ANNUAL RESULTS PRESENTATION Year ended 30 June 2018
• Highlights and strategy • Financial results • Operational performance • Outlook • Q&A
Stephen Wicks – Chief Executive
A strategy focused on growth Continue the core Maximise the value Acquire land and add activity of plot sales to from our land bank by Maintain borrowings at value through generate cash to fund expanding our house a manageable level planning our operations building programmes • • • Unconditional Sale of consented Affordably priced high- • Target EPRA net acquisition of plots quality homes gearing at below 40% brownfield sites • • Bias to parties Target 1,000 units pa • Balanced profile of • Strategic land where our within two years maturity dates options at discount construction team to market value can build out • Focus on South & South-East of England 4 Inland Homes PLC - Annual results 2018
Why invest in Inland Homes Discount to EPRA NAV 1 p 102.28 ▪ Strong, well-located land portfolio 39% 100 ▪ South & South East, no exposure to Greater London discount 80 ▪ 6,780 plots, 1,708 with planning permission 62.38 ▪ 100% planning success rate on brownfield sites 60 ▪ Large pipeline 40 20 ▪ Balanced business model 0 June Share ▪ Land sales 2018 price ▪ Private housebuilding (forward sales of £19.7m) Dividend yield % ▪ Partnership housing (contract order book c£100m) 3.3 3.5 ▪ New initiatives (Hugg Homes / Rosewood) 2.8 3.0 2.5 2.2 ▪ Strong potential return 2.0 ▪ Share price at 39% discount to EPRA NAV of 102.28p 1.4 1.5 1.2 ▪ 29% dividend growth 1.0 ▪ 3.3% dividend yield 0.5 0.0 1 On an undiluted basis 5 2014 2015 2016 2017 2018 Inland Homes PLC - Annual results 2018
South and South-East focused portfolio Status of planning To be progressed Strategic 8% sites 45% Pre-application discussions 36% Planning applications submitted 11% 100% success rate on brownfield planning permissions 6 Inland Homes PLC - Annual results 2018
Balanced and growing pipeline Unit completion timescale Plots with planning permission Plots without planning permission < 24 Months 17% 8,000 7,000 6,000 1,708 2,105 1,606 5,000 2 - 5 Years > 5 Years 2,034 28% 55% 4,000 3,000 5,162 4,671 4,502 2,000 3,813 Total land bank split by type 1,000 0 Total Group share Total Group share 2017 2018 Flats 53% Houses 47% 7 Inland Homes PLC - Annual results 2018
Nish Malde – Finance Director
Financial highlights EPRA NAV 2 p 0.25 (1.83) 102.28 7.62 0.02 96.22 100 39% ▪ Revenue 1 up 26% driven by record plot and unit 80 discount sales 60 62.38 40 20 ▪ Recurring profit up 6.6% to £19.3m 0 June Profit Reval'n Div'ds Other June Share 2017 2018 price ▪ EPRA NAV 2 per share up 6.3% to 102.28p Dividend growth p 2.5 2.2 ▪ Full year dividend +29% to 2.20p (yield @ 2.0 1.7 30/06/18: 3.3%) 1.3 1.5 1.0 1.0 0.6 0.5 0.3 1 Revenue includes land sold via corporate disposal in prior year 2 On an undiluted basis 0.0 9 Inland Homes PLC - Annual results 2018 2013 2014 2015 2016 2017 2018
Financial summary Revenue by segment June 2018 June 2017 Change % 8% 4% Revenue 1 (£m) 40% 148.6 117.7 26.3 Gross profit 1 (£m) 31.8 32.5 (2.2) 48% Net interest cost (£m) 4.2 6.5 (35.4) Land sales Housebuilding Contract income Mngt fees/Other Recurring profit before tax (£m) 19.3 18.1 6.6 Gross profit by segment Earnings per share (p) 7.64 7.82 (2.3) 13% 6% Dividend (p) 2.20 1.70 29.0 58% 24% 1 Includes revenue and profit from properties and land sold via corporate disposal. See appendix for reconciliation 10 Inland Homes PLC - Annual results 2018
Balance sheet June 2018 June 2017 Change % Investment property 52.8 53.6 (1.5) Assets by segment Loans & Invts in JVs & associate 27.3 25.4 7.5 10% Inventories 136.2 139.9 (2.6) 20% 40% Cash 40.4 26.5 52.5 2% 29% Borrowings 120.1 94.5 27.1 Land sales Housebuilding Net Asset Value - IFRS (£m) 142.4 130.6 9.0 Contract income Investment property Other - EPRA (£m) 206.7 194.4 6.3 EPRA NAV per share - diluted 98.03p 91.88p 6.7 - undiluted 102.28p 96.22p 6.3 11 Inland Homes PLC - Annual results 2018
Net debt and borrowings Proforma June June June 2018 1 2018 2017 £m £m £m Debt maturity (£m) Borrowings 120.1 120.1 94.5 2024/25 Net debt 79.7 79.7 68.0 2023/24 2022/23 Cash + headroom 74.0 72.5 37.7 2021/22 Gearing - IFRS 56.0% 56.0% 52.1% 2020/21 - EPRA 38.6% 38.6% 35.0% 2019/20 2018/19 Average maturity - facilities 2.3 years 1.7 years 2.7 years 0 10 20 30 40 50 - borrowings 2.6 years 1.9 years 2.7 years Proforma June 2018 Weighted average cost of debt 2 n/a - Housebuilding 3.1% 3.5% n/a - Land & investment property 5.9% 6.2% 1 Proforma figures include ZDP refinancing in August 2018 2 Excludes ZDP 12 Inland Homes PLC - Annual results 2018
Gary Skinner – Managing Director
Operational highlights 8,000 6,681 6,776 6,870 ▪ 275 open market sales - 46% increase 7,000 1,163 6,000 1,708 5,176 2,105 5,000 ▪ Average selling price of £293,000 3,734 1,200 4,000 3,000 1,318 5,518 ▪ Partnership housing equivalent units up 114% from 5,162 4,671 2,000 3,976 37 to 79 2,416 1,000 0 ▪ Record planning application submitted: 1,853 2014 2015 2016 2017 2018 homes at Cheshunt, Hertfordshire Plots without planning permission Plots with planning permission 300 275 8,000 ▪ Land bank increased to 6,870 despite consumption 808 743 12 7,000 of land through plot sales and homes sold 6,000 1,708 2,105 5,000 ▪ 682 units under construction at 30 June 2018 4,000 3,000 5,162 ▪ Staff numbers increased from 74 to 105 4,671 2,000 1,000 1 In addition to the 743 plots, 94 were sold into a 50% joint 0 venture and therefore remain in the year end landbank figure 2017 Acq'ns Density House Land Other 2018 14 Inland Homes PLC - Annual results 2018 1 increase Sales Sales
Sites in the pipeline Wilton Park, Beaconsfield Cheshunt Lakeside, Hertfordshire Holmer Green, Buckinghamshire • Outline planning submitted by Inland for • 10 acre strategic site located in the a • Outline planning submitted for 350 homes the 28 acre site comprising 1,853 Greenbelt controlled by way of an option at and commercial within a parkland setting apartment-led mixed-use development a discount to market value • Estimated gross development value of • Inland has a 50% interest in 20 acres of • Allocation for housing in emerging local £350m the site containing 1,343 apartments plan following promotion by Inland • Planning decision expected December • Regeneration includes commercial, retail, • Outline planning application submitted for 2018 subject to agreement on level of leisure and education space as well as a 103 homes affordable housing new local plaza • Potential for further residential and • Estimated gross development value of commercial as included in Local £650m Authority’s Preferred option list • Ability to buy out JV partner 15 Inland Homes PLC - Interim Results 2017
Developments under construction Lily’s Walk, High Wycombe Church Road, Ashford Chapel Riverside, Southampton • Former gas works, 3.5 acres site with • Regeneration of former Brooklands College • Development Agreement with planning for 239 residential units and • Planning permission received in Dec 2017 Southampton City Council over nine acres 15,800 sqft of commercial space of water-front brownfield site for 357 homes • Complex brownfield site • Planning secured for 457 residential • Purchased our JV’s 80% interest in March • One and two bedroom apartments with apartments and 60,000 sqft of commercial 2018 • Complex site which involves major prices ranging from £250k to £350k • In June 2018, sold the site to A2 Dominion • Forward sales of £5.5m infrastructure challenges for £29.7m and simultaneously signed a • Estimated gross development value of • Gross development value of £75m £64.5m construction contract • Construction commenced in July 2018 with £105m • First completions expected by June 2019 • Delivery across five phases through to phased completions from 2020 to 2023 2024. Phase one completes October • Commercial space to be transferred to 2018. Inland at nominal value 16 Inland Homes PLC - Interim Results 2017
Private housebuilding in progress June June Change 2018 2017 % Net average reservation rate per active outlet 0.90 0.63 n/a Forward order book (£m) 19.7 19.9 (1.0) Private completions (homes) 275 188 46.3 Private ASP (£'000) 293 306 (4.2) Partnership equivalent units (homes) 79 32 146.9 Help to Buy contribution 58% 58% n/a 17 Inland Homes PLC - Annual results 2018
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