Placemaking Not just housebuilding

An introductionto the Berkeley Group

The Berkeley Group builds homes and neighbourhoods.We seek to create beautiful,

successful places.

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We work together with other people to tackle the shortage of good

quality homes.

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We make a lasting contribution to the landscape

and to the communities we help create.

Our business is about placemaking, not just

housebuilding

WHAT WE DO

Location+

Transport+

Jobs+

Homes+

Amenities=

Placemaking

❧ We acquire land in the right locations. Then we create places characterised by the quality of their design, public realm, transport and access to jobs and amenities – the things we know people look for in somewhere to live.

❧ This process depends on strong partnerships. Collaboration is key to our success. It helps us create high quality places that go on to become thriving communities. They can range in size from a development

of twenty homes near a market town to complex, mixed-use urban regeneration schemes with over four thousand dwellings.

❧ Berkeley is not a volume business: our model is based on adding value. Everything we set out to do is long-term. We rely on our balance sheet, keep our independence, and rarely gear the business. Berkeley has never made a loss since we were first listed in 1984.

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UK new homes target

240,000UK shortfall per annum

120,000

Building more high quality homes is good

for everyone

WHY THIS MATTERS

❧ This is how society delivers on the basic human right each person has to shelter.

❧ Housing also brings new investment and facilities to a community. It creates more jobs and helps fuel the economy.

❧ Britain needs to build 240,000 new homes a year just to keep up with demand. The UK shortfall is

currently over 120,000 homes per annum.

❧ If we hit that target, it would not just give many more people the security of a home. It would create 420,000 new jobs in construction, 28,000 permanent local jobs, and add £44 billion a year to the UK’s gross domestic product.

❧ Clearly, the benefits of more good housing are enormous.

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3.5jobs

❧ MorE joBssince 2010, our directly employed workforce has increased by 50% to 1,200 people and the labour force employed by contractors on our sites has doubled to 9,000 people.

Each home built by Berkeley creates an average of three and a half jobs. This has a huge impact on society through the benefits that flow to individuals and communities from high quality employment.

❧ MorE InvEsTMEnTIn the last five years, we have contributed over half a billion pounds in tax to the public purse and injected £3.3 billion into the UK economy through our investment in land and construction.

We have also contributed a total of £260 million towards the building of new community facilities; including schools, crèches, sports pitches, youth clubs and wildlife centres.

OUR IMPACT

Each home built by Berkeley creates...

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❧ MorE HoMEsover the last ten years, we have delivered 48,376 new homes. This includes 31,330 homes for people to buy, 5,773 units of student housing and 11,273 affordable homes which help to meet the huge need for social rented housing. It’s equivalent to building enough new homes to house the entire population of Cambridge.

❧ MorE spaCEover 85% of people say that good quality public space has a direct impact on their lives and the way that they feel each day. In the last ten years,

we have created 436 acres of public open space — an area the size of 142 full size cricket pitches — and built 5.8 kilometres of riverside walkway along the Thames, which would reach from vauxhall to Tower Bridge if you put it together.

❧ and MorE faCIlITIEsThe Berkeley Group has provided 711,975 square foot of community facilities in the last decade and 2.8 million square foot of commercial space. To bring that alive, think of 237 new community halls and 946 shops on your local high street.

436acres of public open space

OUR IMPACT

In the last ten years we have created...

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Passion Integrity

FlairDetail

OUR CULTURE

We focus just as hard on the way we work as

the products we deliver

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In a transparent world, our culture and behaviours are paramount.

Berkeley’s culture informs the way we work, the way we lead the business, and what we deliver to our customers.

It has four elements in particular:

❧ a passion for great places ❧ Integrity❧ Commercial flair❧ attention to detail We focus just as hard on the way we work as the products we deliver. This means being clear about our values and being true to them.

The plan for our business

The plan for our business is called vision2020. It provides a framework to help us make Berkeley one of the most successful and sustainable

businesses in Britain. It is divided into four key areas. In each of these areas we have made a number of commitments.

some of these represent actions we are taking or targets set to ensure a consistently strong level of performance across the business.

for example, 95% of customers should recommend us to a friend. 5% of our total workforce will be employed in an apprenticeship or training role. We will reduce carbon emissions

and water use significantly and invest £2 million to support young people and their communities through the Berkeley foundation.

vision2020 also contains a small number of powerful leadership commitments that will stretch our performance and give us a specific focus for the next two years.

1 The cusTomerexperience

Ensure 95% of customers recommend us to a friend

provide every customer with a Customer satisfaction Commitment

Train all our sales staff in sustainability

3 Delivering susTainable communiTies

design all our commercial space to achieve a BrEEaM ‘very good’ rating

Establish an understanding in our business and government of what social sustainability is, how you measure it and how you support it

2 builDing greener homes

design all new homes to achieve at least level 3 of the Code for sustainable Homes

Install rainwater harvesting systems on all new developments Install living roofs on all suitable apartment roof spaces

4 running a susTainable business

position the business to deliver returns of £4.34 per share to shareholders by september 2015

Continue investment to grow and optimise our land bank, ensuring returns are sustainable over the next ten years

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We are now setting ourselves targets that will deliver exceptional customer service on a par with the best performing companies in britain.

This involves not only providing a fantastic home in an amazing place but also delivering exceptional service throughout the purchasing process and after completion.

one of the key measures we use to assess this quality of experience is whether people would recommend us to a friend. We will now achieve this for over 95% of our customers.

from now on, we will provide every customer with a Berkeley Customer satisfaction Commitment. This is our way of making sure they are completely satisfied with their purchase.

We also believe that our customers should have individually tailored support. We will therefore allocate a dedicated Customer service advisor to every customer at the point of purchase. and all of this work will be represented at the highest level of our business by a Customer Champion on the Main Board of the Berkeley Group.

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The customer experience

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it is now widely accepted that climate change is happening. We must all adapt to living in a different climate, not just minimise our carbon emissions. From now on, every place berkeley creates will be designed for adaptation.

In recent years, our industry has made great progress in delivering sustainable design and construction. Tough regulations have been matched by rising levels of environmental performance. our next challenge is to make sure these homes also provide high levels of comfort and simplicity and sit within

a landscape that can cope with more extreme weather conditions.

Berkeley will continue to complete over 90% of our development on brownfield land, in locations close to public transport.

We will consistently invest in the space between buildings, creating beautiful landscapes which help places adapt to climate change. and we will also install rainwater harvesting systems on all new developments and ‘living roofs’ on every suitable apartment roof space.

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Building greenerhomes

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We need to build a lot more homes in britain urgently. but you cannot separate this from the social question of what kind of places we want to create. berkeley will now develop a coherent way of addressing the issues that affect people’s wellbeing and quality of life.

If you want a place to thrive, it is not enough to provide good physical infrastructure. You also need to focus on how people relate to each other as a community.

We use the idea of social sustainability to describe this. It captures the way in which a neighbourhood supports the individual and collective wellbeing of the people who live there.

over the next two years, we intend to use the idea of social sustainability to help create places that offer our residents and customers a great quality of life.

We will establish an understanding in our business and in government of what social sustainability is, how you measure it and what you can do to support it.

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Delivering sustainable communities

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strong commercial performance is an essential foundation for running a sustainable business. our aim is to maximise shareholder value long-term in a safe and sustainable way, for an acceptable level of risk.

To achieve this, our strategy focuses on two main operational targets: first, to produce sustainable pre-tax returns on shareholder equity, and second, to increase the value of future gross margins in land holdings. specifically, we plan to position the business so that Berkeley is

well-placed to deliver returns of £4.34 per share to shareholders by september 2015.

alongside these financial goals, we intend to minimise Berkeley’s environmental impact and maximise our contribution to society.

By april 2015, we will deliver major reductions in energy use, water consumption and waste, and invest £2 million to support young people and their communities through the Berkeley foundation.

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Running a sustainable business

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our commercial performance will be outstanding: it will maximise shareholder value over the long-term in a safe and sustainable way.

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The service we provide to customers will be exceptional – they will be central to the decisions we make.

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The homes built by Berkeley will offer the best in sustainable design and construction, and adapt easily to the impact of a changing climate.

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The places built by Berkeley will mature into thriving communities. We will invest in the things that help residents enjoy safe and fulfilling lives.

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our intention is to become one of the most successful, sustainable businesses in britain.

In a nutshell

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Placemaking Not just housebuilding

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www.berkeleygroup.co.uk

Our visionfor your future