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George Wimpey Plc

Overview of George Wimpey Plc Annual General Meeting in 2007, with a focus on financial results, market conditions, performance initiatives, and sustainable development. Details on the Taylor Wimpey merger benefits and terms included.

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George Wimpey Plc

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  1. George Wimpey Plc Annual General Meeting 2007 Thursday 26 April 2007

  2. Group Overview Pete Redfern (Chief Executive)

  3. 2006Full year results

  4. Completions and pricesFull year results

  5. Segmental analysisFull year 2006 * Before exceptional items ** Operating margin before JVs and exceptional items Exchange rate in 2006 £:1.84$ 2005 £:1.82$

  6. Balance sheetFinancing * before exceptional costs of £60.7 million

  7. US housing review

  8. US housingFinancial summary

  9. US housing2006 market conditions • 2006 started with soft market conditions, steadily worsened through to Q4 • Tough market conditions caused by • increased interest rates • affordability • investors cancelling homes under contract • overstocking of inventory • incentives/discounting by US competitors • Consistently weak across Arizona, Florida and Northern California

  10. US housingIndustry comparisons 2006 Estimates from Credit Suisse, pre-exceptional figures based on latest full year

  11. US housingPerformance initiatives • Land • renegotiation of existing land contracts • land buying process • $20 million targeted cost savings • 5% initial reduction in build costs • initiatives across all areas of the business • outsource second year warranty programme • Overhead reductions – 20% across the business • ‘right-sizing the business’ • Sales • clear strategy • focus on opening outlets on time • achieve and maintain a consistent sales rate • re-build backlog levels

  12. UK housing review

  13. UK housing Financial summary *Excluding JV results

  14. UK housing Delivery on promises

  15. UK housing Performance initiatives • Costs • appointed UK Head of Procurement, Peter Williams • over 80 cost reduction initiatives underway or identified • cost savings of £25m targeted for 2007 • Land • 14% growth in UK landbank in 2006 • focusing on acquiring more long and medium term sites • building and maintaining a balanced landbank is key to our strategy • Sales • review of marketing spend effectiveness identified new initiatives to improve brand image • new and improved UK website introduced early 2007 • aim to set industry leading standards providing excellence in sales presentation, management and customer service • People • aim to attract and retain the very best people in the industry • talent management is the key focus of our people strategy

  16. UK housing Margin commitments firmed up • Commitment to improvement from H1 2006 ‘low point’ delivered • Clear statement of future operating margin targets: • 14% in 2007 • ongoing growth to 16% over 2-3 years • longer term target of 18%

  17. Sustainable developmentTaking a proactive stance • Recently listed as one of the Global 100 Most Sustainable Companies • Appointed as the house building and construction representative on theCBI Task Force on Climate Change • Established an internal team to meet the Government’s recently publishedvoluntary ‘Code for Sustainable Homes’ which includes the target to build all new homes as ‘Zero Carbon’ by 2016 • Working in partnership with Building Research Establishment (BRE), and other industry experts, to beat this target and lead the industry to deliver fully sustainable new homes and communities

  18. The merger

  19. Taylor Wimpey plc Business benefits • Improves margin growth in the UK • George Wimpey’s cost efficiency and business structure • Taylor Woodrow’s strategic land development skills • the ability to adjust the business model focus to a lower sales rate per outlet • Provides for economies of scale in the UK • better procurement terms and supply chain efficiencies • overhead efficiency • improved land management • Creates a truly leading business in the US • enhanced strength in target states • broader brand and product offering • improved position from which to benefit from a US recovery • Offers the opportunity to extract material annual synergies in the short term

  20. Taylor Wimpey plc The merger terms • Taylor Woodrow shareholders will own 51% of the combined entity, George Wimpey shareholders will own the remaining 49% • Recommended share for share merger to be effected via a scheme of arrangement of George Wimpey • posting of documentation – by early May 2007 • court meeting and EGM – by end May 2007 • completion – Summer 2007 • George Wimpey shareholders on the register on the dividend record date (2 March 2007) to receive George Wimpey final dividend of 13.10p per share • Taylor Woodrow shareholders on the register on the dividend record date (25 May 2007) to receive Taylor Woodrow final dividend of 9.75p per share • Combined business to be re-named - Taylor Wimpey plc

  21. Taylor Wimpey plc Summary • An enhanced UK business with an improved margin growth profile • An enhanced US business, with critical mass and a broader brand and product offering • Strong land position with attractive strategic landbank • Scope for operational efficiencies and ongoing cost saving programmes • Strong financial position, allowing for improved growth in the UK and US

  22. Outcome of Proxy Voting John Robinson (Chairman)

  23. Proxy vote for Resolution 1 • Resolution 1: • To Receive the Directors’ Report and Accounts In the case of all resolutions, votes in favour include votes exercisable at the Chairman’s discretion

  24. Proxy vote for Resolution 2 • Resolution 2: • To Approve a Dividend

  25. Proxy vote for Resolution 3 • Resolution 3: • To Reappoint Andrew Carr-Locke

  26. Proxy vote for Resolution 4 • Resolution 4: • To Reappoint Christine Cross

  27. Proxy vote for Resolution 5 • Resolution 5: • To Reappoint Baroness Dean of Thornton-le-Fylde

  28. Proxy vote for Resolution 6 • Resolution 6: • To Reappoint Ian Sutcliffe

  29. Proxy vote for Resolution 7 • Resolution 7: • To Reappoint Price WaterhouseCoopers LLP as Auditors

  30. Proxy vote for Resolution 8 • Resolution 8: • To Give the Directors Authority to Allot Shares

  31. Proxy vote for Resolution 9 • Resolution 9: • To Disapply Pre-Emption Rights

  32. Proxy vote for Resolution 10 • Resolution 10: • To Empower the Company to Make Market Purchases of its Shares

  33. Proxy vote for Resolution 11 • Resolution 11: • To Approve the New Three Year Morrison Homes Long Term Incentive Plan for the President of Morrison Homes

  34. Proxy vote for Resolution 12 Resolution 12: To Approve the Remuneration Report of the Company

  35. Proxy vote for Resolution 13 • Resolution 13: • To Authorise the Company to use E-Communications

  36. George Wimpey Plc Annual General Meeting 2007 Thursday 26 April 2007

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