Paul Hackett, Chief Executive, Optivo Kent Housing Group 3.10.18 Optivo merger Paul Hackett, Chief Executive, Optivo

Rational for merger December 2012 AmicusHorizon debt per home Viridian failed merger Scale ‘Patchless’ and DLO Build more homes Prove – you can be big AND resident focused Influence

Partner selection Desk-top analysis 90%+ resident satisfaction Geography Balance sheet AmicusHorizon £1k better for housing management Viridian £1k better for R&M First conversation May 2015

What it meant for the business? Three years of disruption Refinance £600m and issued further £575m debt Staffing restructure Risk Huge prize: £3.5 billion investment over 10 years 15,000 homes over 10 years 5,000 extra homes over 10 years £10m merger savings

What it meant for the business? ‘Sell’ to colleagues: Growth = best way to improve cost p.u. Growth = more interesting place to work Growth = more influence Growth = career opportunities In Kent: More development Bigger back office Employment and training programmes Improved NPS More residents on-line Housing starts doubled

Were objectives met? 2017-18 Target Results Target OBJECTIVE 1: Provide sector leading service Resident recommend Optivo - NPS 66 50 Residents on-line 42.9% 40% OBJECTIVE 2: Value our people Staff say Optivo is a great employer 75.6% 70% Staff say they are proud to work for Optivo 84.3% OBJECTIVE 3: Maximise our social impact Number of people into jobs and training 1,045 870 New homes started 912 880 OBJECTIVE 4: Ensure a sustainable business SHIFT Gold by 2020 On- track On-track Operating margin 31% 29% Strategic Partnership with GLA £145.7m for 3,600 homes Strategic Partnership with HE Much bigger ‘Social Impact’ offer ‘Patchless/mobile’ technology roll-out DLO rolled out to 22,000 homes

Lessons learnt Pace Due diligence Consult widely Right people in right posts Integrate systems quickly – but with an eye on transformation Take people on the journey (residents, colleagues and NEDs) It’s definitely worth it!