Home Builders Federation Annual Policy Conference

Confidence in the UK Housing Sector

Mark Aedy Head of EMEA & Asia, Moelis & Company

May 2021 Robust Sector Fundamentals Remain Intact

GROWING UK HOUSING SHORTAGE HIGH GROWTH IN UK HOUSEHOLDS

Cumulative housing shortage in England (thousands) UK Households (millions)

1,400 33 1,200 31 1,000 800 29 600

400 27 200 0 25 2007 2009 2011 2013 2015 2017 2019 2011 2014 2017 2020 2023 2026 2029 2032 2035 2038

CONTINUED HOUSE PRICE MOMENTUM MORTGAGE RATES NEAR ALL TIME LOWS

UK Nominal and Real House Prices UK Mortgage Rates £300k 7%

£250k 6% 5% £200k 4% £150k 3% £100k 2%

£50k 1%

£0k 0% 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Real Price Nominal Price

Source: Analyst Research, ONS, Nationwide, Bank of England, UK Government [ 1 ] The Housing Sector Outperforms!

UK Referendum UK General Election UK leaves the to Leave the EU (12 Dec 2019) European Union (23 Jun 2016) (31 Jan 2020)

UK announces UK General Announcement UK General UK General UK Budget and coronavirus lockdown Election Help to Buy Election Election Help to Buy Extension (23 Mar 2020) (6 May 2010) (20 Mar 2013) (7 May 2015) (8 Jun 2017) (29 Oct 2018)

Pfizer announces 800% positive vaccine trial results (9 Nov 2020) 700% UK Housebuilders1 +665.5% 600%

500%

400%

300%

FTSE 250 +238.6% 200%

100% FTSE 100 +54.1%

0%

(100%) Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21

Source: Capital IQ as of 25 May 2021 Note: Chart shows share price performance from 1 January 2009 – 25 May 2021 1. Includes Barratt, , Berkeley, Crest Nicholson, (share price until sale of Linden Homes and Partnerships & Regeneration businesses transaction completion on 02 January 2020), MJ Gleeson, Persimmon, Redrow, and [ 2 ] All builders are up since the EU Referendum, but some more than others

Since Brexit Referendum UK General UK Coronavirus Pfizer positive Election Lockdown vaccine results Housebuilders 195% (12 Dec 2019) (23 Mar 2020) (9 Nov 2020) Average: +97%1

170% Countryside +163.7%

145% Persimmon +128.1% MJ Gleeson +117.4% 120% Redrow +110.7% Vistry +100.3% Barratt +97.8% 95% Bellway +95.0% Berkeley +94.0% 70% FTSE 100 +44.8% 45% FTSE 250 +44.7% Taylor Wimpey +39.5% Crest Nicholson 27.4% 20%

(5%)

(30%)

(55%)

(80%) Jun-16 Oct-16 Mar-17 Jul-17 Nov-17 Mar-18 Jul-18 Nov-18 Mar-19 Jul-19 Nov-19 Apr-20 Aug-20 Dec-20 Apr-21

Source: Capital IQ as at 25 May 2021 Note: Chart shows share price performance from 28 June 2016 – 25 May 2021 [ 3 ] 1. Excludes FTSE 100 and FTSE 250 Timing is Everything…

UK Coronavirus Pfizer positive vaccine lockdown Since Since results Since Jan- Lockdown Pfizer 9- announced 2020 23-Mar1 Nov2 20% Persimmon +12% +94% +17%

Countryside +6% +85% +34%

FTSE 250 +1% +72% +25%

0% Barratt (0%) +93% +39%

Crest Nicholson (0%) +130% +68%

Vistry (4%) +110% +108%

(20%) Berkeley (7%) +47% +6% FTSE 100 (8%) +41% +19%

Bellway (9%) +78% +38%

MJ Gleeson (10%) +63% +48% (40%) Redrow (13%) +96% +49%

Taylor Wimpey (14%) +49% +38%

Average3 (4%) +85% +44% (60%)

(80%) Jan-20 Feb-20 Mar-20 May-20 Jun-20 Jul-20 Aug-20 Oct-20 Nov-20 Dec-20 Feb-21 Mar-21 Apr-21

Source: Capital IQ as of 25 May 2021 Note: Chart shows share price performance from 2 January 2020 – 25 May 2021 1. Based on FTSE100 lowest point on 23 March 2020 2. Based on market close on Friday 6th November; Pfizer announced interim vaccine trial results on Monday 9th November [ 4 ] 3. Excludes FTSE 100 and FTSE 250 ROCE is the Key Driver of Valuation in the Sector

EV/TGAV (21E) 5.0x

4.5x

4.0x

3.5x

3.0x

2.5x

2.0x

1.5x

1.0x

0.5x

0.0x 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% R² = 0.93 ROCE (21E)

Source: Broker research, Capital IQ, Company information, Thomson Estimates [ 5 ] Note: Calendarized for December year-end Unprecedented Corporate Activity – A Vote of Confidence

Moelis advised process

Acquisition of Recapitalization in Acquisition of Acquisition of Partnership with Acquisition of

Living

Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21

Joint venture with Separation of Potential Offer for Acquisition of Homes division

[ 6 ] Lone Star’s Acquisition of McCarthy & Stone Plc

RELATIVE SHARE PRICE PERFORMANCE (2020)

Lone Star January 2021 25% offer

0%

£630m (25%) Acquisition of McCarthy & Stone plc

(50%)

(75%) McCarthy & Stone

UK Housebuilders1

(100%) Lead Financial Advisor Jan-20 Apr-20 Jul-20 Oct-20 DecJan-21-20

Source: Capital IQ Note: Chart shows share price performance from 2 January 2020 – 31 Dec 2020 [ 7 ] 1. Excluding McCarthy & Stone; includes Barratt, Bellway, Berkeley, Crest Nicholson, MJ Gleeson, Persimmon, Redrow, Taylor Wimpey and Vistry Group Morris Homes’ Recapitalization in Partnership with Atlantic Park

March 2021 ▪ Refinancing of the GSO unitranche loan established in 2013

£140m

Capital Raise in Partnership with Atlantic Park Strategic Capital Fund

Financial Advisor to the Company

[ 8 ] Avant Homes’ Sale to Berkeley De Veer in Partnership with Elliott

AVANT HOMES LOCATIONS

April 2021

Sale by Scotland Yorkshire

To North East Central

Midlands

In partnership with

Financial Advisor

[ 9 ] Reasons To Be Cheerful…?

HBF Conference 2018 HBF Conference 2021 Land Market Remains Benign ✓✓✓ ✓✓✓

Management and Capital Discipline ✓✓✓ ✓✓✓

Historic Underbuild ✓✓✓ ✓✓✓

Supportive Government Policy ✓✓? ✓✓✓ Macroeconomic Environment Positive ✓? ✓✓✓

Positive Demographics ✓ ✓✓

Housing Affordability ✓ ✓✓

[ 10 ] Important Notice

Moelis & Company UK LLP (“Moelis”) prepared this presentation based on publicly available information and other information you have provided to us. Moelis has not and does not intend to verify independently any of such information, all of which Moelis assumes is accurate and complete in all material respects. If this presentation contains projections, forecasts or other forward-looking statements, Moelis assumes that they were prepared based on the best available estimates of the future events underlying such statements. This presentation speaks only as of its date and Moelis assumes no duty to update it or to advise any person that its conclusions or advice has changed.

This presentation is solely for your information purposes. Consider it along with all other facts, advice and your own insights before making your own independent decisions. Do not provide a copy of this presentation to any person without Moelis’ prior consent. No other person should rely on it for any purpose.

This presentation is not an offer to sell or a solicitation of an indication of interest to purchase any security, option, commodity, future, loan or currency. It is not a commitment to underwrite any security, to loan any funds or to make any investment. Moelis does not offer tax, accounting or legal advice.

Moelis provides mergers and acquisitions, restructuring and other advisory services to clients and its affiliates manage private investment partnerships. Its personnel may make statements or provide advice that is contrary to information contained in this material. Our proprietary interests may conflict with your interests. Moelis may from time to time have positions in or effect transactions in securities described in this presentation. Moelis may have advised, may seek to advise and may in the future advise or invest in companies mentioned in this presentation.

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