to invent it.”

Alan Curtis Kay

Q & A