RESULTS PRESENTATION Year ended 30 June 2020 2 September 2020 - - PowerPoint PPT Presentation

1

Saviours Place, Warrington

RESULTS PRESENTATION

Year ended 30 June 2020

2 September 2020

2

David Thomas Chief Executive Officer

St Rumbold’sFields, Buckingham

3

KEY HIGHLIGHTS

• Before COVID-19 strong progress on volume growth and margin improvement
• All operational sites reopened by 30 June 2020
• Health and safety remains our first priority
• Strong balance sheet - £308m year end net cash and significant undrawn facilities
• Leadership in quality and customer service

4

OPERATIONAL TARGETS

FY20 Areas of focus for FY21 Medium term targets Wholly owned home completions 12,034 homes  Driving site based construction activity  Maximising sales for customers who will not qualify under the new Help to Buy scheme  Wholly owned home completion growth to 14,500 - 15,000 in FY21 Disciplined growth in wholly owned home completions Gross margin 18.0%  Rebuilding site based construction activity to improve fixed cost recovery  Controlling material and labour cost inflation Land acquisition at a minimum 23% gross margin and optimising performance ROCE 15.6%  Tight control of working capital with build release aligned with home completion cash generation  Focus on cash with selective land spend beyond land creditor settlements Minimum of 25% delivered through improving margin and return to

• perating framework

5

Steven Boyes Chief Operating Officer

Cane Hill Park, Coulsdon

6

SALES PERFORMANCE

Net private reservations per active outlet per average week (1) Pre lockdown (2) Lockdown (3) Post lockdown (4) Full year FY20 0.73 (0.10) 0.63 0.60 FY19 (5) 0.68 0.82 0.69 0.70 Variance % 7.4% n/m (8.7%) (14.3%)

• Good sales rate at 0.60 given challenging

backdrop

• Sales rate was 7.4% ahead prior to

lockdown

• Strong recovery with positive trend

(1) An active outlet is defined as an outlet with at least one plot for sale. Our definition remains consistent with previous reporting periods, unaffected by the closure of our sales centres across the Group during the lockdown period (2) Pre lockdown period of 38 weeks from 01/07/19 - 22/03/20 (3) Lockdown period of 8 weeks from 23/03/20 - 17/05/20 (4) Post lockdown period of 6 weeks from 18/05/20 - 30/06/20 (5) FY19 is equivalent period

7

COMPLETIONS

Completions FY20 FY19 Change Private 9,568 13,533 (29.3%) Affordable 2,466 3,578 (31.1%) Wholly owned 12,034 17,111 (29.7%) JV 570 745 (23.5%) Total (inc JVs) 12,604 17,856 (29.4%)

• COVID-19 halted the significant progress made in H1

FY20:

• H1 wholly owned completions were ahead 8.1%
• H2 wholly owned completions declined by 58.5%

8

COMPLETIONS ANALYSIS – BUYER TYPE

• Similar profile year on year
• Help to Buy is an important customer proposition
• Help to Buy is tapering from 1 April 2021:
• First time buyers only
• Regional price caps
• Existing homeowners:
• Alternative mortgage products
• Part-exchange option

16% 15% 19% 21% 30% 27% 20% 21% 11% 11% 4% 5% FY20 FY19 Investor Part-exchange Affordable Other private Help to Buy eligible post taper Help to Buy ineligible post taper

9

PRICING TRENDS REMAIN POSITIVE

Private completions average selling price (£’000) FY20 FY19 Change Regional 303.6 297.2 2.2% London 754.8 628.5 20.1% Group 310.6 312.0 (0.4%) JV 585.0 537.9 8.8%

• Regional pricing reflects change in geographical mix
• London driven by trade through of central London

and outer London site mix

• Modest underlying house price inflation in FY20

10

OPERATIONAL ACTIVITY

• Health and safety remains our key concern, all operations

comply with our enhanced COVID-19 working practices

• Site activity recommenced in waves from 11 May 2020 in

England and Wales and 1 June 2020 in Scotland

• All operational sites were restarted with our employees

(1)

returned to work by 30 June 2020

(1) Except those shielding

11

• 1,500

3,000 4,500 6,000 7,500 9,000 10,500 12,000 13,500 15,000 16,500 7 May 14 May 21 May 28 May 4 Jun 11 Jun 18 Jun 25 Jun 2 Jul 9 Jul 16 Jul 23 Jul 30 Jul 6 Aug 13 Aug 20 Aug 2020

• Return to site managed within COVID-19

protocols and site specific considerations

• Initial focus managing construction to

meet forward sale commitments

• Headcount on site has expanded:
• Phased site reopening
• Site headcount optimisation within

social distancing requirements

• Construction activity across all build

stages

Management and trades headcount on site

REBUILDING OUR CONSTRUCTION ACTIVITY

12

361 361 361 361 347 50 100 150 200 250 300 350 400 FY19 FY20 Weeks 1-38 FY20 Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Weekly equivalent unit production (homes) FY21 target weekly equivalent unit production (homes)

OPTIMISING OUR CONSTRUCTION ACTIVITY

• Focused on optimising site construction activity

to levels prior to lockdown through:

• Extended site operating hours
• Improved build scheduling to reduce unit

down time

• Continued broadening of build activity

including new site infrastructure construction

• Increasing proportion of standard house

types adding simplicity, repeatability and efficiency

• Optimisation of build mix with Oregon

timber frames playing an important role in accelerating build time

FY21

Weekly build equivalent unit production (homes)

13 9% 9% 36% 36% 60% 60%

0% 10% 20% 30% 40% 50% 60% 70% FY18 FY19 FY20

Proportion of regional completions using new product ranges (%)

DRIVING OPERATING MARGIN – NEW PRODUCT ROLL OUT

+19%

• Continual process of product range review and

refinement for further build efficiencies

• Regional completion momentum from new product

ranges maintained

• 60% of all regional completions in FY20 (FY19: 36%)

(1)

• Suitable for Modern Methods of Construction

(1) Including JVs in which the Group has an interest (2) As at 30 June

% of active outlets with new product range (1)(2) 42% 72% 79%

14

• Use of Modern Methods of Construction continues to

grow

• 21% of completions in FY20 vs 20% in FY19
• On track to deliver our target of 25% of completions

by 2025

• Oregon successfully integrated and key to increasing

use of timber frame

LEADING CONSTRUCTION – MODERN METHODS OF CONSTRUCTION

Oregon timber frame installation at East Ardsley, West Yorkshire

15

LAND BANK

• Land bank remains strong
• Land approvals totalled 9,441 plots across 51 sites
• Continue to operate a shorter land bank model
• Medium term land bank targets remain:
• c. 3.5 years owned and c. 1.0 year controlled land in

each division

• Selective and disciplined land buying recommenced

Land bank plots 30 June 2020 30 June 2019 Owned 68,393 66,423 Controlled 11,931 13,599 Total 80,324 80,022 Land bank years (exc JVs) 6.7 4.7 JV – Owned and controlled 5,400 5,207 Total including JV 85,724 85,229

16

LAND MARKET

HOLDING PICTURE – CB SPEAKING TO PHIL BARNES

• Land prices have remained broadly stable
• High quality land opportunities remain plentiful

across the country

• Planning consents remain ahead of development

suggesting continued attractive supply: demand dynamics

• Will evolve post COVID-19

50 100 150 200 250 300 350 400 450 20 40 60 80 100 120 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 England moving annual planning consents ('000s) Savills UK Greenfield Development Land Index (100 = 2007 peak)

Savills UK Greenfield Development Land Index versus English Planning Consents(1)

Savills UK Greenfield Development Land Price Index England - Planning consents ('000's)

(1) Data to 31 March 2020

17

MANAGING THE COST ENVIRONMENT

• Limited inflation likely

given excess capacity and lower energy costs

• 95% of pricing fixed to

December 2020

• 62% of pricing fixed to

June 2021

Materials Labour

• Limited signs of cost

pressures

• Increased use of off-site

manufacturing – Oregon timber frame optimisation

• 219 new apprentices,

trainees and graduates in FY20 Build cost inflation FY21: c.1-2%

18

SUMMARY

• Lower completions due to lockdown
• Sales rates have shown a strong recovery
• Construction activity now close to pre lockdown levels
• Delivering industry-leading quality and customer

service

• Continued focus on Health & Safety

Octavia Gardens, Chapel-en-le-Frith

Ridgeway Views, London

19

Jessica White Chief Financial Officer

Fairfield Croft, York

20

PERFORMANCE

£m (unless otherwise stated)

FY20

FY19

Change

Revenue

3,419.2

4,763.1

(28.2%)

Gross profit

614.3

1,084.2

(43.3%)

Gross margin %

18.0

22.8

(480 bps)

Operating profit

493.4

901.1

(45.2%)

Operating margin %

14.4

18.9

(450 bps)

PBT

491.8

909.8

(45.9%)

Earnings per share pence

39.4

73.2

(46.2%)

Net cash

308.2

765.7

(59.7%)

ROCE %

15.6

29.7

(1,410 bps)

21

REVENUE SUMMARY

FY20 FY19 Change

Home completions (units) Private

9,568 13,533 (29.3%)

Affordable

2,466 3,578 (31.1%)

Total home completions

12,034 17,111 (29.7%)

% Affordable

20% 21% (100 bps)

JV

570 745 (23.5%)

Total home completions (inc JVs)

12,604 17,856 (29.4%)

ASP (£’000) Private

310.6 312.0 (0.4%)

Affordable

163.0 132.2 23.3%

Total

280.3 274.4 2.2%

JV

472.9 487.8 (3.1%)

22

COVID-19 IMPACT AND ADJUSTED ITEMS

£m (unless otherwise stated)

FY21 FY20 Margin

FY19 Margin

Gross profit

614.3 18.0% 1,084.2 22.8%

Adjusted items: Costs / (credit) associated with legacy properties costs charged in H1

17.8 (3.7)

Costs associated with legacy properties costs charged in H2

• c. 48.0

22.1 6.9

(Income) from Government CJRS grant

22.8(1) (22.8)

• Adjusted gross profit

631.4 18.5% 1,087.4 22.8%

COVID-19 safety and non-productive site costs – Non-recurring costs

45.2

• Inventory provision charge / (reversal) – Non-recurring costs

8.2 (14.8) 684.8 20.0% 1,072.6 22.5%

COVID-19 site extensions – Recurring costs

29.1

• (1)

£26.0m of Government CJRS grant income received in total and repaid in FY21. £3.2m allocated against administration costs

23

OPERATING MARGIN BRIDGE

13.0% 14.0% 15.0% 16.0% 17.0% 18.0% 19.0% FY19 Remove non- recurring items FY19 subtotal Volume impact Transition to new sites Net inflation Site extension Mix &

• ther

Admin expenses Inventory provision charge Non productive site

• verhead

impact FY20 adjusted Costs on legacy properties CJRS Grant income in respect of COVID-19 FY20

18.9% 40 bps 190 bps 50 bps 50 bps 90 bps 60 bps 120 bps 20 bps 130 bps 14.4% 80 bps

Increase Decrease

14.8% 18.5% 120 bps

Non-recurring items 40 bps Trading items 220 bps Non-recurring items 190 bps

24 New operating framework Position at 30 June 2020 and 2019 Land bank

• c. 3.5 years owned / c. 1.0 year controlled

2020: 5.7 years owned and 1.0 year controlled (2019: 3.9 years owned and 0.8 years controlled) Land creditors (1) Reduce usage to 15 - 25% of the land bank over medium term Reduced to 25.4% (2019: 31.3%) Net cash Modest average net cash over the financial year FY20 average net cash of £348.3m (2019: £298.3m) Year end net cash 2020: £308.2m (2019: £765.7m) Total indebtedness (1) (net cash and land creditors) Minimal year end total indebtedness in the medium term 2020: £483.7m total indebtedness (2019: £195.0m total indebtedness) Treasury Appropriate financing facilities £700m Revolving Credit Facility extended to November 2024 £200m Private Placement Notes maturing August 2027 Dividend policy (1) 2.5x ordinary dividend cover (at the appropriate time) FY20 no dividend proposed (2019: 46.4p per share)

OPERATING FRAMEWORK

(1) Changed with FY20 announcement

25

BALANCE SHEET

£m

30 June 2020

30 June 2019 Goodwill and intangible assets 907.0 908.2 Investment in joint ventures and associates 152.1 189.0 Gross land bank 3,112.3 3,071.6 Land creditors (791.9) (960.7) Net land bank 2,320.4 2,110.9 Land creditor % 25.4% 31.3% WIP 1,852.4 1,632.8 Net cash 308.2 765.7 Trade payables (186.8) (353.6) Other working capital (511.3) (329.5) Other net assets / liabilities (1.7) (54.5) Net assets 4,840.3 4,869.0

26

CASH FLOW

(500) (400) (300) (200) (100) 100 200 300 400 500 Profit from

• perations

Net cash interest & tax Other non- cash and working capital WIP / PX Land Land creditors JV investment Operating cash outflow Dividends Other investing & financing Net cash

• utflow

493.4 (195.5) (34.8) (162.9) (48.9) (168.8) 65.2 (52.3) (32.0)

£m

(373.2) (457.5)

Inflow Outflow Includes land spend c.£78 780m

27

GUIDANCE FOR FY21

Completions 14,500 – 15,000 wholly owned home completions

• c. 20% affordable
• c. 650 JV

Total administrative expenses

• c. £195m

Adjusted items CJRS grant refund £26m Legacy property costs c.£48m Interest cost

• c. £30m

(c. £10m cash, c. £20m non-cash) Land cash spend

• c. £850m

Land creditors 15 – 25% owned land bank Average net cash

• c. £300m

Year end net cash

• c. £550m

28

• Resilient financial performance
• Balance sheet remains strong with significant

financing facilities

• Land creditor reduction target achieved
• Disciplined approach to cash management
• Clear operating framework
• Well positioned for the future

FINANCIAL SUMMARY

Cricket Field Grove, Crowthorne

Fairfields, Milton Keynes

29

David Thomas Chief Executive

Winnington Village, Northwich

30

INVESTMENT PROPOSITION Rebuilding volumes Delivering margin improvement Attractive returns

Disciplined growth in wholly owned home completions towards 20,000 over the medium term Land acquisition at a minimum 23% gross margin and optimising performance 2.5x dividend cover (at the appropriate time) Rebuilding to achieve a targeted minimum ROCE of 25% Quality and service Strong balance sheet and cash generation Highly experienced build and sales teams Shorter

• wned land

bank Nationally diversified Leading sustainability

31

MARKET FUNDAMENTALS Demand continues to exceed supply Help to Buy tapering from 1 April 2021 Affordable rates Attractive land market 1.80%

average 2 year fixed rate at 85% LTV(1) Government target: 300,000 homes per annum

1) Rates are from an average of four lenders. Standard 85% product based on available rate with a fee not exceeding £1,000. Rates at June 2020

32

MORTGAGE AFFORDABILITY REMAINS ATTRACTIVE

(1) Rates are from an average of five lenders. Standard 85% product based on available rate with a fee not exceeding £1,000. HtB product based on the best available HtB equ ity share rate with no fee. Rates at June 2020 (2) The mortgage to earnings ratio is calculated using the Halifax standardised average house price (seasonally adjusted), averag e disposable earnings for all full time employees and the BoE monthly average rate for new advances to households

1.4% 1.6% 1.8% 2.0% 2.2% 2.4% 2.6% 2.8% Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20

Mortgage rate (%)

Average mortgage rate (%)(1)

Help to Buy 75% mortgage product (20% equity loan) Standard 85% LTV mortgage product

20% 25% 30% 35% 40% 45% 50% 55% 60% 1985 1990 1995 2000 2005 2010 2015 2020

Mortgage costs as a proportion of earnings

Halifax Mortgage Affordability Index(2)

Halifax Affordability Index Average (1985-Q2 2020)

33

MORTGAGE LTV RESTRICTIONS

• Mortgage affordability supported by

product rates continuing to be very low relative to historical levels

• Mortgage qualification is becoming more

challenging, particularly at high Loan to Values

• Help to Buy remains an important bridge to

homeownership for many

70% 75% 80% 85% 90% 95% 100% Lloyds (Halifax) Nationwide Barclays NatWest Santander HSBC Accord TSB

Maximum new build house Loan to Value criteria evolution March - July 2020

March 2020 July 2020

Note: All the mortgage lenders also offer HTB mortgages with the exception of HSBC

34

OUR PRIORITIES AND PRINCIPLES – DELIVERING FOR THE LONG TERM

• Delivering our priorities and principles
• Sustainability creates long term value for our stakeholders
• Focus on measurable targets to deliver what matters most for

stakeholders

To lead the future of housebuilding by putting customers at the heart of everything we do

35

SAFEGUARDING THE ENVIRONMENT

• Committed to be the leading national sustainable housebuilder
• Reduce carbon emissions across all of our footprint:
• Science based targets set
• 100% renewable electricity for own operations by 2025
• New standard house types will be net zero carbon in use

from 2030

• Net zero carbon emissions business across all direct
• perations by 2040
• Create a net positive impact for ecology and biodiversity across

all developments that we progress through planning from 2020

• nwards

Kingsbourne, Nantwich

36

CURRENT TRADING

(1) As at 23 August 2020 and 25 August 2019

FY21 8 weeks FY20 8 weeks Change Net private reservations per active outlet per average week

0.94 0.68 38.2%

Average active outlets

334 366 (8.7%)

Net private reservations per average week

314 250 25.6%

Total forward sales (including JVs)(1)

£3,706.5m £3,037.5m 22.0%

37

CONCLUSION

• Strong operationally and financially
• Uncertain economic backdrop but attractive housing

market fundamentals

• Managing COVID-19 risks
• Focused on delivering operational improvements
• Continue to lead on quality and customer service
• Confidence to selectively return to the land market
• Building a sustainable business

Cherry Tree Park, Sunderland

38

Q&A

New Lubbesthorpe, Leicester

39

APPENDICES – INDEX

Page Definitions 40 Current trading - forward order book 41 Current trading – forward sales roll 42 Full P&L 43 Calendarised P&L 44 Private completions – volume and ASP 45 Private average selling price 46 Home completions analysis – product type 47 Joint venture summary 48 Net interest charge analysis 49 Future financing arrangements 50 Balance sheet - land bank 51 Land creditors payment profile 52 Land prices versus house price inflation 53 Investing in our people 54 External benchmarks 55 Disclaimer 56

40

DEFINITIONS

• Active outlet is a site with at least one home for sale
• ASP is average selling price
• Average cash (debt) is calculated on average daily closing position in period
• CCFF is Covid Corporate Financing Facility
• CJRS is Coronavirus Job Retention Scheme
• Earnings per share (EPS) is calculated by dividing the profit for the year attributable to ordinary shareholders by the weighted average

number of ordinary shares in issue during the year, excluding those held by the Employee Benefit Trust

• FY refers to financial year ending 30 June
• Gross margin is calculated as gross profit divided by total revenue
• HBF is Home Builders Federation
• Land bank years is calculated as total owned and controlled land bank plots divided by wholly owned completions in the 12 months to

June

• MMC is Modern Methods of Construction
• Net cash is defined as cash and cash equivalents, bank overdrafts, interest bearing borrowings, prepaid fees and foreign exchange swaps
• Operating margin is calculated as operating profit divided by total revenue
• PBT is profit before tax
• Regional includes all regions excluding London
• Return on Capital Employed (ROCE) is calculated as earnings before intangible amortisation, interest, tax, operating charges relating to

the defined benefit pension scheme and operating adjusting or exceptional items for the 12 months to June, divided by average net assets adjusted for goodwill and intangibles, tax, net cash, retirement benefit assets/obligations and derivative financial instruments

• Unless stated Joint Ventures (JV) in which the Group has an interest are not included throughout the presentation

41

CURRENT TRADING – FORWARD ORDER BOOK

23 August 2020 25 August 2019 % change £m Homes £m Homes £m Homes Private 2,143.7 6,577 1,583.5 5,088 35.4% 29.3% Affordable 1,277.6 8,249 1,133.9 7,089 12.7% 16.4% Wholly owned 3,421.3 14,826 2,717.4 12,177 25.9% 21.8% JV 285.2 834 320.1 887 (10.9%) (6.0%) Total 3,706.5 15,660 3,037.5 13,064 22.0% 19.9%

42

CURRENT TRADING – FORWARD SALES ROLL

23 August 2020 25 August 2019 % change Private Total(1) Private Total(1) Private Total(1) 30 June 5,320 14,326 3,827 11,419 39.0% 25.5% Reservations 2,424 2,773 1,999 2,531 21.3% 9.6% Completions (1,167) (1,439) (738) (886) 58.1% 62.4% 23 Aug 2020 / 25 Aug 2019 6,577 15,660 5,088 13,064 29.3% 19.9%

(1) Including JV

43

Full P & L

£m (unless otherwise stated) FY20 FY19 Change Revenue 3,419.2 4,763.1 (28.2%) Cost of Sales (2,804.9) (3,678.9) 23.8% Gross profit 614.3 1,084.2 (43.3%) Gross margin % 18.0 22.8 (480 bps) Cost associated with legacy properties 39.9 3.2 n/m CJRS grant income (22.8)

• n/m

Adjusted gross profit 631.4 1,087.4 (41.9%) Adjusted gross margin % 18.5 22.8 (430 bps) Administrative expenses / part-exchange (1) (120.9) (183.1) 34.0% Operating profit 493.4 901.1 (45.2%) Operating margin % 14.4 18.9 (450 bps) Cost associated with legacy properties 39.9 3.2 n/m CJRS grant income (26.0)

• n/m

Adjusted operating profit 507.3 904.3 (43.9%) Adjusted operating margin % 14.8 19.0 (420 bps) Net finance costs (1) (29.9) (28.8) (3.8%) Share of JV/associate profit 28.3 37.5 (24.5%) PBT 491.8 909.8 (45.9%)

(1) The Group has initially applied IFRS 16 using the modified retrospective approach. Comparatives have not been restated in respect of the adoption of IFRS 16

44

CALENDARISED P&L

£m (unless otherwise stated) 12 months to Dec 19 12 months to Dec 18 Change

Revenue 4,897.3 5,018.8 (2.4%) Cost of sales (3,791.6) (3,937.9) 3.7% Gross profit 1,105.7 1,080.9 2.3% Gross margin % 22.6% 21.5% 110 bps Administrative expenses (196.2) (165.3) (18.7%) Part-exchange(1) 3.6 1.5 140.0% Operating profit 913.1 917.1 (0.4%) Operating margin % 18.6% 18.3% 30 bps Net finance costs (27.8) (37.0) 24.9% Share of JV/associate profit 39.5 20.7 90.8% PBT 924.8 900.8 2.7% ROCE 29.3% 29.5% (20 bps)

Completions 12 months to Dec 19 12 months to Dec 18 Change

Private 13,756 13,802 (0.3%) Affordable 3,953 3,336 18.5% Total 17,709 17,138 3.3% JV 839 739 13.5% Total Inc JV 18,548 17,877 3.8%

(1) comparisons have not been restated in respect of the adoption of IFRS15 for the 6 months to 30 June 2018

45

PRIVATE COMPLETION - VOLUME AND ASP

Homes: 1,150 (FY19: 1,680) ASP: £258.6k (FY19: £241.5k) Homes: 1,984 (FY19: 2,687) ASP: £250.0k (FY19: £243.8k) Homes: 1,909 (FY19: 2,721) ASP: £270.7k (FY19: £262.2k) Homes: 1,057 (FY19: 1,420) ASP: £320.6k (FY19: £315.9k) London Homes: 148 (FY19: 604) ASP: £754.8k (FY19: £628.5k) Southern Homes: 1,421 (FY19: 1,866) ASP: £369.2k (FY19: £375.9k) Homes: 1,899 (FY19: 2,555) ASP: £361.3k (FY19: £359.6k)

FY19 numbers reported under FY20 regional structure

46

PRIVATE AVERAGE SELLING PRICE

FY20 FY19 Homes ASP (£000) Homes ASP (£000) Regional total 9,420 303.6 12,929 297.2 Central London 17 2,918.8 127 1,417.3 Outer London 131 474.0 477 418.5 London total 148 754.8 604 628.5 Total private wholly owned 9,568 310.6 13,533 312.0

47

HOME COMPLETIONS ANALYSIS – PRODUCT TYPE

FY FY20 FY1 FY19

11% 11% 13% 5% 5% 5% 5% 12% 13% 35% 35% 35% 35% 34% 30% 30% 3% 3% 4% 4%

5 & 6 Beds 4 Beds 3 Beds 1 & 2 Beds Flats (London) Flats (non-London)

48

JOINT VENTURE SUMMARY

(1) Owned JVs as at 30 June 2020. Plots to legally complete as at 30 June 2020 Central London 115, Outer London 2,763, Regional 1,018 (2) Unsold plots as at 23 August 2020

Number of JVs(1) Unsold plots(2) ASP (£’000) Balance sheet investment (£m) Central London 2 2 781 13.5 Outer London 3 2,389 343 123.8 Regional 3 616 290 14.1 Commercial

• 0.7

Total 8 3,007 342 152.1

49

NET INTEREST CHARGE ANALYSIS

£m FY20 FY19 Interest on term debt and overdrafts (2.5) (2.4) Interest on private placement notes 5.5 5.5 Utilisation / non-utilisation fees on RCF 3.5 3.8 Other interest 0.8 (0.4) Total cash interest 7.3 6.5 Land creditors / deferred payables 19.9 21.5 Financing fees 2.3 2.8 Pension (1.6) (2.0) Lease interest (1) 2.0

• Total non-cash interest

22.6 22.3 Total interest 29.9 28.8

(1) The Group has initially applied IFRS 16 using the modified retrospective approach. Comparatives have not been restated in respect of the adoption of IFRS 16

50

FUTURE FINANCING ARRANGEMENTS

Loan Facility Amount Maturity Interest basis RCF facilities £700m November 2024 LIBOR +1.25-2.75%

(1)

Private placement notes £200m August 2027 2.77% Eligible to access up to £600m under the CCFF if required

(1) Does not include utilisation and non-utilisation fees

51

BALANCE SHEET – LAND BANK

Land bank plots 30 June 2020 30 June 2019 Plots with detailed planning consent 52,641 52,485 Plots with outline planning consent 15,615 13,443 Plots with resolution to grant and other 137 495 Owned 68,393 66,423 Controlled 11,931 13,599 Total land bank plots 80,324 80,022 JV plots – owned 3,896 4,149 JV plots - controlled 1,504 1,058 Total land bank plots (including JVs) 85,724 85,229 Land bank pricing (£’000) Cost of plots acquired 43.2 42.3 Cost of plots in P&L 42.7 45.3 Cost of plots in balance sheet 44.9 45.6 Owned land bank ASP(1) 276 275

(1) At current prices

52

LAND CREDITORS PAYMENT PROFILE

£m

53

LAND PRICES VERSUS HOUSE PRICE INFLATION

20 40 60 80 100 120 140 1999 2002 2005 2008 2011 2014 2017 2020 Savills UK Greenfield Residential Land Index and UK House Price Index (100 = 2007 peak)

Savills UK Residential Land Index versus UK House Price Index

UK Greenfield Development Land Index UK House Price Index

20 40 60 80 100 120 140 1999 2002 2005 2008 2011 2014 2017 2020

Savills Central London Land & Prime London House Price Index (100 = 2007 peak)

Central London Land Price Index vs Prime London House Price Index (2007 peak =100)

Central London Land Index Prime London House Price Index

54

• Mitigating industry skills shortages
• Future talent 7.4% of our workforce, 492 graduates,

apprentices and trainees

• Focus on diversity
• Award winning employment schemes
• T

arget 15% employee turnover in the medium term

• Accredited Living Wage Employer

INVESTING IN OUR PEOPLE

55

EXTERNAL BENCHMARKS

• 5 Star award for

11 years

• Only major

national housebuilder to achieve this

• 93 accreditations

including 23

• utstanding

awards

• More awards than

any other company

• Gold award for 2019
• Crystal award for transparency in

sustainability disclosure

• 92 awards in 2020
• More than any other housebuilder

for 16 consecutive years

• Large housebuilder of the year
• Best community initiative
• Best large housebuilder
• Overall housebuilder of the year

56

DISCLAIMER

This document has been prepared by Barratt Developments PLC (the “Company”) solely for use at a presentation in connection with the Company‘s Final Results Announcement in respect of the year ended 30 June 2020. For the purposes of this notice, the presentation (the “Presentation”) shall mean and include these slides, the oral presentation of the slides by the Company, the question-and-answer session that follows that oral presentation, hard copies of this document and any materials distributed at, or in connection with, that presentation. The Presentation does not constitute or form part of and should not be construed as, an offer to sell or issue, or the solicitation of an offer to buy or acquire, securities of the Company in any jurisdiction or an inducement toenter into investment activity. No part of this Presentation, nor the fact of its distribution, should form the basis of, or be relied on in connection with, any contract

• r commitment or investment decision whatsoever.

Statements in this Presentation, including those regarding the possible or assumed future or other performance of the Company or its industry or other trend projections may constitute forward- looking statements. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual results, performance or developments to differ materially from those expressed or implied by such forward-looking statements. Accordingly, no assurance is given that such forward-looking statements will prove to have been correct. They speak only as at the date of this Presentation and the Company undertakes no obligation to update these forward-looking statements. The information and opinions contained in this Presentation do not purport to be comprehensive, are provided as at the date of the Presentation and are subject to change without notice. The Company is not under any obligation to update or keep current the information contained herein.