Jonathan Goring Managing Director - Lovell Partnership Models Jonathan Goring Managing Director - Lovell

Housing-led regeneration 6 new mixed tenure developments Lovell Today £m 2016 Average capital employed1 111 Revenue 433 Operating profit2 13.4 Housing-led regeneration Pipeline value £764m 884 mixed tenure homes built 7 1060 employees Order book 33 14 regional offices national partnerships £445m 6 new mixed tenure developments mixed tenure schemes 1 Capital employed is calculated as total assets (excluding goodwill, intangibles and cash/overdraft) less total liabilities 2 Adjusted

This is what we do… Hull Ings, Hull Mixed Tenure | Value £78m | 2012 – 2022 | 678 homes

This is what we do… The Mill, Cardiff Mixed Tenure | Value £110m | 2016 – 2022 | 800 homes

This is what we do… Lymington Mews, Dagenham Mixed Tenure | Value £102m | 2014 – 2018 | 416 homes

This is what we do… Miles Platting, Manchester Mixed Tenure | Value £135m | 2006 – 2023 | 700 homes

This is what we do… King’s Lynn, Norfolk Mixed Tenure | Value £80m | 2016 – 2022 | 600 homes

This is what we do… Beacon Barracks, Stafford Contracting | Contract Value £52m | 2015 – 2016 | 357 homes delivered in under 12 months

What we do… Mixed tenure Via development agreements with Housing Associations and Local Authorities Schemes include housing built for open market sale and contracted housing for rent or other tenures Primary performance metric is Return on Capital Employed (ROCE) Contracting Via construction contracts with Housing Associations and Local authorities Contracts for new build social housing, refurbishment and planned maintenance Primary performance metric is % margin 1 For the year ended 31 December 2016

How we do it – mixed tenure

Who we do it with…

Looking ahead

Market Drivers c250,000 houses required per annum – still a severe shortfall Housing very high on political agenda for all parties Forward funding available for private and social rental £10bn Central Government funds for mixed tenure; partnership, infrastructure and accelerated delivery Schemes are increasing in size – Local Authorities under pressure to address all asset alternatives Homes & Communities Agency and Local Authorities underwriting risk

Order book and pipeline Order book and secured development pipeline total value of £1.2bn1 In addition, preferred bidder on six new mixed tenure developments with estimated value c£360m Significant level of ongoing dialogue on partnering with HAs/LAs Total value of £1.2bn Note: Order book represents the share of future revenue that will be derived from signed contracts. The Pipeline represents the share of the development value of the open market housing part of secured mixed tenure schemes. 1 As at 31/12/16

Mixed tenure partnership developments Currently 57 mixed tenure sites across 33 schemes at various stages of construction and sales average of 102 open market units per scheme average site duration of 33 months Mixed tenure sites 2017 2018 2019 2020 2021 2022 2023

Future success factors Accelerated delivery – off site manufacturing and track record secures partner status with HCA Unlocking Government land through investment in data to develop land-led partnerships Technology platform addresses current buying patterns and secures early sales Accessible homes target First Time Buyers

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