Vistry Group Plc · LSE:VTY
Vistry — Bovis Homes Group — Investor Day (November 2011)
23 slides from Vistry's investor day presentation, Nov 8, 2011
Slide 1: Investor and analyst presentation 2011 Introduction and overview
Investor and analyst presentation 2011 Introduction and overview Delivering improved, sustainable returns David Ritchie Chief Executive Tuesday 8 November © < ven bouishomesgroup. co.uk BOVIS ve boishomesgroup co.uk BOVIS HOMES HOMES A quality housebuilder which has a reputation for high profit marg
Slide 2: Getting the balance right: Bovis Homes DNA
Do Not Adjust tt get the balance right across the cycle! Getting the balance right Bovis Homes DNA * The strong heritage of Bovis Homes is alive and well + Long term strategic investment in land is key to strong returns through the cycle * Ahigher quality product sold for a premium price delivers st
Slide 3: The market's 'unhealthy equilibrium'
The market's ‘unhealthy equilibrium’ * Market conditions reflect macro uncertainty but espiration to buy a home remains strong * Residential transactions consistent since 2008 at c800,000 transactions per annum (HMRC) + Mortgage approvals for home purchase trending between 45,000 and 50,000 per mont
Slide 4: 2011 - another year of strategy delivery
2011 activity to week 44 (average) Active sales outlets Yee Site visitors 22) Net private +38% Net private sales rate o +11% 2011 - another year of strategy delivery * Consistent strategy message over last three years © Improving return on capital employed = Increasing output capacity through sales
Slide 5: Today's presentation
Today's presentation Our arateny is dearly arteulated wo davar growth intretarhe Rebuilding ROCE Rebuilding ROCE Jonathan Hil A quality housebuilder with discipline in a tough market Jonathan Hill Speed to market Keith Carnegie Group Finance Director Malcolm Pink Quality product at the right cost Mi
Slide 6: Performance on southern sites remains strong
Performance on southern sites remains strong Weekly sales rate to week 44 OA per site 2011 Number of active sales outlets ‘Week1 Week 44 Grange Weeks 1.44 solo rate por outlet per week ‘aaileved South 3 46 +55% 0.62 Midlands/North 29 32 43% 0.33 Retirement 6 2 67% 0.14 Total 66 80 421% 0.47 ASP pote
Slide 7: Compound effect of volume, ASP and gross margin
Compound effect of volume, ASP and gross margin 12011 New land 2013 Average active sales outlets 68 100 ASP £163,400 £199,000 c£180,000 Gross margin 20.1% 254% 22% 23% Ina stable market, gross profit has the potential to grow significantly by 2013 ASP growth Gross margin increase Sales outlet growti
Slide 8: Work in progress efficiency will improve with volume growth
Work in progress efficiency will improve with volume growth em 31d Ohne Dee 30a Housing and site overheads 883 680.4 «= BBB BZ Infrastructure, road and sewers: 82.1 82.6 82.0 80.9 Other 0.2 02 02 0.2 170.6 163.2 171.0 168.3 * With @ lower cost of bulld and reducing notional units, housing and site o
Slide 9: Update on 2011
Update on 2011 Volume growth 0 0) over 201 Housing operating margin approaching 33 Sales outlets - Jan 2011 January 2011 A Sites closing during 2011 © Sites open all year sales outlets rates Gainge Graces Speed to market Keith Carnegie Managing Director, Central region 4 BOVIS HOMES SgrOUp.cO.UkK Pr
Slide 10: New sales outlets - 2011
New sales outlets - 2011 Sites opening during 2011 New sales outlets - 2011 I Sites opening during 2011 S 33 Midlands/North new outlets The pre downturn linear pre development process Planning consent granted * Major pre development work generally completed after certainty of planning 37 Squeezing t
Slide 11: Progress with sites acquired since downturn
Progress with sites acquired since downturn ¥y with dotatled site salos Number planning commenced launch Sites acquired in 2009 4 4 4 4 Sites acquired in 2010 19 16 15 (+1) 14 (42) Sites acquired in 2011 7 6 343) 5 (+1) Total 40 28 2244) 2343) ( ) + to be commenced /leunched in the remainder of 2011
Slide 12: Statutory consultees / interest groups
Statutory consultees / interest groups Statutory consultees Other consultees/interest groups Highway Authority Neighbouring Residents Environment Agency Amenity Groups Highways Agency Civic Trust Water Authority Wildife Trusts Parist/Town Councils _ Internal Drainage Boards English Heritage Health A
Slide 13: Build times... Working with regulations
Build times... Working with regulations Monitoring regulation change es ae Opportunity to Se manage costs tet oo. Cee) Prioritization in advance ety =e erat of change Senses B= contigs Cost mitigation sire ger) Ehghents i wget) As Bias Fig a, [El] Prepart L 2010 to) — [i] Part L 2010 (cost included
Slide 14: The Homelands
The Homelands * 27 acres Bishop's Cleeve (northern edge) * OPC 400 homes * Price £23.5m The Homelands » Fast track - procurement strategy * Fast track - construction strategy » Fast track - sales strategy * Returns - increased over acquisition * Good quality * Good sales performance + Land sale agre
Slide 15: The Homelands - phases
The Homelands - phase 1 - y The Homelands - phase 2 ‘ y 37 58 The Homelands - phase 2 y The Homelands - phase 3 y 59 60
Slide 16: Planning and procurement phase
Planning and procurement phase Planning application submitted Working drawings Brochure preparation Pre-tender Information Construction start Brochure complete Planning consent Dec 2010 Jan2011 Feb 2011 | MarZ011 April2011 May2011 June 2011 From planning concent QB Planning and procurement phase Dec
Slide 17: Construction phase
Construction phase Planning consent ‘Temporary access Construction start Show home start April 2011 May2011 June 2011 July 2011 Aug 2011 Sept 2011 oct 2011 x asres aoe 9 [5 wis = [ ewis] From panning orsont QD Show home construction 65 Show home start Show home construction
Slide 18: Show home complete
Show home complete Construction phase y p11 Aug 2011 Sept 2011 oct 2011 Show home = complete Temporary access CID contuctonsiat ED) Show home start ahi hii cei : Planning consent days Construction phase y ‘Apri 2011 | Way 2011 June 2011 July 2011 Aug 2011 | Sept 2011 oct 2011 Planning consent [0305"
Slide 19: The Harriett show home
The Harriett show home The Harriett show home Construction phase Apri 2011 May 2011, June 2011 Planning consent Temporary access Construction start Show home start show home complete Show home dressed and open July 2011 Aug 2011 Sept 2011 Oct 2011 76
Slide 20: Construction phase and sales phase
Construction phase y April 2011 Mi June 2011 July 2011 Aug 2011 Sept 2011 oct 2011 Planning consent Temporary access NHBC inspected and no reportable items despite speed to build Construction start Show home start Show home complete show home dressed : aD| and open Sales phase - brochure released y.
Slide 21: Sales phase - public launch
Sales phase - public launch Brochure released First home released forsale Preview at Gloucester First reservation Private viewing The Homelands Public launch - The Homelands Sales phase Pisitapan!aean| Ga Pauam Brochure released First home released for sale Preview at Gloucester First reservation Pr
Slide 22: Charlton Hayes
Charlton Hayes Update 85 Southern relief link road } » Opened Dec 2010 » Funded using regional development agency « Used as a model for infrastructure funding by the Treasury « Raises the profile of the development 87 Charlton Hayes update By end 2011: * 157 occupations * 171 bulld completions Lates
Slide 23: Charlton Hayes - Where next?
e Charlton Hayes Where next?... ..Local centre + Belvedere |s the first part of a local centre including shops, school and medical centre ..Woodland area © & * More traditional, higher value part of the development 89 ..Location plan 92