2016 PRELIMINARY RESULTS...Exceptional items (465) 7 Interest (2,956) (2,341) Profit before tax...

Transforming - Regenerating - Revitalising

2016 PRELIMINARY RESULTS6 MARCH 2017


BUSINESS AND FINANCIAL OVERVIEW

Delivering market leading NAV

growth

In 2016 EPRA NAV grew by

13.3%. Over last 3 years,

EPRA NAV CAGR of 14.0%

TRACK RECORD

Growing income base to

deliver resilience through

property cycles

Profit from operations

increased by 6.7% in 2016

INCOME

Proven and robust strategy

with confidence in the future

Dividend increased by 10% -

momentum positive into the

new year

STRATEGY

Market fundamentals in the

regions remain strong

Houses are well priced with

good demand. Limited

supply of logistics space

MARKETS

Experienced, capable and

stable management team in

place

Significant and diverse local

market experience

TEAM

Further sites identified to build

and diversify our strategic land

bank

Four options signed and four

opportunities in negotiation

OPPORTUNITIES

Confidence in the future

Stro

ng fin

ancia

l perfo

rmance

Sound foundations

- 2 -


2016 ACHIEVEMENTS

STRONG FINANCIAL PERFORMANCE

Revaluation gains of nearly £35m helped drive EPRA NAV growth of 13.3% to 119.8p per share

Financing extended by £10m to £75m and one year, to give headroom and drive income growth

CONTINUED SALES OUTPERFORMANCE

Profit on sale of c.£9m achieved including landmark sale at Logistics North to Lidl UK for £22.5m

c.£60m sales equally weighted across residential/agricultural and commercial uses with limited

impact from Brexit

GOOD PLANNING PROGRESS

Planning applications submitted for 1,200 plots and over 1.9m sq ft of commercial space; decisions

expected in 2017

Four Planning Promotion Agreements (PPAs)1 signed, potentially delivering c.500 housing plots –

bringing the total number of potential housing plots being promoted through PPAs to c.1,100

ACQUISITIONS MADE TO IMPROVE INCOME WITH MORE TO REPLENISH THE PORTFOLIO

Over £31m invested in six acquisitions, strengthening income and geographic presence

Four options signed and four further opportunities in negotiation to ensure pipeline of strategic land

Notes: 1 PPAs are agreements with land owners whereby Harworth incurs the cost and risk of promoting the land through planning.

If successful, Harworth shares some of the value gain, after cost recovery, when the land is sold

- 3 -


VISION, STRATEGY AND BUSINESS MODEL

We want to be the UK’s leading

developer of brownfield land and

regeneration partner of choice

We will accomplish this by:

1. Progressively expanding our geographical reach into all regions of the UK that have

strong and stable markets, with initial focus on core regions and adjacent areas

2. Maintaining our focus on residential, commercial and energy occupiers to underpin our

site specific masterplans

3. Building and improving the quality of recurring income, to cover overheads (including

strategic land promotion), interest and ultimately tax and dividends

4. Exploring a range of deal structures when acquiring new sites, to provide visibility and

to optimise equity returns

5. Carefully selecting sites on a targeted basis, whilst delivering direct commercial

development and value add initiatives to provide attractive equity returns

- 4 -

Masterplanning

and market

knowledge

Remediation

& restoration

specialists

Capital

Uplift/NAV+

Development /

Infrastructure

management

Diverse and

extensive

landbank Hold -

recurring

income

Realisation of

Capital

Acquisitions

Capital Growth Income Generation

Rein

vestm

en

t o

f cap

ital

Asset

management


OUR REGIONAL MARKETS PROVIDE CLEAR OPPORTUNITIES

RESIDENTIAL

National housing under-supply is driving

consistently strong demand for land

Presumption remains in favour of

residential development on brownfield land

Government stimulus measures for

purchasers remain in place, as confirmed

in recent Housing White Paper

INDUSTRIAL & LOGISTICS

Demand for well-connected industrial and

logistics space remains strong driven by

the rise of e-tailing – with agents

continuing to highlight the sector as the

most attractive of the commercial real

estate sectors

Supply of units continues to be squeezed

across all regions

Source: BNP Paribas, 2017

Source: Tackling the undersupply of Housing (House of Commons Briefing), 19 January 2017

- 5 -

Housing Under Supply

Logistics Supply by Region


SIGNIFICANT LATENT VALUE: LAND PIPELINE

RESIDENTIAL PIPELINE: PLOT NUMBERS COMMERCIAL PIPELINE: MILLION SQ. FT

• Mixture of deals pursued post-planning. Residential deals include serviced plot sales (with or without ground

rent), whilst commercial deals encompass plot sales, pre-lets, forward funding and direct development

• We maintain the flexibility to respond to market conditions and ensure deals are mindful of customer

requirements, funding/covenants, and risks and returns

• Land sold for 619 new housing plots and over 500,000 sq. ft of commercial space in 2016

• Freehold ownership of land comprising 9,529 consented housing plots and 9.95m sq. ft of commercial

space as at 31 December 2016

• Applications currently in the planning system for 1,200 housing plots and 1.9m sq. ft of commercial space,

with further applications to be made in 2017

- 6 -

NOTE: Planning pipeline numbers include sites where we have signed PPAs and where we have taken overages


NET ASSET VALUE GROWTH

NAV at 31 December 2016 was 114.6p (£334.9m) a 12.5% increase from 2015 101.9p (£297.7m)

EPRA NAV at 31 December 2016 was 119.8p (£350.1m) a 13.3% increase from 2015 105.8p (£309.1m)

- 7 -

101.9p

114.6p

3.9p

0.8p

14.9p

0.8p 0.1p 0.7p

1.3p

5.2p

90.0p

95.0p

100.0p

105.0p

110.0p

115.0p

120.0p

Opening NAV/EPRA NAV

Profit fromOperations

Value Gains Interest Pension Dividends Tax / Swap movement Closing NAV/EPRA NAV

119.8p

105.8p


Twelve months to 31 December (£’m) 2016 2015

Profit on

disposal

Revaluation gains1

Total TotalManagement Market2

Major Developments

Healthy profit on disposal from Lidl UK at Logistics

North. Improved masterplan and tenant interest at

Wheatley Hall Road, new option agreement at

Chatterley Valley, and cost savings at Harworth and

Flass Lane

6.8 8.7 3.4 18.9 21.0

Strategic Land

Signing of S106 and collaboration agreement at

Coalville. Planning submitted at Thoresby

0.7 10.8 1.3 12.8 4.7

Business Space

Completion of pre-let and speculative development at

Gateway 36. Improved lettings at other sites

0.1 5.7 0.9 6.7 6.9

Natural Resources

New lettings, particularly at Meriden0.0 4.0 1.2 5.2 5.4

Agricultural Land

Reduced land values predominately on former surface

mine sites

1.2 0.0 (1.1) 0.1 2.4

Total 8.8 29.2 5.7 43.7 40.4

VALUE GAINS – REVALUATION GAINS AND PROFIT ON DISPOSAL

Notes: 1 Prepared in conjunction with our advisers, BNP Paribas and Savills.2 Market element of revaluation gains includes the effect of 2016 stamp duty changes, forecast to have impacted values across the portfolio by £2.9m

As per our business model and highlighted above, the majority of our value gains come from management actions

- 8 -


INCOME STATEMENT

Twelve months to 31 December

(£’000)

20151

Total

Capital

Growth

Income

Generation

Central

overheads

2016

Total

Revenue (rent, royalty and operations) 16,737 16,307 17,386 - 33,693

Cost of sales (7,856) (15,966) (5,056) - (21,022)

Overheads (6,804) (1,765) (2,079) (6,613) (10,457)

Profit from operations 2,077 (1,424) 10,251 (6,613) 2,214

Valuation gain 28,890 24,180 10,703 - 34,883

Profit from disposals 11,505 7,472 1,319 - 8,791

Pension credit / (charge) 129 - - (87) (87)

Operating profit before exceptionals 42,601 30,228 22,273 (6,700) 45,801

Exceptional items (465) 7

Interest (2,956) (2,341)

Profit before tax 39,180 43,467

Tax (3,508) (3,566)

Profit after tax 35,672 39,901

Earnings per share 12.21p 13.65p

Dividend per share 0.68p 0.74p

Revenue and

cost of sales

2016 distorted

by M&G build

costs

Tax

Existing tax

losses being

utilised so only

deferred tax

on valuation

gains being

provided

Dividend

2016 £2.2m –

10% growth

on 2015

annualised

dividend of

£2.0m

A

B

C

A

B

CNotes: 1 2015 figures are on an underlying basis, reflecting purchase of Harworth Estates, share consolidation and pro forma dividend. A reconciliation is

included in the 2016 preliminary results announcement

- 9 -


INCOME GENERATION: STRATEGY, PROGRESS AND TRENDS• The strategy remains to grow and improve the quality of recurring income to cover overheads (including strategic

land promotion) and interest, and ultimately cover tax and dividends

Progress in 2016 Trend

Major Developments

Construction of two M&G forward funded units at

Logistics North completed in December 2016. First

unit let to Whistl in January 2017

More development management

deals are being pursued but

occur infrequently

Business Space

Portfolio WAULT of 7.5 years (2015: 8.3 years).

108 leasehold occupiers with 87% of space let.

Good progress with acquisitions, new lettings,

rent increases and regears leading to a profit

from operations increase of £1.6m

Portfolio is actively asset

managed to optimise net rental

income

Future potential to churn mature

assets

Natural Resources

144.5MW of low carbon energy tenants installed

(net 19MW added in 2016)

1,997 acres of agricultural land, with minimal

upside potential, disposed of above book value

Tipping at 5 sites and planning progressing for a

further site. Demolition at 2 sites ongoing

Further energy opportunities

are becoming available to

increase income

Agricultural rent will decrease

as portfolio is sold

We aim to maintain recycling

and tipping incomes

Operations

Coal fines contracts with Drax and Ratcliffe secured

to replace Rugeley contract which ended in 2016

Forecast to decline: stock, costs

and remediation being managed

Revenue from Income streams

£.0m

£5.0m

£10.0m

£15.0m

£20.0m

£25.0m

£30.0m

£35.0m

2015 2016

Operations Natural Resources

Business Parks Major Developments

- 10 -


CASH FLOW

Aim to balance cash flows

Infrastructure spend and investment in acquisitions are essentially funded by disposals

Infrastructure spend is assessed against, and matched with, the quantum and timing of expected disposals

- 11 -


FINANCING

Policy of prudent gearing

As at 31 December 2016, gross Loan To Value

(LTV) 13.1% and net LTV 9.9%

Harworth recognises the risk should operational

and financial gearing be combined and thus capital

growth sites are deliberately not geared. If gearing

is just assessed against the value of business

space and natural resources properties this

equates to a gross LTV of 41.6% and net LTV of

31.3%

Higher gearing levels are not easily supported by

the business’ activities

Prudent gearing provides headroom and flexibility

Due to the seasonality of the business, year end

net debt is usually the lowest point as sales are

weighted towards the year end. During the year,

net debt can increase by over £20m as

infrastructure spend is made in advance of sales

Prudent gearing gives the ability to transact quickly,

which is often a source of competitive advantage

Position as at 31 December 2016 £’000

Drawn bank borrowings – RBS RCF (37,991)

Infrastructure loans (14,487)

Gross interest bearing debt (52,478)

Cash and cash equivalents 13,007

Net debt (39,471)

Investment Properties (including JVs, assets

held for sale, overages and owner occupied)

400,252

Net Loan/Value 9.9%

Net Assets 334,923

Net Debt/Net Assets 11.8%

Interest Cover 2.83x

(Using HEPGL profits as per RBS RCF)

- 12 -


OUR PORTFOLIO: HOW WE CREATE AND ADD VALUE

Acquisition &

Land Assembly

Masterplanning

Planning Approval

Value Engineering &

Land Remediation

Infrastructure Development

Plot Sale / Build Out

Ind

ica

tive

Va

lue

Ad

d

Asset Management

Acquisitions Strategic Land Major Projects Income

Time

Competitive advantage

comes from our ability to

add value through

management actions

rather than reliance on

market movements

- 13 -

£400.3m


ACQUISITIONS: STRATEGY AND PROCESS

Opportunities for value growth

Opportunities identified

Optimum deal structure identified

Execution:

Harworth can transact quickly and offer clean exits

49%

43%

8%

27%

14%

54%

5%

Development

Agreements and

Options

PPAsCorporate

acquisitions

Conditional and

Unconditional

Freehold

Acquisitions

Due Diligence:

Pricing discipline is key

Breakdown of deal structures (by volume of transactions): 2014-2016

Off-market direct

approaches to

landowners

Soft marketing

by agents

Open market advertising

- 14 -


ACQUISITIONS: STRONG PROGRESS MADE IN 2016

6 NEW ACQUISITIONS (£31.6m)

244 acres

3.54m1 commercial sq. ft either built or consented

£2m of new income secured

4 NEW PLANNING PROMOTION AGREEMENTS

67 acres

494 potential residential plots

Brings total plots under PPAs to 1,144

MARCH

Gateway 45, Leeds

JUNE

Market Warsop, Mansfield

DECEMBER

Preston and Chorley, Lancashire

Purchase of 50% of Aire Valley LLP (JV

vehicle for Gateway 45) for £8.5m

Planning application submitted for

Harworth’s first PPA

Purchase of two multi-let Business Parks

for £17.9m

Serviced development plots to be

offered for commercial

leasehold/freehold

Planning promotion income to be

received once first housing plot sale

has completed

Asset management opportunities

identified, including re-gear of leases

Since restarting acquisitions at the end of 2014, these acquisitions have outperformed hurdle rate

Notes: 1 freehold commercial sq. ft purchased in 2016 includes 50% of Gateway 45’s 2.644m sq ft scheme, due to 50% ownership

Asset management potential

Planning / development opportunities

- 15 -


ACQUISITIONS: PIPELINE OF SIGNED OPTIONS

1 RESIDENTIAL

Garden village

site, Derbyshire

90 acres

675 houses

Encompasses former surface mine, coking works and agricultural land

Fixed price option taken

Option land equates to 21% of development area. Scheme envisaged

as 3,500 home garden village

Further land assembly required to optimise opportunity

Opportunity to deliver serviced land sales from 2022

RESIDENTIAL

St Helens,

Merseyside

60 acres900 houses

Cleared brownfield development site

Fixed price option taken

Outline planning permission in place

Application made for grant funding for enabling infrastructure

Opportunity to deliver serviced land sales from 2018, with strong

existing interest from housebuilders and PRS operators

COMMERCIAL

Chatterley

Valley, Stoke

24 acres436,000 sq. ft

Site is adjacent to existing Harworth land ownership (82 acres)

Option signed at discount to open market value

Overall site sits within Government Enterprise Zone and has planning

consent for 860,000 sq ft of commercial space

Opportunity for direct development and higher value roadside uses

COMMERCIAL

Bewshill Farm,

Bolton

12 acres150,000 sq. ft

Existing farm located adjacent to Harworth’s Logistics North site

Option signed at discount to open market value

Potential opportunity to deliver direct development space as part of

Logistics North use existing access

Currently allocated as Green Belt but a logical infill plot

- 16 -


BUSINESS AND FINANCIAL OVERVIEW

- 17 -

Delivering market leading NAV

growth

In 2016 EPRA NAV grew by

13.3%. Over last 3 years,

EPRA NAV CAGR of 14.0%

TRACK RECORD

Growing income base to

deliver resilience through

property cycles

Profit from operations

increased by 6.7% in 2016

INCOME

Proven and robust strategy

with confidence in the future

Dividend increased by 10% -

momentum positive in to the

new year

STRATEGY

Market fundamentals in the

regions remain strong

Houses are well priced with

good demand. Limited

supply of logistics space

MARKETS

Experienced, capable and

stable management team in

place

Significant and diverse local

market experience

TEAM

Further sites identified to build

and diversify our strategic land

bank

Four options signed and four

opportunities in negotiation

OPPORTUNITIES

Confidence in the future

Stro

ng fin

ancia

l perfo

rmance

Sound foundations


APPENDICES

6 MARCH 2017

A brief history 19 Investment properties – Movement 23

Case study: Logistics North, Bolton 20 Investment properties – Portfolio detail 24

Case study: Thoresby Colliery, Nottinghamshire 21 Valuation methodology 25

Acquisitions: additional opportunities being

explored

22 Summary of financing facilities 26

- 18 -


A BRIEF HISTORY

2012-2014 2015 onwards

Harworth Estates was

24.9% owned by CfR plc

Re-launched as Harworth

Group plc

• In December 2012, after a complex

restructuring, UK Coal changed its

name to Coalfield Resources plc (CfR)

owning 24.9% of Harworth Estates

• Remaining 75.1% was owned by the

pension trustees but in July 2013, the

holding was transferred to the Pension

Protection Fund (PPF)

• In November 2014, CfR agreed to

buy the PPF’s 75.1% holding in

Harworth Estates

• In February 2015, Harworth Estates

agreed a new 5 year £65m RCF with

RBS

• On 24 March 2015, CfR:

Raised £116m through a share

placing. This cash and issued

shares were used to acquire the

PPF’s shareholding in Harworth

Estates. PPF became a 25%

shareholder

Renames itself as Harworth

Group plc

2004-2012

Property division within

UK Coal plc

Property sales used to

fund mining activities

Property sales used to

pay down bank debt

Acquisitions central to

replenishing portfolio

• In 1994, RJB Mining (founded in

1974) bought British Coal’s core

activities.

• Having changed its name in 2001,

UK Coal established a property division

in 2004, which was to become Harworth

Estates

• In 2010, Owen Michaelson joined UK

Coal to head up Harworth Estates

- 19 -


CASE STUDY: LOGISTICS NORTH, BOLTON

FEBRUARY 2015 FEBRUARY 2017

Infrastructure / Plot sale + build out

• Outline consent for 4m sq. ft of commercial space

• Infrastructure works completed to open up the site’s first

phase, utilising an £10m GMIF loan

• Aldi signed as anchor occupier for 600,000 sq. ft regional

distribution centre and HQ

• No units constructed or completed

• MBDA, Joy Global, Lidl, Exeter Property Group, M&G Real

Estate (Whistl) all confirmed as owners/occupiers

• Over 2m sq. ft of space either built or committed

• Phase 2 infrastructure works now substantially complete to

open up the remainder of the site

• Plan for speculative development of smaller units

- 20 -


CASE STUDY: THORESBY, NOTTINGHAMSHIRE

Planning application submitted in December 2016 for:

• 800 plots on former pit yard site

• 250,000 sq. ft of commercial development

• Restoration of former spoil heap into Country Park to

provide leisure facilities

• Determination expected in Q2 2017

500 acres at heart of Sherwood Forest in

Nottinghamshire:

• Former Colliery closed in July 2015

• Site safety and demolition works undertaken

• Draft allocation within emerging Newark & Sherwood Local

Plan for residential and supporting uses

• Site is at start of ‘value-add’ process

Masterplanning / planning approval

- 21 -

PRESENT SITE PROPOSED DEVELOPMENT


ACQUISITIONS: ADDITIONAL OPPORTUNITIES BEING EXPLORED

FURTHER

RESIDENTIAL

SITES

Terms agreed with the landowner for an option agreement at agricultural

value plus claw back on planning on a 263 acre strategic logistics and

residential development site located on a key motorway junction that could

deliver c.2m sq. ft of commercial space and 500 new homes

Due diligence and negotiations currently underway on a 500 acre major

residential development site with potential to deliver over 4,000 new homes.

The development offers value added initiatives through remediation,

enabling infrastructure and serviced plot sales

FURTHER

COMMERCIAL

SITES

Terms agreed with a landowner for a land drawdown development

agreement for a 75 acre major logistics development site, well located in

Yorkshire

Terms agreed with the landowner for an option agreement to acquire whole

site at a discount to market value for a 29 acre major logistics development

site adjacent to a major motorway junction in the North West

Advanced negotiations with the landowner for an unconditional purchase of

40 acres adjacent to an existing Harworth site

GOVERNMENT

& CORPORATE

ESTATES

Currently in discussions with three power station operators regarding four

sites

Harworth in a strong position to benefit from anticipated opportunities from

Ministry of Defence, Ministry of Justice and Network Rail

Also in discussions with a utility company regarding its surplus estate

PLANNING

PROMOTION

AGREEMENTS

Offers accepted across four PPA sites potentially delivering over 600

dwellings

Terms out on a further three PPA sites potentially delivering over 1,000

dwellings

- 22 -


INVESTMENT PROPERTIES – MOVEMENT(INCLUDES JOINT VENTURES, AVAILABLE FOR SALE, OVERAGES AND OWNER OCCUPIED ASSETS)

- 23 -

£400.3m


INVESTMENT PROPERTIES – PORTFOLIO DETAIL

TOP 10 SITES

Site Location AcresHouse plots Employment space

Consented Sold/Built Consented Built

Waverley & AMP Yorkshire 587 3,890 740/600 2.1m sq. ft 1.2m sq. ft

Rossington Yorkshire 344 1,200 170/35 0.1m sq. ft 0 sq. ft

Logistics North North West 763 4.0m sq. ft 2.0m sq. ft

Lounge Midlands 103 0.8m sq. ft 0 sq. ft

Prince of Wales Yorkshire 303 917 315/150 0.3m sq. ft 0 sq. ft

Harworth Midlands 173 996 118/90 0.8m sq. ft 0 sq. ft

Coalville Midlands 200 1,100 0

Asfordby Midlands 133 0.3m sq. ft 0.3m sq. ft

Gateway 36 Yorkshire 430 0.2m sq. ft 0.2m sq. ft

Sherburn RFT Yorkshire 279 0.3m sq. ft 0.3m sq. ft

TOTAL 3,315 8,103 1,158/699 8.9m sq. ft 4.0m sq. ft

Ownership BreakdownAcres

31-Dec-14

Acres

31-Dec-15

Acres

31-Dec-16

Sites

31-Dec-14

Sites

31-Dec-15

Sites

31-Dec-16

Freehold land 21,104 19,428 17,491 153 107 103

Leasehold land 1,236 176 176 5 4 3

Commercial Clawbacks 3,975 3,975 3,975 33 33 33

Joint Venture Sites 219 178 334 4 2 3

Sub Total 26,534 23,758 21,977 195 146 143

Mineral Rights 726 726 726 12 12 12

Third Party Agreements 0 0 159 0 0 6

Options (Third Party Land) 2,042 1,258 2,213 3 2 4

Total 29,302 25,742 25,075 210 160 165

- 24 -


VALUATION METHODOLOGY

• Portfolio is valued twice yearly. Formal year end valuation by BNP

Paribas and Savills, and half year valuation by management with

review by BNP Paribas and Savills

• Valuation is property by property on the basis of Market Value

(RICS Red Book definition) given the highest and best use of the

portfolio

• Valuation techniques for the broad categories of the portfolio are:

1. Business Space – Market comparison with direct reference to

observable market evidence; rental values, yields and capital

values adjusted for quality of the properties, covenant profile of

the tenants and the volatility of cash flows

2. Development sites – Residual development appraisals, a

form of discounted cash flow which estimates the current site

value from future cash flows measured by observable current

land and/or completed built development values and estimated

developments costs and returns

3. Strategic land – Discounted cash flows, measured by current

land values adjusted to reflect the quality of the development

opportunity, potential development costs and likelihood of

planning consent Construction of Helix at Gateway 36

Lakeside view of Waverley

- 25 -


SUMMARY OF FINANCING FACILITIES

The table below summarises Harworth’s drawn facilities as at 31 December 2016

Weighted average cost of debt of 2.9% (using 31 December 2016 balances and rates) with a 0.8% non-

utilisation fee on undrawn RBS amounts

£30m fixed at 2.955% all-in rate until June 2020

Lender Associated siteAmount drawn

(£’k)Interest rate End date

HCA Waverley 11,6512.2% plus EU

Reference RateFebruary 2022

JESSICA Gateway 36 2,3282.2% plus EU

Reference Rate

April 2018 but with an ability to extend if

development not let

Leeds LEP Prince of Wales 813 2.49% December 2018

JESSICAAdvanced

Manufacturing Park720

2.2% plus EU

Reference Rate

December 2018 but with an ability to extend if

development not let

HCA Village farm, Murton 118 4%20 business days from the sale of last plot or

June 2017

Infrastructure loans total 15,631

RBS RCFAll sites.

Floating debenture37,991

ICE Libor rate

plus 2%February 2021

Capitalised fees (1,144)

Total gross borrowings 52,478

- 26 -


For the purpose of the following disclaimer, reference to this

‘presentation’ shall be deemed to include reference to the presentation

slides, the presenters’ speeches, the question and answer session and

any other related verbal or written communication.

This presentation, which has been issued by Harworth Group plc

("Harworth"), comprises slides for a presentation in relation to

Harworth's results for the financial year ending 31 December 2016 and

is solely for use at such presentation. This presentation is confidential

and may not be reproduced, redistributed or passed directly or

indirectly to any person or published in whole or in part for any purpose.

This presentation includes forward-looking statements with respect to

the business, performance and financial condition of Harworth. By their

nature, these statements may involve uncertainty given future events

and circumstances which are beyond Harworth's control, including

amongst other things, fluctuations in the property market for the price of

land, the timing effect and other uncertainties of future acquisitions, the

effect of tax and other legislation or regulations in the United Kingdom,

all or any of which can cause results and developments to differ

materially from those anticipated. Further details of certain risks and

uncertainties will be set out in Harworth's annual report for 2016 when

published. Any forward-looking statements reflect knowledge and

information available at the date of preparation of these slides. Nothing

in this presentation should be construed as a profit forecast. Harworth

gives no undertaking to update these forward-looking statements.

Actual results may differ materially from those expressed in forward-

looking statements. As such, you are cautioned not to put undue

reliance on any forward-looking statements. No investment advice is

being given in this presentation. No representation, warranty or

undertaking is given by, or on behalf of, Harworth or any of its directors,

officers, employees and advisers that Harworth will achieve any results

set out in such statement or as to the accuracy, completeness or

reasonableness of any projections, targets, estimates, forecast

statements, beliefs, opinions or information contained in or given during

this presentation and no liability is accepted or incurred by any of them

for or in respect of the same, provided that nothing in this paragraph

shall exclude liability for any representations or warranty made

fraudulently.

In making this presentation available, Harworth makes no

recommendation to buy, sell or otherwise deal in shares in Harworth or

in any other securities or investments whatsoever, and you should

neither rely nor act upon, directly or indirectly, any of the information

contained in this presentation in respect of any such investment activity.

Past performance is no guide to future performance. If you are

considering engaging in investment activity, you should seek

appropriate independent financial advice and make your own

assessment.

By accepting these presentation slides, you agree to be bound by the

above conditions and limitations.

This presentation does not constitute or form part of any offer or

invitation to sell, or any solicitation of any offer to purchase, any shares

in Harworth or any other securities, nor shall it or any part of it, nor the

fact of its distribution form the basis of, or be relied upon in connection

with, any contract or investment decision related thereof.

The financial results contained within this presentation are extracted

from the Harworth preliminary results announcement for the financial

year ended 31 December 2016.

PwC, as auditors, has confirmed its agreement to the release of these

results.

DISCLAIMER

- 27 -

2016 PRELIMINARY RESULTS...Exceptional items (465) 7 Interest (2,956) (2,341) Profit before tax...

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