George Wimpey PLC 2000 Preliminary Results Wednesday 21 February 2001.

George Wimpey PLC2000 Preliminary Results

Wednesday 21 February 2001

2000 Results - Headlines

• A strong foundation…° PBT up 30% to £146.1m ° Dividend up 14% - covered 4.0 times

• …in both businesses° UK operating profit up 40% to £142.5m° US operating profit up 29% to $53m

• restructuring ahead of plan° forecast savings up to £20m

Agenda

• 2000 Financial Review Richard Saville

• UK Business Review Keith Cushen

• US Business Review Stu Cline

• Summary and Outlook Peter Johnson

2000 Results

Richard Saville

Group Finance Director

2000 Results

2000 1999 %

change

Revenue £ m 1702 1527 + 11

Operating profit £ m 170 119 + 43

Profit before tax £ m 146 113 + 30

Tax % 24 22 n/a

Earnings per share p 30.0 24.5 + 22

Dividend per share p 7.5 6.6 + 14

Segmental Analysis

Revenue OperatingProfit

OperatingMargin

£m%Change £m

%Change %

%Increase

UK 1254 + 8 142.5 + 40 11.4 + 2.6

USA 405 + 22 34.9 + 29 8.6 + 0.5

Corp. 43 n.a. (7.2) n.a. - -

Group 1702 + 10 170.2 + 37 10.0 + 2.0

2000 Completions

Completions Ave Price

%Change £/$ 000

%Change

UK: PD 10823 -7 £112 +16

Social 614 -19 £50 +6

UK: Total 11437 -8 £109 +16

USA: 2638 +2 $227 +15

Group Total 14175 -5 £116 +16

Cash Flow Highlights

£m 2000 1999Operating profit 170 119

Net investment in land (132) (104)

Working capital (14) (4)

Discontinued operations 12 45

Tax/other (20) (21)

Funding costs (51) (39)

Net cash outflow (35) (4)

Balance Sheet

2000 1999Shareholders Funds £m 673 584Net Debt £m 220 179Capital Employed £m 893 763Shareholders Funds p 182 158Gearing % 33 31Interest Cover 7.1 7.4

2000 Financial Summary

• Record profits and good 2nd half growth

• Strong balance sheet

• Group margin increased to 10%

• ROCE of 20.5%

• ROE of 17.7%

• Solid position on which to build

UK Business Review

Keith Cushen

Managing Director

Product Mix £000

0

5

10

15

20

25

30

35

0-50 51-75 76-100 101-125 126-150 151+

1998 1999 2000

%

Regional Landbank

1000

2000

3000

4000

5000

6000

7000

Scotland North SouthWest

Midlands South London

1998 1999 2000

Pl o

ts

Foundations for Success

• Build quality

• Customer satisfaction

• Improved product mix

• Urban redevelopment

• Innovative use of modern technology

Objectives

• To use scale to maximise purchasing benefits

• To share best practice

• To increase added value per unit

• To streamline decision making

Action Taken

• Closed 9 business units° selling outlets remain unchanged

• Opening new London office• Reviewed staffing levels across regions• Reduced senior management team • Closed central design• Closed central procurement• Integrated Strategic Land into business units

Results of Action

• New UK management team in place

• New regional structure operational by2 April 2001

• Staff head count reduced by over 400

• Estimated cost of restructuring unchanged at £15m

• Cost savings increased to £20m per annum

US Business Review

Stu Cline

President Morrison Homes

2000 Summary Performance

2000 % change

Revenue $m 615 + 22

Operating profit $m 53 + 29

Operating margins % 8.6 + 0.5

Legal completions 2638 + 2.5

Ave selling price $000 227 + 15

Land bank plots 9968 + 17

Growth in Added Value Products

• Décor Centers

• Financial Services

• Use of web-based technology° www.morrisonhomes.com° web-linked sales offices° MH2 Build

Morrison Markets

2000 2000 2000Net Job Annual SF permits

Growth Growth Rate Rate

California 443,100 + 3.1% 103,693

Florida 262,300 + 3.7% 105,163

Texas 253,300 + 2.7% 106,601

Georgia 86,900 + 2.2% 68,282

Arizona 82,600 + 3.8% 47,909

US Average Job Growth Rate : 2.05%

Morrison Markets

Current Markets

Atlanta

Jacksonville

Orlando

Tampa

Sarasota

Austin

San Antonio

Dallas/Ft Worth

Houston

Phoenix

Sacramento

East Bay Area

San Joaquin Valley

Summary and Outlook

Peter Johnson

Group Chief Executive

Strong Foundations for Success

• Generally stable market conditions

• High standards of build quality

• Much improved product base

• Experienced management team

• US experience to learn from

UK Restructuring Plan

• Rapid progress in just 8 working weeks

• Benefits of £20m well ahead of plan

Next steps• Major focus is to ensure restructuring

programme delivers on promises made• Seek opportunities to improve margins

° gain further benefits from our scale° increase sales of options and extras° increase exposure to higher margin markets

Outlook

• Stable UK market° market indicators positive° modest price inflation expected

• Local US markets remain healthy

• Encouraging start to the new year ° strong sales proceeding from last year° new year sales activity robust° will partly offset impact of H1 planning delays

• Restructuring will begin to benefit 2001 results

George Wimpey PLC2000 Preliminary Results

Wednesday 21 February 2001