places for people: investors seminar 2012

Group Chairman

Group Executive Director, Finance

2011/12 2010/11

Turnover £369m £340mIncome from lettings £237m £232mOp Profit before interest £96.2m £80.3mProfit before Tax £17.4m £16.5m

Credit Ratings - Moody s Aa3 / stable- Standard & Poor s A+ / stable

Interest Cover before depn - 1.4xInterest Cover after depn - 1.2xInterest rate risk - contained at 25%Gearing - 49.9%Continue to match spending to available fundingUndrawn committed facilities £312.5M in placeInvestors continue to support Places for People notwithstanding volatility in financial markets

Continue to match spending to available fundingUndrawn committed facilities £312.5M in placeInvestors continue to support Places for People notwithstanding volatility in financial markets

56,500

57,500

58,500

59,500

60,500

61,500

62,500

Housing stock ownedor managed

Growth in housing stock owned or managed Growth in housing stock owned or managed supporting longsupporting long--term rental income streams.term rental income streams.

At 1 April 2012, 61,978 homes owned or managed. At 1 April 2012, 61,978 homes owned or managed.

Units

Results Analysis 2011/12Revenue Reserves excluding pension liability

0

50

100

150

200

250

Revenue Reserves(ex pension liability)

£ m

Key Achievements Gross Fixed Asset Base

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

GrossAssets(£bn)

7 years of sustained growthFixed Asset base remains at £3.1bn£3,060k in 2011 to £3,122k in 2012

£ bn

Core funding strategy to: Diversify Investor BaseRebalance Debt Portfolio to targeted 60% unsecuredUp from a base of 5% of total debt two years ago to 35%A further £40M at 1% + RPI Linked issued on Retail Bond Market

2012 2011

Pension deficit £35.2m £28.2m

Pension scheme has been closed to future accrual as of October 2010Increase in deficit reflects reduction in discount rate affecting most schemesPlan agreed to eliminate deficit in the next 15 years.

Another Challenging YearRobust LiquidityCashflow, Investment & Cost ControlInterest rate, liquidity and refinancing risk all contained within strategic target

Group Director, Operations

Operations and Service Delivery Performance for 2011/12

The Operations Business

61,978 propertiesLettings activity £234m> 7,000 property lettings> 2,000 staff across operations

Providing a dedicated housing management service to customers in England, Wales and Scotland

We have teams on the ground as well as a 24-hour Customer Service Centre which deals with around 1,500 calls each day

We have an in-house property maintenance, repairs and gas team which operates 365 days a year

Covers c. 90% and all of our gas servicing and property repairs needs

232,000 repairs were carried out in 2011/12

We have a £150 million five year stock investment programme underway

Provision of high-quality care and support services for over 40 years

We provide homes and services to around 7000 clients in over 200 local authority areas

We also provide self funded tailored care and support packages to help clients live independently in their own home.

The Group has a large customer base of long term renters

Our housing stock generated over £234m of gross rental income

March 2011

March 2012

Group 3.19 2.77

Homes 2.90 2.56

Individual Support 1.40 1.06

Castle Rock Edinvar 3.71 3.53

Cotman HA 4.01 4.52

(Arrears as a % of total rent)

Time Taken to Relet an Empty Property (days)

March 2011

March 2012

Group 28.7 23.3

Homes 21.0 19.8

Individual Support 37.0 30.3

Cotman HA 25.0 25.0

Castle Rock Edinvar 29.4 25.3

March 2011

March2012

Group 1.36 1.16

Homes 0.89 0.54

Individual Support 3.82 3.89

Castle Rock Edinvar 0.80 0.52

Cotman HA 0.75 0.69

Mar2011 Mar 2012

Emergency Repairs 98.0% 97.0%

Urgent Repairs 94.0% 93.0%

Routine Repairs 99.0% 95.0%

Gas Servicing Compliance 99.7% 99.9%

Property Maintenance - % of Repairs Completed Within Target

Over 82% of customers would recommend Places for People as a landlord

97% of customers satisfied or very satisfied with the repairs service

We continue with a planned programme of works on about 5000 homes a year to continue to meet the standard

In addition a major programme of fire safety and other compliance work is in progress.

RIDDOR reportable accidents:-

2010/11 2011/12

30 19

* RIDDOR - Reporting of Injuries, Diseases and Dangerous Occurrences Regulations

Create Social Value for our Customerse.g. Employment Training

Year People accessing services

People into learning and

training

People into employment

Business start up

Business supported

2011/12 3688 1192 351 117 147

2010/11 4527 1184 623 32 348

We secured funding from the Future Jobs Fund to provide opportunities for young people aged 18-24

C. 40% (125) have now gone on to full time employment.

In addition we now have over 25 apprentices in training.

Reduction of operational costs especially repairs

Managing / influencing repairs demand

Improvements in operating efficiencies

These continue to flow through to the bottom line

Anticipating and preparing for the changes in welfare reform

Group Director - Development

Planning approval granted for:

Dove Lane 250 residential unitsc. 10,500m2 commercial and retail

Smiths DockUp to 815 residential units and approx. 6000sqm commercial development inc. hotel

Sales at Marlborough Park and Brooklands

2 sites with the Scottish Futures Trust

Phase 1 no of units 199Sales/Occupation rate 5.3 per monthAverage Selling price £225,624 Occupations on site 122Income per sq ft average in Brooklands = £237Income per sq ft average new build in Milton Keynes = £190

Phase 1 no of units 204Sales/Occupation rate 5.9 per monthAverage Selling price £148,605Occupations on site 124Income per sq ft average Marlborough Park = £194Income per sq ft average new build in Swindon = £172

Stimulated demandIncreased occupancy ratesDriven a value premiumCreated organically mixed communitiesBroken down barriers to, and negative perceptions of, affordable housingHelped people access a homeBuilt in flexibility and value for the future

Tenure Mix

Group Director Business Development

New services provided to existing and new customersInvestment in new assets and business opportunitiesAchieve growth and from profitable revenue based activitiesDrive commercial returns on our internal expertise

Creating clearer routes to marketExpanding our Core BusinessB2B/Out-sourcingExpanding our B2C servicePrivate rented sectorGreen Services business Retirement market

Reinforce our PRS Landlord brand valueLaunch our Residential Management Services Offer to Investors/ reluctant Landlords

Marlborough Park, SwindonNew and flexible independent and assisted living modelsAspirational not a distress choiceInnovative financial , investment & tenure modelsLifestyle premium not just care but hotel servicesAssistive technology & Telecare services

Energy Services JVEU compliant delivery vehicleGreen Deal/Supplier Obligation - ?Green Services HubRetrofit R&D

Externalising the Group s placemaking approach Long term investment planFlexible tenure marketing strategyInnovative S106 and market rent proposalsFully integrated Group offer

Developing our business

Maximise new market opportunities Create profitable revenue streams and investment opportunitiesRespond to B2B and B2C emerging markets Deliver to a wider customer base Clear routes to marketEnsure a balanced portfolio in terms of market sectors, risk, returns and timescales

Group Chief Executive

Source : CLG

Dwelling Completions (England)

Trends in UK Housing Tenure 1980 to 2009-10

Source: CLG

Owner occupiers

Social renters

mill

ion

hous

ehol

ds

Private renters

If these trends continue, there could be over 5.5m private rented households by 2016

2016

The number of households in defined poverty and reliant on Housing benefit has risen by 750,00 in the last three years

63% of households in social rented housing in receipt of Housing Benefits compared to 25% of households in the private rented sector

The number of our customers now paying by Direct Debit increased by 11.4% between 2011 and 2012.

Enable access to housing in places that meet people s aspirations, in a way that suits their circumstances:

New build housingFlexible housing productsDecent NeighbourhoodsPlace Management

A range of requirements

A range of solutions

Neighbourhoods Strategy

Working to a standard strips out waste and duplication, empowering local residents

Starting to see the results in our neighbourhoods where we have adopted this approach

New work streams in regeneration

DevelopmentMasterplanningPartnerships & JVs

AccessAffordable rent

Rent conversionSave a deposit scheme

Try before you BuyMarket rent

ServicesPlace Management

Facilities Management

Asset ManagementCare and Support Ensuring

Successful Places

FacilitiesManagement

Sales Regeneration

Platinum Award in the BiTC 2012 Corporate Responsibility Index

Neighbourhood plans in place covering over 10,000 homes

Energy saving measures in nearly 4000 homes

Through the Future Jobs Fund 124 people secured employment and 8 people full-time education.

Getting maximum value from our current strengths

Development of Places

Property Management

Leveraging our products and services

Selling our products and services into new markets

New services

Getting maximum value from our current strengths

Long term investment in places

Strong Management

Diversity of business

Creating value

Our people

Deliver 2012/13 Business Plan and budgets

Long-term strategy

Opportunities arising from changes in the Housing Market and Government Policy

Alan Curtis Kay