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Chris PhillipsGroup Chairman – Places for People
Welcome & Opening Address
Andy WinstanleyGroup Executive Director, Finance – Places for People
Financial Performance
Headline Group Figures
1
Social Housing Letting Operating Margin (1) (2)
38.4%
40.2%40.7% 40.6% 40.4%
30%
32%
34%
36%
38%
40%
42%
2013 2014 2015 2016 2017
(1) 2012/13 & 2013/14 prepared under UK GAAP, all other years prepared using FRS 102
(2) Derwent Housing Association included from 16 December 2016
Current tenant arrears
2.0%
2.2%
2.4%
2.6%
2.8%
3.0%
3.2%
2013 2014 2015 2016 2017
*
Fiscal Year End 31 March FY 2016 FY 2017 (2)
Group Turnover £616.6m £795.1mProfit Before Tax £43.7m £119.7mGroup Operating Margin 20.10% 20.00%Reserves £280.8m £379.0mAsset Base £3.1bn £3.7bn
Interim Group Figures
2
Places for People Group 6 Months to 30 Sept 2016 6 Months to 30 Sept 2017 (1)
Group Turnover £424.9m £373.8m
Profit Before Tax £36.9m £45.5m
Group Operating Margin 18.90% 23.30%
(1) Includes Derwent Housing Association
4
PfP Group‘A’
Negative Outlook
PfP Homes‘Baa1’ Stable
Outlook
Credit and Regulator Rating
HCA RatingG1/V1
Group Overview
4
Places for People Group(owns or manages 182,725 housing properties)
Regulated Housing Activities Non-Regulated Activities
• RMG• Touchstone• Places for People Leisure• ZeroC
Borrower: Places for People Treasury plc
• Places for People Homes• Castle Rock Edinvar• Places for People Living+• Cotman Housing Association• Derwent Housing Association
Regulated housing activities are ring-fenced with capped investment between regulated and non-regulated activities
Strong contribution from commercial activities is supportive of the social housing business
Borrower: Places for People Finance plc
Diversified Strategy
5
• Places for People continues to diversify its debt investor base: accessing capital markets in the UK, Europe, US and Asia.
• Medium term objective to re-balance debt portfolio to 60% unsecured.
• Nov’17 - Tender and new benchmark issuance of £250m Bond.
£2.5bn Drawn Debt Portfolio
GBP
USD
JPY
As at 30 November 2017
Secured42%
Unsecured58%
GBP78%
USD10%
EUR1%
HKD3%
AUD JPY4%
Non-Regulated Activities
• Dec’16 - £65m Retail Bond
Regulated Housing Activities
• Aug’17 - AUD $150m 5yr Issuance
• Aug’17 – HKD $700m from 6yr & 7yr issuance
6
Group Debt Maturity Profile (£m)
Treasury Summary
As at 30 November 2017
0
100
200
300
400
500
600
700
800
900
2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031+
Bank Bond Other Private Placement
Available Liquidity
Undrawn Facilities, £493m
Cash, £139m
Policy Target Actual1. Minimum forward cash 12 Months 19 Months2. P&L interest cover > 1.2x 1.83x3. Gearing < 60% 56.7%4. Minimum debt to be fixed 70% 80%5. All FX exposure fully hedged 100% 100%
David CowansGroup Chief Executive – Places for People
Challenges & Opportunities
UK COMPLETIONS & NET ADDITIONS
Source : Compiled from DCLG Housing Statistics, Table 241, permanent dwellings completed by tenureUnited Kingdom, historical calendar year series and Table 101, dwelling stock by tenure UK
0
50000
100000
150000
200000
250000
300000
350000
400000
450000
Dwelling Stock completions and Average Annual Net Additions across each decade
Total completions Average annual net additions
HOUSING TENURE
Source: English Housing Survey 2015 - 16
2018
?
??
Owner occupiers
Social renters
Private renters
Trends in Tenure (England)1980 to 2015/16
OPERATING ENVIRONMENT
A range of requirements
A range of solutions
OUR MARKETS AND PRODUCTS
Affordable housing &
support
Regulated businesses.Over 62,000 affordable rented homes & 20,000 student properties in managementLiving + supported housing services.
Management companies
Commercial businesses.Over 98,000 properties managed by Touchstone & RMG
Commercial Property Management
Development &
construction
Construction capability.
Developing across all tenures.
Over 15,000 homes in pipeline
Placemaking&
regeneration
Large scale master planning, regeneration & development capability.
Joint ventures
Leisure
116 leisure facilities in management.
50 million customer visits to our centres annually
Retirement
Commercial businesses.
Around 2,500 retirement rental homes
Retirement villages under construction
Growth/ incubation
Green services business
Emerging international activity
Assets and Investments
Fund management
Fund Management business
THE PROPERTY VALUE CHAIN
Urban planning
Placemaking
Regeneration
Joint Ventures
Local Authority partnerships
Masterplanning
Land bank
Project funding
Investor relations
Fund manager
Bond market
Private placements
Project planning & execution
Place Developments
Flagship developments
Mixed tenure
Mixed use
Leasing/ usage of property
Leasehold management
Private rent
Affordable rent
Retirement rent
Supported rent
Outright sale
Commercial property
Portfolio management/
secondary market
Management
Maintenance
Site services
Landscapes
Facilities management
Care services
Leisure services
OUR EVOLUTION
Moving into market rentand outright
sale
RENT & SALE
Placemakingfocused on larger scale development
PLACEMAKING
Building placemaking
and management businesses to deliver whole
places
NEW BUSINESSES
Structured relationships to
deliver more activities on a larger
scale
ACTIVITIES
Housing provision and
neighbourhoodregeneration
PROVISION & REGENERATION
OUR APPROACH
Working to provide
aspirational homes and
inspirational places
placesforpeople.co.uk
AccessAccessAffordable rent
Rent conversionStarter homes
Market rent
ServicesServicesPlace management
Property managementAsset managementIndividual supportLeisure facilities
DevelopmentDevelopmentMasterplanning
Partnerships & JVs
FacilitiesManagement
AFFORDABLE HOUSINGAFFORDABLE HOUSING
Invested £108.7m in our homes
Invested £108.7m in our homes
312 new affordable
homes built
312 new affordable
homes built
160,000 repairs
completed
160,000 repairs
completed
Derwent Living
joined the PfP Group
Derwent Living
joined the PfP Group
PROPERTY MANAGEMENTPROPERTY MANAGEMENT
£1.2m of new management
contracts acquired by
RMG
£1.2m of new management
contracts acquired by
RMG
£1.2m of new management
contracts acquired by
RMG
5 new clients and 99%
retention of client portfolio at Touchstone
5 new clients and 99%
retention of client portfolio at Touchstone
40% growth in RMG’s
contractual pipeline to
36,000 units
40% growth in RMG’s
contractual pipeline to
36,000 units
40% growth in RMG’s
contractual pipeline to
36,000 units
LEISURE MANAGEMENTLEISURE MANAGEMENT
7 new leisure
facilities opened
7 new leisure
facilities opened
Awarded 2 new local authority contracts
Awarded 2 new local authority contracts
116 leisure facilities managed
116 leisure facilities managed
Top Performing
Organisation award from the Quest
quality scheme
Top Performing
Organisation award from the Quest
quality scheme
DEVELOPMENT & CONSTRUCTIONDEVELOPMENT & CONSTRUCTION
£187m invested in new homes
£187m invested in new homes
1,519 new homes built
and acquired
1,519 new homes built
and acquired
1,477 homes under
construction at year end
1,477 homes under
construction at year end
PLACEMAKING & REGENERATIONPLACEMAKING & REGENERATION
£200m regeneration partner with Runnymede
Borough Council
£200m regeneration partner with Runnymede
Borough Council
1,500 home development
in Queen Elizabeth
Olympic Park
1,500 home development
in Queen Elizabeth
Olympic Park
Modular, custom-build
homes at Smith’s Dock
Modular, custom-build
homes at Smith’s Dock
16,000 new homes in the
pipeline
16,000 new homes in the
pipeline
Plans for 1,150 home
development in Birmingham
city centre
Plans for 1,150 home
development in Birmingham
city centre
RETIREMENTRETIREMENT
Over 5,000 homes for
older people managed
Over 5,000 homes for
older people managed
5 retirement villages
comprising 500 homes
planned in 1st
year
5 retirement villages
comprising 500 homes
planned in 1st
year
500
25th
anniversary of GirlingsRetirement
Rentals
25th
anniversary of GirlingsRetirement
Rentals
SUPPORTED HOUSING & CARESUPPORTED HOUSING & CARE
Developed a project to develop new, fully adapted,
self-contained blocks of apartments for customers with
complex needs
Developed a project to develop new, fully adapted,
self-contained blocks of apartments for customers with
complex needs
Provide support services to more than 6,500 people
across the UK
Provide support services to more than 6,500 people
across the UK
Living+ acquired an additional 138 units of
supported housing
Living+ acquired an additional 138 units of
supported housing
FINANCIAL & SOCIAL VALUEFINANCIAL & SOCIAL VALUE
610 young people
supported to sustain a tenancy
610 young people
supported to sustain a tenancy
73,000 children have weekly swimming
lessons
73,000 children have weekly swimming
lessons
£85m social value
generated
£85m social value
generated
Helped 3,787 people into training and employment
AWARDS & ACCREDITATIONS
What is our strategy?
Quality mixed-use,
mixed-tenure places
Offer a range of products
and services
Long-term placemaking
End-to-end offer/supply
chain
Improvement on previous best
Commercial methods to deliver social outcomes