Annual Report 2021

PLACING CUSTOMERS AT THE HEART

OF OUR BUSINESS

Contents

1-75

STRATEGIC REPORT

01

Our mission

20

Group Chief Executive's Statement

02

At a glance

26

Our strategic objectives

04

Our integrated approach

50

Financial review

06

Chairman's statement

54

How we manage risk

08

The UK housing market

55

Our principal risks

10

Our business model

62

Task Force on Climate Related Financial

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

76-132

GOVERNANCE

Directors' Report

76 Chairman's introduction to Corporate Governance

78 Board leadership

80 Corporate Governance Statement

90 Nomination Committee Chair's statement

92

Nomination Committee Report

  • 98 Audit Committee Chair's Statement

  • 100 Audit Committee Report

  • 105 Other disclosures

Remuneration

108 Remuneration Committee

Chair's Statement

112 Remuneration at a glance

114 Annual Report on Remuneration

129 Summary of Directors'

Remuneration Policy

133-181

FINANCIAL STATEMENTS

  • 133 Statement of Directors' Responsibilities

  • 134 Independent Auditor's Report

  • 140 Consolidated Statement of Comprehensive Income

  • 141 Balance Sheets

  • 142 Statement of Changes in Shareholders' Equity

  • 144 Cash Flow Statements

  • 145 Notes to the Financial Statements

182-183

OTHER INFORMATION

182

Shareholder Information

182 Financial Calendar 2022

182

Five Year Record

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 homes soldAverage selling priceConstruction and supply chain jobs supported1

Investment in 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 holdings (plots)Current customer satisfaction score3

Build quality3

Environment: our homes in use by 2030 will be

67,089

92.0%

2020: 67,205

2020: 89.7%

87.9%

NET ZERO

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.

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.

TheCharlesChurchbrandcomplements 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.

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

Average selling price 2021

Average selling price 2021

£249,498

£360,575

£131,976

2020: £239,318

2020: £361,147

2020: £125,930

Persimmon Homes, see page 30

Charles Church, see page 30

Westbury Partnerships, see page 31

Contribution to Group housing revenue

Persimmon HomesCharles ChurchWestbury Partnerships

Homes sold

17%

Landholdings

National coverage, local presence

We have 31 operating businesses across the UK

Read more on our office locations on our website

INVESTING IN INNOVATION AND TECHNOLOGY

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

FibreNest

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 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

High quality land holdings.

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.

UK wide outlet network.

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

Highly experienced management team.

Strong focus on sustainability with clear targets.

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

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

Read more atwww.persimmonhomes.com/ corporate/investors/investment-case/

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Persimmon plc published this content on 01 April 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 April 2022 10:43:04 UTC.