Full year results 2017 1 March 2018 www.bovishomesgroup.co.uk - - PowerPoint PPT Presentation

Bovis Homes Group PLC

Full year results 2017

1 March 2018

www.bovishomesgroup.co.uk

slide 1

• Full year performance
• Financial review
• CEO review
• Operational update
• Medium term targets
• Outlook
• Q&A

Agenda

Furlong Rise, Cheltenham

slide 2

Full year performance

• Profjt before tax, exceptional and one-off items in-line with expectations
• Strong increase in average selling price, with robust underlying prices
• Year end completions delivered in a controlled and disciplined manner
• Restructuring initiatives complete - business well positioned for FY18
• Investment in people, product and systems
• Launch of four major margin initiatives
• Excellent progress with balance sheet optimisation
• Strong forward sales position
• Step change in customer satisfaction - HBF score trending at well above 80%

slide 3

Good progress with medium term targets

2020 Target Progress to date

4 star HBF customer satisfaction rating

• HBF score since 1 October 2017 trending at 4 star

4,000 completions

• Contolled delivery in FY17
• Expect to deliver increase in completions in FY18 in a controlled

and disciplined manner 3.5 to 4.0 year owned land bank

• Slowed rate of land acquisition
• Progress made with divestment of sites outside our

core operating area

• Ongoing focus on reducing our investment on larger sites

23.5% gross margin with further

• pportunity beyond 2020 from new land
• Operational issues addressed
• Embedded land bank margin strong
• Four new major margin initiatives launched

5% admin expense as a % of revenue

• Restructuring initiatives complete
• On track to deliver 5% overhead in FY18

Min £180m additional cash delivered

• Signifjcant progress with land disposals, reduction in part

exchange stock, and completed disposal of shared equity

• Focus on WIP levels and reduction of investment on larger

sites in FY18 25% ROCE

• Increase in FY18 profjtability and balance sheet optimisation

expected to drive signifjcant improvement in ROCE in FY18

slide 4 slide 4

www.bovishomesgroup.co.uk

Financial review

Earl Sibley

Group Finance Director

Burfjeld Grange, Hailsham

slide 5

Income statement

Note: (1) The Group has reclassifjed certain costs from administrative expenses to cost of sales - see appendix slide 40 for details

(£m) FY16

(restated)

FY17 Change

Revenue 1,054.8 1,028.2

• 3%

Gross profjt

(1)

209.0 184.6

• 12%

Administrative expenses

(1)

(49.0) (56.6) +16% Operating profjt before exceptional items 160.0 128.0

• 20%

Exceptional items

• (6.8)

Share of profjt of Joint Ventures 0.3

• Profjt before interest and tax

160.3 121.2

• 24%

Finance cost (5.6) (7.2) Profjt before tax 154.7 114.0

• 26%

Taxation charge (33.9) (22.7) Profjt after tax 120.8 91.3

• 24%

Housing revenue analysis

FY16 FY17 Change

Average sales price (£k) Private 306.0

334.5 +9% PRS

151.1

• Affordable

119.5

123.4 +3%

Total 254.9

272.4 +7%

Volume Private 2,884

2,573

• 11%

PRS

19

• Affordable

1,074

1,072 0%

Total 3,977

3,645

• 8%

Housing revenue (£m) Private 882.6

860.6

• 2%

PRS

2.9

• Affordable

137.3

132.3

• 4%

Net housing revenue 1,022.8

992.9

• 3%

Other income 6.2

3.3

Total housing revenue 1,029.0

996.2

• 3%

slide 6

FY16 (restated) FY17 £m unless otherwise stated

Housing

Land sales Total

Housing

Land sales Total

Revenue 1,029.0 25.8 1,054.8 996.2 32.0 1,028.2 Gross profjt 201.3 7.7 209.0 182.2 2.4 184.6 Administrative expenses (49.0) (56.6) Operating profjt pre exceptional items 160.0 128.0 Gross margin (%)

(1) (2)

19.6 29.8 19.8 18.3 7.5 18.0 Operating margin pre exceptional (%) 15.2 12.5

slide 7

Analysis of profjt

• Gross margin impacted by reclassifjcation of certain project specifjc costs from administrative

expenses to cost of sales (£28.6m in FY17 (FY16: £26.7m)) and additional £3.5m customer care provision

• High overheads driven by overweight operating structure and increased investment
• On track to deliver 5% overhead for FY18

slide 8 slide 8

(£m) FY16 FY17

Customer care provision

7.0

3.5 Advisory fees

• 2.8

Restructuring costs

• 4.0

Total 7.0 10.3

• Additional one-off £3.5m customer care provision taken through gross profjt in H1 17
• £2.8m advisory fees taken as an exceptional item in H1 17
• Restructuring of regional business, planning, design, engineering and other functions

taken as an exceptional item of £4.0m in H2 17

One-ofg and exceptional costs in FY17

Sales prices and construction costs

FY16

(restated)

FY17 Change

Sales price per home (£000’s) 254.9 272.4 +7% Sales price per sq ft (£’s) 243.4 251.3 +3% Private sales price (£000’s) 306.0 334.5 +9% Private sales price per sq ft (£’s) 268.1 279.6 +4% Construction cost per home (£000’s) (1) 146.8 165.2 +13% Construction cost per sq ft (£’s) (1) 140.1 152.5 +9%

• Market sales price infmation estimated at c.1-2%
• Product mix and higher value locations increased sales prices by c.2-3%
• Construction cost infmation estimated at c.4% over the last 12 months,

with c.3% increase from mix

• Remaining c.2% from additional costs including customer care provision (£3.5m)

slide 9 Note:

(1) After reclassifjcation of certain costs from administrative expenses to cost of sales - see appendix slide 40 for details

slide 10

Signifjcant cash generation

• Cash expenditure on land related to the settlement of creditors in the 12 months of £189.1m

(FY16: £144m) and new land investment of £36.7m (FY16: £84m)

• Non-trading items includes proceeds from disposals of shared equity and fjxed assets in FY17 (see slide

14 for details) (£m) FY16

(restated)

FY17

Housing receipts 1,061.9

1,086.9

Construction expenditure (703.0)

(681.6)

Overheads (51.4)

(54.7)

Operating cash flow 307.5

350.6

Cash expenditure on land (227.6)

(225.8)

Land sales receipts 22.0

36.9

Dividend payment (55.4)

(60.4)

Non-trading items (37.9)

5.0

Net cash flow 8.6

106.3

Opening net cash 30.0

38.6

Closing net cash 38.6

144.9

slide 11

Lichfjeld Bishops Itchington Drakes Broughton Bishop’s Stortford Horam Petersfjeld Didcot Wellingborough Wantage Witney Wellington

Strategically sourced

slide 11

Land acquisition in the year

• Continue to see good opportunities in

the land market

• With reduced land requirement for

FY17, able to be even more selective

• 2,550 plots acquired
• Includes 821 plots representing

final tranche at Stanton Cross (Wellingborough)

• High quality pull through from

strategic land bank

• FY17 land acquired at over 26%

gross margin

and average ROCE

exceeding min 25% hurdle rate

Net assets

• Valuable land bank supports business fundamentals and long term prospects
• Signifjcant improvement in working capital through reduction in other assets
• Further opportunity to reduce work in progress

(£m) 31 Dec 2016 30 June 2017 31 Dec 2017

Land 1,020.6 1,022.0

913.4

Land creditors (343.3) (324.7)

(246.7)

Land net of creditors 677.3 697.3

666.7

Work in progress 428.6 470.2

408.6

Other assets 142.5 135.4

92.1

Other liabilities (271.1) (256.4)

(255.7)

Net (debt)/cash 38.6 (32.4)

144.9

Net assets 1,015.9 1,014.1

1,056.6

Net assets per share 757p 756p

787p

slide 12

slide 13 slide 13

Balance sheet optimisation

Progress in FY18 Opportunity for FY18

Land c.£80m - 100m

• Five land disposals (£30.5m)
• Reduction of investment on

larger sites

Work in progress c.£40 - £80m

• Signifjcant reduction in part

exchange (£28.9m)

• Reduction in stock (£10m)
• Show homes sale and leaseback

(£3.5m)

• Optimising site by site WIP

(foundations, roads etc)

Non returning assets

• c. £50 - 60m
• Disposal of shared equity

portfolio (£28.8m cash receipts)

• Disposal of three owned offjces

(£8.4m)

• Reduction in Help to Buy debtor

(£11.5m)

• Further opportunities including

HA cash fmow and PRS JVs

slide 14

Operating metrics

FY16 FY17

Sales outlets Average active sales outlets 99 92 Reservations Private reservations in year 2,960 2,274 Affordable reservations in year 1,022 1,730 Year end forward sales Private units 917 926 PRS 19

• Affordable units

1,072 1,730 Total forward sales (units) 2,008 2,656 Total forward sales (£m) 421 518

slide 15

www.bovishomesgroup.co.uk

Operational Update

Greg Fitzgerald

Chief Executive Offjcer

Mildenhall, Sherborne

slide 16

• Key operational issues identifjed
• Excellent progress in every area in H2 17
• Group started FY18 from a position of strength

Very signifjcant improvements across all areas

• Limited benefjt to date from recent investment in people and infrastructure
• Greater ‘hands on’ approach commenced
• Continued priority in relation to customer satisfaction and handover process
• Impact on build quality standards most signifjcant on sites remote

from regional offjces

• Processes need to be simplifjed with focus on root causes
• Further improvement in forecasting
• Standard house types - some good ones with opportunities to improve
• Signifjcant opportunity from increased focus on affordable housing
• Management of capital employed has been infmuenced by drive for growth

CEO review - initial impressions

“Issues identifjed with progress already made”

slide 17

Transformed our Customer Service

• HBF score trending well above 80% (4 star) since

1 October 2017

• 2 regions – 5 star
• 4 regions – 4 star
• 1 region – 3 star
• Step change in the way we are doing things and

mindset within the business

• Controlled and disciplined period ends in June

and December 2017

• Invested in customer service function
• Customer Experience Director appointed
• 94% of our staff received customer service

training in FY17

• Customer satisfaction remains a key performance

indicator and bonus target for all levels

• f management

slide 18

Strong sales position

• Strong forward sales
• Started the year with more than

40% of FY18 consensus forecast revenue secured

• Good start to FY18 across all regions
• New commission structure for sales advisors
• Additional incentivisation on price
• Signifjcant reduction in levels of stock and

part-exchange properties

• Part exchange managed centrally as a

profit centre

• Investor sale of min 275 homes across our
• perating regions
• Returns at least in-line with

forecast expectations

slide 19

Restructuring successfully completed

• Implemented initiatives to simplify and streamline
• perating structure
• Merger of Eastern and Southern regions
• Proximity of developments to regional offjce key to

supporting hands-on management

• Re-located Southern Counties and Northern

Home Counties regional offices

• South East regional office relocating to

Kings Hill, Maidstone

• Outsourced a number of business areas to drive

greater effjciency

• Legal, planning, design, engineering
• All completed within the £4.0m restructuring provision
• On track to deliver target of overheads at maximum

5% of revenue in FY18

Second Floor Office

New Basingstoke offjce New Milton Keynes offjce

slide 20

High quality, motivated people

• Far greater ‘hands on’ management with strong
• perational focus
• Regional MD’s completed leadership training programme
• Increased investment in development and training
• Learning and Development team
• Bovis Homes Training Centre firmly established
• Focus on ensuring we have the best quality site managers
• Attractive new remuneration package
• Increased specific training and development
• Full training programme underway for FY18
• Leadership training for all senior managers
• Investment in and development of Commercial teams
• Employee incentives closely aligned to Group’s medium

term targets

• Increased levels of employee satisfaction
• Reduction in headcount turn

slide 21

High quality build

• Focus on setting our sites up correctly from the start and

‘getting it right fjrst time’

• Appointment of five new regional construction

directors

• Investment in site managers and site teams
• Strengthened sub-contractor relationships
• ‘New’ Bovis Homes is a partner of choice
• Progressive, controlled build across our sites
• Build programmes
• WIP controls
• Robust and formalised inspection and handover processes
• NHBC reportable items down by 20%
• Highest standards of health and safety
• Health and safety inspections brought in-house

supporting more hands on, proactive approach

slide 22

Progress with commercial

• COINS to be launched next month
• Drive efficiencies, standardised processes

and best practice

• Provide enhanced management information

enabling better decision making

• Gives surveyors greater ability to pro-actively manage costs
• Signifjcant improvement in frequency and robustness of cost reviews
• Rationalised our sub-contractors base and developing stronger

working partnerships

• Strengthening our materials supply base and providing greater forward

visibility of our production plans

• Investment in training and development of commercial

teams a priority for FY18

www.bovishomesgroup.co.uk

Medium term targets

Greg Fitzgerald

Chief Executive Offjcer

slide 23

Marbury Meadows, Wrenbury

slide 24

Growth in completions

• Expect to deliver a c.10% increase in completions to 4,000 units

by FY20

• Controlled and disciplined manner
• Maximise economies of scale from current operating structure
• 7 balanced operating regions
• Shortage of skilled labour remains a constraint to organic growth

beyond 4,000 units

slide 25

Optimising our land bank structure

• Targeting 3.5 to 4.0 years owned land bank
• Dec 2017: 17,096 plots equivalent to

4.3 year land bank assuming 4,000 completions

• Reducing level of land investment without

impacting output to FY20

• 5 land sales in FY17
• Focus for FY18 on reducing our investment
• n our larger sites

Site size Total sites Total plots 0 - 50 25 808 50 -100 34 2,551 100 -150 25 2,975 150 - 250 21 3,826 250+ 12 6,937 Total 117 17,096

Note: Land bank as at 31 December 2017 (excluding strategic land bank)

slide 26

Land bank fundamentals remain strong

• Family homes in prime locations
• Southern location bias with no

London exposure

• Predominantly lower risk greenfjeld sites
• Traditional standard housing with

limited apartments

• Balanced portfolio across all regions
• Excellent forward visibility
• 93% of FY19 and 70% of FY20

land already secured

32% 68% 15% 85% 27% 6% 67%

Standard Non standard Greenfjeld Brownfjeld Apartments Houses Afgordable

31 Dec 2016 2017

Average plots per site 141(1) 146(1) Average sales price £271k £293k Average land cost £52k £53k Plot cost/ASP 19% 18% Average gross margin 22.9% 23.2%

Note: (1) Average plots per site excluding plots at Wellingbourgh and Sherford Note: Land bank as at 31 December 2017, excluding Wellingborough and Sherford

slide 27 slide 27

• Targetting reduction in level of investment
• Discussions re joint venture
• pportunities ongoing
• Main access road including railway and river

bridges progressing well

• Completion end 2018
• Northern Home Counties commenced

residential building

• Show homes opening Q3 2018
• First completions Q4 2018
• Expect to sell serviced parcels of land to

third party developers during 2018

• Site gross margin well in excess of minimum

hurdle rate

Stanton Cross - Wellingborough

31 Dec 2017

Owned plots 1,747 Total balance sheet investment £81.6m

slide 28

Strategic land opportunity

• Strategic land remains an important land supply
• Expect to deliver c.10,000 plots from our

strategic land bank over next 5 years

• Returns expected to exceed our minimum

hurdle rates

• 1,850 plots over 6 sites converted in FY17
• Excellent locations including Witney,

Petersfield, Bishop’s Stortford and Didcot

• Will continue to pursue new strategic land
• pportunities that are within our core
• perating area
• 2,338 new strategic land plots optioned

in FY17 including 1,800 plots at Stanton Cross

As at 30 Dec 2017 Total sites Total plots

0 – 150 plots 11 1,100 150 – 300 plots 18 3,712 300 – 500 plots 9 3,220 500 – 1,000 plots 9 5,741 1,000+ plots(1) 5 6,983 Total 52 20,756 Planning agreed 10 7,980 Planning application 15 4.836 On-going promotion 27 7,940 Total 52 20,756

Note: (1) Includes 1,800 plots at extension site at Stanton Cross held under separate option arrangements

slide 29

Progress with afgordable housing

• Earlier exchange of contracts
• Reducing risk
• Improved cash management
• Stronger negotiating position
• 43 contracts exchanged in FY17
• 82% of FY18 affordable delivery contracted
• Establishing strong relationships with

registered providers

• Bovis Homes to be ‘Partner of choice’
• Opportunities for JVs and other

broader partnerships

• New housing range for affordable homes

‘The last phase was a smooth handover process due to your attention to detail and presentation of the homes. Hope to work with you again in the future’ Paradigm Housing Group ‘The management team has always been quick to respond to our needs, they strive to maintain the highest possible standards and have been an absolute pleasure to work with’ Arcadis (employers agent)

slide 30

Margin initiatives

• Underlying margin embedded in land bank coming through
• Four major margin initiatives
• 1. Price optimisation
• Focused on driving prices across all product and developments
• New commission structure introduced for sales advisors
• Reflects priority focus on controlled volume growth, high levels of customer satisfaction,

and increased profitability

• 2. Specification review
• Amendments to build specification improving build quality with a lower cost base
• Reviewing scope of fixtures and fittings that are delivered as standard
• Further opportunities to optimise both pricing and reduce costs through

specification changes

• 3. Cost reduction
• Increased cost contingency on all developments to 4% in FY17
• With significant improvement in our operations, targeting release of a proportion of this
• 4. New housing range
• Complete review of the sales and construction specifications
• Developed industry leading housing range
• Further price optimisation and reduction in production costs

slide 31

New housing range

• Introduction of industry leading housing range
• Private and affordable house types
• Ready for launch in April 18
• First completions in FY19
• New homes designed to meet today’s

customers’ needs

• Input direct from architects, customers and

all business areas

• Complete review of sales and construction

specifjcation

• Deliver added value to our customers
• Optimise prices
• Drive a reduction in production costs and

improve build efficiency

Phoenix No.7 - new range P303 Sheringham - current range

slide 32

New housing range

Ground fmoor First fmoor Ground fmoor First fmoor

Phoenix No.7 - new range P303 Sheringham - current range

slide 33

Market environment

• Fundamentals are strong
• High level of consumer demand
• Strong support for the sector
• Low interest rate environment
• Competitive mortgage market
• Supportive planning environment
• High employment levels
• Pricing remains robust
• Attractive land market
• Stamp Duty Land Tax relief for most fjrst time buyers
• Government consultation on Help to Buy beyond 2021
• Leasehold - Group has minimal exposure
• Public focus on the quality of new build homes

slide 34

• On track to deliver min £180m additional cash from specifjc initiatives
• Group will continue to be strongly cash generative

Ordinary dividend

• Strategy of maximising sustainable dividends to shareholders
• FY17: 6% increase to 47.5p demonstrating confjdence in business
• FY18: 20% increase to c.57p refmecting strong outlook
• Ordinary dividend cover to move to 2 times by FY20

Special dividend

• Payments totalling £180m (c.134 pence per share) in three

years to FY20

• First payment of £60m (c.45 pence per share) towards end of 2018
• Board committed to reviewing further capacity for returns over time

Enhanced cash returns to shareholders

slide 35

Strong outlook for FY18

• Strong sales position
• Started the year with 40% of consensus FY18 revenues secured
• Strong start to 2018 with the sales rate up 14% to 0.5 and pricing ahead
• Controlled increase in volumes
• Confident of delivering FY18 completions in-line with expectations
• Maintain high level of customer satisfaction
• Deliver a signifjcant improvement in profjt in FY18, with focus on four new

margin initiatives

• Complete balance sheet optimisation and combined with increased profjt, deliver

a signifjcant improvement in ROCE

• Board anticipates increasing Ordinary Dividend by 20% to c.57 pence

per share and making payment of fjrst special dividend towards the end of 2018

slide 36

www.bovishomesgroup.co.uk

Q&A

Sherford, Plymouth

slide 37

Disclaimer - important notice

Certain statements in this presentation are forward looking statements. Forward looking statements involve evaluating a number of risks, uncertainties or assumptions that could cause actual results to differ materially from those expressed or implied by those statements. Forward looking statements regarding past trends, results or activities should not be taken as a representation that such trends, results or activities will continue in the future. Undue reliance should not be placed on forward looking statements.

slide 38 slide 38

www.bovishomesgroup.co.uk

Appendices

Bovis Homes Group PLC

Full year results 2017

Winchester Village, Winchester

slide 39 slide 39

Key metrics

0.000 40.025 80.050 120.075 160.100 0.00 210.96 421.92 632.88 843.84 1054.80 0.000 4.325 8.650 12.975 17.300 0.000 4.575 9.150 13.725 18.300 0.00 23.85 47.70 71.55 95.40

78.8 133.5 154.7 114.0 160.1 556.0 809.4 946.5 1,054.8 1,028.2 15.2 12.5 14.9 17.0 17.3 10.6 16.2 18.3 17.0 13.7 44.9 78.6 95.4 90.1 68.0

Profit before tax (£m)

£114.0m

Revenue (£m)

£1,028.2m

Operating profit margin (%)

12.5%

ROCE (%)

13.7%

Earnings per share (p)

68.0

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

0.00 11.25 22.50 33.75 45.00

13.5p 35p 40p 45p 47.5p

Dividend

47.5p

2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017

(1) (1)

Note:

(1) Pre exceptional items totalling £6.8m related to advisory fees resulting from bid approaches and restructuring charges

slide 40

Gross profjt and admin expenses reconciliation

£m (unless stated) H1 2016 H2 2016 FY 2016

(1) H1 2017

H2 2017

(2)

FY 2017

Housing gross profjt pre re-statement 100.3 127.7 228.0 92.0 118.8 210.8 Re-stated direct costs (12.6) (14.1) (26.7) (14.8) (13.8) (28.6) Housing gross profjt re-stated 87.7 113.6 201.3 77.2 105.0 182.2 Non-housing gross profjt 0.0 7.7 7.7 0.2 2.2 2.4 Administrative expenses re-stated (23.8) (25.2) (49.0) (28.8) (27.8) (56.6) Operating profit 63.9 96.1 160.0 48.6 79.4 128.0 Housing gross margin pre re-statement 24.3% 20.7% 22.2% 21.9% 20.7% 21.2% Housing gross margin re-stated 21.2% 18.4% 19.6% 18.3% 18.3% 18.3%

Note: (1) Pre exceptional items totalling £2.8m related to advisory fees resulting from bid approaches (2) Pre exceptional items totalling £6.8m related to advisory fees resulting from bid approaches and restructuring costs

Mercia West Midlands Western South West South East Northern Home Counties Southern Counties Exeter Cheltenham Stafford Coleshill Basingstoke Milton Keynes Stansted New Ash Green

West division East division

Regional head office Satellite office

slide 41 slide 41

Header

slide 41

Regional operating structure

slide 42 slide 42

• Strength of land bank across our
• perating regions
• Proximity to regional offjce is a

key criteria for land acquisition going forward

• Focus on further tightening

geographic range by divesting

• ut of geography developments
• Stanton Cross, Wellingborough

1,747 plots included in Northern Home Counties and Sherford 1,604 plots within South West

Strength of land bank across the regions

863 1726 2589 3452 4315

Mercia

1,792 1,800 1,964 3,056 3,664 2,061 2,759

Owned plots West East Southern Counties West Midlands Western South West South East Northern Home Counties

slide 43 slide 43

Work in progress and other assets

(£m) 31 Dec 2016 30 June 2017 31 Dec 2017

Stock 28.8 24.1

18.8

Show homes 7.8 7.8

4.3

Roads and sewers 188.5 205.2

194.9

Housing and other WIP 142.6 169.7

139.0

Wellingborough WIP 12.3 20.9

31.9

Part exchange 48.6 42.5

19.7

Total work in progress 428.6 470.2

408.6

Shared equity 27.8 23.8

0.0

Debtors

• Help to Buy

13.0 7.6

1.5

• HA

31.6 25.9

10.7

• Other receivables

46.2 56.7

65.6

Other assets 23.9 21.4

14.3

Total other assets 142.5 135.4

92.1

Imputed interest on land creditors drives the fjnancial charge

12 months ended 31 December (£m) 2016 2017

Bank interest and commitment fees (2.7) (2.4) Issue cost amortisation (0.6) (0.6) Imputed interest on land (5.0) (5.1) Pension fjnancing 0.3 (0.2) Imputed interest on available for sale assets 2.4 1.1 Total (5.6) (7.2)

slide 44

slide 45 slide 45

Land creditor payments

50 100 150 200 250

<1 year 1-2 year 2 year+

£m

£252m £168m £44m £40m

Note: The above fjgures are on an absolute cash basis. Balance sheet land creditors fjgure of £247m as at 31 December 2017 is

• n an IFRS accounting basis

slide 46

Other liabilities

As at 31 December (£m) 2016 2017

Creditors 239.5 231.2 Corporation tax liability 13.9 16.9 Deferred tax liability

• 0.6

Retirement benefjt obligations 6.6

• Provisions
• Customer care provision

8.2 1.4

• Other

2.9 5.6 Other liabilities 271.1 255.7