Our Strategy

Our strategic objectives

• Build right, first time, every time – consistently deliver high quality homes to our customers in places where they wish to live and work
• Continue to put our customers and quality before volume
• Invest in new technologies to enhance customer service
• Provide affordable new homes to our housing association partners

How we measure progress

• 92.0%¹ of customers that have moved into their new home say they would recommend Persimmon to a friend
• The Persimmon Way is fully operational across the business
• The number of Independent Quality Controllers (IQCs) across the Group has almost doubled since the start of the year

^{1. The Group participates in a National New Homes Survey, run by the HBF. The Survey year covers the period from 1 October to 30 September. The rating system is based on the number of customers who would recommend their builder to a friend.}

Our strategic objectives

• Continue to invest in the development and training of our workforce and ensure talent is recognised, nurtured and supported
• Provide exceptional career opportunities to all colleagues
• Encourage our workforce to live our values through training and reward schemes
• Increase the diversity of our workforce, enriching our culture and enhancing our skills base
• Address the labour skills shortage across the industry through investment in training and apprenticeships

How we measure progress

• Over 650 trainees and apprentices across the business
• c.13,200 training days delivered
• 28% females on our senior executive management team and direct reports
• c.90% of our Site Managers now hold a relevant NVQ qualification

Our strategic objectives

• Identify and fulfil the needs of local communities and Local Planning Authorities through our on market and strategic planning and land acquisition processes
• Deliver sustainable high quality land holdings with industry-leading embedded margins, providing a robust platform for disciplined growth
• Deliver our strategic land holdings for development

How we measure progress

• Owned and controlled land holdings of 88,043 as at 31 December 2021
• Brought over 20,750 plots into the business across 101 sites, representing 143% of current consumption levels
• Underlying new housing gross margin of 31.4%¹ delivered during 2021 reflecting the quality of the Group’s land holdings

^{1. Based on new housing revenue (2021: £3,449.7m).}

Our strategic objectives

• Maintain excellent health and safety standards across each of our sites and in our off-site manufacturing facilities
• Minimise our environmental impact
• Strengthen and invest in our off-site manufacturing facilities, improving efficiencies, increasing security of supply and improving the sustainability of our new homes
• Continue to embed sustainability considerations into our core operations

How we measure progress

• Annual injury incidence rate of 2.5 per 1,000 workers
• 5,865 pro-active site inspections
• GHG emissions of 1.80 tonnes CO₂e per home sold (market based)

Our strategic objectives

• Create attractive neighbourhoods with high amenity value in places where people wish to live and work
• Provide a range of house types, widening the opportunity of home ownership whilst creating attractive neighbourhoods for people to enjoy
• Play an active role in supporting our local communities
• Deliver FibreNest, the Group’s ultrafast, full fibre broadband service to our customers, providing an increasingly important service which families rely on to support their efforts to work from home and to access essential services online

How we measure progress

• Our average private selling price of £259,231 is over 20%¹ below the UK national average
• Approximately 50% of our private home completions for the year have been to first time buyers
• £490m² invested in our local communities in 2021
• c.92,000³ construction and supply chain jobs supported
• FibreNest currently supports c.21,000 customers over 270 sites

^{1. Rolling 12 month national average selling price for newly built homes sourced from the UK House Price Index as calculated by the Office for National Statistics from data provided by HM Land Registry.}

^{2. The value of homes delivered to our housing association partners, the value of Discounted Open Market Value Housing plus the value of planning contributions we have made.}

^{3. Estimated using an economic toolkit.}

Our strategic objectives

• Maintain a resilient balance sheet and financial flexibility through the cycle sustaining continued investment and future returns
• Invest in appropriate levels of working capital and land replacement opportunities
• Maintain discipline over the appropriate level of capital employed within the business through the housing cycle
• Identify capital that is surplus to the operational needs of the business and distribute to shareholders

How we measure progress

• High quality land holdings with industry-leading embedded margins
• Strong levels of liquidity with a cash balance of £1,246.6m at 31 December 2021 and deferred land creditors of £407.6m
• Total dividend payment of 235p per share paid during 2021 in respect of the 2020 financial year
• Return on average capital employed of 35.8%¹

^{1. 12 month rolling average calculated on underlying operating profit and total capital employed (including land creditors). Underlying operating profit is stated before goodwill impairment of £6.2m.}