GEORGE WIMPEY PLC

Interim Results for the half year ended 30 June 2001

Tuesday 31 July 2001

2001 Interim Results Headlines

• performance on track…° operating profit up 13% to £66.2 m° PBT up 11% to £53.1 m

• …in both businesses° UK operating profit close to last year at £54 m° US operating profit up 81% to $22.1 m

• restructuring continues ahead of plan° bulk of £20 m forecast savings in 2001° additional cost savings of £15 m by 2003

Agenda

H1 Financial Review Andrew Carr-Locke

Business Reviews Peter Johnson

Summary and Outlook Peter Johnson

2001 H1 Financial Review

Andrew Carr-Locke

2001 First half results

June June % 2001 2000 change

revenue £ m 707 694 + 2

operating profit* £ m 66.2 58.6 + 13

exceptional items £ m (14.2) - -

profit before tax* £ m 53.1 48.0 + 11

earnings per share* p 11.0 9.9 + 12

dividend per share p 2.9 2.65 + 9

* before exceptionals

First half results

• operating profit before exceptionals up 13% to £66.2 m

• UK restructuring completed, majority of £20 m savings to be seen in 2001

• US profits up 81% in dollar terms

First half results

• interest cover 5.1 times

• tax rate 23%

• EPS before exceptionals up 12% to 11p

• interim dividend up 9.4% to 2.9p

First half cash flow

• cash outflow of £181 m (2000:£146 m)

• end June gearing 59% (2000:55%)

• land spend £261 m, same as last year

• acquisition of Richardson Homes in Denver for $22 m

Balance sheet

Over last 12 months

• net debt up £76 m to £410 m

• shareholders’ funds up £83 m to £694 m

• return on equity before exceptionals 17.7% (2000:17%)

• net assets up 21p to 187p

• land holdings up £136 m

Exceptional operating costs

£ m

redundancies 6

asset write-downs and IT 2

property voids and office

move costs 5

transition costs 1

14

Segmental analysis

Operating Operating Revenue Profit Margin

% % % £m Change £m Change % Increase

UK 512 - 4 54.0* - 1 10.5 + 0.3

USA 189 +34 15.3 + 96 8.1 + 2.6

Corp 6 - (3.1) - - -

Group 707 + 2 66.2* +13 9.4 + 1.0

* Before exceptionals

Segmental analysis

• US revenue up 34%, 23% in dollar terms

• US profits up 96%, 81% in dollar terms

• US margins up 2.6% to 8.1%

• UK margins improve 0.3% to 10.5%

• corporate costs below last year’s £3.6 m

2001 completions

Completions Ave Price % %

No Change £/$000 Change

UK: PD 4161 - 13 £118 + 8

Social 237 - 1 £60 + 35

UK: Total 4398 - 12 £115 + 9

USA: 1142 + 21 $236 + 6

Group Total 5540 - 7 £125 + 9

UK completions

• lower UK completions due to fewer outlets coming into the year

• UK average selling prices up 8% to £118,000

• selling rate up 9% on last year

• average size up 2%, 60% detached

• volume of sales proceeding up 12% on last year

US completions

• US completions up 21%• US average selling prices up 6% to

$236,000• acquisition of Richardson Homes Denver,

Jacksonville start-up • volume of sales proceeding up 12% on last

year• outlets 89, up 17%, selling rate good • average size 2,400 square feet

Land

UK USA

land spend £ m 222 47*

short term plots 31,920 11,500

change since

December (1,530) 1,530

land bank in years 3.0 3.7

* Includes Richardson Homes land £8 m

Financial summary

• results show further improvements achieved

• benefits from UK restructuring

• US growing successfully

• strong interest and dividend cover

• second half looking good

Business Review

Peter Johnson

UK: market

Short-term cautious; longer term positive• strong through H1 - prices > expectations

• site visitors and selling rates remain healthy

• national affordability near long run average

• London above average, but no problems yet

• South somewhat above average - but supported by planning driven shortages

• longer term outlook very favourable

UK: progress on restructuring

“Major focus is to ensure restructuring programme delivers on promises made”

excellent progress made

• action to integrate fast and lock in cost savings

• running rate of savings already at £20 m• great majority will be achieved in 2001• restructuring costs held to £14.2 m vs

forecast £15 m

UK: progress on restructuring

“Seek opportunities to improve margins:gain further benefits from our scale”

substantial potential quantified

• land acquired at better margins• procurement and build cost savings

projected at £15 m by 2003• group overheads down

UK: progress on restructuring

“Seek opportunities to improve margins:increase sales of options and extras”

potential for substantial improvement

• sales of options £3,300 per house H1 2001 cf £3,100 per house for whole of 2000

• new marketing suites being introduced following business review

• big potential in Wimpey Homes businesses

UK: progress on restructuring

“Seek opportunities to improve margins:increase exposure to higher margin

markets”

continued progress: much more to do

• average size up 2%• detached + flats up from 66% to 69%• selling prices up 8% to £118,000• >£100,000 up from 45% to 53%• average plot cost up 31% to £40,000

USA: market

Short term cautious; longer term positive

• most markets continued strong through H1

• weaknesses limited to hi-tech locations - esp Austin and Sacramento; Florida strong

• recent consensus forecast for new single family home sales for 2001 is 2.7% decline

• strong underlying demand vs supply

• longer term outlook favourable

USA: progress on strategy

• Growth sustained: 89 communities vs 76 in H1 2000 and 84 in H2 2000

• market position held - 2,389 sq ft vs 2,397 H1 2000 and 2,319 H2 2000

• new business established in Jacksonville

• Richardson Homes acquired in Denver

• additional profits from land title joint venture in Florida

Summary and Outlook

Peter Johnson

A sound business

UK • quality sustained: 66 NHBC Quality Awards in

2001

• product base improving: much more to do

USA• first class business - strong in local markets

• excellent management team

• culture based on customer - lessons to learn

Better margins:encouraging initial progress

• UK restructuring complete without major mishaps and ahead of plan

• substantial further benefits identified• business culture transformed:

° new management team in place° decision making streamlined° office relocation within 8 weeks° UK and US now working together

Outlook

• UK market most likely to remain stable° market indicators mixed but mostly positive° some short-term risk in London and south-east° continued price inflation expected elsewhere

• most local US markets remain robust• strong order book for second half

° sales proceeding up 12% - UK and 12% - USA ° visitor levels remain strong° focus on getting outlets open for 2002

GEORGE WIMPEY PLC

Interim Results for the half year ended 30 June 2001

Tuesday 31 July 2001