WATKIN JONES PLCHALF YEAR RESULTS To 31 March 2018

22nd May 2018

Mark Watkin Jones – CEOPhilip Byrom – CFO

FINANCIAL HIGHLIGHTS

2Bagot Street, Birmingham 492 Beds | Due to complete August 2018

FINANCIAL HIGHLIGHTS

3

• Revenue up by 18.4% to £158.3M (H1 FY17 £133.7M) driven by student accommodation developments.

• Gross margin maintained at 21.8% (H1 FY17 21.8%).

• Operating profit up by 22.7% to £23.8M (H1 FY17 £19.4M).

• EBITDA up by 11.9% to £24.5M (H1 FY17 £21.9M).

• Profit before tax up by 11.9% to £23.6M (H1 FY17 £21.1M).

• Basic EPS up by 12.5% to 7.53 pence per share (H1 FY17 6.69 pence per share).

• Net cash up by 328% at 31st March 2018 to £38.4M (H1 FY17 £11.7M).

• Interim dividend up by 12.3% to 2.47 pence per share (H1 FY17 2.2 pence per share) in line with our progressive dividend policy.

RESULTS SUMMARY

4

BUSINESS HIGHLIGHTSMAINTAINING VISIBILITY

Bridge Street, Cardiff 477 Beds | Due to complete August 2018

BUSINESS HIGHLIGHTS – MAINTAINING VISIBILITY

5

• Improved Gross Margin to 65.3% (H1 FY17 63.2%).

• 16,185 student beds under management at 31st March 2018.

• 532 build to rent units under management at 31st March 2018.

ACCOMMODATION MANAGEMENT

• Total development pipeline of over 10,300 beds across 25 developments.

• 15 developments (6,090 beds) pre-sold to Investors.

• 8,752 beds with planning consent.

• 21 developments with planning consent.

STUDENT ACCOMMODATION

DEVELOPMENT PIPELINE

• Development Agreement entered into to deliver 315 apartments for M&G at Reading.

• Planning consents secured for 312 apartments in the period.

• The Group expects to deliver over 1,500 build to rent apartments in the next five years.

BUILD TO RENT DEVELOPMENT

PIPELINE

• Richard Simpson, former Group Property Director of Unite plc, appointed as CEO to succeed Mark Watkin Jones.

SUCCESSION

6St Mungo’s, Glasgow 349 Beds | Due for completion August 2018

AMBITION & STRATEGY

AMBITION & STRATEGY

7

• Continue sustainable growth of earnings in the core student property development business.

• Maintain a strong forward sold position to limit risk.

• Maintain our position as the partner of choice for our existing clients and add new clients.

• Continue growth of Fresh Student Living to increase recurring management fee income.

• Growth of Five Nine Living to add to recurring management fee income.

• Continue to grow margin.

• Continue to release cash from inventory.

• Develop out land bank.

• Acquire strategic sites.

• Leverage PBSA expertise to become a leader in this sector.

• Enhance growth and visibility, whilst retaining funding model.

• Exploit opportunities to enhance supply chain efficiency through scheduling.

• Look to accelerate overall opportunity where possible.

• Deliver 1,500 apartments in next 5 years.

8

DEVELOPMENT PIPELINE STUDENT ACCOMMODATION

Midland Road, Bath 94 Student Beds & 14 Keyworker Studios | Due for completion August 2018

STUDENT ACCOMMODATION PIPELINE SUMMARY

• Over 10,000 beds secured and scheduled to be delivered in the next four years across 25 schemes and a further 2 schemes with over 1,000 beds in legals to acquire.

• 7 developments being marketed for sale.

• FY18 – Ten developments (3,415 beds) forward sold

• FY19 – Four (2,245 Beds) of planned 6 developments (2,723 Beds) forward sold. All have planning consent.

• FY20 – One (430 Beds) of planned 7 Developments (c.3000 Beds) forward sold. Five have planning consent.

• 15 schemes and 6,090 beds pre sold to investors and under construction.

• In excess of 5,000 beds across 15 sites identified as potential opportunities and being pursued.

PIPELINE PROVIDES EARNINGS VISIBILITY

Student accommodation pipeline locations

0

500

1000

1500

2000

2500

3000

3500

4000

FY18 FY19 FY20 FY21

Number of Beds - Unsecuredin Legals Sites

Number of Beds - SecuredSites

Number of Beds - UnderOffer/In Legals

Number of Beds - ForwardSold

Num

ber o

f Bed

sCURRENT PIPELINE OF STUDENT PROJECTS UNDERPINS VISIBILITY

9

10

STUDENT ACCOMMODATION MARKET Occupier Demand

Bailey Fields, Sheffield 543 Beds | Due for completion July 2018

PURPOSE BUILT STUDENT PROPERTY MARKET OCCUPIER DEMANDOccupier Demand• Student numbers continue to rise.• >1.79 million full time higher education students in UK.• 404,000 (22%) students in the UK are from outside of the UK. • Flight to improved quality continues.

Bed Numbers in the UK• 602,000 PBSA beds in the UK (C&W – October 2017) with an

estimated 219,000 PBSA beds in the UK operated by the Private Sector (GVA – Spring 2018).

• The balance in the UK is operated by the Universities of which it is estimated that 75% was built pre 1999 and is no longer fit for purpose or meeting occupier expectation.

The Offer• Typical layout allows occupancy with chosen flat mates.• All inclusive rents.• Safe/secure with on site management.• Enhanced services – gyms, common rooms, laundry.

11

STUDENT ACCOMMODATION MARKET Investment Demand

12Kyle Street, Glasgow 401 Beds | Due for completion August 2019

PURPOSE BUILT STUDENT PROPERTY MARKET INVESTMENT DEMAND

13

Purpose Built Student Accommodation Investment Demand• PBSA remains a stable income producing asset. • Asset Class is now seen as Mature.• £4.1 billion of stock traded in 2017 (£3.2 billion 2016) with £1.0 billion of stock traded in Q1 2018 and a further

£1.5 billion of stock believed to be under offer.• Investment sentiment remains strong and investors willing to pay premiums for larger portfolios driven by need to

allocate investment capital and build scale quickly.• Rental Growth continues.• Direct Let Yields: 4.25-4.5% Prime London, 4.75-5% Inner London, 5.25- 5.5% Prime Regional, 6% Secondary

Regional.• Our current development partners include AIG, Arlington, Brookfield (BSRE), CBRE Global, Generation Estates, GSA,

L&G, La Salle IM, M&G, UBS, UPP.

14

DEVELOPMENT PIPELINE BUILD TO RENT

Bath Lane, Leicester 322 Units | Due for commencement 2019

BUILD TO RENT PIPELINE SUMMARY

• 1,597 apartments in the pipeline across8 developments made up of:-

15

Build to Rent pipeline locations

0

100

200

300

400

500

600

700

800

FY18 FY19 FY20 FY21

Number of Apartments -Unsecured undernegotiation

Number of Apartments -Secured Units

Number of Apartments -Under Offer / In Legals

Number of Apartments -Forward Sold

Num

ber o

f Bed

s

DEVELOPMENT PIPELINE OF BUILD TO RENT OPPORTUNITIES Year of CommencementGROWING MOMENTUM

• 315 apartments under a development agreementwith M&G at Reading for a 2021 completion.

• 5 development sites secured (908 apartments), ofwhich 3 developments (482 apartments) haveplanning.

• 2 developments under negotiation to acquire –target 437 apartments

16

BUILD TO RENT OPPORTUNITY

The Gateway, Sheffield 78 Apartments | Completed 2017

BUILD TO RENT – AN EMERGING & UNDERSUPPLIED ASSET CLASS –OPPORTUNITY TO ACCELERATE GROWTH THROUGH ESTABLISHING A FUND

EMERGING ASSET CLASS

• We believe that BTR market dynamics will mirror PBSA as sophistication and understanding build – but this takes time.

• Against this backdrop, we are seeking to maximise WJ PLC’s BTR opportunity without trading away returns or changing our forward funded business model.

• Dedicated source of capital would allow WJ PLC to maintain momentum in its BTR pipeline whilst the wider market evolves.

Dedicated investment vehicle could deliver quicker and bigger benefits to WJ PLC’s BTR strategy:• Would enable the acceleration of the current BTR pipeline.• Potential for faster turnover of capital.• Generate incremental revenue from investment management

activities.• Creates further opportunities for Fresh Property Group. • Offers further upside in the form of dividend and capital

appreciation if WJ PLC takes a minority equity stake.• Would not prevent WJ PLC from pursuing Development

Agreement opportunities as part of its wider BTR strategy.

THE POTENTIAL FUND VEHICLE

• Consideration of a listed vehicle ongoing.• Opportunity for Investors to gain pure exposure to the

emerging market and invest in the BTR sector.• Assets identified and under control which

differentiates it from other investment vehicles in the market.

• Externally managed using WJ plc expertise and governed by a separate independent Board.

• Right of first refusal from Fund over WJ BTR assets.

17

SIGNIFICANT OPPORTUNITY FOR WATKIN JONES PLC

18

BUILD TO RENT MARKET

Sutton Court Road, Sutton 165 Apartments | Due for completion 2020

BUILD TO RENT – AN EMERGING & UNDERSUPPLIED ASSET CLASS CONSUMER DEMAND

• Supply of homes cannot keep up with demand due to rising life expectancy, increase in one person households, divorce and immigration.

• Government targeting 300k new dwellings each year by mid-2020’s, only 217k delivered in 2016/17. Current UK housing deficit estimated at 1.4M homes.

• Rented housing stock has increased to c.22% (as a proportion of housing stock) today.

• We have an increasing generation of renters across all lifestyles with all age groups showing increases in the numbers that rent.

• WJ can leverage its significant experience in delivering Multi Occupancy Buildings into the BTR Sector.

• Existing WJ Investor relationships – Similar investors and deal structures to PBSA.

• WJ are recognised as a Tier 1 Developer and Contractor giving comfort to Institutions over delivery.

• WJ manage 16,000+ Multi Tenanted Residential Units in the PBSA sector. Opportunity to replicate this style of management in BTR.

• Year round deliveries improving resource and supply chain efficiencies.

• UK wide developer with the ability to develop a range of rental housing typologies from high-rise flats in urban centres to family homes in commuter.

INVESTMENT CASE• High expectation from investors that the specialist property

sector will grow in market share and portfolio weighting in 2018.

• Knight Frank research shows investment volumes into specialist property accounted for 27% of the UK commercial property market in 2017 increasing by 40% year on year to reach an unprecedented £17.7B.

• Investment volumes into specialist property are expected to reach almost £20B in 2018 with 51% of those surveyed identifying BTR as the most attractive to investors in 2018 followed by 18% identifying PBSA.

• 33% of the 2017 Investments came from oversees with the UK’s exit from the UK no longer a primary concern for investors.

• Investors are looking for durable long-income investments. BTR provides aggregated investment stock offering exposure to UK residential real estate with stable annually grown income streams and low volatility of returns.

• UK Government is supportive of the sector particularly through professionally managed BTR housing.

• Positive policy environment.

19

WATKIN JONES OPPORTUNITY

20

FRESH PROPERTY GROUP

Oxford House, Bournemouth 486 Beds | Due for completion August 2018

21

16, 617 Total Units Under Management

358 Total Staff75 Central Services Staff

16,185PBSA Beds Under

Management

53Number of PBSA

Schemes

532BTR Units Under

Management

5Number

Of BTR Schemes

58Total

Number of Schemes

£108m Cash Under Management. £1.5bn Assets Under Management

KEY FACTS

22

GROUP FINANCIALS

Duncan House, Stratford 511 Student Beds & 45 Residential Units | Due for completion August 2019

INCOME STATEMENTGroup Income Statement (Continuing operations)(IFRS)

£ millionHalf Year

31 Mar 2018Half Year

31 Mar 2017Full Year

30 Sep 2017

Student accommodation 142.2 115.2 256.1Build to rent 0.6 0.6 1.2Residential 5.3 5.6 18.1Accommodation management 3.7 3.0 6.1Corporate 6.5 9.3 20.4Revenue 158.3 133.7 301.9Student accommodation 29.4 25.0 56.5Build to rent 0.3 0.4 0.7Residential 0.5 0.7 3.0Accommodation management 2.4 1.9 3.8Corporate 1.9 1.1 (0.5)Gross profit 34.5 29.1 63.5Gross Margin 21.8% 21.8% 21.0%Overheads (10.7) (9.7) (20.8)

Operating profit 23.8 19.4 42.7Operating Margin 15.0% 14.5% 14.1%Profit on disposal of interest in joint venture 0.1 0.9 0.9Share of profit in joint ventures - 1.1 0.5Net finance costs (0.3) (0.3) (0.8)

Profit before tax 23.6 21.1 43.3

EBITDA 24.5 21.9 45.2EBITDA Margin 15.5% 16.4% 15.0%

23

Revenue by Division (£ million)

StudentAccommodation

AccommodationManagement

Residential

Build to Rent

Corporate

Gross Profit by Division (£ million) Student

Accommodation

AccommodationManagement

Residential

Build to Rent

Corporate

SEGMENTAL SUMMARYRevenue and Gross Profit by Segment

24

• Revenues for H1 FY18 up by 23.5% to £142.2 million, reflecting good build progress in the period on forward sold developments for delivery in FY18 and FY19.

• Gross margin remained strong at 20.7% (H1 FY17: 21.7%). Reduction compared to H1 FY17 due to high margin contribution from certain developments completed in FY17.

• Robust student accommodation pipeline of over 10,300 beds provides excellent earnings and cashflow visibility.

Student accommodation(£ million)

Build to rent(£ million)

• Build to rent segment reported for the first time in FY17.

• Revenues of £0.6m for H1 FY18 consistent with H1 FY17 and represent rental income from the Group’s completed build to rent stock in Sheffield and Droylsden.

• Construction works to commence on the 315 apartment scheme in Reading for M&G, which will contribute to build to rent revenues and earnings in H2 FY18.

142.2115.2

256.1

29.4 25.056.5

HI 2018 HI 2017 FY 2017

Revenue Gross Profit

0.6 0.6

1.2

0.30.4

0.7

HI 2018 HI 2017 FY 2017

Revenue Gross Profit

SEGMENTAL SUMMARYRevenue and Gross Profit by Segment

25

Accommodation management(£ million)

Residential(£ million)

• 21 sales completions in H1 FY18, compared to 31 for H1 FY17, reflecting the current seasonality of the business, with sales heavily weighted to the second half as new developments in build come on stream.

• 67 sales legally exchanged or reserved at 31 March 2018 (31 March 2017: 31 sales exchanged/reserved).

• Revenues for the half year of £5.3 million compared to £5.7 million for H1 FY17. The reduction in sales value is attributable to sales from legacy sites at nil margin, which amounted to £1.9 million for H1 FY18, compared to £2.9 million for H1 FY17.

• Revenues for the Fresh Property Group (“FPG”) up 25.7% to £3.7 million for the half year, reflecting an increase in student beds under management to 16,185 beds across 53 schemes, compared to 12,117 beds across 43 schemes for H1 FY17.

• Gross margin increased to 65.3% compared to 63.2% for H1 FY17.

• FPG will be fully compensated for the loss of revenues associated with the early termination of the management contracts relating to the sale of the portfolio of assets by the Curlew Student Trust.

• Curlew Capital have successfully launched Curlew Student Trust 2, for which FPG is the preferred property manager and creates the potential for longer term business growth.

5.3 5.6

18.1

0.5 0.73.0

HI 2018 HI 2017 FY 2017

Revenue Gross Profit

3.73.0

6.1

2.4 1.9

3.8

HI 2018 HI 2017 FY 2017

Revenue Gross Profit

STATEMENT OF FINANCIAL POSITIONGroup Statement of Financial Position(IFRS)£ million

31 Mar 2018 31 Mar 2017 30 Sept 2017

Intangible assets 14.7 15.2 15.0Property, plant and equipment 5.0 3.1 4.9Investment in joint ventures 1.5 0.7 1.8Deferred tax asset 0.5 0.3 0.3Other financial assets 1.2 2.6 2.7Non-current assets 22.9 21.9 24.7Inventory and WIP 145.6 126.0 125.2Trade and other receivables 27.4 20.9 36.3Cash and cash equivalents 61.6 25.1 65.3

Current assets 234.6 172.0 226.8

Total assets 257.5 193.9 251.5

Trade and other payables (91.2) (57.0) (88.7)Provisions (0.7) (0.3) (0.7)Interest bearing loans and borrowings (1.4) (4.3) (1.5)Current tax liabilities (4.6) (7.0) (8.2)

Current liabilities (97.9) (68.6) (99.1)Interest bearing loans and borrowings (21.9) (9.1) (22.8)Deferred tax liabilities (1.4) (1.1) (1.4)Provisions (2.0) (2.0) (2.0)Non-current liabilities (25.3) (12.2) (26.2)

Total liabilities (123.2) (80.8) (125.3)

Net assets 134.3 113.1 126.2

26

• Intangible assets of £14.7 million at 31 March 2018 relate to Fresh.

• Investment in joint ventures reduced by £0.3 million since 30 September 2017 as a result of the disposal of the Group’s interest in Rufus Estates Limited.

• Other financial assets reduced by £1.5 million as a result a partial distribution from the Curlew Student Fund following the sale of the portfolio of assets.

• Inventory and WIP increased by £20.3 million, reflecting a modest level of investment in new student accommodation and build to rent sites, as well as an increase in residential WIP relating to new developments in build which will deliver sales in H2.

• Strong cash performance. Cash maintained at £61.6 million, despite the normal utilisation of cash in the first half of the year.

• Net cash of £38.4 million (H1 FY17: £11.7 million).

STATEMENT OF CASH FLOWS

Group Statement of Cash Flows£ million

Half Year31 Mar 2018

Half Year31 Mar 2017

Full Year30 Sept 2017

Operating profit 23.8 19.4 42.7

Depreciation and amortisation 0.5 0.4 1.0

(Increase)/decrease in working capital (8.7) (36.3) (18.4)

Finance costs paid (0.3) (0.4) (1.0)

Tax paid (8.3) (3.1) (5.1)

Net cash inflow/(outflow) from operating activities 7.0 (20.0) 19.2Net cash flow from purchase of fixed assets (0.4) (0.4) (0.3)Cash flow from joint venture interests 0.3 7.6 5.6Cash distribution from other financial assets 1.7 - -Dividends paid (11.2) (6.8) (12.4)Cash flow from borrowings (1.1) (2.5) 6.0

(Decrease)/increase in cash (3.7) (22.1) 18.1

Cash at beginning of period 65.3 47.2 47.2

Cash at end of period 61.6 25.1 65.3Less: borrowings (23.2) (13.4) (24.3)Net cash 38.4 11.7 41.0

27

• £7.0 million net cash inflow from operating activities after absorbing £8.7 million into working capital and tax paid of £8.3 million.

• £1.7 million received as a partial distribution from the Curlew Student Fund.

• £11.2 million dividends paid. Interim dividend of 2.47 pence will cost £6.3 million.

• £1.1 million net cash outflow from borrowings.

• Cash balance of £61.6 million increased by £36.5 million compared to H1 FY17.

• Net cash of £38.4 million after deducting borrowings of £23.2 million.

28

THE MODEL

Hollis Croft, Sheffield 972 Beds | Due for completion July 2019

…PROVIDES AN END TO END SOLUTION

29

Identify site

Negotiation of option /

acquisition

Obtain planning permission

Discussions with University/ key stakeholders

Value added opportunities

Land sale & development agreement

Construction Asset management

SITE PROCUREMENT & PLANNING TRANSACTION AND FUNDING CONSTRUCTION AND DELIVERY SCHEME MANAGEMENT

Forward sale to

Institutional investors

Typically 2 ½ years 3 - 7 years

Forward sell site to fund on receipt of planning

For £6.0 millionAdditional Planning gain payment from fund on receipt of planning

Say £1.0 million

Profit: £1.7 million (£7M in less £5M land less 3rd Party planning costs of £300K)

Build costs £22.7 million

Construction & Development Profit

£5.3 million• Paid monthly over course of build

• Typical 10% retention released on completion

Refundable deposit (10%)Typically £500,000

3rd party planning costSay £300,000

Consultancy/build£20,000/scheme

Mobilisation/build£150/bed

Management/per annum£320/bed

NB. All operational costs paid by landlord/leaseholder

Typical Top Down Appraisal • Say 500 Bed Scheme X Rent X Term X Yield = Gross Development Value less 20% Return Hurdle = Balance for Build, Funding Cost and Land acquisition costTheoretical Example of funding for a Development with a GDV of £35M and land cost of £5M

Cash flow: +£2.5 million (Uplift on land + Planning

Gain Payment + Deposit

Cash flow: +£5.3 million

Cash flow: (£0.8) million (Deposit + 3rd party

Planning Fees)

Cash flow: +£160,000 p.a.

This presentation is for information purposes only and no reliance may be placed up on it. No representation or warranty,either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information containedin this presentation. The financial information referenced in this presentation does not contain sufficient detail to allow a fullunderstanding of the results of Watkin Jones plc (“Watkin Jones”). For more detailed information, please see the full yearresults announcement for the twelve months ended 30 September 2017 which can be found on the Investors section of theWatkin Jones website - www.watkinjonesplc.com.

This presentation does not constitute or form part of any offer or invitation for sale or subscription of, or any solicitation ofany offer to buy or subscribe for, any securities of Watkin Jones. The making of this presentation does not constitute arecommendation regarding any such securities.

Any projections or other forward-looking statements are made by the Directors of Watkin Jones in good faith based on theinformation available to them at 22 May 2018 and reflect the Directors’ knowledge and information available at that dateand their beliefs and expectations. These statements may involve risk and uncertainty because they relate to events anddepend upon circumstances that may or may not occur in the future. There are a number of factors which could causeactual results or developments to differ materially from those expressed or implied by these forward‐looking statements. Anyof the assumptions underlying these forward‐looking statements could prove inaccurate or incorrect and therefore anyresults contemplated in the forward‐looking statements may not actually be achieved.

Unless otherwise required by applicable law, regulation or accounting standard, Watkin Jones does not intend to update anyprojections or other forward-looking statements contained in this presentation. Each forward-looking statement speaks onlyas at 22 May 2018 and Watkin Jones and its advisers expressly disclaim any obligations or undertaking to release anyupdate of, or revisions to, any forward-looking statements in this presentation. No statement in the presentation is intendedto be, or intended to be construed as, a profit forecast or profit estimate and no statement in the presentation should beinterpreted to mean that earnings per Watkin Jones share for the current or future financial years will necessarily match orexceed the historical earnings per Watkin Jones share. As a result, you are cautioned not to place any undue reliance onsuch forward-looking statements. Past performance of securities in Watkin Jones cannot be relied upon as a guide to thefuture performance of such securities.

DISCLAIMER

30

Mark Watkin Jones Philip Byrom Chief Executive Officer Chief Financial Officer

Watkin Jones plcLlandygai Industrial EstateBangorGwyneddLL57 4YH

www.watkinjones.com