Persimmon Plc · LSE:PSN
Persimmon — Shareholder Meeting (April 2023)
11 slides from Persimmon's shareholder meeting presentation, Apr 26, 2023
Slide 1: Annual General Meeting: Chief Executive's Presentation
Annual General Meeting Chief Executive’s Presentation 26 April 2023
Slide 2: 2022 trading highlights
2022 trading highlights Industry leading financial results with 5* quality for customers Perhaps our strongest ever year: - Five-star customer service; - Profit over £1bn; - Build rate up 15% in H2. 2022 2021 Legal completions 14,868 14,551 Underlying operating profit1 £1,006.5m £966.7m PBT £730.7
Slide 3: Stronger operational capabilities
Stronger operational capabilities Good progress on all five key priorities Build quality: our ambition has grown from “build right, first time, every time” to becoming trusted to deliver 5-star homes consistently: - NHBC Construction Quality Review score currently up 10%. Reinforcing trust: cust
Slide 4: Q1 trading update
Q1 trading update Continued signs of market improvement Performance reflects the challenging market conditions in Q4 2022: - Completions down 42% YoY. Some continued encouragement in recent weeks: - Visitor numbers and cancellation rates stable; - Sales rate now 0.62 (inc. bulk sales) from 0.52
Slide 5: Disciplined, quick response to uncertainty
Disciplined, quick response to uncertainty High quality land investment; carefully managed 12,000 Total plot additions 10,000 8,000 Total completions 6,000 4,000 2,000 0 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Brought 14,670 plots into the business acros
Slide 6: High quality land portfolio
High quality land portfolio Industry leading embedded returns of c.32% Land plots by gross margin (as at 31 December 2022) 60,000 Embedded gross margins of 32% in owned land 49,239 holdings 50,000 Percent of owned land holding 94% of owned land holdings have an embedded 40,000 gross margin over
Slide 7: Capitalising on operational enhancements
Capitalising on operational enhancements Further opportunities for increasing efficiency Recent operational enhancements will drive improved returns: - Improved build efficiencies. Brickworks supplied 53m bricks in 2022, up 18% Tileworks supplied 12m tiles in 2022, up 33% Further investment
Slide 8: Responding to the market
Responding to the market Sound market position complemented by proactive response Sound market positioning: - High quality, energy efficient homes at attractive prices in good locations; - Nationwide outlet network; - Affordability key in these challenging times; - First time buyers remain a chall
Slide 9: Capital allocation policy
Capital allocation policy Proposed dividend of 60p per share in respect of 2022 Overview: Concluded previous capital return programme in 2022; Continued focus on ROCE and profitable land investment to sustain the business. 2022: Proposed dividend per share of 60p as the final and only dividend
Slide 10: Building safety remediation
Building safety remediation Industry leading position throughout Original pledge made in February 2021: - Protect leaseholders in any multi-storey building constructed by Persimmon from cladding or building safety costs; - Proactive engagement, including with Management Companies (Factors in Scotl
Slide 11: Fundamental long term strengths
Fundamental long term strengths Strong business through the cycle 2022 very strong performance; 2023 more challenging, but sales rates have recovered to 0.62 currently Long-term fundamentals of market remain strong: - Chronic undersupply of housing continues; - Consumer confidence stabilising.