Persimmon Plc · LSE:PSN
Persimmon — H1 2024 Earnings Presentation
32 slides from Persimmon's earnings presentation, 2024
Slide 1: Well positioned for improving market conditions
WELL POSITIONED FOR IMPROVING MARKET CONDITIONS
Slide 2: Strong first half
(@®@ Persimmon Strong first half eae Tae Accelerating from a strengthened position Operating margin’ Net cash 34.7p Completions Blended ASP Forward order book NHBC Reportable Items at 30 June 1. Stated before net exceptional charge (H1 2024: £2.0m, H1 2023: £nil) and goodwill impairment (H1 2024: £0
Slide 3: Andrew Duxbury
Andrew Duxbury (@ Persimmon Together, we make your home
Slide 4: Improved trading in the period
Improved trading in the period
Slide 5: Delivering homes that are affordable for our customers
Delivering homes that are affordable for our customers ▪ ▪ ▪ - - ▪
Slide 6: Underlying operating profit bridge
Underlying operating profit bridge
Slide 7: Continued to invest in high-quality land throughout the past 12 months
Continued to invest in high-quality land throughout the past 12 months ▪ ▪
Slide 8: Continued focus on cash deployment
Continued focus on cash deployment
Slide 9: Maintaining balance sheet strength
Maintaining balance sheet strength ▪ ▪ - ▪ ▪
Slide 10: Clear priorities for capital allocation
Clear priorities for capital allocation
Slide 11: Confidence in 2024 delivery
Confidence in 2024 delivery ▪ ▪
Slide 12: Dean Finch
Dean Finch Group Chief Executive Well positioned for improving market conditions (@ Persimmon Together, we make your home
Slide 13: Building our capabilities
Building our capabilities ▪ ▪ - ▪ ▪ ▪ ▪ - ▪
Slide 14: Investing in product, sales and marketing
Investing in product, sales and marketing ▪ - ▪ - - - - ▪ - ▪ - ▪ - - ▪
Slide 15: Investment in land and planning success
Investment in land and planning success ▪ - - - ▪ - ▪ - ▪ ▪ - - - ▪
Slide 16: Improved build efficiency and continued innovation
Improved build efficiency and continued innovation ▪ - ▪ - - ▪ - ▪ ▪ -
Slide 17: Strong start to H2
Strong start to H2 ▪ ▪ - - - ▪ ▪ - - - ▪
Slide 18: Well positioned for future growth
Well positioned for future growth ▪ ▪ - - - ▪ - - - - -
Slide 19: Persimmon summary and outlook
(@ Persimmon Together, we make your home Maintained gross margin in land bank; resilient and growing ASPs; sequential improvements in sales rate Expect completions to be at the upper end of previous guidance Positioning us for a return to profit growth this year hy 5 Margins in line with last year a
Slide 20: Appendices
Appendices
Slide 21: Appendices
APPENDICES 1. Quarterly trading performance 2. Underlying trading performance 3. Underlying trading per plot 4. Trading performance - Brand 5. Analysis of new home sales 6. Land holdings as at 30 June 2024 7. Balance sheet - key items 8. Cash flow 9. Monthly mortgage approvals 10. Net zero pathway 2
Slide 22: Quarterly trading performance
Quarterly trading performance
Slide 23: Underlying trading performance
Underlying trading performance
Slide 24: Underlying trading per plot
APPENDIX 3 Underlying trading per plot besa (@®@ Persimmon New housing per plot H1 2024 H1 2023 Change H1 2024 H1 2023 Change Revenue £263,288 £256,445 +2.7% 100.0% 100.0% Land costs £(31,926) £(28,837) + 10.7% (12.1)% (11.2)% (0.9)% Build and other direct costs £(178,411) £(172,542) + 3.4% (67.8)%
Slide 25: Trading performance - Brand
APPENDIX 4 : Trading performance - Brand @ Persimmon New housing H1 2024 H12023 Change New housing H12024 H12023 Change No. No. £m £m Units Persimmon 3,372 2,993 + 13% Gross Profit! Persimmon 179.4 176.3 + 2% Charles Church 370 288 + 28% Charles Church 35.5 Si) +11% Housing Association 703 968 (27)%
Slide 26: Analysis of new home sales
APPENDIX 5 Analysis of new home sales LL (@ Persimmo By Price Band (Private) By House Type (All) 39% Detached Ske ad fo 89%) 2 . 32% £250,000 to £299,999 are Semidetached gon, % 2 Townhouse 5% EAHA SESE | ae ° 24% 1 A 21% £150,000 to £199,999 partment ° | 6% 3% @ Persimmon 2023 1% © Persimmon’ Less
Slide 27: Land holdings at 30 June 2024
APPENDIX 6 Land holdings at 30 June 2024 (@ Persimmo Together, we make your home Number Number Number Anticipated Cost to ant. Cost to ant. of plots of plots of plots average Average Revenue Revenue Dec 2023 Jun 2024 change revenue plot cost Jun 2024 Dec 2023 Plots owned with detailed planning 38,44
Slide 28: Balance sheet - key items
APPENDIX 7 Balance sheet - key items Jun 2024 Jun 2023 Change Dec 2023 Work in progress £1,511.8m £1,476.9m + £34.9m £1,431.3m Land £2,103.6m £2,090.5m + £13.1m £2,103.5m Land creditors £317.2m £355.9m £(38.7)m £372.0m Part exchange stock £122.4m £85.8m + £36.6m £114.6m Shared equity loans £30.7m £3
Slide 29: Cash flow
APPENDIX 8 Cash flow £m H12024 H12023 Operating cash generated (before working capital movements) 164.7 155.3 Movement in working capital: Decrease in gross land 0.5 27 Decrease in land creditors (56.3) (119.9) Net land movement (55.8) (117.2) Increase in WIP, part exchange and showhouses (94.1) (24
Slide 30: Monthly mortgage approvals
APPENDIX 9 Monthly mortgage approvals Remain at low levels (@®@ Persimmon Together, we make your home ‘000s 120 Dec 2020: 103,400 100 ' Dec 2015: Dec 2021: 80 Pec orn 71,300 Dec 2016: Dec 2018: 71,700 , 68,400 64,400 Jun 2024: 60 60,200 40 20 Average monthly approvals since beginning of 2013: ¢.65,0
Slide 31: Net zero pathway
APPENDIX 10 Net zero pathway Technology roadmap for the delivery of the Future Homes Standard 31 Half Year Results 2024
Slide 32: Disclaimer
Disclaimer @ Persimmon Important Notice Some of the information in this document may contain projections or other forward-looking statements regarding future events or the future financial performance of Persimmon Plc and its subsidiaries (the Group). You can identify forward-looking statements by t