East Midlands Housing Group Investor Presentation Presenting Team: - - PowerPoint PPT Presentation

East Midlands Housing Group

Investor Presentation

Presenting Team: Chan Kataria - Group Chief Executive Andrew Kilby - Executive Director Finance December 2015

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Key highlights

• Established in 1946, now one of the largest housing groups in England
• Rated AA- by Standard & Poor’s
• Long and successful track record of operations, services and development program delivery
• Strong focus on low-risk social housing activities
• Very high demand for social housing in areas of operations
• High operating margin of c. 30%
• Financially robust with strong coverage ratios (not relying on property sales)
• Stable and experienced management team with strong group board oversight
• Strong risk management culture at all levels of the organisation
• Recognised “partner of choice” with key stakeholders

Our vision: “To be widely recognised as the best social housing and care businesses in the country, leading the market as service provider and employer”

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Agenda

1. EMH Group introduction and overview 2. Impact of Government policy changes on EMH 3. Financial performance 4. Funding and treasury strategy 5. Transaction highlights 6. Appendices

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Turnover – Breakdown by type FY 15A Social housing lettings – Breakdown by type FY 15A

• Established in 1946
• Leading social housing provider in the UK
• Owns and/or manages c18,000 properties
• Providing over 10,000 hours per week of care and support
• Annual turnover >£94m, employing over 1,100 people
• Clear and streamlined group and governance structure
• Stable and experienced management team with strong group

board oversight

• Geographically focused on the East Midlands, a region

characterised by a very high demand for social housing

• A reputation for high quality service delivery:

 Investors in People (silver) and top 100 Apprenticeship Employer  Highest rating for Governance and Viability from the Social Housing Regulator (G1 / V1)

Key highlights

EMH Group at a glance

Core values: I DO ACE (integrity, diversity, openness, accountability, clarity, excellence)

78% 17% 5% Social Housing Lettings Care and Support Other 67% 28% 5% General Needs Supported Housing & Housing for Older People Low Cost Home Ownership

History – a long and successful track record of operation

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EMH Group – key milestones

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Geographical profile and growth

Homes owned across the East Midlands Evolution of turnover Evolution of housing units owned and managed

44.1 58.0 72.3 91.3 94.3 30.0 50.0 70.0 90.0 FY 11 FY 12 FY 13 FY 14 FY 15 £m 11,545 17,013 17,254 17,432 17,833 10,000 12,000 14,000 16,000 18,000 FY 11 FY 12 FY 13 FY 14 FY 15 Units

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Development programme – Overview

Development programme¹

High priority areas Breakdown by funding Breakdown by usage

Ashfield Mansfield Erewash South Derbyshire NW Leicestershire Charnwood Leicester Blaby Harborough

Kettering

Wellingborough Northampton Daventry

Development programme – Priority areas

Other priority areas

83% 17% Social and affordable rent Shared ownership 22% 72% Section 106 Developed

¹Breakdown from 3 year programme of identified units

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Development programme – current pipeline

Key highlights

• Development strategy designed to reflect the specific needs of local authorities
• Strong albeit flexible pipeline with currently 893 units
• Development pipeline strongly linked to financial plan with regular monitoring controls
• Focus on affordable rent and shared ownership
• Currently 10 market rented units in pipeline
• Grant funding of £13m secured via AHP2 15/18 programme to deliver 607 units; grant from OPS £2.5m
• “Hello Homes” shared ownership sales brand
• Currently only 14 shared ownership units unsold
• Shared ownership sales over last 3 years 181, average sales price c£130k, average first tranche sale 32%

Pipeline – Developed vs. section106 Pipeline – Completed vs Committed

Year Completed Committed Pipeline Feasibility Total Rent SO Rent SO Rent SO Rent SO 2015-16 82 48 52 20 5 207 2016-17 176 28 54 22 13 1 294 2017-18 162 17 73 13 123 4 392 Total 82 48 390 65 132 35 136 5 893 Year Completed Committed Pipeline Feasibility Total Developed S106 Developed S106 Developed S106 Developed S106 2015-16 55 75 44 28 5 207 2016-17 158 46 76 14 294 2017-18 162 17 75 11 123 4 392 Total 55 75 364 91 151 16 137 4 893

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Streamlined group structure

• Group structure amalgamation completed in September

2013

• Legal structure based around two business divisions, EMH

Homes and Enable, as well as three specialist entities

• Clear separation and ring-fencing of social housing

activities regulated by the HCA

• Significant benefits achieved including:

 More efficient governance and focused Executive Management team  Higher degree of consistency in operational management while maintaining local preferences  Holistic approach to asset management strategy  £1.3m efficiency savings and greater economies of scale EMH Group – New legal structure Key highlights

Sharpes Garden Services Limited EMH Treasury Plc Special purpose vehicle (SPV) Enable Housing Association Limited Not registered with HCA Charitable C&CBS Closed membership Enable Care and Home Support Limited Charity Commission registered Company limited by guarantee EMH Housing & Regeneration Limited (EMH Homes) Registered provider Charitable C&CBS Closed membership Midlands Rural Housing and Village Development Associated Limited Not registered with HCA Non-charitable C&CBS

East Midlands Housing Group Limited (EMH Group)

Non-charitable C&CBS Registered Provider Group parent Main operating entities Specialist entities

Enable EMH Homes

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A strong governance structure in place

Subsidiary Boards Board committees Sets strategic direction of the group

• Set the long term strategic direction for the organisation
• Ensure that the board fulfils its duties in terms of

compliance and monitoring risk

• Ensure an effective business plan and budget is in place
• Ensure that performance is monitored and managed

through internal controls and delegation

• Approve key policies to allow the organisation to achieve

its objectives Operational delivery EMH Homes Enable

• Responsible for the delivery of the

business plan

Audit Treasury Remuneration

• Adherence to National Housing Federation’s (NHFs) revised

Code of Governance

• Highest governance rating provided by the regulator
• Strengthened governance structure :

 Group and subsidiary boards reduced to 9 members  Independent board members (except for chief executive)

• f each board nominated following an in-depth skills-

based selection process  Succession in place over the next few years; moving towards harmonised board structure

• Each Board member is appraised and the effectiveness of

the Board as a whole is evaluated on an annual basis

• Clear separation between strategic role of the Board and

executive role of the management team

• Systematic focus, review and identification of key strategic

risks

• Subsidiaries’ Boards responsible for the operational delivery
• f the business plan

EMH Group Board Key highlights

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A strong and stable executive management team

EMH Group – Executive Management Team

Chris Ashton Executive Director Housing Chan Kataria Group Chief Executive

Key highlights

• Highly stable and experienced senior

management team  Current Group Chief Executive only the third one since creation in 1946  CEO has been a statutory appointee in troubled organisations  CEO is sector representative on key trade bodies  EMT has over 100 years of sector expertise

• Track record of transformational change
• Strong relationships with key stakeholders,

including the regulator and local authorities

• Play a leading role in a range of organisations,

including National Housing Federation, Chartered Institute of Housing, Placeshapers and Health and Supporting People commissioning bodies Andrew Kilby Executive Director Finance Jim Patman Executive Director Development Margaret Mitchell Executive Director Human Resources Joanne Tilley Executive Director Business Support Joanna Grainger Executive Director Care & Support

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High demand for social housing in areas of operations

Estimated population growth in the East Midlands

• High level of demand for social housing in the East Midlands;

housing associations in the area provide affordable homes for

• ver 145,000² families
• Average house price of £177k in the region represents over 7

times the average regional income22

• Number of households expected to increase by around

22,0001 a year between 2012 and 2033, equating to a c.23% rise

• The region is building just 45%1 of the new homes needed

each year

• 64% of EMH Homes properties let on first offer
• Tenant turnover 8.4% in 14/15

Key highlights Affordability / Supply Data2 (selection of key local authorities)

4.50 4.54 4.58 4.90 4.62 4.66 0.89% 0.88% 0.87% 0.87% 4.2 4.4 4.6 4.8 5.0 2011 2012 2013 2014 2015 2021 Millions 0.70% 0.75% 0.80% 0.85% 0.90% Population % growth

Sources: 1. CLG statistics; 2. NHF 2015-16 Hometruths

0.0 1.5 3.0 4.5 6.0 7.5 9.0 10.5 Northampton Blaby Harborough Leicester Charnwood NWLDC Erewash Ashfield Ratio of house prices to incomes 750 1,500 2,250 3,000 3,750 4,500 Northampton Blaby Harborough Leicester Charnwood NWLDC Erewash Ashfield Shortfall in homes 2011-2014

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High demand for social housing in priority development areas

Affordable housing waiting list data (Dec 15)

• Current data collected from LA’s in key priority

development areas

• c18,000 on waiting lists of the 6 Local Authorities
• Total homes required annually from SHMA c5,000
• Homes delivered in 14/15 c4,000
• Numbers presenting statutory homeless in 14/15

576 Key highlights Annual Homes Required per SHMA¹ New Homes Delivered in 2014-15

200 400 600 800 1,000 1,200 1,400 1,600 Blaby NWLDC Leicester Charnwood Northampton Wellingborough

• No. of Homes Required

Affordable Other

¹Strategic Housing Market Assessment

200 400 600 800 1,000 Blaby NWLDC Leicester Charnwood Northampton Wellingborough No, of Homes delivered Affordable Other 1,149 787 10,580 1,936 3,300 696 2,000 4,000 6,000 8,000 10,000 Blaby NWLDC Leicester Charnwood Northampton Wellingborough

• No. on waiting list

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Social and market rents in the East Midlands

Social and market rent in key areas of operations1 Key highlights1

• Average EMH Group rents of c. £88 a week, just over two

thirds of the £124 weekly cost of an equivalent home in the private rented sector

• Private sector rents in the East Midlands expected to rise

by 67% in the next 10 years, representing an increase of £342 per month

• Average house price in the East Midlands in 2014 of

£177,000 compared to £266,000 for England

Sources: (1) CLG data, valuation office agency rent officers’ data, Homes and Communities Agency, Regulatory and Statistical Return sNote:: (1) Key areas defined as local authorities with over 500 units

• 20

40 60 80 100 120 140 160 Northampton Blaby Harborough Leicester Charnwood NWLDC Erewash Ashfield £ Average Weekly Rent Market Rent EMH Group

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High quality and well-maintained housing stock

Stock by property type1

EMH Group – Stock profile (as of November 2015)

Stock by no. of bedrooms (general needs) Stock by age Stock by usage1

Note: (1) “Other” includes commercial properties, garage and caravans Note: (1) “Other” includes commercial properties, garage and caravans

61% 8% 21% 4% 5% General Needs Shared Ownership Housing for Older People Supported Housing Other 65% 30% 5% Houses / Bungalows Flat Other 19% 34% 44% 2% 1% 1 Bedroom 2 Bedrooms 3 Bedrooms 4 Bedrooms Other 16% 25% 17% 10% 13% 19% Prior 1950 1950-1970 1970-1980 1980-1990 1990-2000 Post 2000

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Well-balanced tenant profile

Key highlights Age profile Breakdown by economic status

• Favourable age profile limiting level of bad debts and

arrears  Low exposure to tenants below 24, traditionally the segment with high arrears  High percentage of retired tenants (c30%)

• Strong emphasis on collecting tenants information which

allows the group to plan the impact of welfare reforms and tailor services to meet individual needs

• Current tenant arrears at lowest ever point (3.2%)

Breakdown by category

5% 32% 26% 22% 10% 5% 24 or less 25-44 45-59 60-74 75-84 Over 85 29% 19% 11% 14% 13% 11% 3% Retired Full time employment Job Seeker Not seeking work Long term sickness/disability Part-time employment Other 34% 22% 15% 11% 7% 11% Working age, no benefits Working age, full benefits Working age, partial benefits Pension age, full benefits Pension age, partial benefits Pension age, no benefits

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Agenda

1. EMH Group introduction and overview 2. Impact of Government policy changes on EMH 3. Financial performance 4. Funding and treasury strategy 5. Transaction highlights 6. Appendices

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Spending Review/Housing and Planning Bill

Spending Review

• Key Priorities

 Increased focus on Low Cost Home Ownership  Funding for starter homes  Funding for elderly persons accommodation  Limited funding for rented properties

• Impact on Development Programme

 Increase proportion of Low Cost Home Ownership from 25% to 50%  Rented programme will be dependent on availability of funding – mainly RTB replacements and residual S106 schemes

• Local Housing Allowance Restriction

 General needs properties – worst case only £4k reduction  Under 35 lettings – worst case £186k reduction assuming all on housing benefit  Supported living / extra care will be impacted if included  Rent reductions will reduce future impact

Housing and Planning Bill

• Pay to Stay:

 Not a major issue in region  Not included in financial plan  Any impact will be marginally positive

• ONS Reclassification

 No change to governance arrangements  Government commitment to take action to reverse the decision  Supporting NHF in lobbying

• Voluntary Right to Buy

 Currently being piloted  Very restricted application (e.g. 10 tenancy)  National funding will be restricted  Estimated 5,600 EMH Group tenancies could be eligible  PRTB already available to c3,500 tenants resulting in approximately 20 sales per year

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Budget July 2015: Rent reductions

Impact

• Business Plan originally based on CPI plus 1%
• Applies to all properties excluding Shared Ownership

and Specialised Supported Housing

• Assumption of CPI of 0.5% in 16/17 rising to 2.0%

in 19/20

• Rental income therefore reduced by 12% by 19/20
• Rent reduction of £10m per annum by 19/20
• Possible reduction in valuations in loan security

Board Objectives

• Well placed after amalgamation in 2013 and £1.3m of

resultant efficiency gains

• Maintain financial viability and credit rating
• Maintain cautious approach to financial planning
• Continue to develop new housing
• Maintain frontline services as far as possible
• Implement organisational review to identify

efficiency gains

• Review reinvestment in existing properties

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Budget July 2015: Mitigating action

Actions underway

• New Business Plan produced, published on website

and submitted to Regulator

• Assumptions reviewed
• Development under AHP 15/18 programme

protected; future development capacity maintained at 350 units per year with increased focus on shared

• wnership
• Increased programme of disposals – extra 60 units

per annum by 18/19

• £1m annual reduction in capital reinvestment

programme

• Front loaded efficiency strategy agreed at Group

Board on 4 December 15

Revised Financial Projections

• Financial viability maintained
• Average Group operating margins 28%; average
• perating margins for EMH Homes 33%
• Group surplus in excess of £4.5m
• EMH Homes interest cover low point 127% in 15/16

(exc. surplus on sales)

• £1m contingencies in respect of efficiency gains
• Failure to deliver efficiencies will not breach loan

covenants

• EBITDA MRI margins improved

Mitigating Actions as % Lost Revenue EBITDA MRI Margins / Interest Cover¹

28% 18% 29% 25% Management (£3m) Maintenance (£2m) Reduced Surplus (£3m) Other (Bad Debts, Sales & Interest, £3m) ¹ EBITDA MRI Group / Interest Cover EMH Homes 25% 30% 35% FY15A FY16F FY17F FY18F FY19F FY20F Revised Forecast Original Forecast Actual 110% 120% 130% 140% FY15A FY16F FY17F FY18F FY19F FY20F Revised Forecast Original Forecast Actual

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Welfare reform act: potential impact on EMH Group

Key highlights

• Key risks identified by the group in relation to welfare reform: (Universal credit , Under occupation and Benefit cap. The

application of Local Housing Allowance is also likely to impact on new single tenants aged under 35

• Comprehensive and continuous assessment of potential impact on tenants and the organisation as whole

 Use of an impact assessment tool as well as maximising the use of tenant profiling  Weekly dashboard to identify any emerging trends

• 1. Universal credit
• 17 tenants now in receipt of

Universal Credit. Arrears on these tenancies currently c 12%

• All but 6 local authorities are live.

These will be live by February 2016

• c.3,300 tenants potentially affected

this financial year (i.e. tenants supported by full or partial housing benefits)

• Highly conservative assumption in

current financial plan: gradual increase of bad debt from 1.4% of social housing turnover in FY 2016 to 3.2% in FY 2021

• Revert back to direct payment if

arrears reach 8 weeks

• Impact has been minimised through

transfers and tenants entering employment

• c1,100 properties in total under
• ccupied but not all on benefits
• Estimated potential impact on

arrears overall is £109,000 and reducing

• Proactive management of accounts
• Government announced in July 2015

that the overall benefit cap was to be reduced from the current level of £23k per year to £20k per year

• Estimated impact once introduced to

be 3 times the previous level. This will still be low over all the stock – approximately 150 properties

• 2. Under-occupation
• 3. Benefit cap

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Welfare reform act: a pro-active approach

Key initiatives…

• Detailed Welfare Reform Strategy overseen by Executive

Directors with an action plan in place to ensure that the Group is well prepared for the potential impact of the reform

• Dedicated welfare reform group that focuses on impacts

and takes early action

• Reports on recent developments reviewed at each

Executive Management and Board meeting

• Comprehensive approach to address the impacts of

universal credit including:  proactively targeting singles under 25 and couples who are transferring to UC now  tailored and targeted support and information based on personal circumstances  risk assessed interventions  digital inclusion project to prepare for on line paperless benefit applications

…combined with a change in culture and approach

• Change in policy and cultural approach towards the

collection of rents  Provision of advice and support to affected tenants  Stricter line on rent arrears (‘say it, do it’ approach)  “In-credit” approach from the outset of the tenancy

• Centralised income recovery team

 Maximise income collection through pro-active tenant profiling  Target contacts to tenants on a risk assessed basis  Rent arrears currently at the lowest level seen

Universal credit

• Emphasis on accurate tenant profiling updated at each

contact with tenants: age, gender, relationship with lead household, economic status

• Close relationship with local authorities and DWP to

regularly update and monitor the list of affected tenants

• Cross organisational approach ensuring residents get

early advice

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Agenda

1. EMH Group introduction and overview 2. Impact of Government policy changes on EMH 3. Financial performance 4. Funding and treasury strategy 5. Transaction highlights 6. Appendices

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Robust operational performance as demonstrated by low levels of voids, arrears and bad debts

Key highlights Evolution of voids Evolution of bad debts Evolution of rent arrears

• Consistently low levels of voids over the last 5 years

demonstrating strength of demand

• Level of bad debts and rent arrears maintained at very low

levels on a sustained basis, despite the challenging economic environment

• Emphasis on Income Team responding swiftly to any

missed payments, frequent contacts with tenants, in order to minimise level of bad debts and arrears

• Actual current tenant arrears now at lowest ever point

(3.2%)

1.4% 1.3% 1.3% 2.0% 2.1% 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% FY 11A FY 12A FY 13A FY 14A FY 15A % gross rental income 0.8% 0.9% 0.8% 1.0% 1.3% 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% FY 11A FY 12A FY 13A FY 14A FY 15A % net rental income 4.0% 3.1% 3.2% 3.3% 3.7% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% FY 11A FY 12A FY 13A FY 14A FY 15A % net rental income

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Key financial ratio performance

Key Financial Ratios

Key Ratios Actual FY11 Actual FY12 Actual FY13 Actual FY14 Actual FY15 Turnover from Social Housing Lettings as % Total Revenues 86% 89% 90% 77% 78% Social Housing Interest Coverage (x) 1.79 1.63 1.79 1.64 1.76 Recurrent Cash Interest Coverage (x) 1.89 1.73 1.96 1.84 1.92 Operating Surplus as % of Turnover 36% 31% 30% 25% 31% Surplus before tax as % of Turnover 15% 10% 10% 7% 12% Long Term Debt to Assets at Cost 47% 49% 47% 54% 48% Net Capex as % of Turnover 65% 38% 28% 30% 29% Debt to Revenues (x) 4.9 5.3 4.3 4.1 3.8 ¹ FY12 and FY14 where relevant negative goodwill excluded

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Agenda

1. EMH Group introduction and overview 2. Impact of Government policy changes on EMH 3. Financial performance 4. Funding and treasury strategy 5. Transaction highlights 6. Appendices

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Capital structure

Key highlights Source of funding (Oct 2015) Projected Debt maturity profile

• Total debt: £360m as of October 2015; 97% Fixed
• Repayable within 5 years: £36m
• Weighted average hedged interest rate of 5.67%
• Bank loans represent c.50% of gross debt; bond issue 42%
• RCF of £80m, all undrawn. £50m secured and available to draw.

£30m expiring 2016

• New sources of funding - £50m retained bonds; £50m 5 year

RCF

• c1,000 unencumbered properties; estimated value for loan

security purposes £50m (post retained bonds)

Charged Security¹

Revolving credit facility Breakdown of debt instruments

Total debt: 360m Total facility: 80m

50% 42% 8% Bank Bond Other 62% 38% Secured Not secured

• 100

200 300 400 500 15A 17F 19F 21F 23F 25F 27F 29F 31F 33F 35F 37F 39F Funding £m Bond Other ¹Securing funding of £450m including retained bonds. LTV 73%

Valuation Basis MVT EUV Total Unit Numbers 4962 9939 14901 Valuation (£m) 314 301 615 Average (£k) 63 30 41

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Agenda

1. EMH Group introduction and overview 2. Impact of Government policy changes on EMH 3. Financial performance 4. Funding and treasury strategy 5. Transaction highlights 6. Appendices

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Transaction highlights

Key highlights

• EMH group intends to sell its £50m retained bonds to fund its development pipeline
• c.1,100 units with a value of approximately £57m (combination of EUV and open market value subject to tenancy) are being offered

as security for the retained element;

• Retained bonds to be cash collateralised until property charging process completed (estimated completion date January 2016)
• Headroom in charged security c£10m at last valuation

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Issue summary and bond structure

Issuer EMH Treasury Plc Borrower EMH Housing and Regeneration Limited Rating AA- (S&P) Nominal amount £50m (retained element) Maturity 29 January 2044 Security Initially cash to be replaced with social housing property in January 2016 Covenants Asset cover ratios: 1.05x EUV-SH, 1.15x MS-ST Use of proceeds General corporate purposes, including funding the development programme Bookrunners Lloyds

Terms and Conditions Bond structure

EMH Housing and Regeneration Ltd Security trustee Bondholders EMH Treasury Plc Bond trustee Bonds Benefit of issuer security Security trust deed & security agreement Loan agreement Bond trust deed Security Cash flows Benefit of underlying security East Midlands Housing Group Ltd (Guarantor) Guarantee

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Agenda

1. EMH Group introduction and overview 2. Impact of Government policy changes on EMH 3. Financial performance 4. Funding and treasury strategy 5. Transaction highlights 6. Appendices

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Historical – Consolidated income statement

Income statement

Note: FY 12A numbers includes only six months of TVH’s operations

Year end 31 March (£'000) 2010-11 2011-12 2012-13 2013-14 2014-15 FY 11A FY 12A FY 13A FY 14A FY 15A Turnover 44,132 57,952 72,334 91,329 94,265 % Growth 31.3% 24.8% 26.3% 3.2% Operating Costs

• 28,288
• 40,181
• 50,384
• 68,236
• 64,711

Operating Surplus before exceptional items 15,844 17,771 21,950 23,093 29,554 % Margin 35.9% 30.7% 30.3% 25.3% 31.4% Negative Goodwill from acquisitions 48,382 9,158 Operating Surplus 15,844 66,153 21,950 32,251 29,554 Surplus on Sale of Properties 528 943 746 891 1,191 Interest Income 50 325 163 23 631 Interest Expense

• 9,646
• 13,560
• 15,653
• 17,920
• 20,455

Other Financing Costs (Pension Scheme) 25 85

• 78

26 173 Surplus on Ordinary Activities before Taxation 6,801 53,946 7,128 15,271 11,094 Tax Expense

• 197

89

• 72
• 65
• 99

Surplus on Ordinary Activities 6,604 54,035 7,056 15,206 10,995 % Margin (excl. Negative Goodwill) 9.8% 9.8% 6.6% 11.7% Total Units (Owned and Managed) 11,545 17,013 17,254 17,432 17,833

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Historical – Consolidated balance sheet

Balance sheet

Note: FY 12A numbers includes only six months of TVH’s operations

2010-11 2011-12 2012-13 2013-14 2014-15 Year end 31 March (£'000) FY 11A FY 12A FY 13A FY 14A FY 15A Tangible Fixed Assets Housing Properties (Net of Depreciation) 437,009 595,224 613,948 642,657 682,208 Grant

• 190,814
• 195,516
• 197,323
• 200,754
• 219,269

Total Housing Properties 246,195 399,708 416,625 441,903 462,939 Other Tangible Fixed Assets 6,276 7,668 7,868 9,887 10,446 Investments 1,184 1,237 1,152 1,367 Homebuy Loan / Grant Total Fixed Assets 252,471 408,560 425,730 452,942 474,752 Current Assets Inventories 3,131 2,037 1,360 1,644 1,475 Debtors 2,660 5,733 4,479 6,266 6,202 Investments 17,812 12,942 5,021 35,565 27,815 Cash at Bank and in Hand 1,614 4,740 5,991 40,393 21,149 Total Current Assets 25,217 25,452 16,851 83,868 56,641 Creditors: Amounts falling due within 1 Year

• 11,384
• 16,333
• 16,924
• 33,340
• 30,899

Net Current Assets/(Liabilities) excl. Pensions 13,833 9,119

• 73

50,528 25,742 Pension Asset/(Liability) 510

• 4,193
• 5,938
• 5,280
• 8,403

Net Current Assets/(Liabilities) 14,343 4,926

• 6,011

45,248 17,339 Total Assets less Current Liabilities 266,814 413,486 419,719 498,190 492,091 Creditors: Amounts falling due after more than one year 214,560 308,374 309,127 371,579 357,358 Provisions for Liabilities and Charges 61

• 28

3 6 47 Called up Share Capital 1 1 1 Designated Reserves 13,938 14,569 15,258 2,352 2,342 Revenue Reserves 38,254 90,570 95,330 124,253 132,344 Total Funds 266,814 413,486 419,719 498,190 492,091

Note: FY 12A numbers include only six months of TVH's operations

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Disclaimer

Your attention is drawn to the following: the information provided in this presentation is confidential and save where it is already in the public domain is not to be disclosed to anyone without our express consent. The information is preliminary in nature. This document sets

• ut certain features of the Group and does not purport to provide a complete description of the Group or its finances. No representation
• r warranty express or implied is made as to the fairness, accuracy or completeness of the information contained herein and no reliance

should be placed upon it