Annual Report 2021

PLACING CUSTOMERS AT THE HEART

OF OUR BUSINESS

Persimmon Plc | Annual Report | December 2021

Contents

1-75

01

Our mission

20

Group Chief Executive's Statement

02

At a glance

26

Our strategic objectives

STRATEGIC

04

Our integrated approach

50

Financial review

06

Chairman's statement

54

How we manage risk

REPORT

10

Our business model

62

Task Force on Climate Related Financial

08

The UK housing market

55

Our principal risks

12

Our strategic objectives and five

Disclosures (TCFD)

key priorities

67

Climate change risks and opportunities

14

Our key performance indicators (KPls)

68

Viability statement

17

Our sustainability approach

70

Section 172 statement

18

Sustainability Accounting Standards

75

Non-financial information statement

Board (SASB) disclosures

12

17

26

DELIVERING ON

OUR SUSTAINABILITY

PLACING

OUR FIVE KEY

PILLARS

CUSTOMERS AT

PRIORITIES

THE HEART OF

OUR BUSINESS

Read more

Read more

Read more

on page 12

on page 17

on page 26

76-132

GOVERNANCE

Directors' Report

Remuneration

76

Chairman's introduction

108

Remuneration Committee

to Corporate Governance

Chair's Statement

78

Board leadership

112

Remuneration at a glance

80

Corporate Governance Statement

114

Annual Report on Remuneration

90

Nomination Committee

129

Summary of Directors'

Chair's statement

Remuneration Policy

92

Nomination Committee Report

  1. Audit Committee Chair's Statement
  1. Audit Committee Report
  1. Other disclosures

133-181

FINANCIAL STATEMENTS

  1. Statement of Directors' Responsibilities
  2. Independent Auditor's Report
  1. Consolidated Statement of Comprehensive Income
  2. Balance Sheets
  3. Statement of Changes in Shareholders' Equity
  1. Cash Flow Statements
  2. Notes to the Financial Statements

182-183

OTHER INFORMATION

  1. Shareholder Information
  1. Financial Calendar 2022
  1. Five Year Record

Strategic report

Governance

Financial statements

Other information

Our mission

To build homes with quality our customers can rely on at a price they can afford.

"We have recently launched our Mission, Vision and Values. They build on Persimmon's many strengths and our recent progress to strive even higher, to be Britain's leading homebuilder, with core values that demonstrate how we will achieve it. I am delighted that our values have been warmly embraced across the business and look forward to delivering on the ambition they set out."

DEAN FINCH

Group Chief Executive

Read more on our mission, vision and values on pages 4 & 5

Highlights

Number of

Average

Construction and supply

Investment in

homes sold

selling price

chain jobs supported1

local communities2

14,551

£237,078

c.92,000

c.£2.6bn

2020: 13,575

2020: £230,534

2020: c.86,000

over the last six years

Owned land

Current customer

Build

Environment: our homes

holdings (plots)

satisfaction score3

quality3

in use by 2030 will be

67,089

92.0%

87.9%

NET ZERO

2020: 67,205

2020: 89.7%

2020: 84.7%

  1. Estimated using an economic toolkit.
  2. The value of homes delivered to housing associations, the value of Discounted Open Market Value Housing plus the value of planning contributions we have made.
  3. We participate in a National New Homes Survey run by the Home Builders Federation (HBF). The Survey year covers the period from 1 October to 30 September. The customer satisfaction rating system is based on the number of customers who would recommend their builder to a friend. The build quality score is based on how satisfied customers are with the quality of their new home.

01

Persimmon Plc | Annual Report | December 2021

At a glance

BUILDING SUSTAINABLE

AND INCLUSIVE COMMUNITIES ACROSS THE UK

We are a leading national homebuilder. We have three brands,

three off-site manufacturing facilities, and an ultrafast full fibre broadband service, delivering high quality homes to serve local communities.

Persimmon Homes is our core brand which delivers a range of traditional family housing throughout the UK in places where customers wish to live and work. With a focus on delivering value and quality for our customers, we sell most of our homes under this brand.

Average selling price 2021

£249,498

2020: £239,318

Persimmon Homes, see page 30

The Charles Church brand complements and differentiates itself from Persimmon by delivering larger, higher specification homes in premium locations across the UK. We build homes under this brand tailored to local markets where our research and experience has identified a strong demand for a premium product.

Average selling price 2021

£360,575

2020: £361,147

Charles Church, see page 30

Westbury Partnerships is our brand with a focus on affordable social housing. We sell these homes to housing associations across the UK. This brand plays a key part in the delivery of sustainable homes for the benefit of lower income occupiers, offering solutions to some of the country's affordable housing needs.

Average selling price 2021

£131,976

2020: £125,930

Westbury Partnerships, see page 31

Contribution to Group housing revenue

National coverage, local presence

10%

11%

79%

£3.4bn

Persimmon Homes

Charles Church

Westbury Partnerships

Homes sold

We have 31 operating businesses

17%

across the UK

Read more on our office

locations on our website

7%

19%

76%

9%

72%

Landholdings

Northern offices

Southern offices

Off-site manufacturing

02

Strategic report

Governance

Financial statements

Other information

INVESTING IN INNOVATION AND TECHNOLOGY

Our average SAP rating

87%

Tileworks

Tileworks, the Group's own concrete roof tile manufacturing facility, produces tiles solely for the Group. During the year, Tileworks supplied c.9m tiles to 227 sites across the Group.

Tiles supplied

to the Group in 2021

c.9m

Brickworks

Brickworks produces concrete bricks and is entirely focused on supplying the Group's housebuilding operations. During 2021, the brickworks supplied c.45m bricks to the Group. The factory has the capacity to produce c.80m bricks a year, which approximates to two thirds of the Group's brick requirements.

Bricks supplied to the Group in 2021

c.45m

Space4

Our Space4 manufacturing business produces timber frames, highly insulated wall panels and roof cassettes as a 'fabric first' solution to the construction of new homes. Space4's modern method of construction system helps us to improve site productivity, increase build capacity and mitigate construction industry skills shortages. Space4 supports all of our brands and supplied 4,315 timber frame kits and roof systems

to the Group in 2021.

Homes built

using timber frames

33%

FibreNest

FibreNest is the Group's own ultrafast, nationwide full fibre broadband service to the home, which aims to ensure all our customers are connected to the internet from moving in day. FibreNest provides ultrafast speeds coupled with excellent levels of service.

OUR INVESTMENT CASE

Persimmon is one of the UK's leading homebuilders, with high quality land holdings, a strong balance sheet and a highly experienced management team. We are well positioned in our market, providing high quality homes at attractive prices for our customers.

Read more at www.persimmonhomes.com/ corporate/investors/investment-case/

High quality land holdings.

UK wide outlet network.

Highly experienced management team.

Vertical integration providing security of supply over certain key material components.

Investing in our people, resources and capabilities to drive superior performance.

Strong focus on sustainability with clear targets.

Drive industry leading performance through entrepreneurship, innovation and cost-efficiency.

03

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Persimmon plc published this content on 23 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 March 2022 11:36:08 UTC.