Making life better. Full Year 2021 Results - Glenveagh Homes
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Making life better. Full Year 2021 Results
Agenda Section Key Operational Highlights 3 Alignment With Market Opportunity 12 Enhancing Delivery Capability 18 Financial Review 25 Outlook 32
Key Key Operational Operational Highlights Highlights
Key Operational Highlights
Growing A Diversified And Sustainable Business Across Three Segments
Suburban Urban Partnerships
2021 1,150 units closed (+64% Material Dublin Docklands Two landmark Capital Efficiency &
YoY) progress including first agreements for over Shareholder Returns
forward fund of PI Hotel 2,050 units
2022 1,388 suburban unit total HOTs signed for two Opportunities from
forward order book forward fund transactions Housing for All ✓ Strong Operating Profit of
for over 500 apartments €51m
Our Stakeholder • Six sustainability pillars addressing the areas most material to our stakeholders
✓ Net Land reduction of
€57m in 2021
Expectations Drive
Strategy
• Governance, management systems and reporting aligned with international standards
Aligned With • 63% of Suburban portfolio below €350k ✓ Generated over €100m in
operating cash
Market
Opportunity
• Supportive of affordable purchase, cost-rental & social housing
Enhancing Delivery • Investment in manufacturing to enhance delivery capabilities ✓ €108m returned via share
Capabilities
• Over 700 timber frame units in 2021 (2,000 units by 2024) buyback programmes
4
Key Operational Highlights
Suburban – Starter Homes Targeting The Broadest Segment Of Buyers
✓ 902 completions in 2021 (+37% YoY), targeting
• Attractive product offering – sustainable, 1,400 in 2022
high-quality homes in flourishing
communities ✓ Orderbook of 1,028 for 2022 (73% of unit
• Targeted at segments with deepest target)
demand by addressing the housing need
across society ✓ HPI +6% in H2 2021, similar levels expected in
FY 2022
• Building Lasting Communities
programme enhancing attractiveness of ✓ Increasing demand from Government for cost
schemes rental with 230 units to be delivered in 2022
• Dedicated after-care department helped
drive customer satisfaction rating to 89% ✓ 69% Suburban units in 2021 priced below the
(2020: 83%) median price of new homes sold in GDA & Cork
• Customer demand supported by
increased mortgage levels, a greater
level of deposits and expanded
government supports
• HPI of 6% offsetting the impact of CPI
with this trend expected to continue
into 2022
Continued Strong Demand In 2021 Across All Our Suburban Schemes
5
Key Operational Highlights
Urban – Attractive Portfolio Delivered In Capital Efficient Manner
Strong Demand From Institutions¹
Urban portfolio of 4,000
units
€2.4bn €2.3bn
Over 2,400 have planning Forward €1.6bn
permissions in place funding exit €1.1bn
mechanism
2018 2019 2020 2021
H1 2022 H2 2022
maximises PRS market
Castleknock Cluain Mhuire return on Affordable Rents Critical To Long-term²
and Citywest and East Road capital
– 500 units – 700 units
Longer-term unit 10.3%
4.1% 0.9%
replacement following
completion of existing 2019 2020 2021
transactions Average rental growth
6 Note 1: CBRE Note 2: Daft.ie
Key Operational Highlights
Urban - Accelerating Returns From Docklands Portfolio
• During 2017 and 2018, the Group made two
Premier Inn Key Attractions
attractive acquisitions at a strategic, but
one-off, Dublin Docklands location
Strong • Completed transactions totalling
• Significant value has been added in the almost €150m at the Castleforbes
interim via a series of successful planning financial
outcome Docklands site in 2021
applications
• In 2021, Glenveagh monetised the majority
of the Castleforbes site through a forward • Return of capital 12 months earlier
fund for the Premier Inn Hotel and the sale vs forward fund
of the residential and second hotel sites Accelerating
capital-turn • Ability to redeploy in line with
• This accelerated profits from the capital allocation policy
development and provided capital and
resources to invest in other areas of the
business, including our share buyback East Road • Attractive risk / return profile vis-à-
programme vis 700 unit high rise city centre
Reduced risk development
• The remaining assets in the Docklands
portfolio are the office development in • Legislative risk mitigated
Castleforbes, which is due for completion in
H1 2024, and the 550-unit East Road
Ability to • 2,400 Urban units with planning
development, which the Group hopes to
monetise in 2022
capitalise on • Heads of Terms signed on 500
core Urban units with further processes
deliveries ongoing
Strong Operational Progress, Material Profit Contribution And Single Location Exposure Now Limited
7
Key Operational Highlights
Partnerships – Now A Significant Business With 2,050-Unit Pipeline
Ballymastone Overall Tenure Mix
• Selected as partner to develop approximately 1,200 homes in
Ballymastone
20% • Mix of social, affordable, cost rental and private homes
40%
• All private houses and duplexes to first time buyers and private individuals
20% • Limited capital investment prior to construction and delivery of homes
20% • Planning application expected to be lodged in 2022 with construction
Private Social planned to commence immediately thereafter
Affordable Cost Rental
Oscar Traynor Road Overall Tenure Mix
• Selected as partner for Dublin City Council in developing 853 homes in
Oscar Traynor Road, Dublin
• Mix of social, affordable, and cost rental homes
• Limited capital investment prior to construction and delivery of homes
40% 40%
• Planning application expected to be lodged in 2022 with construction
planned to commence immediately after planning is granted
20%
Social Affordable Cost Rental
Partnerships Has Added 2,050-Units To The Land Portfolio
8
Key Operational Highlights
Sustainability - Continued To Be A Key Priority In 2021
Board of Directors
Our Ambition The Board has ultimate responsibility for sustainability. The main board receives updates on
• ‘to set a new benchmark in our sector by delivering the sutainability four times per year including progress against targets. It is supported by two board
committees with specific responsibility.
maximum possible social benefit at the lowest possible
environmental cost’
ESR Committee Audit & Risk Committee
This committee is responsible for The Audit and Risk Committee reviews
Governance developing and monitoring the Group’s sustainability risks and opportunities.
• Strong governance in place including dedicated Environmental approach to sustainability. The committee
meets four times per year.
and Social Responsibilities Board Committee and responsibility
at Executive Committee Executive Committee
The Executive Committee has ultimate executive accountability for sustainability. The
committee discusses sutainability issues, reviews performqance and progress against targets.
Risk and Opportunities Management
• Climate risks and opportunities integrated into wider Group
risk management processes including review by the Audit and
Sustainability Team
Risk Committee The sustainability team, which is led by the Head of Sustainability, is responsible for the day-to-
day management of sustainability providing a framework within which all parts of the business
can work. The team reports to the Chief Strategy Officer, a member of the Executive Committee.
Strategy and Embedding
• Sustainability roadmap to 2030 and transition to Net Zero to Department Leads
be published in 2022 informed by stakeholder engagement Lead executuion of specific sustainability commitments through
operations, activities, projects, etc.
Sustainability Is Fundamental To How We Set Strategy, Structure and Organise Our Business
9
Key Operational Highlights
Sustainability - Considerable Progress Across Our Six Pillars
Customers • 69% core units in 2021 priced below the median price Efficient • Achieved ISO14001 Certification
of new homes sold in GDA & Cork. Operations • Scope 1 & 2 emissions reduction achieved
• On track to achieve ISO 9001 in 2022 • Net Zero commitment with roadmap publication in
• 89% Customer Satisfaction rating H2 2022
Homes • 82% of homes with A2 rating – Up to 50% A1 in 2022 Sourcing • Commenced supplier engagement regarding
and • Innovative own-door high density housing solutions sustainability
Community developed • Vendor Code of Conduct put in place
• Building Lasting Communities’ programme launched
People • 72% employee engagement score – GPTW Award Safety • Achieved ISO45001 Certification
• Achieved Investors in Diversity Silver Mark • Total Recordable Incident Rate (TRIR) reduced to 2.38
• Senior Leadership Development Programme launched • Audit score 89%
Considerable Progress Made Across Six Sustainability Pillars
10Key Operational Highlights
Sustainability - Reporting, Verification And Recognition For Direction Of Travel
Reporting
Standard
Alignment
Certifications
Awards and
Recognition
External Ratings
and Verification A- Low
Risk
As at: November 20211 As at: 21 September 20212
Sustainability Progress Recognised By Increased Ratings, Certifications And Awards
Note 1: See “ESG Ratings Disclaimer” note 1
11 Note 2: See “ESG Ratings Disclaimer” note 2Alignment With Market Opportunity
Alignment With Market Opportunity
Economy, Timing And End-Markets Favourable For Long-Term Success
GDP – Ireland Best Placed in 2021 Wage Inflation Driving Affordability Housing Stock Now At Historic Lows
15%
2,600m 6% 30k
2,500m
2,400m 4%
10% 20k
2,300m 2%
5% 2,200m 10k
2,100m 0%
0%
2018 2019 2020 2021 2022f 2023f 0k
DNK
TUR
JPN
RUS
USA
CHN
IRL
DEU
AUS
MEX
NLD
FRA
GBR
ESP
SWE
POL
BEL
IND
ITA
Total at work Wage inflation Q4 2018 Q4 2019 Q4 2020 Q4 2021
Source: IMF Source: CSO, Goodbody Source: Daft.ie
Domestic Demand Resilient In 2022 Mortgage Approvals Strengthening Government Policy & Spending Supportive
60k
12%
40k
8%
20k
4%
€4bn
0k
0% €1bn
DNK
TUR
MEX
RUS
JPN
USA
DEU
AUS
CHN
IRL
NLD
EA17
FRA
ESP
SWE
GBR
IND
BEL
ITA
POL
Source: OECD Avg. govt spend '16-'19 Avg. govt spend '22-'26
Source: BPFI
Macro Tailwinds Expected To Continue To Support Strong Demand In 2022 And Beyond
13Alignment With Market Opportunity
Legislation Will Support Future Housing Supply
Policy Description
• Legislation supportive of housing
• Housing For All strategy to 2030 to
deliver 300,000 homes and a total 1. • Enacted as part of the Affordable Housing Act 2021
Shared Equity
spend of €20bn in the first five years scheme • The State may take up to 30% equity in a property
• Commitment to accelerate both
private and public housing delivery 2. Help-to-Buy • Expansion of Help-to-Buy from €20,000 to €30,000
reflected in the wide range of new Expansion • Scheme extended in Budget 2022
measures
• LRD planning system has replaced 3.
Cost Rental
• New rental tenure in the Affordable Housing Act 2021
the SHD creating greater certainty in • State funding to allow for subsidised rents and first units were delivered in 2021
the planning process
4. Affordable • 36,000 affordable units will be delivered by 2030 as part of the Housing for All programme
Purchase • Eligible people are means tested, and / or may be current local authority tenants
Institutional And State
Participation In Context 5. Social Housing • 5 year increase in social housing stock of > 50,000
Delivery • Housing For All includes social housing as one of the key priorities
€4.0bn 6. • Large-scale Residential Developments system (LRD) has replaced the Strategic Housing
Planning Reforms
€2.3bn Development (SHD) system
PRS 2021 Average annual 7.
LDA Act 2021
• Sets out wide-ranging functions of the Land Development Agency (LDA)
government spend • Expected to ensure faster delivery of housing on public and private lands
'22 - '26
Positive Effect Of Policy Measures Yet To Materially Impact Housing Delivery
14Alignment With Market Opportunity
Current Land Portfolio
Land portfolio - Business segments Land portfolio – Potential Customer 2021 Highlights
• 12 sites for total
Part V 1,100 consideration of €72m
Suburban with capacity for
Government Initiatives approximately 2,700
Urban - Forward Funds 2022E 2,000 2,800 homes
Private • Two landmark
Other Urban 2,800 1,200 5,200 Partnership deals for
Forward Funds 2022E over 2,050 units, with
Partnerships 10,800 minimal upfront capital
Other Institutional 6,500 outlay
1,200 • Increase of approx. 2,700
units in the year while
reducing our land value
by €57m to €563m
• Attractive plot cost as a
% of NDV and greater
alignment with our
capital management
strategy
15 *Land portfolio as of 31 December 2021Alignment With Market Opportunity
Affordable Suburban Portfolio – Shared Equity Scheme
• The shared equity scheme will see the State take up to a 30% stake in the homes of first-time buyers, who will take out a mortgage with a bank for the remainder of the
cost. The Help-to-Buy scheme can be used in conjunction with the shared equity scheme, but the limit remains 30% of the value of the home
• The scheme was part of the Affordable Housing Act and has been introduced with seven regional price caps for suburban housing ranging from €450,000 to €225,000,
depending on location
• Glenveagh has an established suburban land portfolio aimed at the more affordable end of the market with 76% of the units in key areas (Regions 1-3) within these
shared equity scheme price caps
• In addition to the suburban price caps, there are two additional price caps of €500,000 and €450,000 for apartments in Dublin and Cork City, in acknowledgement of the
increased cost of delivering apartments
• Glenveagh expects its first house sale under the shared equity scheme to take place in H2 2022
Units In Our Portfolio That Will Qualify For The Shared Equity Scheme
74% of overall portfolio qualifies for SES Region Areas
76% in Regions 1-3
€450,000
€400,000 Regions 1-3 GDA, Cork, Galway & Limerick
€350,000
€300,000
€275,000
€250,000
€225,000
Regions 4-7 Regional areas (e.g. Offaly, Kilkenny, etc.)
Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7
16Alignment With Market Opportunity
Affordable Suburban Portfolio – Cost Rental Scheme
Cost Rental Taylor Hill Scheme structure
• Cost Rental is a proven approach ✓ Rents at least 25% below open market rates
across Europe
✓ Eligibility capped at gross household income of €82,273
• Housing for All plan provides for per annum
18,000 Cost Rental homes by 2030
✓ Single people as well as dual-income households
• Aa significant portion of our land earning up to this level eligible to apply
portfolio already suitable for
Government supported housing ✓ Units to be purchased from the private market or built
• Reflecting this Glenveagh delivered the directly by Approved Housing Bodies (“AHBs”)
State’s first Cost Rental units in 2021 Barnhall Meadows
✓ AHBs will receive funding from the State for up to 30%
• Cost Rental complements existing exit of the cost of the new homes
options and adds greater long-term
resilience to our development ✓ AHB’s also receive significant institutional funding
portfolio which will fund the remaining 70% of the cost of the
homes
17Enhancing Delivery Capability
Enhancing Delivery Capability
Our Approach To The Short and Long-Term Industry Challenges
Near-term Global Inflation Internal Mitigation Measures
Supply Chain Integration
Covid-19 pandemic
• Improve construction times, increase cost control, allows for
integration with sustainability and access to more labour
Global supply chain constraints
• 700+ timber frame units in 2021, expected capacity of over 2,000
units in 2024
Geo-political uncertainty • Soil recovery facility an additional benefit during periods of
capacity constraint and complimented by soil stabilisation onsite
Tighter labour availability
Centralisation And Standardisation
Structural Industry Challenges • Continued roll-out of standardised house types and development
• Increasingly standardised process from compound set-up through
Attracting talent to labour intensive roles to health and safety, and sustainability
• Centralised procurement including the de-coupling of supply and
Retrofitting of second-hand stock to further increase fit-out packages
competition for labour
CPI 6% In H2 2021 With Continued Inflationary Pressure In 2022
19Enhancing Delivery Capability
Manufacturing Central In Addressing Long-term Delivery Capabilities
Manufacturing Strategy Pillars Controlling, Integrating And Innovating In The Supply Chain Phased
Implementation
1.
Design Production Distribution
Controlling critical path Incrementally
items to facilitate target • Starts in-house with • Focus on innovative • Implement factory expand timber-
delivery standardisation and technologies and processes which are frame production
streamlining of our methods of ‒ Automated
designs construction
including ‒ Lean
Integration with site • 3D modelling for 2.
seamless integration ‒ Timber-frame ‒ Quality controlled Lock-in
processes to increase production
speed and capture into manufacturing ‒ Pre-cast concrete • Facilitates process
software improvements on-
capability to
efficiencies ‒ Other modular reduce risk
• Achieving simplified site and in the
construction factory
execution despite of methodologies
the delivery 3.
Innovation through methodology
continuous exploration Explore additional
of innovative off-site
methodologies methodologies
We Aim To Pursue New Processes In Home Design And Factory Set-up To Assist In De-risking Output And Delivering Efficiencies
20Enhancing Delivery Capability
Manufacturing Footprint – Where We’re Focusing Our Efforts And Why
Timber-frame Light Gauge Steel (“LGS”) Precast Frame
Universal Benefits
✓Critical path items Unit Typology: Unit Typology: Unit Typology:
controlled • Low Rise Housing • Low to Medium Rise multi-unit homes • Medium to High Rise multi-unit
• Best suited for 1 to 3 storey units apartments
✓Factory standard products • Best suited for 2 to 5 storey units
• Best suited for 4 to 10 storey units
✓Controlled manufacturing Site Efficiency Site Efficiency Site Efficiency
and production processes • Construction program improvement of • Construction program improvement of 6 • Construction program improvement of
✓Added resilience to 4-6 weeks for each house weeks for each multi unit 1-2 weeks per floor
delivery schedules • Facilitates a more efficient site for other • Facilitates a more efficient site for other • Prestressed panels allow for
trades trades optimisation and design efficiencies
✓Mixed methodologies • Scalable process suitable for • Units under 18m high with FSC • Facilitates a more efficient site for
reduce risk and improve standardisation requirements and concrete floors following trades
delivery ability
Benefits: Benefits: Benefits:
✓Factory standard product • Increased control of construction • Increased control of construction • 3D Technical Design with seamless
and quality assurance process process integration into production software
program • Increasingly cost competitive following • Reduces labour on site • Increased control of construction
changes to regulations process
• Stepping stone to volumetric off-site
• Reduces labour on site construction • Reduces labour on site
Growing Offsite Capability To > 2,000 Units By 2024
21Enhancing Delivery Capability
Existing Manufacturing Footprint – Suburban North and Suburban South
Suburban North Suburban South
✓ Two strategically
located facilities
acquired at an
• Guaranteed long-term supply in line with growth • Strategically located in the southern region
targets
attractive cost • 15,000 students in the nearby Carlow and
✓ Serving Suburban • 700+ units produced in 2021 which will grow further Waterford Institutes of Technology
North and South in 2022
regions • 120,000 workforce within 50km
• Ability to mitigate against price increases
✓ Focus on offsite • Fully operational in 2023 reducing delivery time and
panellised • Partnering with a highly-capable management team cost to sites in the southern region
manufacture with significant manufacturing experience and a
demonstrable track record • Capacity to explore additional off-site
✓ Delivered through a methodologies
combination of
exclusive supply
agreements and
own manufacturing
✓ Supply chain of over
2,000 units secured
at scale
Growing Offsite Capability To > 2,000 Units By 2024
22Enhancing Delivery Capability
Further Regulatory Driven Thermal Efficiency Cost Increases Likely To Be Limited
Existing Wall - Current Regulations Historic Wall – Less Advanced Regulations
✓ Ireland’s energy regulations are
one of the highest in Europe
and with these higher
regulations comes higher costs
✓ Unlike comparable sectors in
other jurisdictions the
construction sector in Ireland
has already taken the impact of
these additional costs
✓ Irelands energy regulations are
already delivering homes to A2
BER standard
✓ Glenveagh will only build A1 ✓ Greater complexity in design ✓ Basic structure
and A2 rated houses in 2022 ✓ Highly insulated ✓ Less complex
✓ Manufacturing automation and ✓ Air tightness membrane ✓ Narrower frame
processes already set-up to
✓ Service zones ✓ Less energy efficiency
deal with more sophisticated
panelised production ✓ Energy efficiency – contributes to achievement of
minimum A2 BER rating
23Enhancing Delivery Capability
Energy Efficient Homes Leading Our Pathway To Net Zero
Greenhouse Gas Emissions – Scope 1, 2 and 3 – Demonstrates Progress
Commentary
• Our high energy standards go beyond regulatory compliance Occupant energy (60 yrs) - Unregulated
1.5% 0.1%
• Our Building Energy Ratings (BER) ratings are sector leading - in Occupant energy (60 yrs) - Regulated 7% 13%
2022 up to 50% of our homes will have an A1 rating – the highest
Purchased goods and services 12%
rating Exceptional
thermal
• A growing proportion of our houses are timber frame and Construction materials 34% performance of
homes has
manufactured off-site which serve to further reduce the emissions Other reduced
of our construction materials regulated
Scope 1 - Fuels 32% energy usage
• In 2022 we will publish our pathway towards Net Zero aligned with
Scope 2 - Electricity (market)
stakeholder expectations and national and EU Commitments
Proportion of Offsite Manufactured Houses Our Energy Performance Evolution – BER Ratings
Share of housing
15%
units sold
24% 23%
Share of all
units sold
28% 18%
62% 50%
76% 85% 77% 82%
72%
38% 50%
2019 2020 2021 2019 2020 2021 2022E
Off-site manufactured Masonry A1 A2 A3
24Financial Financial Review Review
Financial Review
Financial Summary
Income Balance Cashflow 2022
Statement Sheet Statement Guidance
€476.8m €562.7m €104.3m Approx. €630m
(FY 2020: €232.3m) (FY 2020: €619.3m) (FY 2020: (€11.5m)) (FY 2021: €476.8m)
Revenue Development land Operational cashflow Revenue
19.6% €204.5m €261.1m €73m - €78m
(FY 2020: 14.1%) (FY 2020: €201.9m) (FY 2020: €162.5) (FY 2021: €50.6m)
Core Gross Margin WIP Investment Available funds Operating profit
€45.7m €784.1m €20.8m 7.5 – 8.5 cent
(FY 2020: Loss of €15.7m) (FY 2020: €853.5m) (FY 2020: €36.7m) (FY 2021: 4.5 cent)
Profit before tax Net Assets Net Cash Earnings Per Share
Significant Increase In Profitability And Strong Cash Generation
26Financial Review
Income Statement
2021 2020
€’m €’m • Total revenue for the year was €476.8m (2020: €232.3m), of which €374.7m
Revenue 476.8 232.3 (2020: €230.9m) relates to the completion of 1,150 units (2020: 700 units)
Cost of sales (397.9) (202.5)
• €301.0m revenue from 977 core units (ASP: €308k)
Impairment reversal / (charge) 4.2 (20.3)
• €73.7m revenue from 173 non-core units in Marina Village
Gross profit 83.1 9.5
Central costs (30.1) (20.2) • €102.1m revenue mainly from our Castleforbes asset
EBITDA 53.0 (10.7)
• The Group’s gross profit for the year amounted to €83.1 million (2020:
Depreciation and Amortisation (2.4) (2.0) €9.5 million) with a corresponding margin of 17.4% (2020: 4.1%)
Operating profit/(loss) 50.6 (12.7)
• The Group’s core gross margin for the year was 19.6% (2020: 14.1%)
Finance expense (4.9) (3.0)
Profit/(Loss) before tax 45.7 (15.7) • Gross margin for suburban sites was 17.5%, which is expected to
increase to in excess of 18%, with continued margin
Income tax (charge)/credit (8.0) 1.8
progression in 2023
Profit/(Loss) after tax 37.7 (13.9)
• The Group’s operating profit for the year was €50.6 million (2020: Loss of
Basic EPS (cent) 4.5 (1.6) €12.7 million) resulting in an operating margin of 10.6%
• The Group generated an Earnings Per Share of 4.5 cent (2020: Loss per
share of 1.6 cent). This strong EPS performance is reflective of the
increased profitability for the year as well as the impact from the Group’s
share buyback programmes
27Financial Review
Balance Sheet
2021 2020
€’m €’m • Increase in property, plant & equipment is reflective of our continued
investment in our supply chain and particularly our manufacturing
Property, plant and equipment 27.3 21.1 capabilities
Other assets 26.6 2.8 • Inventory is split as follows:
Non-current Assets 53.9 23.9 • Land and development rights - €563m (2020: €619m)
• Development expenditure (WIP) - €204m (2019: €202m)
Inventory 767.2 821.2
Trade and other receivables 32.3 14.6
• The net reduction in land of €57m is a key component of the Group’s
strategy to improve capital efficiency. The Group expects to further
Cash and cash equivalents 116.7 137.3 reduce its net investment in land in 2022, with an expected land value
of €500m by 31 December 2022
Current Assets 916.2 973.1
• The Group’s total work-in-progress at FY 2021 was €204m, with non-
Total Assets 970.1 997.0 core developments contributing €15 million (FY 2020: €58m). This a
significant reduction from the prior year and demonstrates the
effectiveness of the Group’s strategy to accelerate the exit from these
Total equity 784.1 853.5 completed non-core sites
Non-current liabilities 80.7 0.3 • The Group’s core work-in-progress is €189 million (FY 2020: €144
million) and was spread across 24 active construction and/or selling
Trade and other payables 57.5 42.2 sites giving an average core WIP of less than €8m per active site
Income tax payable 7.7 - • The Group had gross borrowings of €121m (FY 2020: €100m) and cash
Loans and borrowings 40.1 100.9 balances of €142m at 31 December 2021 giving a net cash position of
€21m (FY 2020: €37m)
Current liabilities 105.3 143.2
• The Group had undrawn debt facilities of €120m at 31 December
Total liabilities and equity 970.1 997.0 2021
28Financial Review
Improving Capital Efficiency of Land Investment
€53k €46k €45k €44k €39k €34k €32k • The Group is on track to reduce land
€800m 20k portfolio by over €200m by the end
of the year1
• Partnership wins will allow the
€600m 15k Group to reduce the absolute
amount invested in land while
increasing total plots controlled
€400m 10k • Average plot cost of €34k at 31
December 2021 and expected to
continue its downward trajectory
€200m 5k • Land cost as a % of NDV has been
below 10% in some recent land
acquisitions
€0m 0k • Targeting a maximum of 4 – 5 year
June 19 Dec 19 June 20 Dec 20 June 21 Dec 21 Dec-22 landbank at scale
Landbank Units
Reduction of Net Investment in Land Generating Significant Cash Flow
1 Since 30 June 2019
29Financial Review
Significant Cash Generation & Capital Allocation
• Significant cash generated by the business
€20m (€281m) in 2021 with gross cash inflows of €514m
€100m
€16m
• Considerable achievement generating
€182m from the accelerated monetisation
€82m of the Castleforbes & Marina Village assets
€77m
• Invested cash in line with our priorities of
€332m
land (€94m), working capital (€281m) and
(€232m) capex, mainly supply chain integration
(€94m) (€17m)
• As per our stated Capital Allocation policy
(€34m) our excess cash was returned to
(€4 (€108m) shareholders, with €108m returned in
9m 2021
)
€270m • The business is forecasted to generate
(€17m) (€16m)
€37m (€67m) operating cash flows of at least €75m in
€21m
2022, which will give great optionality for
further capital allocation initiatives
(€31m)
Net cash 31 Core house Non-core Castleforbes Net term loan Working Land Tax (CT, VAT, Share Capex Other Net cash 31
December sales Marina land & drawdown capital acquisitions etc.) buyback (€16m)
December
(€34m)
(€49m)
2020 Village sales development and deposits 2021
Accelerated Urban & Non-Core Asset Monetisation Funding Significant Investment In Growth & Capital Returns
30Financial Review
2022 Guidance
Our Key Priorities 2021 actual 2022 guidance Variance
Revenue – suburban €277m Approx. €440m +59%
Increased revenue growth Revenue - urban €126m Approx. €190m +51%
Gross Margin - suburban 17.5% In excess of 18% +50 bps
Improved operating Gross Margin - urban 24.9% 15% (after forward fund coupon) -990 bps
margin
Operating profit €50.6m €73m to €78m +44% to +54%
EPS 4.5 cent 7.5 cent to 8.5 cent +67% to +89%
Forward funding of Urban
projects
2021 actual 2022 guidance Variance
Land €563m Approx. €500m -11%
Reduction in net land
investment WIP €204m Approx. €275m +35%
Net debt of up to 15% of net
Leverage Net cash - €21m
assets
Operating cash inflow €104m €75m - €100m -28% to -4%
Enhanced Return On +240 bps to
Equity Return on Equity 4.6% 7% to 8%
+340 bps
Our Key Priorities Focussed on Enhancing Return on Equity
31Appendices Outlook
Outlook
Increasing delivery capabilities
Continued revenue & profit growth through manufacturing Improved
• 1,400-unit suburban target at improved Profitability &
margins
• Controlling more of the supply chain and Cash Flow
off-site manufacturing
• Revenue & profits from at least three • Opportunities and capacity to explore
forward funds in 2022
other off-site methodologies
Greater Balance
Sheet efficiency
Efficient use of capital
• Land will be approximately €500m by 31 December 2022
• Monetisation of urban assets through forward funds
Improved Return on
• Land acquisitions with planning to ensure faster asset turn Equity
• Target of 4-5 year land portfolio at scale
Strong Execution Against Strategic Priorities With A Clear Focus For 2022
33General Disclaimer
This presentation has been prepared by actual performance of the Company may differ
Glenveagh Properties PLC (the “Company” or materially from those reflected or contemplated
“Glenveagh”) for information purposes only. in such forward-looking statements. No
representation or warranty is made as to the
This presentation has been prepared in good achievement or reasonableness of, and no
faith but the information contained in it has not reliance should be placed on, such forward-
been subject to a verification exercise and does looking statements.
not purport to be comprehensive.
Certain industry, market and competitive
No representation or warranty, express or position data contained in this presentation
implied, is given by or on behalf of the come from third party sources. Third party
Company, its group companies, or any of their industry publications, studies and surveys
respective shareholders, directors, officers, generally state that the data contained therein
employees, advisers, representatives or agents have been obtained from sources believed to be
as to the accuracy, completeness, fairness or reliable, but that there is no guarantee of the
sufficiency of the information, projections, accuracy or completeness of such data and the
forecasts or opinions contained in this Company has not verified the data contained
presentation. Save in the case of fraud, no therein. Certain financial and statistical
liability is accepted for any errors, omissions or information contained in this presentation is
inaccuracies in any of the information or subject to rounding adjustments. Accordingly,
opinions in this presentation. any discrepancies between the totals and the
sums of the amounts listed are due to rounding.
This presentation contains forward-looking
statements which can be identified by the use of THIS PRESENTATION DOES NOT CONSTITUTE OR
terms such as "may", "will", "should", "expect", FORM PART OF ANY OFFER FOR SALE OR
"anticipate", "project", "estimate", "intend", SOLICITATION OF ANY OFFER TO BUY ANY
"continue", "target" or "believe" (or the SECURITIES NOR SHALL IT OR ANY PART OF IT
negatives thereof) or other variations thereon or FORM THE BASIS OF OR BE RELIED ON IN
comparable terminology. Due to various risks CONNECTION WITH ANY CONTRACT OR
and uncertainties, actual events or results or COMMITMENT TO PURCHASE SHARES.
ESG Ratings Disclaimer
1. The use by Glenveagh Properties PLC of any MSCI ESG Research LLC or its affiliates (“MSCI”) data,
and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a
sponsorship, endorsement, recommendation, or promotion of entity Glenveagh Properties PLC by
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