b'CHP financial statements 2020/2021EBITDA MRI interest cover This metric assesses the headline costs per unit, pickingOur new Target Operating Model will improve the way up all areas of management, service charge, repairs andwe deliver our services and reduce our underlying cost 180 .0% maintenance and associated costs incurred in the normalbase. This will be offset by the costs we intend to incur business of a housing association. in the coming years as we continue to deliver against our 160 .0% 170.34% 166.82 In common with the themes for the other metrics, ourrefreshed Asset Management Strategy. This includes a performance for 2020/2021 was lower than planned. Thisfocus on bringing all of our homes up to an EPC level of C 140.0% is because of the coronavirus pandemic reducing the levelsor above. 138.76% of activity throughout the business. 120.0% 124.28%100.0% 113.88% 115.37% Operating marginSocial housing80.0%60.0% 40.0%40.0% 35.0%34.30%20.0% 30.0%25.0% 27.26% 28.03% 28.86%0.0% 25.70%Sector median Peer groupCHP CHP CHP CHP 23.82%2019/2020 median 2019/20202020/20212020/20212021/202220.0%2019/2020 actual targetactual target15.0%The EBITDA MRI interest cover metric is a key indicatorOur forecasts for 2021/2022 shows this will dip again as10.0%for liquidity and capacity, measuring the level of surplus wewe continue to invest in our change programme as well as make compared to interest payable. tackling the post-pandemic backlog in repairs. We expect5.0%Our performance in the year strengthened comparedthe measure to trend higher from 2022/2023 onwardsto budget, mainly driven by the reduced levels of spendas the new Target Operating Model results in a lower 0.0%cost base. Sector median Peer groupCHP CHP CHP CHPcaused by the lockdowns.2019/2020 median 2019/20202020/20212020/20212021/2022 2019/2020 actual targetactual targetOverallHeadline social housing cost per unit35.0%4,000.0030.0%3,900.00 3,904 29.82%25.0% 26.48% 27.77% 27.95%3,800.00 3,835 3,841 3,81320.0% 23.06% 23.06%3,700.0015.0%3,600.0010.0%3,500.00 3,5105.0%3,400.003,402 0.0%3,300.00 Sector median Peer groupCHP CHP CHP CHP2019/2020 median 2019/20202020/20212020/20212021/2022 3,200.00 2019/2020 actual targetactual target3,100.00 The operating margin metrics are a measure of profitabilityThe redesign of how we deliver our services through our Sector median Peer groupCHP CHP CHP CHP of operating assets before any exceptional expenses areTarget Operating Model delivers cost reductions from 2019/2020 median 2019/20202020/20212020/20212021/2022taken into account. Increasing margins are one way to2021/2022 onwards. This will be slightly offset by the 2019/2020 actual targetactual target improve financial efficiency. catch-up in repairs after the pandemic. We expect our Our 2020/2021 results saw us continue to improve, withoperating margins to trend upwards in future years.the final result better than target due to the COVID-19 slowdown in operations. 26 27'