Slides from our investors' seminar held on 6th Oct

2. Chris Phillips
Group Chairman

3. Financial Performance
2010/11
Steve Binks
Group Director, Finance & IT

4. Headline Figures
2010/11 2009/10
Turnover £340m £312m
Income from lettings £232m £228m
Op Profit before interest £80.3m £83.5m
Provision for impairment
of land values £0m £25.1m
Fair value adjustment on
acquisition £0m £36.3m
Profit after Tax £20.5m £22.5m

5. Treasury Highlights
• Credit Ratings - Moody’s Aa3 / stable
- Standard & Poor’s A+ / stable
• Interest Cover - 1.5x
• Interest rate risk - continued to 25%
• Gearing - 51.1%
• Liquidity - 3.3x
• Continue to match spending to available funding
• Undrawn committed facilities £547M in place
• Investors continue to support Places for People
notwithstanding volatility in financial markets

6. Results Analysis 2010/11
Housing Stock
62,500
61,500
60,500
Housing stock owned
Units 59,500
or managed
58,500
57,500
56,500
05
06
07
08
09
10
11
20
20
20
20
20
20
Growth in housing stock owned or managed 20
supporting long-term rental income streams.
At 1 April 2011, 62,034 homes owned or managed.

7. Results Analysis 2010/11
Revenue Reserves excluding pension liability
£’m
250
200
150
Revenue Reserves
100 (ex pension liability)
50
0
2005 2007 2009 2011

8. Key Achievements –
Gross Fixed Asset Base
£’bn
3.5
3.0
2.5
Gross
Assets
2.0
(£bn)
1.5
1.0
0.5
0.0
2005 2007 2009 2011
• 7 years of sustained growth
• Fixed Asset base remains at £3.1bn
• £3,075k in 2010 to £3,060k in 2011

9. Innovative Funding Strategy
Core funding strategy to:
• Diversify Investor Base
• Rebalance Debt Portfolio to targeted 60% unsecured
Successfully achieved by:
• £175M 20 yr Unsecured Bonds
• £140M 5½ yr Retail Bonds
• US Private Placements

10. Pensions
2011 2010
Pension deficit £28.2m £33.1m
• Pension scheme has been closed to future accrual as
of October 2010
• Plan agreed to eliminate deficit in the next 15 years.

11. 2011/12
• Another Challenging Year
• Robust Liquidity
• Cashflow, Investment & Cost Control
• Short Term Refinancing Secured

12. Operations and
Service Delivery
2010/11
Kieran Keane
Group Director, Operations

13. Operations and Service Delivery
Performance for 2010/11
The Operations Business
• 62,000 properties
• Lettings activity £232m
• > 7000 property lettings
• > 2,000 staff across operations

14. Housing Management
• We provide a dedicated housing
management service to customers living in
our 62,000 homes in England, Wales and
Scotland
• We have experienced teams on the ground
as well as a 24-hour Customer Contact
Centre which deals with around 1,500 calls
each day

15. Repairs and Stock Investment
We have an in-house property maintenance,
repairs and gas servicing team which operates
365 days a year
• This covers c. 90% and all of our gas servicing
and property repairs needs
• This year 232,000 repairs were carried out
• We have a £150 million five year stock
investment programme underway

16. Care and Support Services
• We have been providing high-quality care
and support services for over 40 years
• Working with around 200 local authorities
across England and Scotland we provide
homes and services to 6,752 people

17. • We also provide services to private
individuals who buy tailored care and support
packages from us to help them live
independently in their own home.

18. Key Highlights for the Year

19. Rental and Other Income
• The Group has a large
customer base of long term
renters
• Our housing stock generated
over £232m of gross rental
income
• Operating margin pre interest
was 36%.

20. Outstanding Rent Owed by Customers
(Arrears as a % of total rent)
March 2010 March 2011
Group 3.24 3.19
Homes 2.94 2.90
Individual Support 0.54 1.40
Castle Rock Edinvar 4.10 3.71
Cotman HA 5.26 4.01

21. Time Taken to Relet an Empty
Property (days)
March March
2010 2011
Group 44.4 28.7
Homes 39.0 21.0
Individual Support 33.0 37.0
Cotman HA 24.0 25.0
Castle Rock Edinvar 30.1 29.4

22. Total Void Loss (% of total rent)
March March
2010 2011
Group 2.13 1.36
Homes 1.78 0.89
Individual Support 4.32 3.82
Castle Rock Edinvar 0.96 0.80
Cotman HA 0.82 0.75

23. Property Maintenance - % of
Repairs Completed Within Target
Mar ’10 Mar ‘11
Emergency Repairs 96.13% 98.40%
Urgent Repairs 94.31% 98.38%
Routine Repairs 98.14% 98.97%
Gas Servicing Compliance 99.60% 99.70%

24. Customer Satisfaction
• 80% of customers would recommend
Places for People as a landlord
• 97% of customers satisfied or very
satisfied with the repairs service
(34% / 66%)

25. “Decent Homes” Achieved
• By the December 2010 deadline, following an
ambitious programme of investment, all of our
homes met the Government’s Decent Homes
Standard
• The programme has brought improvements to
around 10,000 homes

26. Health & Safety
• Seeking to improve employee health
and safety risk and minimise the risk
to our customers
Year Staff Customer Contractor
RIDDORs RIDDORs RIDDORs
2010/11 30 10 1
2009/10 21 4 1
* RIDDOR - Reporting of Injuries, Diseases and Dangerous Occurrences Regulations

27. Create Social Value for our Customers
e.g. Employment Training
Year People People into People into Business Business
accessing learning and employment start up supported
services training
2010/11 4527 1184 623 32 348
2009/10 3647 655 290 63 109
Places for People secured funding of £2.25m from the
Future Jobs Fund to provide opportunities for 325 young
people aged 18-24 to gain valuable experience in the
workplace

28. Controlling Costs
• Reduction of operational costs
• Managing / influencing repairs volumes
• Improvements in operating efficiencies
• Simplifying management structures
• These continue to flow through to the bottom
line
• These remain key objectives continuing during
the current year.

29. Development
Review
David Shaw
Group Director of Development

30. Last year versus this year…….
• Last year we told you what we were
going to do on our Major Developments
• This year I am going to show you what
we have achieved
• But first to recap these were our
objectives

31. Strategic Response to a
Changing Marketplace
• Investment model focuses on long term returns over
whole life of a development
• Developed Flexible tenure options
• Revised programme and resources
• Focusing on Strategic Projects to deliver Group
placemaking vision
• Integrated development with PfP Group offer
• Use available existing funding streams more
imaginatively

32. Investment Model
Whole life approach
• Asset Creation: DEVELOPMENT APPRAISAL
– Land purchase/trading
– Planning
– Construction
– Sales and Marketing – including flexible tenure offer
• Asset Performance: LONG TERM RETURNS
– Interim Land Uses
– Return on investment portfolio
– Rental Streams
– Affordable Housing/retained equity
– ESCO’s/Infrastructure returns
– Mortgages/Financial Services
• Asset Management: PLACE OFFER
– Life Cycle Costings
– Service delivery
– Management & maintenance
– Energy/utilities
– Domiciliary care
– Childcare/nursery services

33. Investment Model
IMPACT OF SENSITIVITY MULTI-PHASE/ ECONOMIC
MULTIPLE/ FLEXIBLE ANALYSIS ON IMPACT ON SENSITIVITY:
TENURES COSTS/INCOMES OVERALL HPI/BCIS
PROGRAMME
DEVELOPMENT APPRAISAL: COSTS/INCOMES
OPTMISATION OF APPORTIONMENT OF IMPACT OF LAND SALE OR RENT?
MIX/TENURES INFRASTRUCTURE SALES
CASHFLOWED: 25 YEAR+ IMPACT TO THE GROUP
NPV/IRR & ROCE
WHOLE LIFE BUSINESS PLAN

34. Balanced Portfolio:
Strategic Projects Tenure Profile
811
15%
424
8%
2,721
50%
Market Sale/Flexible Tenure
Market Rent
1,481 S106 Affordable Rent
27%
S106 Low Cost Home Ownership
(all models)

35. Marketing Strategy
• Stimulate market demand
• Improve Customer Access to
a new home
• Simplify customer journey

36. Key issues/barriers for Customers
• Affordability is not now, in many cases, the major constraint
– The majority of people continue to aspire to home
ownership
– More affordable rent alone is not a long term sustainable
solution
– Eligibility criteria for “affordable housing”
– Need for intermediate tenures
– Too many different products and options?
= Flexible tenure approach
• Access to mortgages remain the primary issue
– LTV’s continue to fall
– FTB’s trying to save 25% deposits
– Lack of mortgage provider confidence in shared ownership
(shared equity less of an issue)
= PfP Mortgages & equity loans

37. So what does this look like…….

38. Brooklands
• Phase 1 no of units196
• Sales/Occupation rate 4.5 per month
• Average Selling price £215,462
• Occupations on site 40
–Shared Ownership 37
–Outright Sale 3
• Income per sq ft average PfP in Milton Keynes = £229
• Income per sq ft average new build in Milton Keynes = £180

39. Brooklands

40. Marlborough Park
• Phase 1 no of units 216
• Sales/Occupation rate 3.9 per month
• Average Selling price £150,673
• Occupations on site 47
–12 Market Rent
–Shared Ownership 29
–Outright Sale 6
• Income per sq ft average PfP in Marlborough Park = £194
• Income per sq ft average New build in Swindon = £188

41. Marlborough Park

42. Marlborough Park

43. Wolverton
• Strong demand for market rent
• 110 Market Rent units

44. Scotland
• Entered LLP with Edinburgh City Council to develop
188 mid market rent units under the National
Housing Trust initiative
Homes & Communties Agency
• Bid for and allocated 249 units under the
Affordable Homes programme

45. Business
Development
Mary Parsons
Group Director – Business Development

46. Strategic Business Development
Goals
• Increase the amount of new services provided to
existing and new customers
• Future investment in new assets and business
development to focus on short and longer term
profitable projects and business propositions
• Achieve growth and generate returns from revenue
based activities
• Clear focus on marketing and driving commercial
returns for our internal expertise

47. UNDERSTANDING THE EXTERNAL ENVIRONMENT
Competition Political
POLITICAL ECONOMIC
Devolution of power to Local Authorities and communities Slashing the deficit
Right to build / neighbourhood planning Public spending at all levels cut
GP led commissioning Local Authority social spend “un ring fenced”
Public spending cuts Authorities combining for outsourcing units of scale
Reduced regulation Affordable rent
Energy incentives – Green Deal VAT increase
Code for Sustainable Homes commitment Low lending, high deposits
Vocational skills build Interest in UK property investment from overseas
Security of coalition Raising energy costs
Local politics vs central (local mayors) House price inflation / future market shifts
Environment
Legislation
Big Society – local charity Wage growth / high inflation
SOCIAL TECHNOLOGICAL
High unemployment / lack of vocational skills Global market place
Lack of community engagement Online tracking of bidding opportunities
Aging population Customer relationship management systems
Equity sat with older generations Remote working technology
Young unable to buy Social media
Wealth gap Online spend transparency
Environmentally friendly consumers System compatibility (NHS / partners)
Households set to grow Contact centre
House building low, waiting lists high Telecare
Availability of Labour & Supply Chain

48. Business Development Strategy
Existing customer
base
Existing homes & @ home/Financial
services Services
Existing customer @hand/ Dom Care
base
Assistive Technology
Leaseholders
Retirement proposition
Housing &
Tenancy
Management to
Third Parties
Gas servicing & Energy Services?
maintenance –
Non-Residential FM?
B2B and B2C
Domicillary Care
Social Alarms
Public & Private
sector

49. Expanding our Core Business
Business to Business
Opportunities

50. Homes & Neighbourhoods
• Housing & Tenancy Management:
– 2*+ service with excellent prospects
– Year on year performance
improvements
– Market rent/investment portfolios
• Community Safety
• Income Collection
• Contact Centre/Social Alarms
• Neighbourhood Planning
• Target Markets
– Public Sector/ALMO Out-sourcing
– Other Registered Providers
– Private Sector Landlords
– Investment Funds
• Live major opportunities include
Cheshire West & MOD large scale out-
sourcing

51. Property Maintenance
• Gas Servicing/CP12
• Property Maintenance & repairs
• Landscaping
• Handyman
• New installs
• Target Markets
– Local Authorities – Residential contracts
– Other Registered Providers
– Private Sector Landlords
• Secured first gas servicing contract for
Managing Agent for 2000+ units

52. Care & Support
Services / Activities / Track Record
Products
Housing Related Support Verified as excellent
and Floating Support
Domiciliary and Personal CQC verified as excellent
Care
Domestic Services Good
Assisted Technology Good
• Target Markets
– Bidding for the retention of existing
services
– Services being tendered to for
Business to Business
– Growth of Personalisation business
to customers including self -directed
services and private payers

53. New Routes to Market
Business Development priorities

54. Green Services
• Containerised Plant (Biomass &
Gas) – “Biomass in a Box” – RHI
• Feed In Tariff – c. £250k revenue pa
from rent a roof programme
• Green Deal?
• Energy Performance Contracting
• Environmental Consultancy
• Target Markets
– Local Authorities
– Other RSL’s
– Private Sector Landlords
– Housing Developers
– Individual Customers

55. Business to Customer Model

56. Retirement market

57. Retirement Proposition
• In the next 15 years, the number of 50-69year olds in the UK will
increase by 3million.
• 2/3 of people who have ever reached the age of 65 are alive
today
• 10m people – 20% of the population – will be over 65 in 4 years’
time
• 1.3m people over retirement age are still working – a 50%
increase since 2000
• The first baby boomers retire in 2012
but ….
• Over half will be living alone by the age of 75
• But 2/3 will suffer a limiting illness in their later years
• Demand for long term care will rise by 70% over next 2 decades

58. The Charmed Generation:
What can we offer?
• Our Target customer has
“A non-ageing mind, in an ageing body – with a maturing
wallet”
• Aspirational – not a distress choice
• Financial & tenure models that work for our customers
• Lifestyle premium – not just care but “hotel” services as
well?
• All inclusive rent packages?; Lifestyle Bonds?
• Flexibly designed homes that meet their needs at 55 and
can be readily adapted for assisted living from 70’s+
• Assistive technology & Telecare services

59. Conclusions:
Developing our business
• Maximising new market opportunities to grow the business
by creating profitable revenue streams
• Leverage existing products & services to enhance
efficiency
• Structure ourselves to respond to B2B and B2C emerging
markets
• Building on the Group’s current market strength and
reputation to deliver to a wider customer base through new
and innovative routes to market
• Generate sustainable enterprises within the Group and new
investment opportunities
• Ensure a balanced portfolio in terms of market sectors, risk,
returns and timescales to help underpin the Group’s future
growth ambitions
• Bring together the Group’s strength in terms of financial
innovation, quality of housing offer and service excellence

60. FUTURE CHALLENGES
David Cowans
Group Chief Executive

61. The World is Changing
• House building is at its lowest level since
1923 - in 2010, only 103,000 homes were
built with 50% funded by the public sector
• Average age of first time buyers without
assistance from parents is now 37
• 25% of 25 to 29 year old men and 13% of 25
to 29 year old women live with their parents

62. The UK Housing Challenge
• Home ownership in England is predicted to
decline to 64%
• Steep rises in private rentals are forecast as
mortgage lending is constrained and deposits
remain high
• Social housing waiting lists are at a record
high

63. The UK Housing Challenge
• In Quarter 2 this year 25,000 residential
permissions were granted
• This is the second lowest number of
permissions granted in a quarter in the last 5
years
• To meet projected household formations
60,000 permissions are required per quarter

64. National Planning Policy
Framework
• Simplifies the planning regime
• Promotes sustainable development
• Designed to promote economic growth

65. “The best way to predict the
future is to invent it.”

66. Our Aim
• Enable access to housing in places that meet
people’s aspirations, in a way that suits their
circumstances:
–New build housing
–Flexible housing products
–Decent Neighbourhoods
–Place Management

67. A range of
requirements
A range of Su
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n t solutions r ted
le Re Eq Ho
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ab u ity ing
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R
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” Bu in
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yo
sh
trig
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68. Place Management
• Decent Neighbourhoods Standard developed
to help deliver on the Big Society agenda
• 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

69. Working to provide aspirational
homes and inspirational places
Development Services
Masterplanning Place Management
Partnerships & JVs Facilities Facilities Management
Management Asset Management
Care and Support
Ensuring
Successful
Places
Sales Regeneration
Access
Affordable rent
Rent conversion
Save a deposit scheme
Try before you Buy
Market rent

70. Corporate Responsibility
• Gold Award in the BiTC 2011 Corporate
Responsibility Index – the best performance of any
organisation in our sector
• Neighbourhood plans are in place covering over
15,000 homes
• Energy saving measures installed in nearly 4000
homes
• Over 40% of people we employed through the Future
Jobs Fund went on to secure employment

71. 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

72. Getting maximum value from our
current strengths
•Long term investment in places
•Strong Management
•Diversity of business
•Creating value
•Our people

73. Delivering our Vision
• Deliver 2011/12 Business Plan and budgets
• Long-term strategy
• Opportunities arising from changes in the
Housing Market and Government Policy

74. Q&A