Slide 1: Bovis Homes Group PLC Preliminary financial results 2012
Bovis Homes Group PLC Agenda Preliminary financial results 2012 • Highlights • Operations Issued 25 February 2013 • Financials www.bovishomesgroup.co.uk • Strategy and outlook Crown Park, Chester Frame 1 Profits and returns delivered at upper end of market expectations 2012 compound positive profit
Slide 2: Bovis Homes strategy remains on track; stable but challenging market conditions
Bovis Homes strategy remains on track Stable but challenging market conditions 110 Profit growth • Affordability of owning a home compared to rental is good 100 92 90+ • Rebuilding volumes 90 85 • Mortgage availability continues to constrain market demand 82 • Higher ASP 80 73 • Government initiativ
Slide 3: Active sales outlets growing strongly; increased southern bias driving growth
Active sales outlets growing strongly Increased southern bias driving growth • An average of 82 active sales outlets in 2012 (2011: 73) 2012 number of active sales outlets week 1 new outlets week 52 change avg weeks • Pricing and margins are stronger on new sales outlets 1-52 • 27 active sales outle
Slide 4: Improving private product mix; strong consented land investment in 2012
Improving private product mix of larger houses Strong consented land investment in 2012 100 3% 1% • 3,501 consented plots on 24 sites acquired during 2012, of which Retirement 4 bedroom+ houses - 2,651 plots on 18 sites were added to the land bank 23% 22% 24% 3 bedroom houses 80 - current day GDV of
Slide 5: Summary of Group results - strong profit improvements
Agenda Summary of Group results - strong profit improvements • Highlights Year ended 31 December (£m) 2011 2012 Change • Operations Revenue 364.8 425.5 +17% Gross profit 72.2 96.9 +34% • Financials Administrative expenses (35.8) (40.1) +12% • Strategy Operating profit 36.4 56.8 +56% and outlook Fina
Slide 6: Good housing gross margin progression; enhanced private housing profits
Good housing gross margin progression Enhanced private housing profits 2010 2011 2012 Private housing (£k) 2009 2010 2011 2012 Revenue 298.6 334.8 407.7 Average sales price 165.5 172.3 180.1 188.7 Average land cost (37.8) 23% (44.5) 26% (49.0) 27% (50.8) 27% Revenue 100.0% 100.0% 100.0% Average buil
Slide 7: Increase in net assets; land creditor payments
Increase in net assets Land creditor payments Year ended 31 December (£m) 2011 2012 120 • The majority of the land Land 614.3 666.2 creditors are payable Land creditors (128.8) (123.8) 100 within one year Land net of creditors 485.5 542.4 £74m Work in progress 166.5 172.7 80 Other assets 156.2 164.0
Slide 8: New land investment driving future margin
New land investment driving future margin Positive growth in full margin land 100 100 • Land acquisitions have strengthened the land bank Post downturn at cost 14% 13% 17% Pre downturn at cost 80 26% 36% Written down 54% 80 15% Land bank plots 31 Dec 31 Dec 31 Dec 31 Dec 26% Land bank plots (%) 2009
Slide 9: 2012 - another year of strong delivery of growth strategy; current trading in 2013
2012 - another year of strong delivery of growth strategy Current trading in 2013 Commitment made at start of 2012 • 350 private reservations in the first eight weeks of 2013 (2012: 320), an increase of 9% 2012 commitment 2012 result - Sales rates to date of 0.49 net reservations per site (2012: 0.4
Slide 10: Appendices; Disclaimer - important notice
Disclaimer - important notice Bovis Homes Group PLC Certain statements in this presentation are forward looking statements Preliminary financial results 2012 Forward looking statements involve evaluating a number of risks, uncertainties or assumptions that could cause actual results to differ materi
Slide 11: Other liabilities; ASPs on 2012 legal completions
Other liabilities ASPs on 2012 legal completions As at 31 December (£m) 2011 2012 £ 2011 2012 Creditors 124.7 132.2 Apartments 112,900 101,200 Retirement benefits 2.4 3.2 2 bedroom houses 131,700 134,200 Provisions 3.3 3.7 3 bedroom houses 183,900 190,900 Other liabilities 130.4 139.1 4 bedroom plus