Vistry Group Plc · LSE:VTY
Vistry — Bovis Homes Group — Investor Day (2011)
29 slides from Vistry's investor day presentation, 2011
Slide 1: A quality product at the right cost
A quality product at the right cost Michael Black Group Development Director The Academy range - Good but polarized by planning * 3.storey * Room-in-the-roof © Limited traditional ‘he Fennimore 1.95250 ft 5) se | The Melillo 1,600 39 ft 5 4 9 The Rearckley The Portman sqft P 7 787 39 1.206 sqft = &
Slide 2: The Bovis Homes DNA
The Bovis Homes DNA Core design principl The DNA of Bove Hames 30VIS HOMES Key review Standardisation of components and materials Use of elevational treatments that enhance the design - Roofscapes, window and door styles, pallet of material choices Kitchen and bathroom ergonomics and clean lines Red
Slide 3: Launched and on-site being built: The Southwold, Bishop's Cleeve
Launched and on-site being built The Southwold - Bishop's Cleeve * 3 bedroom, 2 bathroom = 853sq ft * Selling price £235,000 © Gross margin 34% 101 More for less * Identifying means to take cost out Labour saving of . | ‘To build more for the same or indeed less at least 103 104
Slide 4: More for less
More for less We have achieved at least a 12% reduction in costs over that 2009 base (labour and materials) Secured in 2010/2011; being realised on legal completions in 2011 onwards Understandably there is now pressure coming through on materials Hotpoint | ft? ‘ss wee 4 PORCELANOSA Fel pees CELCON
Slide 5: More for less
More for less + Improved our sanitary ware and introduced modern suites * Internally - redesigned our wardrobes, introduced fully finished doorkits that require no on-site painting 109 Materials and design y + Replacing concrete pipework and inspection chambers for high specification plastic (O) Pol
Slide 6: Materials and design; war on waste
Materials and design Reviewing the number and type of concrete block used in the ground Rationalising and standardising levels, steps and hard landscaping War on waste Discarding and cisposing of waste becomes ever more expensive Landfill tax costs continues to rise We're attempting to do something
Slide 7: The regulatory burden
The regulatory burden + Informed © Minimize impact Quality counts right! Less defects than any other | top 25 housebuilder* ® Less remedials -— aes * Less waste | * No delays © Less cost “as measured by NHBC Improved operational effectiveness * So it’s just how we do things the right way * Working w
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Slide 10: Smarter marketing
Smarter marketing Kevin Wilkins Group Marketing Director wvnw.bovishomesgroup.co.uk 130 Efficiencies Effectiveness Market coverage Response rates Search engine ranking - organic Prospect . recruitment Website performance: Traffic, conversion, pages viewed, time on site 132
Slide 11: Drive to maximise return on investment
Drive to maximise return on investment increases in Sales website - Prospect generation c ivailab ©728 a¢ this developme sprofeenanean xe 133 [et Ebon wom sonore ok ne honesa- tte bryce Tew Wome: Chetarran CIS?) The Vonearas] lave Tomes EEC] (O° across ‘Rose Yahoo! Gomme aoe YouTuGe Popular” Wipe Ne
Slide 12: SERUM - Prospect relationship management system
SERUM - Prospect relationship management system Prospects added in excess of Prospect management system (SERUM) + SERUM - our unique (bespoke) CRM system = Complete prospect visibility © High fulfilment rates + Limits wastage * Targeted marketing campaigns * Targeted sales activity eat relevancy = g
Slide 13: Enquiries and sales operation
Enquiries Prospect behaviour - base level (typical example) Commi Reservation Sales operation @ Sales hubs * Satellite outlets * Standalone outlets Sales operation management = Unique hub model - 7 day operation - enabled - Team leaders = Adapting with standalones - based on geography, competition,
Slide 14: Lead fulfilment 'Best in industry'
Lead fulfilment ‘Best in industry’ ; y Positive contact @ rightmove Customer _. leads ™ 0) 10) 1% Satisfied with speed of response Purchase assistance schemes - market coverage y Home FirstB Exchange pes nee lePosit . 145 Even better results - 2011 v 2010 ; y Trends on enquiries, visitors and reserv
Slide 15: Even better results - 2011 v 2010; customer service
Even better results - 2011 v 2010 y Average cost per prospect Customer service y From enquiry through to after sales care + High and increasing service provision * Ongoing continuous improvements: » Satisfaction at an all-time high 149 Customer service - latest quarterly results y Service received @
Slide 16: Strategic land underpinning supply
Strategic land underpinning supply Nick Smith Group Strategic Land Di aa BOVIS HOMES ovishomesaroup 153 Near term opportunities y At November 2010 doll @Stafford Northampton @ @ Cambourne Cheltenham ® ‘Oxford Magor 9° esristol —@ Winnersh Godaln 8 % Horsham Locks Heath @@ Fareham Chudleigh 6®) ich —
Slide 17: Progress to date - 2011 progress
Progress to date a " y - 2011 progress y Winchester - 3,000+ homes with Bovis Homes 50% interest and application next year Achieved Raunds, Northampton ~ LPA support for 100 homes due 2012 Witney - Application due shortly with Bovis Homes 30% share of 1,000 homes and business park Cambourne, Cambrid
Slide 18: Cambourne
Cambourne y + Enlarged Cambourne significantly improves sustainability * Partly funded with contributions from Cambourne 950 2011 strategic land forecast : y Delivering over SI gross profit legal completions from strategic land 161 162 NEW HOMES BONUS OUR SAVIOUR! NEW HOMES BONUS i | ? A f A FAILURE
Slide 19: National planning policy framework
National planning policy framework > * Development not to be burdened by obligations that threaten viability + Presumption in favour of sustainable development * LPAs should plan positively for new development + LPAs need to identify a supply of specific deliverable sites to provide a 5 year land su
Slide 20: Bishops Stortford
Bishops Stortford 210 actes of allocated land Part under option and part owned Forecast blended margin circa 34% Overage payable but we are also a land owner! Brighton @ Winnersh 169 aval 170 Winnersh * 433 dwellings allocated = 50% of 55 gross acres = Application approval imminent = Discount 30% to
Slide 21: Birmingham
Birmingham Southampton @ 173 1,000 homes and business park allocated 30% share Application imminent Full LPA support Discount 20% to OMV e 7 @ Tavi stock 174 , Southampton @ 175 176
Slide 22: Tavistock
Tavistock 750 homes over 50 acres Option with a 25% discount Planning promotional costs deductable 177 178 Exeter Southampton a, we ‘xeter @ Tavistock > 179 180
Slide 23: Additional schemes and further land options
_ © 100 acres 18% discount to OMV Additional schemes » Chudleigh - 46 units » Oxford - 130 units + Northampton = Site in the Local Plan = 150 units + Application submission in 2012 + LPA only has a 2.5 year housing supply | 2 _ 181 182 Further land options Summary + 2,000 additional plots added to p
Slide 24: Quality of consented land bank
Quality of consented land bank Nick Twine iN jing Director, South East region nomesgroup.« 185 2009 land bank as at 31 December 2009 sites Quality land in quality locations 2011 land bank as at 31 October 2011 * Sites holding up to 75 units ¢ ‘Sites holding between 75 and 150 units @ Sites holding b
Slide 25: 2011 land bank
2011 land bank as at 31 October 2011 * Sites holding up to 75 units @ Sites holding between 75 and 150 units @ Sites holding between 150 and 500 units @ Sites holding of 500 units and above Wellingborough Filton Gloucester 5% in the south Strategic quality October ih lai Sen Of 5000 — plots 201 oe [
Slide 26: Land bank product mix
Land bank product mix WH Avariments lf 4 bedroom homes TH 2beitoom homes ill S+bectoom homes TB 3 bedroom homes Socal housna 11% family homes 6Yo apartments Consented land bank and active sales outlets 15,000 14,000 13,000 Land bank (pots) 12,000 11,000 Jan08 Jun08 Deco8 Jun 09 Il Consented land ban
Slide 27: Strategic and market acquisitions
Strategic and market acquisitions fours mS Se Search areas * 6,500 consented plots acquired since Q3 2009 on 40 sites * c£1.3bn of potential revenue and c£350m of gross profit potential added since Q3 2009 * GDV of land bank estimated at c£2.6bn with gross profit potential of cé560m * 101 current si
Slide 28: Compound growth position established
Compound growth position established .... Compound growth position established .... Net private 110 Sales outlets me reservations 100 ences 0 92 ao ; DQ : fl — opened 2011 wuascon 2011 v 2010 70 i 66 j te = | . 2 ASP in land bank = =| { i | (0) 50 2008 2009 2010 2011 2012est 2013 target ee (()) Acti
Slide 29: Confident and in control
Confident and in control Fast track sales launch ‘*; (26 Sites of 40 acquired to date Build Aualiey Number — Cuvtorner GO, ’ Portfolio ITs New designs with DNA Great quality land bank Post downturn land additions C6F500) consented plots Strategically sourced gale of land bank potential plots es asse