Vistry Group Plc · LSE:VTY
Vistry — Investor Day (November 2021)
44 slides from Vistry's investor day presentation, Nov 9, 2021
Slide 1: Capital Markets Day
Capital Markets Day 9 November 2021
Slide 2: Capital Markets Day - Greg Fitzgerald, CEO
Capital Markets Day Greg Fitzgerald Chief Executive Officer
Slide 3: One Vistry - uniquely positioned for sector leading returns
One Vistry - uniquely positioned for sector leading returns Maximising strengths and opportunities from combination of Housebuilding and Partnerships assets ® Strong market position and capability across all housing tenures © Leading provider of high demand, high growth affordable housing * Strategi
Slide 4: Medium term targets: Housebuilding and Partnerships
CMD 2021 BMY Vistry Housebuilding Vistry Partnerships 25e 25 % 25 Project pace Medium term targets Medium term targets Completions c.8,000 units" Revenues c.£1.6bn Gross margin 25% Operating margin 12%+ ROCE 25% ROCE 40%+
Slide 5: Capital Markets Day presenters
Capital Markets Day Darren Maddox Dawnet Mclaughlin Adrian Cator Divisional Managing Director Managing Director Managing Director Housebuilding - South Division Housebuilding - Southern Partnerships - Drew Smith 9 November 2021
Slide 6: Housebuilding - South Division
Housebuilding - South Division FY21 Total forecast completions FY21 c.1,850 units Total ASP £339k/unit Total Revenue c.£650m Capacity of division* 2,500 units HBF 5 star operating division 93% *Without changing current structure
Slide 7: Housebuilding - South Division
Housebuilding - South Division
Slide 8: Housebuilding Southern region - Our area
Housebuilding Southern region - Our area
Slide 9: Who are we?
CMD Who are we? Dawnet Mclaug Regional Managing Director 125 in team wd Richard Drury Steve Ott Chris Adams Ashleigh Collins Amy Savage Technical Director Construction Director Commercial Director Head of Customer Land Director Services 4 LN Martyn Flood Melanie Richards Finance Director Sales and M
Slide 10: Our achievements
Our achievements 350 sales to date Enhance delivery through dual branding at a run rate Opprieniies 0.98 Bovis © Linden Homes* HOMES Quality Resognition Awards ee kkk 5 STAR HOME BUILDER CUSTOMER SATISFACTION secured this year 345 plots [Two winners | CMD 2021 VG Our HBF 8 week journey 00 o @ 20/21
Slide 11: Our ambition
Our ambition 550 500 450 FY 23 FY 24 200 150 50 Gross Revenue (£m) FyI9-FY20.—«sFY21—sFY22——=COFY23——FY.24 w 0 18% Gross Margin Fy20 FY21 = FY22~—sFY23 FY 24
Slide 12: No one said it would be easy
No one said it would be easy 5021 VG Demand for construction workers close to No quick fix to materials crisis, but there are grounds for 20-year high optimism Land shortages and supply chain delays Natural England water neutrality advice putting new housing at risk, report warns ‘risks new housing
Slide 13: What makes the difference
What makes the difference J S te
Slide 14: Minerva Heights Chichester
40% 350 c.£130m Minerva Heights ROCE Homes GDV Chichester • Strategic land site • 350 units plus primary school and local centre • C.£130m GDV with a land value of £30m • Bought as a Linden Site with a sales rate of 0.7 and ROCE of 29% • Now a dual branded site with a sales rate of 1.5 and ROCE of 4
Slide 15: Boorley Green
36% 940 c.£325m Boorley Green ROCE Homes GDV Boorley • Pre Vistry, this was a development with three developers - Bovis, Linden and Bloor • Post Vistry, the development now consists of 2 developers, with Vistry having two thirds under the control of one regional office • 940 units plus primary schoo
Slide 16: Drew Smith
Drew Smith Adrian Cator Managing Director Partnerships - Drew Smith
Slide 17: Drew Smith – History and timeline
Drew Smith – History and timeline
Slide 18: Drew Smith – 2021
Drew Smith – 2021 Drew Smith, part of Vistry Partnerships is a regionally focussed mixed tenure development and partner delivery business. Head Office at Durley, Southampton 115 directly employed members of staff 17 Active Construction Sites: 5 sales outlets (550-700 units) Demonstrating con
Slide 19: Drew Smith – Management team
Drew Smith - Management team i] Bp ~~ Stuart Munro Divisional Managing Adrian Cator Director Regional Managing Director NSin team Ben Alford Commercial Director 21in team Philip Farminer Simon Mason Yvonne Mills Samantha Barret Land & Planning Head of Sales Head of Partnerships Head of Director 6in
Slide 20: Drew Smith – Operating areas
cmp Drew Smith - Operating areas MEE on AE Drew Smith operating area Housebuilding operating area Vistrys* Partnerships Thames Valley (2020/21) Vistry3 hang 0 Partnerships => South & East os Ff aenreaRertce (2022) Sees pee e Drew Smith office: _ ™ Southampton
Slide 21: Drew Smith – Strategic plan 2021-24
Drew Smith – Strategic plan 2021-24
Slide 22: Drew Smith – Workload and pipeline
Drew Smith – Workload and pipeline
Slide 23: Drew Smith – Strategic Priorities
Drew Smith – Strategic Priorities £ Operating Profit 50% ‘Mixed Tenure’ Land Assets Margin growth to; 10.5% in Progress blend in revenue Utilise Strategic Land and One 2022, 11% in 2023, Increasing to to deliver 50% from mixed Vistry principles to maximise >11% 2024 tenure developments group assets,
Slide 24: Whiteley Meadows
2021 Whiteley Meadows Vistry Group
Slide 25: Whiteley Meadows, Whiteley
Whiteley Meadows, Whiteley Community areas CMD 2021 VG
Slide 26: Bovis Homes plus a pre sale with Vivid
Bovis Homes plus a pre sale with Vivid for shared ownership units Sales rate 0.60 ROCE 21%
Slide 27: Bovis Homes and Linden Homes brand
Bovis Homes plus a pre sale with Vivid for shared ownership units Sales rate 0.60 ROCE 21% Bovis Homes and Linden Homes Brand with pre sale with St Arthur Homes Sales rate 1.20 ROCE 30%
Slide 28: Bovis Homes, Linden Homes and Drew Smith
Bovis Homes plus a pre sale with Vivid for shared ownership units Sales rate 0.60 ROCE 21% Bovis Homes and Linden Homes Brand with pre sale with St Arthur Homes Sales rate 1.20 ROCE 30% Bovis Homes, Linden Homes and Drew Smith Sales rate 1.95 ROCE 38%
Slide 29: Bovis, Linden, Drew Smith and land sale
Bovis Homes plus a pre sale with Vivid for shared ownership units Sales rate 0.60 ROCE 21% Bovis Homes and Linden Homes Brand with pre sale with St Arthur Homes Sales rate 1.20 ROCE 30% Bovis Homes, Linden Homes and Drew Smith Sales rate 1.95 ROCE 38% o: Bovis Homes, Linden Homes, Drew Smith and lan
Slide 30: The North Whiteley success story
THE NORTH WHITELEY SUCCESS STORY • Legal completions to date: • £121m worth of social value return 300 (Vistry) v 100 (Others) on investment • 480 additional affordable units being • Investing in schools, local centres and provided by the Vistry Group maintaining 175 acres of green space • ROCE has
Slide 31: Vistry's Low and Zero Carbon Homes: Project 2025
Vistry’s Low and Zero Carbon Homes: Project 2025 Jack Brayshaw Group Design and Sustainability Manager
Slide 32: Government's low / zero carbon homes policy landscape
Government’s low / zero carbon homes policy landscape The Future Homes Standard (FHS) • Interim step change - 31% CO2 reduction1 coming into effect June 2022 • The full FHS Standard 75-80% CO2 reduction from 2025 • No fossil fuel heating from 2025 • Overheating and ventilation • Shorter transitional
Slide 33: Vistry's low / zero carbon homes roadmap
Vistry’s low / zero carbon homes roadmap
Slide 34: What will our zero carbon homes look like?
What will our zero carbon homes look like? Net Zero Carbon Home Solar Panels (-100% CO2) Heat Recovery from 2030 Ventilation Battery Low carbon Smart materials technology Added insulation Air Source Heat Pump Hydrogen boiler? EV Charger
Slide 35: The challenges
The challenges CMD 2021 VG
Slide 36: The challenges
The challenges • Customer Awareness and Acceptance • Products & Suppliers • Moving away from gas heating • Capacity of manufacturers • Lower temp and larger radiators • Product imports • More technology to maintain • Technical, Construction, Planning • Skills and Training • Transitional requirements
Slide 37: How are Vistry Group meeting the zero carbon challenge?
How are Vistry Group meeting the zero carbon challenge?
Slide 38: Project 2025
Project 2025 Developing the future Vistry Group standard house type portfolio for both private sale and affordable ranges. • Embrace net zero • Higher levels of insulation • Space for technology • Integrating M4 category (2) adaptable dwellings • Nationally Described Space Standard (NDSS) • Designed
Slide 39: Zero carbon homes in practice
Zero carbon homes in practice Site: Europa Way Triangle, Leamington Spa Region: Vistry Partnerships West Midlands Client: Warwick District Council Number of Units: 54 Zero Carbon: Dwelling emission rate (DER)=0 Key Features: • High performing fabric • Timber frame • Air source heat pumps • Solar PV
Slide 40: Passivhaus Trials
Passivhaus Trials Site: Parcel 6 North Whiteley Region: Drew Smith Client: Winchester City Council Number of Units: 54 Standard: AECB Design Standard Key Features: • Wall and roof U-values to be: 0.10 – 0.15 W/m²K • Window & door U-values: Less than 0.8 W/m²K • Mechanical ventilation with heat recov
Slide 41: Integrating experiences across the Group
Integrating experiences across the Group Utilising experience in the business to shape the Group’s Strategy • Capture lessons from existing low and zero carbon projects • Focus groups with trades, site and sales team • As built performance measuring • Gather real project cost information associated
Slide 42: Integrating experiences across the Group
Integrating experiences across the Group We are keeping customers with us on this journey and it’s our most important focus area. • Sales and Marketing literature • Customer guides for zero carbon homes • Customer studies to understand requirements and mitigate any concerns • Post occupancy evaluati
Slide 43: Thanks for your time
CMD 2021 Thanks for your time VG
Slide 44: Capital Markets Day
Capital Markets Day 9 November 2021