INTERIM RESULTS PRESENTATION Six months to 31 December 2015 MARCH - PowerPoint PPT Presentation

INTERIM RESULTS PRESENTATION Six months to 31 December 2015 MARCH 2016 DELIVERING VALUE THROUGH CREATIVE BROWNFIELD DEVELOPMENT

Our business 01 01 • AIM listed with market cap of £168m • Land regeneration and residential development business in Who we are Southern England • 100% track record in obtaining planning consents Drayton Garden Village, West Drayton • Identify brownfield land opportunities with strategic angles • Acquire sites unconditionally Strategy • Add value by navigating through complex planning system • Sell consented plots; develop lower cost homes; control substantial land bank; generate rental income St Johns, Chelmsford • Increase net land bank and underlying NAV • Expand housebuilding operations Business objectives • Increase rental income • Joint ventures with major landowners and financial partners Alexandra Gardens, Iver

Clear business model 02 Carter’s Quay, Poole Church Road, Ashford Land bank Sale of consented plots Brownfield Navigation land of complex acquisition planning process system House building programme* Investment portfolio “Creating value through planning expertise”

03 Group highlights: another record performance Operational Financial  Gross margin from the sale of private homes increased  EPRA net asset value of 84.4p per share to 24.1% (2014*: 22.0%)  Record increase in profit before tax (including £14.0  Disposal of 244 plots for a total consideration of £21.5 million revaluation surplus), up 274.4% to £21.5 million million (2014: £5.7 million)  Net increase in land bank to 5,672 plots, of which 1,146  314.9% increase in earnings per share to 10.04 pence have planning consent (2014*: 2.42 pence)  Consents secured on 583 plots and 7,114 sq ft of  25.4% increase in overheads reflects strategy to grow commercial in-house building expertise  2,929 plots awaiting planning decisions or are the  33.3% rise in interim dividend to 0.4 pence per share, subject of pre-application discussions with local reflecting strength of earnings performance and authorities Board’s confidence in outlook  Southampton City Council is development partner for  Committed £20 million revolving credit facility, with 8.9 acre site, with potential for 380 residential units and ‘accordion facility’ of £10 million to finance GDV in excess of £90 million housebuilding activities  Construction underway on 208 units. A further 111 units expected to commence shortly *restated as a result of the application of IFRS10 and the change in accounting policy for investment properties

04 Financial highlights: strong results delivered across all operating metrics H1 2015* Change Comments H1 2016 Revenue £55.1m £52.6m +5% Gross profit £14.6m £13.3m +10% Improved gross margin Profit before tax (including valuation gain) £21.5m £5.7m +274% Profit before tax (excluding revaluation gain) £7.5m £5.7m +31% Earnings per share 10.04p 2.42p +315% Higher effective tax charge in previous period Investment properties £48.1m £14.7m +227% Revaluation of residential properties at Wilton park Inventories £129.7m £131.7m -2% Other financial liabilities £17.2m £34.4m -50% Payment of deferred consideration Net debt £54.6m £43.3m +26% Housebuilding increased; payment of deferred consideration Net gearing 51% 67% -24% Reduction due to increased net assets NAV per share 53.1p 32.0p +66% Impact of revaluation of investment properties EPRA NAV per share 84.4p N/A N/A Reflection of unrealised value within projects *restated as a result of the application of IFRS10 and the change in accounting policy for investment properties

05 Revenue & gross profit analysis Segmental Analysis of Revenue 60 1.07 0.49 2.22  93 private units sold (2014: 199 units) 50 3.93  Average selling price of £325,000 (2014: £242,000) 40 Revenue £m 30.25 30  58% of units sold were houses (2014: 16%) 48.15 20  Current reservation rate of 0.73 units per site per week 21.61 10  Overall gross margin increased to 26.5% (2014: 0 H1 2015 H1 2016 25.3%) Financial period Rental and other Contract Housebuilding Land sales  Gross margin of 24.1% (2014: 22.0%) on Segmental Analysis of Gross Profit housebuilding 16 0.89 14 0.1 0.11  Forward sales of £20.9m 12 2.65  244 building plots sold for £21.5m (2014: nil) 10 7.29 Gross profit £m 8  Significant increase in rental income with current annualised amount of £2.3m 6 10.57 4 6.3 2 0 H1 2015 H1 2016 Financial period Rental and other Contract Housebuilding Land sales

Summarised balance sheet 06 H1 2016 H1 2015 Comments (£m) (£m) Investment properties 48.1 14.7 Revaluation uplift on residential properties at Wilton Park Joint ventures 7.3 4.3 Increased activity with CPC JV Associate 0.8 - 25% interest in Troy Homes Ltd Inventories 129.7 131.7 Other assets 7.9 9.8 Cash & cash equivalents 16.6 9.8 Borrowings < 1 year (57.0) (41.1) Borrowings > 1 year (14.2) (12.0) Deferred consideration (17.2) (34.4) Non recourse amount re: Wilton Park Other liabilities (14.9) (18.1) Equity attributable to shareholders 107.1 64.7 NAV 53.1p 32.0p EPRA NAV 84.4p N/A

Main drivers of EPRA NAV Growth 07 180.0 160.0 63.2 140.0 (7.1) 120.0 (1.5) (2.0) 1.0 14.0 EPRA NAV £m 100.0 7.3 6.3 170.3 80.0 60.0 89.1 40.0 20.0 0.0 Jun-15 Land sales Housebuilding Revaluation of Interest and Tax Dividends Other movements Unrealised value Dec-15 investment overheads within projects properties Fall Rise

Land Portfolio 08  Strategic focus on South East commuter and high growth locations  Strong and visible pipeline of opportunities, both within land bank and housing developments  Delivery of first time buyer and mid-tier price range homes into high-demand areas  £75m GDV currently under construction

Land Portfolio 09 Plots owned / managed (number) Land Bank 6,000 5,672 6,000 5,672 5,176 5,176 5,000 5,000 1,146 1,663 1,200 1,303 3,734 Number of plots 4,000 4,000 3,734 Number of plots 1,329 1,318 1,580 3,000 3,000 1,811 2,306 2,306 1,942 4,526 1,942 2,000 2,000 3,976 942 347 1,344 1,057 605 1,283 380 1,215 307 2,416 1,000 1,000 1,318 1249 1,215 1,057 1,086 983 727 0 0 FY 2012 FY 2013 FY 2014 FY 2015 H1 2016 FY 2012 FY 2013 FY 2014 FY 2015 H1 2016 Plots controlled or terms agreed without consent (including strategic options) Plots With Planning Permission Plots Without Planning Permission Plots controlled or terms agreed with consent or resolution to grant planning consent Managed or held within joint ventures without consent Owned or contracted without planning consent Owned or contracted with planning consent or resolution to grant planning consent “Significant brownfield and strategic land bank with visible pipeline of opportunities”

Planning status of sites 10 Planning status of residential plots Target plots Planning applications submitted Pre-application discussions To be progressed Strategic for consent by Ownership status 30 June 2016 No. of sites No. of plots No. of sites No. of plots No. of sites No. of plots No. of sites No. of plots Managed or held in joint ventures 639 2 639 4 941 - - - - Owned or contracted 298 5 298 9 748 3 192 2 48 Plots controlled or terms agreed 62 1 62 2 241 1 70 16 1,287 Grand Total 999 8 999 15 1,930 4 262 18 1,335 Planning status of plots in land bank Planning status of commercial space Planning application submitted Pre-application discussions Planning Ownership status No. of sites Sq ft No. of sites Sq ft applications submitted, 999 Managed or held in joint ventures 2 120,255 3 73,400 Strategic, 1,335 Owned or contracted 2 5,350 5 106,340 Plots controlled or terms agreed 1 53,820 - - Grand Total 3 70,234 9 300,380 To be progressed, 262 Pre-application discussions, 1,930

11 Housebuilding activity  Sale of 93 units legally completed in first half of financial year  Construction underway on 214 units and further 105 units about to start  Construction cost inflation over last couple of years; self help measures being taken where possible  New managing director appointed with intention to grow in-house development capabilities  Medium term target of 500 units p.a.  Well placed to benefit from house price rises expected over next 5 years

12 Wilton Park, Beaconsfield, Buckinghamshire  114 acres  Estimated GDV in excess of £250m  Development Brief adopted in 2015  Scope for 350 houses  Access land purchased in advance to put Inland in ‘special purchaser’ position with MOD  Major highway works underway  Short term rental income in excess of £1.1m p.a.  Planning application expected to be submitted in current financial year

Lily’s Walk, High Wycombe, Buckinghamshire 13  First site in joint venture with Christian Candy’s CPC Group  Planning application submitted for 239 apartments and approximately 16,000 sq ft of commercial space  Resolution to grant planning consent expected shortly with zero affordable housing  Adjacent site with scope for further 80 plots acquired in December 2015  Combined estimated GDV in excess of £83m