Crest Nicholson Holdings Plc · LSE:CRST
Crest Nicholson — Investor Day (March 2025)
46 slides from Crest Nicholson's investor day presentation, Mar 20, 2025
Slide 1: Capital Markets Day 20 March 2025
3 ki : WINDSOR GATE I } j ’ WINDSOR Crest Nicholson Holdings plc CAPITAL MARKETS DAY 20 March 2025 CREST NICHOLSON
Slide 2: Cautionary Statement Regarding Forward-Looking Statements
Crest Nicholson Capital Markets Day 2025 2 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This presentation may include statements that are, or may be deemed to be, ‘forward-looking statements’. These forward-looking statements can be identified by the use of forward-looking terminology,
Slide 3: Content
Crest Nicholson Capital Markets Day 2025 CONTENT Where is Crest Nicholson today? What are the future opportunities? How does Crest Nicholson get there? What is the ambition for Crest Nicholson?
Slide 4: Where is Crest Nicholson today?
FULLERS GROVE EAST CHALELOW, OXFORDSHIRE CREST NICHOLSON
Slide 5: Looking to the Future — Key Messages
Crest Nicholson Capital Markets Day 2025 5 LOOKING TO THE FUTURE — KEY MESSAGES Positive . Delivering Stron Focus on mid Clear plan to A structural foundations remium execute sustainable tailwinds P returns XavVv ©) alll , x ) 7X x ©) Ongoing undersupply Well-regarded brand Future focus on Deliverin
Slide 6: The Market Context Has Fundamentally Changed
Crest Nicholson Capital Markets Day 2025 THE MARKET CONTEXT HAS FUNDAMENTALLY CHANGED 2013 2020 2025 Strong secular tailwinds across Macro instability and challenging Supply side reforms can further U.K. housebuilding headwinds for U.K. housebuilding stimulate market v Low mortgage rates and — Prolo
Slide 7: Positive Structural Tailwinds Going Forwards
Crest Nicholson Capital Markets Day 2025 7 POSITIVE STRUCTURAL TAILWINDS GOING FORWARDS Structural undersupply of new homes Government commitment to housebuilding EPC completions in England (2013-24) “We'll get shovels in the ground, cranes in the sky and < Thousands of completions build the next ge
Slide 8: Existing 'Multi-Channel' Strategy Is Challenged
Crest Nicholson Capital Markets Day 2025 8 EXISTING ‘MULTI-CHANNEL’ STRATEGY IS CHALLENGED Crest Nicholson’s ‘multi-channel’ growth strategy — ambition to deliver 5,000 units, underpinned by: @ Buying more and larger sites | @ Driving down build cost © Selling across multiple segments External chall
Slide 9: PRS Creates Challenges for Crest Nicholson
Crest Nicholson Capital Markets Day 2025 PRS CREATES CHALLENGES FOR CREST NICHOLSON Illustrative example of the challenges of PRS for Crest Nicholson House price — — Fixed price PRS contract — Build Cost Margin on PRS contract Discount to OMV eq — PRS contract agreed, price fixed, site start 2019 20
Slide 10: Future Regulations Will Create Further Pressures
Crest Nicholson Capital Markets Day 2025 10 FUTURE REGULATIONS WILL CREATE FURTHER PRESSURES ‘Multi-channel’ Future site profile Future site profile with strategy profile with NO ACTION REVISED STRATEGY Multi-channel strategy delivered on Continued multi-channel strategy with Action to minimise PRS
Slide 11: Existing Strategy and Execution Has Led to Margin Leakage
Crest Nicholson Capital Markets Day 2025 "1 EXISTING STRATEGY AND EXECUTION HAS LED TO MARGIN LEAKAGE Margin leakage on DELIVERED Crest Nicholson land Gross margin % * Margin leakage primarily impacts land during the construction and sales phase Acquisition Site profile | Discounting | Bulkrelease B
Slide 12: Leveraging Our Core Assets to Deliver the Strategy
Crest Nicholson Capital Markets Day 2025 12 LEVERAGING OUR CORE ASSETS TO DELIVER THE STRATEGY STRATEGY Focus on mid premium . Experienced Well-recognised Strong CORE ASSETS management and brand land bank motivated team DELIVERY Clear plan to execute « « « OUTPUTS Sustainable returns « «ie < «
Slide 13: What are the future opportunities?
NOBEL-PARK DIDCOT: CREST NICHOLSON
Slide 14: There Are Key Market Segments in Housebuilding
Crest Nicholson Capital Markets Day 2025 14 THERE ARE 5 KEY MARKET SEGMENTS IN HOUSEBUILDING AFFORDABLE | prs | ENTRY LEVEL MID PREMIUM PREMIUM Lower price Properties sold Smaller and lower Higher value High value properties delivered directly to price properties, properties targeted properties targ
Slide 15: Focus on Crest Nicholson's Mid Premium Strategy
Crest Nicholson Capital Markets Day 2025 15 FOCUS ON CREST NICHOLSON’S MID PREMIUM STRATEGY * Affluent purchasers with above average incomes TARGET * Downsizers / upsizers CUSTOMER * Second / third time movers with lower LTVs * Product designed and priced to capture incremental value PRODUCT * High
Slide 16: Mid Premium Segment Is a Scaled Opportunity
Crest Nicholson Capital Markets Day 2025 16 MID PREMIUM SEGMENT IS A SCALED OPPORTUNITY Total number of housing transactions OVER £300k (2023) Thousands of transactions ° There are >200k transactions at mid premium price points (both 100 ; , new and existing build) in Crest Il Crest Nicholson focus
Slide 17: Mid Premium Customers Value Location & Quality
Crest Nicholson Capital Markets Day 2025 7 MID PREMIUM CUSTOMERS VALUE LOCATION & QUALITY Importance of house buying criteria for mid premium customers (Crest Nicholson 2024 survey) Reported score out of 7 Location Location valued above all else Crest Nicholson’s high-quality land bank is being opti
Slide 18: This Segment Is More Resilient to Macro Cycles
Crest Nicholson Capital Markets Day 2025 18 THIS SEGMENT IS MORE RESILIENT TO MACRO CYCLES House completions (2018-2023) Index (2018=1) 14 5 . a Covid and supply Mini budget and chain shocks interest rates 1.2 4 ——® Top 3 Mid premium players* 1.0 Rest of England and Scotland os 4 Top 4 Largest . Hou
Slide 19: Mid Premium Segment Is Fragmented
Crest Nicholson Capital Markets Day 2025 19 MID PREMIUM SEGMENT IS FRAGMENTED All completions by mid premium builders (2023) >20k completions * There are over 20k new build mid premium transactions per year Multiple players with <1k * 25% of mid premium units are delivered by a long tail of completi
Slide 20: Crest Nicholson's Land Is in High Income Areas
Crest Nicholson Capital Markets Day 2025 20 CREST NICHOLSON’S LAND IS IN HIGH INCOME AREAS... Difference in household income — Crest Nicholson SHORT-TERM land locations vs. regional average income Percent difference Chart explanation: In Yorkshire & * The specific locations in which Crest Nicholson
Slide 21: Strong Estimated Embedded Margins
Crest Nicholson Capital Markets Day 2025 21 .. HAS STRONG ESTIMATED EMBEDDED MARGINS... Characteristics of Crest Nicholson’s short term land bank By estimated embedded margin* % of units 100 80 25%+ 60 40 20 Embedded Margin Note: * At the point of purchase * High-quality short-term land bank with 14
Slide 22: Short/Long-Term Land Is Well Located for Mid Premium
Crest Nicholson Capital Markets Day 2025 SHORT/LONG-TERM LAND IS WELL LOCATED FOR MID PREMIUM Crest short-term / strategic land Crest short / long-term (FY2024) land sites and household income Thousands of plots Household Income 40 : . “e . @ = Short term site 32k - a Site) ll = Strategic site - e =
Slide 23: 5,000 • 4,000 3,000 • 2,000 1,000
5,000 • 4,000 3,000 • 2,000 1,000 0
Slide 24: Mid Premium Segment Is Attractive for Crest Nicholson
Crest Nicholson Capital Markets Day 2025 24 MID PREMIUM SEGMENT IS ATTRACTIVE FOR CREST NICHOLSON a | Large scale in Crest Nicholson’s focus regions (| More resilient to macro economic cycles Attractive customer base of discerning and affluent households and families | Fragmented market with few lar
Slide 25: How does Crest Nicholson get there?
oe CREST WESTWOOD PARK “a NICHOLSON COVENTRY.
Slide 26: Four Key Strategic Priorities to Deliver
Crest Nicholson Capital Markets Day 2025 26 FOUR KEY STRATEGIC PRIORITIES TO DELIVER BUILDING UNDERPINNED OPTIMISING VALUE OF THE LAND PORTFOLIO EXCEPTIONAL BY OPERATIONAL QUALITY HOMES AND COMMERCIAL EFFICIENTLY EXCELLENCE Delivering strong value growth alongside disciplined volume growth
Slide 27: A Disciplined Refresh of Designs & Specifications
Crest Nicholson Capital Markets Day 2025 A DISCIPLINED REFRESH OF DESIGNS & SPECIFICATIONS [ama QUALITY HOMES EFFICIENTLY Actions to drive design improvements Actions to drive specification improvements 27 * Extensive research and surveys in progress to * Extensive research and surveys in progress t
Slide 28: Strengthening Build Quality Across Sites
Crest Nicholson Capital Markets Day 2025 28 STRENGTHENING BUILD QUALITY ACROSS SITES ECerT ONAL QUALITY HOMES EFFICIENTLY Enhanced standardisation of build process and build staff training Refocused internal quality team Strengthened external quality reviews Strengthened quality and customer service
Slide 29: Delivering on Build Has Strengthened Outcomes
Crest Nicholson Capital Markets Day 2025 29 DELIVERING ON BUILD HAS STRENGTHENED OUTCOMES CASE STUDY BLYTHE VALLEY, SOLIHULL ONSITE ACTIONS OUTCOMES Pre Action Post Action . oe 2023 2024 ¢ Ensured compliance with internal and external 83.3% <=> 100.0% quality standards 718% ——> 94.4% . . . 66.7% ———
Slide 30: Placing the Customer at the Heart of the Build
Crest Nicholson Capital Markets Day 2025 30 PLACING THE CUSTOMER AT THE HEART OF THE BUILD HOME! + Instilling a ‘Build Right First Time’ Culture Reportable items* (2024/25) . . Rls per inspection ° Focus on a structured review process to monitor Il Pre Action (April 24 — Oct 24) the Reportable Items
Slide 31: Placing Sustainability at the Forefront of the Business
Crest Nicholson Capital Markets Day 2025 31 PLACING SUSTAINABILITY AT THE FOREFRONT OF THE BUSINESS CASE STUDY WINDSOR GATE Reducing + Zero carbon ready development Net Zero by 2045 carbon + All homes fitted with EV charge points GUESCISE - Solar powered streetlights and bollards Committed to biodiv
Slide 32: Refreshing Marketing and Customer Journey
Crest Nicholson Capital Markets Day 2025 32 REFRESHING MARKETING AND CUSTOMER JOURNEY Rae CUSTOMER EXPERIENCE Key initiatives to upgrade and optimise Crest Nicholson’s customer journey A: * Market positioning Q) * “Look and feel” fey ¢ Pricing structure * Processes * Lead generation + Sales messagin
Slide 33: Training Sales Team to Maximise Value and Underpin Sales Rates
Crest Nicholson Capital Markets Day 2025 33 TRAINING SALES TEAM TO MAXIMISE VALUE AND UNDERPINED SALES RATES Net Achieved vs. Book Value Sales Rate (FY2025YTD) (FY2025YTD) % difference Rate 20 og * Renewed focus on articulating . the premium nature of Crest Nicholson’s proposition to 1s 06 maximise
Slide 34: A Targeted Programme for Commercial Controls
Crest Nicholson Capital Markets Day 2025 34 A TARGETED PROGRAMME aE AND COMMERCIAL FOR COMMERCIAL CONTROLS... EXCELLENCE 4 | Centralising procurement strategy and improving supply chain management 2 | Improving WIP tracking and forecasting tools 3 | Upgrading payment controls 4 | Enhancing budgeting
Slide 35: And Operational Efficiency
Crest Nicholson Capital Markets Day 2025 35 ..AND OPERATIONAL EFFICIENCY UNDERPINNED BY OPERATIONAI AND COMMERCIAL EXCELLENCE 4 | Merging of Yorkshire into Midlands until it has established sufficient scale 2 | Process streamlining and better use of IT systems 3 | Optimising site management and over
Slide 36: A Clear Strategy on Land Buying Principles
Crest Nicholson Capital Markets Day 2025 36 A CLEAR STRATEGY ON LAND BUYING PRINCIPLES GEG LAND PORTFOLIO Strengthening Crest Nicholson’s internal _ . .to optimise land buying process and controls... @ Development and communication of new land principles to ensure alignment with strategic priorities
Slide 37: A Short Term Land Bank Aligned to the Strategy
Crest Nicholson Capital Markets Day 2025 37 A SHORT TERM LAND BANK ALIGNED TO THE STRATEGY [Ee Crest’s short term land bank (2024) Further from HQ is harder to deliver Drive time from Division HQ (mins) 100 4 ©) 80 | 60 | 40 : More than 90+% of sites @ are well aligned with e : Crest’s strategy R C)
Slide 38: Accelerating Strategic Land Options Will Create Opportunities
Crest Nicholson Capital Markets Day 2025 38 ACCELERATING STRATEGIC LAND ONS WILL CREATE OPPORTUNITIES Moreattais Crest Nicholson has a high-quality strategic ..and is actively managing it to ensure its land bank to support its growth ambitions... ongoing quality * Active management of portfolio to e
Slide 39: A Comprehensive Programme to Embed Change
Crest Nicholson Capital Markets Day 2025 39 A COMPREHENSIVE PROGRAMME TO EMBED CHANGE Significant transformation programme across the business to deliver the new strategy Critical areas identified to drive improvement and change which will underpin the delivery of our vision for the group and our fi
Slide 40: What is the ambition for Crest Nicholson?
Slide 41: Significant Uplift in Performance Forecast
Crest Nicholson Capital Markets Day 2025 SIGNIFICANT UPLIFT IN PERFORMANCE FORECAST FY24 ——~ Progression ———> FY29 c.1,900 vee ver S yeas 2,300+ vam «ONE ense og | noce | ea
Slide 42: Tangible Drivers of Underlying Margin Improvement
Crest Nicholson Capital Markets Day 2025 TANGIBLE DRIVERS OF UNDERLYING MARGIN IMPROVEMENT 42 Crest Nicholson drivers of gross margin improvement highlighting further opportunities (FY2024-29F) Margin percent 25 _—— 20% 14% 10 5 0 FY24 Eliminate Reduce Sales price Start on Operational FY29F sub-10%
Slide 43: Inventory Optimisation Programme
Crest Nicholson Capital Markets Day 2025 43 INVENTORY OPTIMISATION PROGRAMME FY2024 * Reduce short-term land bank FY2029 inventory of from 7 years forward cover to inventory of 4-5 years forward cover £1 1 bn » » WIP reduction programme » £900m Ke) £950m * Completed homes and Part Exchange stock red
Slide 44: Balance Sheet Strength and Capital Allocation
Crest Nicholson Capital Markets Day 2025 44 BALANCE SHEET STRENGTH AND CAPITAL ALLOCATION Existing facilities of £335m with a £250m RCF and £85m private placement Existing facilities provide ample liquidity to meet obligations and reinvest in land bank Medium-term goal to maintain facilities of £250
Slide 45: A Compelling Investment Opportunity
Crest Nicholson Capital Markets Day 2025 45 A COMPELLING INVESTMENT OPPORTUNITY Positive . Delivering Stron Focus on mid Clear plan to A structural foundations remium execute sustainable tailwinds P returns XavVv ©) alll , x ) 7X x ©) Ongoing undersupply Well-regarded brand Future focus on Deliverin
Slide 46: Windsor Gate
WINDSOR GATE WINDSOR CREST NICHOLSON