Taylor WoodrowPreliminary Results

Tuesday 19 March 2002

City Presentation Centre

Dr Robert HawleyChairmanPreliminary Results 2001

Agenda

Introduction Dr Robert Hawley

Operational highlights Iain Napier

Financial results Adrian Auer

Outlook Iain Napier

Questions and answers Dr Robert Hawley

Another strong set of results

Operating profit up 35% to £224.2m

Profit before tax rises to £202.3m

ROACE up from 17.7% to 18.6%*

0

40

80

120

160

200

1997 1998 1999 2000 2001

£m

Profit on disposals

0

5

10

15

20

1997 1998 1999 2000 2001

%

Profit before tax

ROACE

* Adjusted to reflect acquisition of Bryant and pre integration costs (£9.8m) and goodwill (£10.7m)

Changing shape of Taylor Woodrow

Growth of UK housing

Focused construction division

Disposal of non-core assets

Investment properties exit

New CEO

Iain NapierChief Executive OfficerPreliminary Results 2001

2001 Key Highlights

Strong growth in UK Housing

Weakness in California offset by good performance elsewhere in North America

Profitable growth in construction

Continued disposals of investment property

Bond issue

UK Housing

Operating profit *

0

50

100

150

1997 1998 1999 2000 2001

£m

Chelmer Village, Chelmsford

Operating profit up 193% to £127.7m*

Now the key business sector

10 months Bryant contribution

* Pre integration costs (£8.4m) and goodwill (£10.7m)

Bryant successfully integrated

Integration successfully completed 2 months ahead of schedule

£15m of synergies secured

Management team in place

Brand strength

Bryant has performed well

Completions up 5%* to 5,115

Average Selling Price up 8%* to £157,000– Taywood Homes versus combined business up 16%

Strong 3.5 year land bank

Strategic land portfolio increased

* On a proforma basis (compared to 10 months Bryant and 12 months Taywood figures for 2001)

North American HousingOperating profit

0

20

40

60

80

1997 1998 1999 2000 2001

£m

Shady Canyon, California

Operating profit down 12% to £53.3m

Californian losses offset by strong performance elsewhere

North American Housing

CaliforniaASP £742k

Homes sold 340Lots sold 17

MonarchASP £130k

Homes sold 871Lots sold 456

FloridaASP £393k

Homes sold 316Lots sold 1340

TexasASP £264k

Homes sold 42Lots sold 492

North American housing performanceOperating Profit

5.6

17.919.6

1.6

25.5

13.9

41.8

(12.0)-20

-10

0

10

20

30

40

50

Florida Texas California Canada

£m

2001 2000

Operating loss in California– severely affected by technology sector collapse– exposed weakness in strategy

moving to new price pointsnew management team hired

Record profits from Florida and Canada

California HousingSouthern Northern Total

2001 2000 2001 2000 2001 2000

Completions

- homes 294 444 46 121 340 565

- lots 15 1 2 1 17 2

Turnover 220 240 37 58 257 298

Operating profit 8 23 (20) 3 (12) 26

NRV Writedowns * (1) (1) (8) - (9) (1)

* Included in operating profit

Other Housing Operating profit

0

2

4

6

8

10

1997 1998 1999 2000 2001

£m

Los Arqueros, Spain

Operating profit up 3% to £9.7m

Will exploit profitable niche markets using local expertise and knowledge

ConstructionOperating profit

0

2

4

6

8

10

12

1997 1998 1999 2000 2001

£m

Bromley PFI Hospital, Kent

Operating profit up from £1.1m to £10.8m

Margins up to 2.9%*

* Underlying margin excludes £1.9m of restructuring costs

Construction highlightsRefocused and restructured profitable division

Blue chip long term relationships– 75% of repeat customer business

FM business £58m turnover, up 45% on 2000

Healthcare PFI specialists– £120m Farnborough Hospital, Kent– shortlisted for Manchester, Portsmouth & Newcastle

£595m order book, up 5% on 2000

Internal workload to increase from £60m to £100m

Commercial PropertyOperating profit

0

10

20

30

40

50

1997 1998 1999 2000 2001

£m

Silverburn, Scotland

Net rental income down 36% to £18.3m

Operating profit down 15% to £41.7m

Investment property disposal proceeds of £86.6m

Commercial Property highlights

Investment property - still non core– St Katharine's disposal

– 2001 sales process suspended– strategic priority to sell for value

UK Development property– Operating profit of £21.1m (2000: £19.6m)– UK Sales of £113.3m in 2001– 15 properties sold

Adrian AuerFinance DirectorPreliminary Results 2001

Financial highlights

Turnover up 39% to £2,138.4m

Operating profits up 35% to £224.2m

Profit before tax, excluding business disposals, up 32% to £202.3m

Dividends per share up 9.5% to 6.7p

£50m share buy-back

£250m Bond issue success

Accounting issuesFRS 17– Adopted for 2003 year end– 2001 impact would be reduction of £21.6m to P & L reserve

on balance sheet– 2001 P & L account effect would not have been material

FRS 19– Adopted for 2002 year end– Likely to apply upward pressure to future tax rates

Statutory Profit and loss account£m 2001 2000

Turnover 2,138.4 1,539.7

Operating profit 224.2 165.7

Profit from JV’s 3.3 5.5

Profit on disposals 7.9 50.3

Net interest payable 33.1 20.0

Pre-tax profit 202.3 201.5

Tax rate 33.0% 27.0%

Interest cover 7x 11x

Getting behind the numbers£m 2001 2002

Operating profit 224.2

Bryant Homes integration ** 8.4 -

Bryant Construction integration ** 1.4 -

Goodwill amortisation * 10.7 ~12.9

Fair Value * 6.4 ~8 -10

Californian land writedowns ** 9.0 -

Underlying operating profit 260.1

* Recurring - details in handouts

** One off

Cash charges

Non cashcharges

Profit variances - UK Housing

98.9

-10.7 -6.4 -8.4

73.4

-8.4

65

-60

-40

-20

0

20

40

60

80

100

Bryant Goodwill Fair value Integration Net Bryant TWCD C/Fwd

£m

Profit variances - Group

65

-9 -7

9.7

-42.4

-13.1-2.4

0.8

-60

-40-20

0

20

4060

80

100

B/Fwd USWritedowns

Prop. Const. Disps. Int. Other Net

£mNet PBT change = +£0.8m

Cash Flow£m 2001 2000

Operating profit 224.2 165.7

Working capital (27.2) (61.6)

Depreciation/amortisation 22.0 9.5

Acquisitions and disposals (280.3) (30.2)

Capex and financial investment 129.0 71.6

Tax/interest/dividends (153.2) (84.7)

Net flow before financing (85.5) 70.3

Balance sheet£m 2001 2000

Shareholders’ funds 1,335.1 887.7

Net debt 297.6 43.9

Capital employed 1,633.3 934.7

Shareholders’ funds per share 242.1p 231.8p

Gearing % 22.3% 4.9%

ROACE 18.6% 17.7%

Bond issue was a success

First bond issue by UK housebuilder

Three times oversubscribed

£250m raised at interest cost of 6.625%

Proceeds used to refinance existing debt

Strength of long term funding

Housing

40 Eastcote Road, Pinner

Housing performance by market£m Bryant Taywood TWCD

Operating profit20002001

33.2 10.4125.7* 2.0

Operating margin20002001

13.0% 15.1%14.8%* 5.3%

ROACE2001 20.9%^* 2.9%

* pre integration costs (£8.4m) and goodwill (£10.7m)^ adjusted for Bryant acquisition

Bryant Homes overview

Year ending 31/12/01 31/12/00 31/12/00Bryant/Taywood** Bryant Taywood

Completions 5,792 3,733 1,807

Operating margin (%) 14.8* 16 13.0

ROACE (%) 20.8* 18.8 25.6

Land purchased (£m) 212.4 197.6 82.0

No of active sites (average) 152 110 33

• Completions up 5% in 2001 to 5,792 on a proforma basis• Land purchasing rationalised

* pre integration costs (£8.4m) and goodwill (£10.7m) but including fair value (£6.4m)

** 12 months Bryant, 12 months Taywood proforma

North American housing overview

2001 2000 Change

Average selling price (£k) 319.0 303.2 5%

Operating margin 9.2% 11.1% (17%)

ROACE 17.8% 19.4% (8%)

Land bank plots 9,800 11,167 (12%)

Operating profit2001 2000

Operating margin2001 2000

£m ROACE2001

Overseas

USA 35.5 46.7 7.8% 10.3% 16.3%

Canada 17.9 13.9 14.1% 14.6% 21.9%

Australia 1.0 3.2 7.1% 13.3% 5.7%

Europe 8.7 6.2 20.6% 22.0% 36.7%

Housing performance by market

Homes Lots Total Homes Lots Total Movement

UK 5,226 657 5,883 1,919 333 2,252 +161%

USA 698 1,849 2,547 1,008 630 1,638 +55%

Canada 871 456 1,327 661 416 1,077 +23%

Australia - 1,468 1,468 - 644 644 +128%

Europe 301 25 326 222 31 253 +29%

7,096 4,455 11,551 3,810 2,054 5,864 +97%

Housing completions 2001 2000

Homes completions up 86%

Lot completions up 117%

Construction

Tesco, Bury

Construction performance£m 2001 2000

Turnover 438.7 389.8Underlying profit (margin %) 12.7 (2.9%*) 5.9 (1.5%)Redundancy/restructuring (1.9) (4.8) Operating profit

Operating profit 10.8 1.1Profit on disposal of properties 0.2 0.5 Profit on disposal of investments

PFI joint ventures 3.2 5.4 Share of Profit from joint ventures

PFI interest expense (4.1) (4.4) Share of JV interest

PFI investment disposal 6.4 - Profit on disposal of investments

Net interest income 6.3 4.0 Interest received

Profit before tax 22.8 6.6

* excluding redundancy/restructuring costs of £1.9m (integration costs £1.4m, Taywood Plant closure £0.5m)

Commercial Property

Cerium building, Glasgow

UK Property performance

Development Investment£m 2001 2000 2001 2000

Net rental income 2.7 1.5 16.2 24.1

Development profits 27.5 23.2 - -

Operating profit 21.1 19.6 14.3 19.6

Capital employed 82.2 53.0 243.4 288.4

ROACE 31.2% 31.5% 5.4% 6.5%

Iain NapierChief Executive OfficerPreliminary Results 2001

Winning characteristics?

Able to tackle complicated mixed use schemes

Financial strength & market capitalisations

Managing the whole process effectively

Cost control

Future earnings & returns growth

ShareholderValue

US Housing

MixedUse

FinancialStrength

UK Cost Base

UK Housing

Simplificationpost Bryant

Uniquely positioned to benefitPushing volume, mix & margins

Gearing at 22% RepositionCalifornia

St Katharine's

Sell for value

Outlook

Housing

UK Full Year Bryant contribution in ‘02Earnings skew towards H2

North America California back into profit

Commercial Property Softening in UK marketContinued disposals of investment properties

Construction Continually improve risk managementIncrease income streams from blue chips

Questions & Answers

Preliminary Results 2001

Handouts

Preliminary Results 2001

Next guidance to market

AGM 29 May

Interim presentations 10 September

Pre year end trading statement mid December

Turnover segmental analysisBy marketBusiness Activity

Housing 1523.0 925.4 USA 454.2 453.5

Property 176.7 141.9 Canada 156.8 130.7

Construction 438.7 389.8 RoW 134.4 149.4

GreenhamTrading - 82.6 UK 1393.0 806.1

Total 2138.4 1539.7 2138.4 1539.7

£m 2001 2000 2001 2000

Operating profit & returns by business

Operatingprofit2001

Inc (Dec)on

2000

Averagecapital

employed

Inc (Dec)on

2000£m

Return

Housing 190.8~ 77.2 1,116.2^ 19.1%^~ (13%)

Property 41.7 (7.1) 391.2 10.7% (2%)

Construction 12.2* 11.1 (70.9) - -

GreenhamTrading - (2.2) - - -

244.7~ 79.0 1,436.5^ 18.6%^~* +5%

^ adjusted for Bryant acquisition

~ pre integration costs (£8.4m) and goodwill (£10.7m)

* pre integration costs (£1.4m)

Operating profit & returns by market

Operatingprofit2001

Inc (Dec)on

2000

Averagecapital

employed

Inc (Dec)on

2000£m

Return

USA 35.5 (11.6) 216.8 16.4% (20%)

Canada 22.6 (0.4) 139.6 16.2% 19%

RoW 18.8 3.2 9.8 189.9% 164%

Overseas 76.9 (8.8) 366.2 21.0% 48%

UK 167.8~ 87.8 1,070.3^ 17.8%^~ 11%

244.7~ 79.0 1,436.5^ 18.6%^~ 5%

^ adjusted for Bryant acquisition

~ pre integration costs (£9.8m) and goodwill (£10.7m)

Historic Operating Profit

£m 2001 2000 1999 1998 1997

UK Housing 127.7 * 43.6 32.4 21.0 14.8

North American Housing 53.3 60.6 46.4 36.3 28.4

Other Housing 9.7 9.4 7.3 3.0 2.5

Property 41.7 48.8 43.4 38.4 30.3

Construction 10.8 1.1 2.8 3.3 1.5

Goodwill (10.7) - - - -

Integration costs (8.4) - - - -

Other (Mainly Greenham) 0.1 2.2 7.0 8.2 7.6

Operating Profit 224.2 165.7 139.3 110.2 85.1

* Includes £6.4m of fair value charges

First Half vs. Second half

2001H1

2001H2

2001FY

Operating margins

Bryant* 14.7 14.9 14.8

TWCD (4.8) 10.3 5.3

Nth America Housing 12.4 5.9 9.2

RoW Housing 16.2 18.1 17.2

Construction 2.9 2.9 2.9

Property 28.8 19.1 23.6

Total* 12.3 10.7 11.4

%

* pre goodwill and integration costs

Earnings per shareAdjusted earnings per share 2001 2000

No. m No. m– Opening shares 383.0 381.2– Bryant issue 196.3 -– Options 1.6 1.8– Share buy-back (29.4) -– Closing shares 551.5 383.0– Weighted average 534.3 377.6

£m £m– Net earnings 133.0 139.8– Add net exceptional costs 6.6 -– Add net loss from Australian disposal 0.3– Less Greenham - (47.9)– Adjusted earnings 139.9 91.9

Adjusted earnings per share 26.2p 24.3p

Fair value adjustment

Valuation exercise– Completed in accordance with statutory UK accounting standards

Bryant land bank re-valued by £32m to £498m

Pension fund provision revalued downwards by £4m to £6m

Accounting policies aligned– Professional fees, re:land acquisitions, written-off - £11m– Options amortised - £4m

Future fair value adjustments (timing depends on land utilisation)

2001 2002 2003 2004 2005 2006 After(£6.4m) (£8-10m) (£7-9m) (£4m) (£2m) (£1m) (£1.2m)

Goodwill amortisation

£258m goodwill paid on acquisition of Bryant

196m Taylor Woodrow shares at 206p plus £228m cash and loan notes = Total cost £632m

Less fair value net assets acquired £374m = £258m

Twenty year amortisation reflects decision to build on quality of Bryant market position and brand

2002 full year charge to be £12.9m

Tax rate reconciliation%

Nominal tax rate 30.0

Tax charge impact ofGoodwill and fair value adjustment 2.8Potential capital gains on Australian disposal 0.7Capital allowance recaptures and Canadian

capital gains tax on investment property sales 0.9Utilisation of tax losses (1.4)Other -

Actual 2001 effective tax rate 33.0

Exchange & dividends

Exchange (£m) Nth America Other Total

Turnover 26.0 (0.3) 25.7Operating profit 2.2 (0.3) 1.9Profit before tax 1.7 (0.2) 1.5

2001 USD Exchange Rate 1.442000 USD Exchange Rate 1.52

DividendsDividend up 9.5% to 6.7p

Integrated developmentsJoint Project* Res Commercial Onstream

arrangement value units projectLocation with £m Sq ft 000s life

Greenwich Millennium Village Countryside 169 689 13 2007

Edinburgh Kilmartin &Royal Infirmary Bank of Scotland 135 379 262 2009

Grand Union Village 135 705 66 2008

Lots Road Hutchinson Whampoa 333 462 51 2009

The Calls 38 85 92 2004

Great North Park Persimmon 350 1,250 1,413 2012

Baltic Quay 91 521 120 2006

Macintosh Mills 97 711 30 2005

Total 1,348 4,802 2,047

* Taylor Woodrow share of estimated total sales value

UK land bankTW TW

Bryant Capital Taywood Capital Development Development *

2001 2001 2000 2000

Plots owned/controlled with planning (plots) 19,994 1,088 5,015 813

Net book value (£m) 636.2 35.0 135.4 17.9

Average land costper home owned lots (£k) 31.8 32.2 30.6 22.0

Land cost/house price ratio (%) 20 10 23 4

* Restated

Bryant Homes analysis

Southern Central Northern Scotland Total

Plots owned 4,471 4,895 3,266 1,737 14,369

Controlled plots 1,873 2,052 1,256 444 5,625

Total plots with planning 6,344 6,947 4,522 2,181 19,994

Net book value (£m) 222 204 116 69 611

Adj. - Fair value (£m) 25

Total NBV (£m) 636

Completions (homes) 1,581 1,855 975 704 5,115

ASP 195.4 140.6 131.8 147.0 156.8

ASP/sq ft 183.8 129.8 127.3 121.4 144.4

Bryant sales mixBryant Taywood Homes2001 % 2000 %

1 bed 124 2 80 4

2 bed 1,242 24 454 25

3 bed 1,712 34 710 39

4 bed 1,925 38 515 29

5+ bed 112 2 48 3

Total 5,115 1,807

Made up of:

- Houses 4,280 84 1,526 84

- Apartments 835 16 281 16

North American CompletionsHouses Lots *

2001 2000 2001 2000

Florida 316 393 1,340 488

California 340 565 17 2

Texas 42 50 492 140

Canada 871 661 456 416

Total 1,569 1,669 2,305 1,046

* Includes 982 unserviced lots in Florida & 358 in Texas

North America ASP and marginsHomes Lots*

ASP GPM ASP GPM£000s % £000s %

Florida 392.9 19.5 31.6 48.0

California 742.0 1.0 60.6 (5.0)

Texas 264.0 15.7 26.0 34.7

Canada 129.8 17.3 31.0 31.3

Total 319.0 9.6 30.5 41.5

* Includes 982 unserviced lots in Florida & 358 in Texas

North America - land bank

Florida Texas California Canada Total

Owned plots 4,245 1,629 569 4,724 11,167

Purch’d/plan’g change 709 890 226 682 2,507

Completions (1,656) (534) (357) (1,327) (3,874)

Owned plots 3,298 1,985 438 4,079 9,800

Land bank years* 4.9 11.3 1.2 3.1 3.87

* Unserviced lots are excluded from the land bank calculation

Investment property

£m Valuation Valuation2000 Movement 2001

UK

- Office 211.7 (27.1) 184.6

- Retail 65.4 (6.6) 58.8

- Industrial 11.3 (11.3) -

288.4 (45.0) 243.4

Canada 58.3 (41.8) 16.5

346.7 (86.8) 259.9

A selection of our larger UK projects

Highgate, Durham

Chelmer Village, Chelmsford

St Martins,

Chester

Eagley Brook,

Bolton

Litchfield,

Staffordshire

Duchess Park,

Lanarkshire

Penarth Marina, Cardiff

Greenwich Millennium Village,

London

Grand Union Vision, London

Lots Road, London

Glasgow Harbour

Bombay Wharf, London

Royal Infirmary Edinburgh Newcastle Great

Park

Baltic Quay, Gateshead

Macintosh Mills, Manchester

The Calls, Leeds

Kean Street,Covent Garden

Fanum House, Cardiff

Pinner