Places for People Investors' Seminar 2013 presentation

1. Annual Investors’
Seminar 2013

2. WELCOME & OPENING ADDRESS
Chris Phillips
Group Chairman

3. FINANCIAL PERFORMANCE
2012/13
Simran Soin
Group Executive Director -
Finance

4. HEADLINE FIGURES
2012/13 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

5. 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%

6. 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

7. 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
Revenuereserves includingpension liability

8. RESULTS ANALYSIS 2012/13
239.2
256.4
271.2
291.6
310.5
0.0
50.0
100.0
150.0
200.0
250.0
300.0
350.0
2009 2010 2011 2012 2013
£’m
Revenuereserves excluding pension liability and mark
to market

9. 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 AssetBase

10. 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

11. Debt Portfolio Profile
as at 31 March 2013

12. 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

13. 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

14. GROUP ACHIEVEMENTS
2012/13
David Cowans
Group Chief Executive

15. Last year – 2012/13
• Growing the Group
• Business diversification
• Strong performance
• Supporting customers

16. The Housing Challenge
Dwelling Completions (England) 1946 - 2012
Source : DCLG Housing Statistics, Historical data series

17. Trends in Housing Tenure (England)1981 to 2012
Owner occupiers
Social renters
Private renters
Source: English Housing Survey 2011-12
2009
2010
2011
2012
Housing Tenure
??
2016
?
?
?

18. A range of
requirements
A range of
solutions
Affordable Rent
Market Rent
Try before
you
buy
Shared
ownershipSharedequity
Staircasing
Supported Housing
Equity Release
Buyoutright

19. Access
Affordable rent
Rent conversion
Save a deposit scheme
Try before you buy
Market rent
Our Approach
Services
Place management
Facilities management
Property management
Individual Support
Leisure management
Development
Masterplanning
Partnerships & JVs
Ensuring
successful places
and enabling
people to reach
their potential
Facilities
Management
Sales Regeneration

20. New businesses

21. 2011/201
2
2012/201
3
61,978
homes
81,556
homes 2,000+ FTE
employees
5,000+ FTE
employees
£369m
turnover
£380m
turnover
31% increase Increase of
more than 2500
£11m increase
Plus RMG
=
143,000
homes
A year of growth…

22. Homes
• Targeted support for
customers facing
Welfare Reform
• Direct debit success
• Sustaining tenancies
• Involving customers

23. Housing
Management
and Repairs
Performance:
•Occupation 99%
•Rent collection 100%
•Gas servicing 100%
•Stock turnover
reduced by 7%

24. 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

25. Individual Support
• Focus on service
improvement
• 91% customer
satisfaction
• Exploring new
markets

26. New Markets
• Developing new services
• Strengthening market position
• Looking to the future

27. 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

28. 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

29. 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

30. Delivering 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

31. “The best way to predict the future
is to invent it.”
Alan Curtis Kay

32. Q & A