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