Slide 1: Full year results 2021
FY results 2021 VG Full year results 2021 Greg Fitzgerald Earl Sibley Graham Prothero Chief Executive Officer Chief Financial Officer Chief Operating Officer 2 March 2022 1
Slide 2: Agenda
Agenda • FY performance • Group strategy • Financial review • Operational update • Outlook Bovis Homes, The Steadings, Essington • Q&A Linden Homes, Boorley Park, Winchester Vistry Partnerships, Brunel Street Works, London 2
Slide 3: Excellent FY performance
FY results 2021 VG Excellent FY performance • Excellent progress across all areas of the business • Private sales rate increased by 43% to 0.76 for FY 21 (FY20: 0.53), reflecting sustainable sales rate driven by land buying strategy • Housebuilding completions increased to 6,551 (2020: 4,652) units
Slide 4: Progress across all areas 2021
FY results VG Progress across all areas 2021 HBF 8-week score 93.6% (Benchmark: 93.1%) Large Housebuilder of the Year We raised £215k 4
Slide 5: One Vistry - uniquely positioned for sector leading returns
FY results VG One Vistry - uniquely positioned for sector leading returns 2021 Maximising strengths and opportunities from our combination of Housebuilding and Partnerships assets • Strong market position and capability across all housing tenures • Leading provider of high demand, high growth afford
Slide 6: 'Making Vistry' - Kenilworth
FY results VG ‘Making Vistry’ - Kenilworth 2021 Key stats • Development of 620 new homes in a 50:50 JV with Milverton Total units 620 Homes (housing company of Warwick District Council (WDC)) Adjusted gross margin c. 24% • Rare opportunity to acquire a site of such housing density in an ROCE Infinit
Slide 7: 25 x 25 x 25 Project Pace
FY results 2021 VG Vistry Housebuilding Vistry Partnerships 25 x 25 x 25 Project Pace FY 2025 targets Medium term targets Completions c.8,000 units(1) Revenues c.£1.6bn Gross margin 25% Operating margin 12%+ ROCE 25% ROCE 40%+ (1) Including 100% of JV completions 7
Slide 8: Strong outlook
FY results VG Strong outlook 2021 • Excellent start to the year with private sales rate up 20% to 0.79 in YTD (2021: 0.66) and 0.92 in the last five weeks • Continue to see price increases • Sites operating well with clear visibility on materials supply and good on-site labour, albeit with some incr
Slide 9: Financial review
FY results 2021 VG Financial review Earl Sibley Chief Financial Officer 9
Slide 10: Summary of Group results
FY results VG Summary of Group results 2021 Adjusted basis unless otherwise stated (£m)(1) FY 20 FY 21 Change Revenue 2,040.1 2,693.6 +32% Gross profit 318.8 543.0 +70% Operating profit 171.0 368.4 +115% Operating margin 8.4% 13.7% +5.3ppts Profit before tax 143.9 346.0 +140% Reported profit before
Slide 11: Housebuilding financials
FY results VG Housebuilding financials 2021 Adjusted basis unless otherwise stated (£m) FY 20 FY 21 Change Total completions(1) 4,652 6,551 +41% Revenue 1,311.8 1,829.3 +40% Gross profit 231.2 407.1 +76% Gross margin 17.6% 22.3% +4.7ppts Operating profit 139.4 305.4 +119% Operating margin 10.6% 16.7
Slide 12: Housebuilding metrics
FY results VG Housebuilding metrics 2021 Private completions Affordable completions Average active sites 4,891 inc JVs of 996 1,660 inc JVs of 291 143 FY 20: 3,668 inc JVs of 658 FY 20: 984 inc JVs of 162 FY 20: 164 Private ASP Affordable ASP Total ASP £356k inc JVs at £364k £158k inc JVs at £168k £
Slide 13: Partnerships financials
FY results VG Partnerships financials 2021 Adjusted basis unless otherwise stated (£m) FY 20 FY 21 Change Total mixed tenure completions(1) 1,479 2,088 +41% Revenue 728.3 864.3 +19% Operating profit 48.6 79.7 +64% Operating margin 6.7% 9.2% +2.5ppts TNAV(2) (30) 79 n/a • Mixed tenure revenue up 66%
Slide 14: Partnerships metrics
FY results VG Partnerships metrics 2021 Mixed tenure completions Mixed tenure adjusted revenue Mixed tenure ASP 2,088 inc JVs of 904 £395m inc JVs at £127m £237k inc JVs at £291k FY 20: 1,479 inc JVs of 608 FY 20: £238m inc JVs at £100m FY 20: £204k inc JVs at £343k Partner delivery equivalent units
Slide 15: Procurement
FY results VG Procurement 2021 • Significant step up in demand across the industry led to pressure on the materials supply chain in 2021 • c. 90% materials procured centrally, complemented by local buying teams agility • Operating well to address any future supply challenges • Re-negotiation of c. 5
Slide 16: Land activity in year to date
FY results VG Land activity in year to date 2021 Land acquired Sites Plots Housebuilding 28 6,432 Partnerships 11 2,266 Conditionally contracted Housebuilding 10 1,235 Partnerships 12 1,865 Strategic delivery Options contracted 12 7,721 Transferred to owned(1) 9 1,396 • Land market more competitive
Slide 17: Land bank
FY results VG Land bank 2021 Housebuilding Partnerships 31 December 2020 2021 2020 2021 Owned 20,455 20,090 4,490 5,299 Controlled 3,086 2,253 598 2,607 Total owned and controlled 23,541 22,343 5,088 7,906 Joint venture owned 8,453 8,671 2,868 3,582 Joint venture controlled - - 268 268 Total joint v
Slide 18: Strategic land
FY results VG Strategic land 2021 As at 31 Dec 2021 Total sites Total plots • Further strengthened in-house strategic land capability 0 - 150 plots 34 2,734 and internal succession 150 - 300 plots 37 7,994 • Delivering for both Housebuilding and Partnerships 300 - 500 plots 22 7,927 - Unique multipl
Slide 19: Summary balance sheet
FY results VG Summary balance sheet 2021 (£m) 31 Dec 20 31 Dec 21 Goodwill 547.5 547.5 Intangible assets 143.6 127.8 Goodwill and Intangibles 691.1 675.3 Investment in joint ventures 145.2 175.1 Amounts due from joint ventures 323.6 308.2 WIP and Stock 759.0 821.7 Land 1,077.6 1,140.5 Land creditors
Slide 20: Cashflow waterfall
FY results VG Cashflow waterfall 2021 £2,377.0m (1,757.4m) 1 Opening net cash Opening Ne (£368.6m) 2 Development receipts Developmen 3 Construction and overheads expenditure Construcon 4 Land expenditure Land expend Cashflows fr 5 Cashflows from JVs Other Tradin £32.2m (£88.7m) 6 Other trading inflo
Slide 21: Gearing and capital allocation
FY results VG Gearing and capital allocation 2021 • Targeting average month-end net debt of c. £100m for FY 22 Leverage • With investment in land and WIP to support growth strategy, forecasting modest cash outflow for FY 22 • No capital constraints to invest in land delivering min. 25% ROCE for Hous
Slide 22: Operational update
FY results 2021 VG Operational update Graham Prothero Chief Operating Officer 22
Slide 23: Vistry Housebuilding – in great shape to deliver increased returns
FY results VG Vistry Housebuilding – in great shape to deliver increased returns 2021 FY 21 HY 21 Target • Sustained step change in sales rate Sales rate 0.69 0.69 - • 5-star HBF Customer Satisfaction Rating across all Customer satisfaction 13 Housebuilding units 5-star (>90%) - 8 weeks 92.2% 92.6%
Slide 24: Vistry Partnerships - delivering strong growth in revenues and margin
FY results VG Vistry Partnerships - delivering strong growth 2021 in revenues and margin Operating margin(1) • Recently restructured regional operating areas with new RMD promoted in North East, existing MD promoted DMD • New business units now operating in Thames Valley, 12 South East and North Mid
Slide 25: Fire safety
FY results VG Fire safety 2021 • Fully agree that the costs of works should not be borne Fire safety provision by leaseholders Additional provision taken in period £5.7m • We are supportive of the Government’s ambition to deliver a lasting industry solution Provision as at 31 Dec 2021 £25.2m • This
Slide 26: Fire safety continued
FY results VG Fire safety continued 2021 • From 1 April 2022, Vistry will be paying 4% Residential Property Developer Tax • Supportive of the HBF response to Department for Levelling Up, Housing and Communities - Seeking support to resolve key challenges including finalising and implementing - in a
Slide 27: Our sustainability strategy
FY results VG Our sustainability strategy 2021 We have a clear set of strategic priorities which underpin how we operate across all aspects of our business that support our progress towards our medium-term targets. Our commitment to sustainability is embedded across all areas Our people Our operatio
Slide 28: Our people
FY results 2021 VG Our people • Appointment of Group People Director • Vistry Leadership development • Investment in the - driving our People strategy framework development and training • Diversity & Inclusion Committee • Vistry Mentoring programme of our people to ensure a established to work along
Slide 29: Our operations
FY results 2021 VG Our operations • 2,560 internal SHE inspections carried • Sustainability data platform out in 2021 – 94% compliance score established to drive improvement • Ensuring the health and (3% up on prior year) with waste and carbon data safety of our people and • Improvement in Accident
Slide 30: Our Homes and Communities
FY results 2021 VG Our Homes and Communities • Committed to delivering a year-on • Biodiversity forum created – year increase in affordable homes formalising pathway to achieving beyond our planning compliance 10% bio-diversity net gain across • Developing sustainable new requirements the Group home
Slide 31: Our customers
FY results 2021 VG Our customers • Delivering our customers • 5-star HBF Customer Satisfaction • Futurium, our immersive 3D quality new homes and a Rating digital technology giving customers an enhanced virtual high level of customer service • New standardised Vistry Customer site visit, conti
Slide 32: Vistry 2025
FY results VG Vistry 2025 2021 • Vistry 2025 is ensuring we comply with upcoming regulatory Net Zero Carbon Home (-100% CO2) from 2030 changes, developing new house type ranges, and future proofing our homes • Key focus on our customers and bringing them with us on 3 this journey 2 1 - Two waves of
Slide 33: Outlook
FY results 2021 VG Outlook Greg Fitzgerald Chief Executive Officer 33
Slide 34: Market review
FY results VG Market review 2021 • Strong consumer demand continues across all areas - Prospect levels whilst below last year remain strong - Pricing continues to move forward • Overall expect to see c. 6% build cost inflation in FY22 - Materials supply chain pressures somewhat eased - Increasing la
Slide 35: Strong outlook
FY results VG Strong outlook 2021 • Excellent start to the year with private sales rate up 20% to 0.79 in YTD (2021: 0.66) and 0.92 in the last five weeks • Continue to see price increases • Sites operating well with clear visibility on materials supply and good on-site labour, albeit with some incr
Slide 36: Q&A
Q&A FY results 2021 Vistry Group VG
Slide 37: Disclaimer - important notice
FY results VG Disclaimer - important notice 2021 • Certain statements in this presentation are forward looking statements. • Forward looking statements involve evaluating a number of risks and uncertainties, many of which are beyond the Group’s control, that could cause actual results to differ mate
Slide 38: Appendices
FY results 2021 VG Appendices 38
Slide 39: Forward sales
FY results VG Forward sales 2021 Forward sales (£m) 1 Mar 2021 25 Feb 2022 Housebuilding - Private 620 692 - Private JVs (100%) 215 295 - Affordable 434 421 - Affordable JVs (100%) 135 126 Total Housebuilding 1,404 1,534 Partnerships - Mixed tenure 151 335 - Mixed tenure JVs (100%) 192 286 Total mix
Slide 40: Bridge between adjusted and reported results by Segment and Group
FY results Bridge between adjusted and reported results by Segment and Group 2021 VG Housebuilding Partnerships Group items Total Period ended 31 December 2021 £m £m £m £m Revenue 1,621.7 737.3 - 2,359.0 Share of joint venture revenue 207.6 127.0 - 334.6 Adjusted revenue 1,829.3 864.3 - 2,693.6 Gros
Slide 41: Net finance costs
FY results VG Net finance costs 2021 (£m) FY 20 FY 21 Net bank interest and commitment fees (18.5) (8.5) Issue cost amortisation (1.8) (4.4) Imputed interest on land (4.6) (5.1) Pension financing 0.3 0.1 IFRS 16 interest on leases (1.2) (0.9) Interest receivable on JV loans 17.9 23.0 Total (7.9) 4.1
Slide 42: Work in progress and other assets
FY results VG Work in progress and other assets 2021 (£m) 31 Dec 2020 31 Dec 2021 Stock (including show homes) 44.2 57.5 Housing WIP infrastructure WIP 689.1 748.6 Part exchange 25.6 15.6 Total work in progress 759.0 821.7 Debtors - Help to Buy 7.3 3.0 - HA 75.2 70.8 - Contracting assets 66.2 70.0 -
Slide 43: Other liabilities
FY results VG Other liabilities 2021 (£m) 31 Dec 2020 31 Dec 2021 Creditors 517.5 625.7 Contract liabilities 96.4 52.5 Deferred income 87.5 81.0 Other tax and social security 9.2 4.6 Lease liabilities 42.2 33.1 Corporation tax liability - 0.1 Deferred tax liability 17.6 38.4 Provisions 40.4 39.4 Oth
Slide 44: Land creditor payment profile
FY results VG Land creditor payment profile 2021 At 31 Dec 2021 £422.6m 400 At 31 Dec 2020 £329.5m 300 £m 200 £205.5m £182.4m £149.5m 100 £25.3m £18.9m £98.5m £17.1m £17.2m £13.3m £9.9m £6.8m £7.5m 0 <1 year 1-2 years 2-3 years 3-4 years 4-5 years 5> years Total Note: The land creditor payments prof