BUILDING AN EVEN STRONGER BUSINESS

Half Year Results

Presentation

17 August 2022

Robust performance

Industry-leading ROCE and margins

  • Good first half performance
    • 6,652 completions (2021: 7,406)
  • Robust demand
    • Average selling price up 4%
    • Average private sales rate up c.1%
  • Housing gross margin improved by 10 bps year on year (31.0% v 30.9%)
  • Profit before tax of £439.7m (2021: £480.1m)
  • Underlying return on average capital employed of 30.9% (Dec 2021: 35.8%)
  • Returned £750m to shareholders by July 2022

Building an even stronger business

Strong platform for success

  • On track for c.10% increase in active outlets across the year; 60 opened in H1; c.70 forecast to open in H2
  • 8,829 plots brought into the business across 37 locations with industry-leading embedded margins
  • Enhancing vertical integration
  • Strong customer service and build quality performance
  • FibreNest 94% day one connection rate; >25,000 customers
  • Investing in our people: 90% of our site teams with relevant NVQs

Building an even stronger business

Progress on five priorities

  • Build quality: our ambition has grown from "build right, first time, every time" to becoming trusted to deliver 5 star homes consistently
    • NHBC RIs improved 25% in last 18 months
  • Reinforcing trust: customers at the heart of our business, trusted to deliver the best value homes
    • 5 star builder for first time
  • Disciplined growth: high quality land investment, stringent appraisal process
    • Replacement rate of 140% since January 2021
  • Industry-leadingfinancial performance: sustain our industry-leading margins and returns and drive healthy profit and cash
    • Gross margin improved
  • Sustainable communities: net zero carbon economy transition and widening opportunity
    • Progress on carbon reduction; Top 100 Apprentice Employer

Exacting standards

Driving improvement

  • "Build right, first time, every time" ethos with new standards more stringent than industry norms
    • RIs improved 25% over last 18 months
    • HBF build quality score up 4% over last two survey years
  • Extensive briefing, guidance and training
    • Good Practice Guide
    • Persimmon Way webinars
    • Around 90% on-site teams have appropriate NVQ
  • Independent check and audit
    • Compliance reported by the IQC team
    • CQRs and Persimmon Way external audit
  • New contractor specifications assess quality and service alongside cost-efficiency

Benefits

  • Value premium from quality consistency
  • Reduced remediation costs

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Persimmon plc published this content on 17 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 August 2022 06:33:04 UTC.