Full Year 2010 Results presentation for the year ended 30 June 2010 8 September 2010 1
1 De Vessey Village, Sleaford 8 September 2010 Bob Lawson Chairman Full Year 2010
Full Year 2010 David Thomas Group Finance Director 8 September 2010 Greenfields 1
4 Full Year 2010 Overview 2009/10 2009/10 2009/10 2008/09 H1 H2 FY FY £m (unless otherwise stated) Revenue 872.4 1,162.8 2,035.2 2,285.2 Operating profit (1) 21.0 69.1 90.1 34.2 Operating margin 2.4% 5.9% 4.4% 1.5% (Loss) / profit before tax (2) (48.5) 15.5 (33.0) (144.1) Exceptional items (129.9) - (129.9) (534.8) (Loss) / profit before tax (178.4) 15.5 (162.9) (678.9) Tangible net assets per share (3) 210p 208p 415p Net debt 605.3 366.9 1,276.9 Gearing (4) 30% 18% 89% (1) Pre exceptional costs of H1 £15.8m , H2 nil, FY £15.8m (2008/09: £519.5m) (2) Pre exceptional costs of H1 £129.9m, H2 nil, FY £129.9m (2008/09; £534.8m) (3) Shares not adjusted (4) Calculated as: year-end net debt / tangible net assets 4
5 Full Year 2010 Revenue drivers 2009/10 2009/10 2009/10 2008/09 Change H1 FY H2 FY Completions Private 4,381 5,074 9,455 11,133 (15%) Social 647 1,223 1,870 2,069 (10%) ___________________________ ___________________________ _______________________ _______________________ Total housebuild 5,028 6,297 11,325 13,202 (14%) % Social 13% 19% 17% 16% ASP (£’000) Private 173.2 195.4 185.2 166.5 11% Social 119.0 119.7 119.5 107.1 12% ___________________________ ___________________________ _______________________ _______________________ Total housebuild 166.3 180.7 174.3 157.2 11% Revenue (£m) (1) 872.4 1,162.8 2,035.2 2,285.2 (11%) (1) Includes other revenue 5
6 Full Year 2010 Completions : houses v flats Total units Total units excl. London 100% 100% 34% 40% 80% 80% 50% 54% 60% 60% 40% 40% 66% 60% 50% 46% 20% 20% 0% 0% FY 08/09 FY 09/10 FY 08/09 FY 09/10 Houses Flats
7 Revenue analysis - product mix Full Year 2010
8 Private revenue analysis – price segments Note: Private completions only Full Year 2010
9 Full Year 2010 Revenue analysis – regional Northern Total Units 2,029 Units 11,325 % of total 18% % of total 100% Revenue £319m Revenue £1,974m Northern % of total 100% % of total 16% East Units 2,066 % of total 18% Revenue £340m Central % of total 17% Units 1,789 % of total 16% Southern Revenue £261m % of total 13% Units 2,248 % of total 20% East Central Revenue £450m % of total 23% Southern West London London Units 2,186 West Units 1,007 % of total 19% % of total 9% Revenue £353m Revenue £251m % of total 18% % of total 13% Note 1 : Revenue represents plot completions and excludes other revenue Note 2 : Northern, Central and East constitute Barratt North, West, Southern and London constitute Barratt South
10 Full Year 2010 Private revenue analysis – per sq ft % Change FY08/09 to FY 09/10 by region 9.0% 8.9% 8.0% 7.0% 6.8% 6.0% 5.0% 4.8% 4.6% 4.0% 3.6% 3.0% 3.1% 2.6% 2.0% 1.0% 0.0% Northern Southern West Central London East Group
11 Full Year 2010 Income statement 2009/10 2009/10 2009/10 2008/09 H1 FY H2 FY £m (unless otherwise stated) Revenue 872.4 1,162.8 2,035.2 2,285.2 Cost of sales (1) - Land (208.4) (268.4) (476.8) (427.6) - Other (605.4) (768.2) (1,373.6) (1,728.2) ___________________________ ___________________________ ___________________________ ___________________________ Gross profit (1) 58.6 126.2 184.8 129.4 Gross margin (1) 6.7% 10.9% 9.1% 5.7% Administrative expenses (2) (37.6) (57.1) (94.7) (95.2) Profit from operations (3) 21.0 69.1 90.1 34.2 Operating margin (3) 2.4% 5.9% 4.4% 1.5% (1) Pre Exceptional costs of H1 £4.8m , H2 nil, FY £4.8m (2008/09: £499.5m) (2) Pre Exceptional costs of H1 £11.0m, H2 nil, FY £11.0m (2008/09: £20.0m) (3) Pre Exceptional costs of H1 £15.8m, H2 nil, FY £15.8m (2008/09: £519.5m)
12 Full Year 2010 Income statement continued 2009/10 2009/10 2009/10 2008/09 H2 FY FY H1 £m (unless otherwise stated) Net finance costs (1) (68.9) (52.7) (121.6) (177.3) Joint ventures (post tax) (2) (0.6) (0.9) (1.5) (1.0) (Loss) / profit before tax (3) (48.5) 15.5 (33.0) (144.1) Exceptional items (129.9) - (129.9) (534.8) (Loss) / profit before tax (178.4) 15.5 (162.9) (678.9) Tax 51.0 (6.5) 44.5 210.3 Attributable (loss) / profit (127.4) 9.0 (118.4) (468.6) Basic EPS (4) (18.9p) (14.5p) (89.1p) Adjusted basic EPS (4) (4.9p) (2.9p) (15.6p) (1) Pre exceptional costs of H1 £114.1m , H2 nil, FY £114.1m (2008/09: £13.3m) (2) Pre exceptional costs net of tax of H1 nil, H2 nil, FY nil (2008/09: £2.0m) (3) Pre exceptional costs of H1 £129.9m, H2 nil, FY £129.9m (2008/09: £534.8m) (4) Prior period EPS has been adjusted following the Rights Issue as required by IAS33
13 Full Year 2010 Cash flow 2009/10 2009/10 2009/10 2008/09 H1 H2 FY FY £m (unless otherwise stated) Profit /(loss) from operations (after exceptionals) 5.2 69.1 74.3 (485.3) Decrease in land 95.5 49.0 144.5 669.0 (Decrease) / increase in land creditors (17.1) 113.3 96.2 (81.7) Net inflow from land 78.4 162.3 240.7 587.3 Decrease in WIP 48.5 14.3 62.8 525.1 Other working capital movements and non cash items (30.7) 22.7 (8.0) (115.3) Operating cash flow 101.4 268.4 369.8 511.8 Net interest & tax (5.2) (35.7) (40.9) (100.3) Free cash flow 96.2 232.7 328.9 411.5 Exceptional finance costs (110.8) (0.3) (111.1) (13.3) Share issues 720.5 - 720.5 - Share issue costs (26.7) (0.8) (27.5) - Acquisitions, Investments and purchase of shares by EBT (7.6) 6.8 (0.8) (24.5) Movement in net debt 671.6 238.4 910.0 373.7
14 Full Year 2010 Balance sheet - assets 30 June 2010 31 Dec 2009 30 June 2009 £m (unless otherwise stated) Goodwill and intangibles 892.2 892.2 892.2 Other non-current 397.0 373.5 308.4 Gross landbank 2,308.7 2,357.7 2,453.2 Land creditors (566.8) (453.5) (470.6) Net landbank 1,741.9 1,904.2 1,982.6 Stock and WIP 981.4 995.7 1,044.2 Other current (excluding cash) 118.3 76.1 135.5
15 Full Year 2010 Balance sheet - landbank 30 June 2010 31 Dec 2009 30 June 2009 Landbank plots Owned / unconditional contracts 50,948 50,990 53,541 Conditional contracts 11,392 13,429 14,459 Total 62,340 64,419 68,000 Landbank pricing (£’000) Cost of plots acquired 35.7 35.4 40.5 Cost of plots in P&L 41.9 41.4 32.1 Cost of plots in balance sheet 43.1 44.3 44.0 Years supply – Owned & Unconditional plots (1) 4.5 4.5 4.7 (1) Based on 11,325 completions
16 Full Year 2010 Landbank valuation Plot cost / Plot Plot Cost ASP Plots ASP £m £000 £000 % All figures as at 30 June 2010 Owned land ASP < £200k 37,446 1,237 33 150 22% ASP > £200k 13,502 946 70 265 26% Total 50,948 2,183 43 180 24% Other (1) - 126 Total owned land 50,948 2,309 Conditional land 11,392 36 193 19% Approved (not included above) 2,614 52 228 23% Total 64,954 (1) Includes strategic land and WBD
17 Full Year 2010 Balance sheet – liabilities 30 June 2010 31 Dec 2009 30 June 2009 £m (unless otherwise stated) Loans & borrowings (941.8) (920.3) (1,484.1) Cash 546.5 295.8 178.8 Foreign exchange element of swap 28.4 19.2 28.4 Net debt (366.9) (605.3) (1,276.9) Trade & other payables (1) (746.7) (631.3) (637.2) Pension obligations (46.1) (32.1) (31.5) Net swaps (68.1) (54.7) (85.7) Current tax (2.8) (2.6) - (1) Excluding land creditors
18 Full Year 2010 Financing arrangements Amount Maturity Loan /facility Bank Facilities Term loan (1) £741m April 2012 Nov 2012 £700m RCF facilities (2) £175m (3) Oct 2010 (4) -Apr 2020 Private placements Total (5) £1,616m (1) Note that the term loan is actually a revolving credit facility which was fully drawn in August 2008 and which has, since that date, operated effectively as a term loan (2) Consists of 2 separate revolving credit facilities each with total commitments of £350m (3) Includes £19m of new make-whole notes issued in Nov 09 (4) Amount maturing in Oct 2010 is approximately £11m (5) Covenants common to all financing arrangements
19 Full Year 2010 Interest charge analysis FY 11 H1 10 FY 10 (Forecast) £m (unless otherwise stated) Cash interest Interest on fixed term debt and other external interest 53.1 90.7 75.0 payments Non-cash interest Land creditors 11.5 26.5 Financing fees 6.4 9.6 Shared equity (2.9) (7.0) Kickstart - 0.2 Pension 0.8 1.6 Total non-cash interest 15.8 30.9 30.0 Total net interest (1) 68.9 121.6 105.0 (1) Pre exceptional interest of H1 £114.1m, H2 nil, FY £114.1m (2008/9: £13.3m)
20 Full Year 2010 Net debt/Land creditors analysis 2,500 96% 100% 90% 88% 89% 84% 566 2,000 80% 552 70% 496 66% 662 1,500 471 60% £m 50% 1,000 40% 1,739 1,651 454 30% 30% 1,423 1,301 567 1,277 18% 500 20% 605 10% 367 0 0% 30 ‐ Jun ‐ 07 31 ‐ Dec ‐ 07 30 ‐ Jun ‐ 08 31 ‐ Dec ‐ 08 30 ‐ Jun ‐ 09 31 ‐ Dec ‐ 09 30 ‐ Jun ‐ 10 Net Debt Land Creditors Net Debt/NTA %
21 Full Year 2010 Land creditors payment profile Payment of land creditors 600 500 266.6 400 £m 300 566.8 142.0 200 60.7 100 65.6 31.9 0 30th June 10 FY 10/11 FY 11/12 FY 12/13 FY 13/14 2015 & Later
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