Interim Results for half year ended 30 June

Interim Results for half year ended 30 June 2002 Wednesday 4 September 2002

Agenda Welcome John Robinson Introduction Peter Johnson H 1 financial review Andrew Carr-Locke UK business review Keith Cushen US business review Peter Johnson Next steps and outlook Peter Johnson 2

Our objectives today: to demonstrate that the actions taken over the past 21 months are bearing fruit the UK restructuring programme is complete §the cost base is much improved §the landbank is getting into good shape §the culture is transformed Morrison Homes goes from strength to strength George Wimpey Plc has potential for significant further profit growth results for 2002 are likely to be well ahead of market expectations 3

2002 H 1 financial review Andrew Carr-Locke Group Finance Director

First half results 2002 2001 % 1 st half ° change Revenue £ m 1, 018 707 + 44 Operating profit * £ m 105. 5 66. 2 + 59 Interest charge £ m (19. 2) (13. 1) + 47 Profit before tax * £ m 86. 3 53. 1 + 63 Earnings per share * p 15. 7 10. 1 + 56 Dividend per share p 3. 2 2. 9 + 10 ROACE % 21. 2 16. 8 º restated for FRS 19 * before June 2001 exceptional items of £ 14. 2 m 5

Segmental analysis Revenue Operating profit * Operating margin ‘ % £m % change £m UK 793 + 55 90. 5 + 68 11. 4 10. 5 US ˜ 225 + 19 19. 1 + 25 8. 1 + 59 10. 4 9. 4 Corporate GROUP % 2002 change 1 st half 2001 1 st half (4. 1) 1, 018 * before exceptionals + 44 105. 5 ‘ after fair value adjustments ˜ exchange rate in 2002 $/£=1. 45 6

First half completions Completions Average selling price No % change ‘ 000 % change 5, 298 + 27 £ 140 + 19 405 + 71 £ 63 +4 UK - total 5, 703 + 30 US 1, 325 + 16 $245 +4 GROUP 7, 028 + 27 UK - pd UK - social 7

UK margin analysis 2002 1 st half 2001 1 st half £m % to sales 161. 2 20. 3 108. 7 21. 2 Fair value items 5. 7 0. 7 - - Overhead costs (70. 7) 8. 9 (54. 7) 10. 7 Operating profit before FVIs 96. 2 12. 1 54. 0 10. 5 Operating profit 90. 5 11. 4 54. 0 10. 5 Gross profit after FVIs 8

Impact of FRS 19 2002 1 st half Profit before tax £ m Tax rate % Balance sheet tax asset £ m 2001 1 st half restated 2001 1 st half previously published 86. 3 38. 9 (27. 6) (12. 4) (8. 8) 32 32 23 15. 6 30. 6 - 9

UK pensions 1999 valuation £ 47 m surplus actuarial valuation £ 45 m deficit on unchanged assumptions actuarial valuation £ 74 m deficit on conservative assumptions defined benefit scheme § closed to new members from 1 January 2002 § benefits/contributions modified from 1 January 2003 following consultation 2002 SSAP 24 charge £ 13 m as expected in March 10

Cash flow highlights £m 2002 2001 106 52 Land spend (237) (261) Acquisitions (85) (15) Land realisations 243 148 Other working capital (17) (61) Tax (25) (14) Funding costs (28) (30) CASH OUTFLOW BEFORE FINANCING (43) (181) Operating profit after exceptionals 11

Balance sheet capital employed 2002 June 2001 June 23 18 1, 093 831 Other current assets 337 305 Deferred tax 16 31 Tax and provisions (59) (50) Deferred consideration (161) 0 ASSETS EMPLOYED 1, 249 1, 135 £m Fixed assets Land (net of creditors) 12

Balance sheet financing 2002 June 2001 June Shareholders funds 833 725 Net debt £ m 416 410 Capital employed £ m 1, 249 1, 135 Gearing 50% 57% Interest cover (times) 5. 5 5. 1 Interest cover (times) net of imputed interest 8. 2 5. 1 £m 13

Land owned and controlled UK US June 2002 June 2001 Total land value £ m 1, 133 790 120 116 Short term plots 42, 303 31, 920 12, 536 11, 500 Plot change since prior December + 1, 736 - 1, 530 Short term land bank in years ‡ ‡ 3. 3 3. 0 + 301 + 1, 530 4. 1 at 12 month build rate 14

Financial summary UK operating margin† increased from 10. 5% to 12. 1% Group PBT* up 63% to £ 86 m gearing 50% vs 57% interest cover 8 times before imputed Mc. Alpine charge 12 month ROACE up to 21. 2% from 16. 8% 12 month ROE up to 18. 4% from 15. 0% * before exceptionals † before fair value adjustments 15

UK business performance Keith Cushen George Wimpey UK Managing Director

Financial summary 2001 2000 2001 - 2002 1 st half full year 1 st half % change Completions + 30 5, 703 4, 398 4, 997 11, 537 Revenue £ m + 55 793 512 532 1, 406 ASP £ 000 + 19 140 118 109 123 Operating profit £ m + 68 90. 5 54. 0 54. 4 173. 6 12. 1 10. 5 10. 2 12. 4 Operating margin * % * Before Fair Value Items 17

Market and sales national market strong throughout H 1 benefit of additional outlets from Mc. Alpine acquisition visitor levels 33% higher than H 1 2001 first half selling rates increased by 12% limited exposure to Central London <4% of George Wimpey sales to buy-to-let 18

Restructuring complete £ 40 m overhead savings following integration of Wimpey Homes and Mc. Lean Homes and acquisition of Mc. Alpine Homes fully achieved £ 20 m of build cost savings identified and in hand §majority now on track to be achieved in 2002 new organisation structure in place for whole of H 1 2002 Wimpey Homes, Mc. Lean Homes and Mc. Alpine Homes now fully integrated and benefits being achieved ahead of expectations 19

Mc. Alpine Homes fully integrated build time being reduced from 24 weeks to George Wimpey standard 13 - 15 weeks high inherited levels of work in progress reduced large range of Mc. Alpine house types being rationalised George Wimpey processes introduced § house types being value engineered § prefabricated components introduced, eg: -floor and joist sets -plastic plumbing -door sets § options being introduced to continuing sites 20

Restructuring plus Mc. Alpine transforming the business short term landbank refocused better balance of prime and secondary locations land purchased in H 1 2002 sustains new geographic mix average selling price up 19% to £ 140, 000 15% of sales in H 1 in excess of £ 200, 000 land purchased in H 1 2002 supports higher priced products >90% of land requirements for 2003 now met land now being bought at significantly better margins 21

Land repositioning Landbank at June 2002 42, 303 plots LPE approved plots 3. 3 years Owned and controlled plots 1 st half 2002 1 st half 2001 June 2002 Dec 2001 Dec 2000 North 28% 34% 41% 42% 49% Midlands 35% 29% 22% 19% South 37% 37% 36% 32% 22

Restructuring plus Mc. Alpine transforming the business short term landbank refocused better balance of prime and secondary locations land purchased in H 1 2002 sustains new geographic mix average selling price up 19% to £ 140, 000 15% of sales in H 1 in excess of £ 200, 000 land purchased in H 1 2002 supports higher priced products >90% of land requirements for 2003 now met land now being bought at significantly better margins 23

Selling price increase 2002 2001 % 1 st half change Completions 5, 703 4, 398 + 30 Average square footage per unit 1, 062 1, 051 +1 Average selling price £ per square foot 132. 3 112. 6 + 18 Average selling price per unit £ 000 140 118 + 19 TURNOVER £ m 793 512 + 55 24

Restructuring plus Mc. Alpine transforming the business short term landbank refocused better balance of prime and secondary locations land purchased in H 1 2002 sustains new geographic mix average selling price up 19% to £ 140, 000 15% of sales in H 1 in excess of £ 200, 000 land purchased in H 1 2002 supports higher priced products >90% of land requirements for 2003 now met land now being bought at significantly better margins 25

Land purchase margins 26

George Wimpey margin improvement plan Reducing costs land being acquired on improved margins benchmarking across all businesses driving cost improvement purchasing efficiencies being achieved value engineering reducing build costs continued introduction of prefabricated components 27

George Wimpey margin improvement plan Increasing achieved selling prices entry into higher priced product and locations large increase in proportion of apartments sold number of legals over £ 200, 000 increased by 177% development of customer options §new upgraded options marketing suites introduced §new products trialled and introduced §relationships with suppliers being developed §options introduced to ongoing Mc. Alpine sites average selling prices on order book >£ 153, 000 §up 23% on order book at August 2001 28

Product mix and price range Completions from - apartments 2002 2001 2000 1 st half % % % 18 9 6 1 and 2 bed houses 10 13 14 3 bed houses 26 26 29 4 + bed houses 46 52 51 Completions £ 0 -125, 000 50 67 72 Completions £ 125, 000 - 200, 000 35 26 24 Completions > £ 200, 000 15 7 4 29

George Wimpey margin improvement plan Increasing achieved selling prices entry into higher priced product and locations large increase in proportion of apartments sold number of legals over £ 200, 000 increased by 177% development of customer options §new upgraded options marketing suites introduced §new products trialled and introduced §relationships with suppliers being developed §options introduced to ongoing Mc. Alpine sites average selling prices on order book >£ 153, 000 §up 23% on order book at August 2001 30

Options revenue per completion 2002 1 st half £ 2001 1 st half £ % change Former George Wimpey outlets 3, 717 3, 295 + 13 Former Mc. Alpine outlets 1, 690 0 Total George Wimpey 3, 224 3, 295 -2 TOTAL SALES REVENUE £ m 17. 1 13. 7 + 25 31

George Wimpey margin improvement plan Increasing achieved selling prices entry into higher priced product and locations large increase in proportion of apartments sold number of legals over £ 200, 000 increased by 177% development of customer options §new upgraded options marketing suites introduced §new products trialled and introduced §relationships with suppliers being developed §options introduced to ongoing Mc. Alpine sites average selling prices on order book >£ 153, 000 §up 23% on order book at August 2001 32

George Wimpey average selling price 33

George Wimpey One business one brand new brand developed to support single business focus on customer new brand will be rolled out during H 2 2002 all rebranding costs charged to H 1 profits new customer management and service procedures introduced to raise service levels to best in the industry 34

US business performance Peter Johnson Chief Executive

Financial summary 2001 - 2002 2001 2000 2001 1 st half full year 1 st half % change Legal completions + 16 1, 325 1, 142 947 2, 900 Revenue $ m + 20 326 272 221 693 ASP $000 +4 245 236 224 238 Operating profit $ m + 25 27. 7 22. 1 12. 2 66. 4 8. 5 8. 1 5. 5 9. 6 Operating margin % 36

Market US economy recovery slower and more uncertain than expected unemployment has remained below 6% throughout H 1 2002 30 year mortgage rate at a 32 year low of 6. 22% US Housing market 2002 revised forecast stronger than anticipated §single family starts up 3. 6% to ~1. 32 million units supported by strong underlying demographic trends Morrison Markets Atlanta, Dallas and Phoenix markets affected by low net job growth Florida and California markets strong throughout H 1 37

Morrison Homes sales performance average number of outlets up 22% on H 1 2001 visitor levels up 54% on H 1 2001 selling rate 10% down on very strong H 1 2001 selling prices up 4% on H 1 2001 §average square foot unchanged §$ per square foot up from $98 to $102 38

Morrison Homes margin improvement plan H 1 margin 8. 5% vs 2001 8. 1% and 2000 5. 5% return on capital >20% for second year running cost reduction/efficiency initiatives introduced §purchasing initiatives to benefit from regional strengths §house type value engineering introduced §systems improvement to reduce build times §strategy refocus to leverage existing overheads 39

Morrison Homes margin improvement plan improved market offering §new products introduced into strong executive entry level market §continued development of customer options and services -extension of Signature Selection Centers -options up 3. 6% to $24, 200 per customer, 9. 9% of sales -Morrison Financial Services and Title businesses expanded 40

Next steps Peter Johnson Chief Executive

Next steps UK focus remains on long term margin growth rather than volume UK margin growth from §improved land purchase terms §tight cost control §growth in higher price product §growth in options US focus on margin and volume growth through expansion within existing markets US business and future strategy to be presented by Morrison management team at investor seminar on 4 October 42

Outlook Peter Johnson Chief Executive

Outlook: current trading visitor levels in July and August remain strong: §up 31% on 2001 in the UK §up 43% on 2001 in the US the order book at the end of August is also very strong: §in the UK up 23% by volume and 50% by value on August 2001 §the asp on the UK order book up 23% on August 2001 to > £ 153, 000 §in the US up 10% by volume and 19% by value on August 2001 §the asp on the US order book up 8% on August 2001 to $261, 000 44

Outlook healthy conditions have continued in George Wimpey markets affordability remains good and demand high in UK and US visitor levels remain strong costs remain under good control in both businesses our forward order books are at record levels current completions are showing improved margins barring unforeseen events, the result for the year should be well ahead of current market forecasts 45

Appendix To Interim Results Presentation for half year to 30 June 2002 4 September 2002

Published results £m 2002 1 st half 2001 1 st half Operating profit before exceptionals 105. 5 66. 2 Interest charge (19. 2) (13. 1) 86. 3 53. 1 - (14. 2) Profit before tax 86. 3 38. 9 Interest cover before exceptionals 8. 2 5. 1 PBT before exceptionals Exceptionals 47

Cash flow highlights £m 2002 2001 106 52 (237) (261) Land Realisations 243 148 Other Working Capital (17) (61) Acquisitions (85) (15) Tax (25) (14) Funding Costs (28) (30) CASH OUTFLOW BEFORE FINANCING (43) (181) Operating Profit after Exceptionals Land Spend 48

Balance sheet £m Shareholders funds Net debt 2002 June 2001 June 833 725 410 416 1, 249 1, 135 23 1, 093 18 831 Other current assets Deferred tax 337 16 305 31 Tax and provisions Deferred consideration ASSETS EMPLOYED Gearing (59) (50) (161) 1, 249 50% 0 1, 135 57% Shareholders funds 222 p 195 p CAPITAL EMPLOYED Fixed assets Land (net of creditors) 49

World-wide sales Sales Ave sites Selling rate per outlet / week 2002 2001 1 st half 1 st half 7, 597 5, 978 308 271 0. 95 0. 85 284 282 - - UK - total 7, 881 6, 260 308 271 - - US 1, 884 1, 698 109 89 0. 66 0. 73 GROUP 9, 765 7, 958 417 360 0. 90 0. 85 UK -pd UK - social 50

UK housing PD activity analysis 2002 2001 1 st half 2 nd half 2001 Year Average number of sites 308 271 283 277 Average house size sq ft 1, 062 1, 051 1, 027 1, 036 Average selling price £ / sq ft 132. 3 112. 6 125. 1 118. 2 51

UK housing turnover analysis 2001 2002 1 st half 2 nd half Year 5, 298 4, 161 6, 768 10, 929 ave price £ 000 140. 4 PD - 118. 3 125. 1 122. 6 volume turnover £ m 744 492 847 1, 339 volume 405 237 381 608 ave price £ 000 63 60 60 61 turnover £ m 25 14 23 37 Other turnover (mainly land sales) 24 6 24 30 TOTAL 793 512 894 1, 406 Partnership - £ m 52

UK housing margin analysis 2002 1 st half 2001 2 nd half 2001 Year Gross margin % 20. 3 21. 2 20. 1 20. 5 Gross profit £ m 161. 2 108. 7 179. 7 288. 4 Selling expenses £ m (27. 8) (22. 7) (22. 1) (44. 8) Overhead costs £ m (42. 9) (32. 0) (38. 0) (70. 0) OPERATING PROFIT £ m 90. 5 54. 0 119. 6 173. 6 Operating margin % 11. 4 10. 5 13. 4 12. 4 Fair value items (FVI) £ m 5. 7 - 0. 9 OP MARGIN % before FVI 12. 1 10. 5 13. 5 12. 4 53

UK housing product mix 2002 1 st half % 2001 2 nd half % 2001 Year % Flats 18 9 12 11 1 and 2 bedroom houses 10 13 12 12 3 bed semi / terraced 19 18 19 19 3 bed detached 7 8 8 8 4 and 5 bedroom houses 46 52 49 50 100 100 54

UK housing geographic mix % LEGALS BY AREA 2002 1 st half 2001 2 nd half 2001 Year Scotland 12 13 13 13 North 28 29 33 32 Midlands 24 25 21 22 South East 25 23 23 23 South West / Wales 11 10 100 100 100 55

UK housing price mix % LEGALS BY PRICE £ 000 2002 1 st half 2001 2 nd half 2001 Year 0 - 50 1 3 0 2 51 - 75 10 15 15 15 76 - 100 20 29 25 26 101 - 125 19 20 23 22 126 - 150 17 13 17 15 151 - 175 11 8 8 8 176 - 200 7 5 5 5 201 + 15 7 7 7 100 100 56

UK housing long term land 2002 1 st half Gross Acres % Value £m Freehold 3, 550 22 Option 12, 750 TOTAL 2001 1 st half % Gross Acres 88 78 78 25 22 16, 300 113 % Value £m % 2, 500 23 31 65 8, 200 77 17 35 100 10, 700 100 48 100 57

UK housing short term land OWNED PLOTS 2002 1 st half 2001 2 nd half 2001 Year Start of period 32, 348 24, 000 23, 860 24, 000 Net additions 2, 738 4, 021 15, 256 19, 277 Legal completions (5, 298) (4, 141) (6, 768) (10, 929) End of period 29, 788 23, 860 32, 348 Controlled 12, 515 8, 060 8, 219 TOTAL LAND BANK 42, 303 31, 920 40, 567 58

UK housing land 2002 1 st half Plots Cost per Value plot £m £ 000 32, 348 32. 8 1, 062 2001 1 st half Plots Cost per Value plot £m £ 000 24, 000 28. 7 688 4, 139 46. 4 192 4, 040 41. 3 167 Land sales / LT land (1, 401) (31. 4) (44) (19) - (5) Legal completions (5, 298) (35. 9) (190) (4, 161) (26. 0) (108) END OF PERIOD 29, 788 34. 2 1020 23, 860 31. 1 742 Opening land bank Additions 59

US housing PD activity analysis 2002 1 st half Average no of sites 2001 1 st half 2 nd half 2001 Year 109 89 105 97 Average house size sq ft 2, 393 2, 396 2, 356 2, 372 Average selling price $/sq ft 102. 4 98. 4 101. 4 100. 2 60

US housing turnover analysis 2002 1 st half PD - volume 2001 1 st half 2 nd half 2001 Year 1, 325 1, 142 1, 758 2, 900 ave price $000 245 236 239 238 turnover $ m 324 269 420 689 Other - $m 2 3 1 4 TOTAL $m 326 272 421 693 61

US housing margin analysis 2001 2002 1 st half 2 nd half Year margin % 21. 1 21. 2 21. 9 21. 6 profit $ m 68. 3 57. 2 91. 9 149. 1 profit $ m 1. 5 0. 2 0. 1 0. 3 TOTAL GROSS PROFIT $ m 69. 8 57. 4 92. 0 149. 4 Selling expenses $ m (20. 3) (16. 9) (25. 0) (41. 9) Overhead costs $ m (21. 8) (18. 4) (22. 7) (41. 1) OPERATING PROFIT $ m 27. 7 22. 1 44. 3 66. 4 Operating margin % 8. 5 8. 1 10. 5 9. 6 PD - Other - 62

US housing legals 2002 1 st half 2001 1 st half 2 nd half 2001 Year Western US 433 318 535 853 Florida 509 382 666 1, 048 Texas 219 237 298 535 Georgia 164 205 259 464 TOTAL 1, 325 1, 142 1, 758 2, 900 63

US housing short term land 2001 2002 1 st half 2 nd half Year start of period 10, 160 8, 330 9, 860 8, 330 net additions Owned 1, 801 2, 672 2, 058 4, 730 legal completions (1, 325) (1, 142) (1, 758) (2, 900) end of period 10, 636 9, 860 10, 160 1900 1, 640 2, 075 Controlled TOTAL LAND BANK LAND SPEND $ m 2, 075 12, 536 11, 500 12, 235 56 67 65 132 64