Taylor Woodrow Developments

Analysts visit

January 18th 2005

Agenda

Introductions and Overview Iain Napier

Operations Tony Wilby

North West Region Bob Pickthall

Yorkshire / North East Region John Coker

Wrap up Iain Napier

Site visits

Long term demand trends are positive

Household growth

Longer life expectancy

Increased divorce rates

Later child bearing

Immigration

Changing demand patterns

Faster economic growth in South East

Decaying housing stock (oldest in Europe), especially in urban and former industrial areas

Supply-demand imbalance getting worse, especially in SouthDemand for smaller units, but also for family homes

Supply largely dictated by planning environment

Government promoting sustainable communities, urban regenerationand affordable housing

Barker Review

PPG3 update due shortly

TWD Operational Strategy

National scope, predominantly mid-market but capable of operating in any price point, at any product type

Operate at scale in local markets, with support from central expertise as appropriate, e.g. land, complex projects, regeneration

Continually improve cost efficiency through control over supply chain and removing duplication

Improve capital efficiency by disposing of low yielding and long term assets

Maintain a 3-4 year land bank, supplementing regional acquisitions with strategic land, especially in areas designated for growth

Improve customer satisfaction through the “Customer Journey”

Improve skills through recruitment and training

Regional Structure

Average Sales/Region 820• Largest 1,075• Smallest 600

Northern Division 30%

Central Division 20%

Eastern Division 25%

Southern Division 25%

TWD Structure

Northern Division

Central Division

Southern Division

Eastern Division

Land and Planning

Finance Central Services

Chief Executive

Agenda

Introductions and Overview Iain Napier

Operations Tony Wilby

North West Region Bob Pickthall

Yorkshire / North East Region John Coker

Wrap up Iain Napier

Site visits

Typical Regional Structure

Land Director

Technical Director

Commercial Director

Production Director

Sales & Marketing Director

Finance Director

Customer Care Director

Regional Managing Director

Land Managers

Technical Managers

Commercial Managers

Estimators

Buyers

Production Managers

Sales Managers

Marketing Manager

Part Exchange Managers

Bryant Design

Customer Service

Managers

Central Finance Team

Land and Planning

Strategic Land Team

Regional Land Team

• Centrally/Regionally based• Large sites• National vendors• Also manage planning

on “strategic” land

• Regionally/locally based• Smaller sites (typically >50 units)• Local/regional vendors

• Rigorous evaluation process; competitor benchmarks, costing etc• Risk assessment (market, development, build etc)• Standard return criteria• Defined limits for Delegated authority and Board approval• Bi-weekly Investment Committee meetings, chaired by CEO

TechnicalStandard Product

CommercialSupply chain management

Phase 1 quick wins (Oct 03 - Feb 04)Price and volume benefits from rationalised agreementsRevised specification cost reductionsPhase 1 supply chain database, controlling supplier proliferation

Phase 2 (Jan 04 onwards)Balance of major agreements reviewed

Phase 3 (Jan 05 onwards)

Reviewing supply routes and logistics, including WCL & Prestoplan

Consolidate key sub contract trades and embedded materials

Consolidate value from e-business initiatives (e.g. more reverse auctions, consolidated billing, Call-off/Order solutions)

CommercialSupplier Database

Easy to use central reporting for all Taylor Woodrow UK supplier information

Controls supplier adoption, prevents leakage

Mitigates risk e.g. suppliers expired insurances policies

Includes quality reporting to manage underperformance, and steers business to better value for money suppliers

CommercialWCL

Acquired with WilCon

Rolling out nationallyCurrently supply 40% sites

Excellent logistical management

Benefits fromMaterials savings

Site savings

Transaction processing savings

Profitable

100.0% 99.6%

50%

55%

60%

65%

70%

75%

80%

85%

90%

95%

100%

On Time Complete

2004 KPIs

Sales and MarketingLead Generation

Sales and MarketingSales Pod, Wharf Lane

Sales and MarketingBryant Design

Customer CareThe Customer Journey

Customer CareCustomer Satisfaction

30 day surveysMade to feel like a valued customer

Service on moving in day

Cleanliness of new home

State of readiness of new home

Handling of issues raised

Kept informed of when work undertaken

Length of time to resolve remedial issues

Likelihood to repurchase

Recommend to a friend

Overall satisfaction

Monthly league tables

50%

55%

60%

65%

70%

75%

80%

IndustryAverage

BarkerTarget

TWD

Recommend to a friend

Financial Controls

Landbank

Build Costs

Prices and Discounts

Agenda

Introductions and Overview Iain Napier

Operations Tony Wilby

North West Region Bob Pickthall

Yorkshire / North East Region John Coker

Wrap up Iain Napier

Site visits

North West Regional Overview

North West 2003 – 360 Completions

Integration of three companies January 2004

Integration very successful

North West 2004 – 1,075 completions

Requirement of a TWD region

Quality and experienced, senior and mid management

Partnership with major subcontractors / trades

Capitalise on efficiencies of scale

Land – 3 + years

North West Market

Planning Environment

3 land teams

Renewal Pathfinders

Urban Regeneration Communities and New Deal for Communities

Major sites

Planning Environment

Regional Overview - Introductions

Mark Mainwaring – Development Director

Jason Newton – Sales and Marketing Director

Ken Speakman – Production Director

Brian Warrington – Commercial Director

North West Regional Overview

<5%4%% affordable

35%27%% apartments (inc high rise)

<5%10% e% High rise

70%65%% Brownfield

£188k£174kAverage Selling price

1,07517,300Annual completions

TWDMarket

Regional Overview

Calders Green, Wychwood Park76 homes

8 hectares

Commenced September 2003

Greenfield site with a mix of large detached properties and apartments

2nd Phase – Wychwood Park146 homes

4.5 hectares

Commenced September 2004

Greenfield mid range detached, mews and timber framed apartments

Sandringham Gardens, Reddish (near Stockport)

107 homes

2 hectares

Commenced mid 2003

Complete mid 2005

Brownfield lower – mid value mews / timber framed apartments

The Oaks, Leyland

392 homes

13.5 hectares

Commenced mid 2003

Brownfield mixed scheme -detached, mews, timber framed apartments

The Beeches, Chester

20 homes

Commenced January 2004

Complete December 2004

Brownfield mid range, high quality timber framed apartments

Summary

Integration successful

Large regions do work!

North West market stable

Future planning concerns

Agenda

Introductions and Overview Iain Napier

Operations Tony Wilby

North West Region Bob Pickthall

Yorkshire / North East Region John Coker

Wrap up Iain Napier

Site visits

Regional Overview

North East Regional Overview

Established region

Wilson Connolly successfully integrated

Management strength enhanced

Experienced Management Team in place

Partnership with major sub-contractors

Good cost control

Regional Overview - Introductions

Andrew Aitchison - Production Director

Alison Deakin - Sales Director

Paul Oxtobey – ‘Complex’ Director

Martin Purdy - Commercial Director

Yorkshire/North East Regional Overview

5%4%% affordable

45%26%% apartments (inc high rise)

15%10% e% High rise

70%70% e% Brownfield

£174k£175kAverage Selling price

1,00020,000Annual completions

TWDMarket

Renewal Pathfinders

Urban Regeneration Communities and New Deal for Communities

Renaissance Towns

Major sites

Planning Environment

Newcastle Great Park

Joint Venture

Planning consented – October 2000

484 hectares

2,500 homes (300 completions to date)

80 hectares business park

16,000 new jobs in 10 years

Newcastle Great Park

Royal Hospital, Halifax

NHS hospital site

2.5 hectares

Planning consent October 2002

118 houses / apartments

Bracks Farm, Bishop Auckland

Farmland

7.3 hectares

Planning consent July 2000

149 homes

Baltic Quay, Gateshead

Vendor – Gateshead Borough Council

2 acres

Planning consent May 2001

241 apartments and penthouses

NHS Hospital Site

175 New Build Apartments/Houses

100 Refurbished Apartments

Commenced March 2002

Construction scheduled to complete July 2005

Parklands, Wakefield

Agenda

Introductions and Overview Iain Napier

Operations Tony Wilby

North West Region Bob Pickthall

Yorkshire / North East Region John Coker

Wrap up Iain Napier

Site visits

Group Strategy

Focus on housebuilding in the UK, North America and Spain/Gibraltar

Improve efficiencies in UK housebuilding and position ourselves to benefit from market recovery

Drive profitable growth in North America

Grow our business in Spain whilst continuing to target the UK second home market

Grow Construction’s UK profits while managing the risks in the business

Manage down debt through disposal of low yielding assets and working capital management

Schedule for the rest of the day

Site visit – Parklands, Wakefield

Lunch

Depart c. 1.30pm

Taylor Woodrow Developments

Analysts visit

January 18th 2005