Taylor Woodrow 2006 Interim Results

3 August 2006

Steeply Chase, Swindon, UK

Interim Results 2006

Norman Askew

Chairman

Addison, Florida, USA

3

Agenda

Introduction Norman Askew

Operational highlights Iain Napier

Financial results Peter Johnson

Outlook for 2006 Iain Napier

Q and A Norman Askew

4

Headlines

• Profit before tax £161m (2005: £170m)

• Basic EPS 19.5p (2005: 20.8p)

• Dividends per share 5.0p (2005: 4.5p)

• Equity shareholders’ funds / share 345.4p (2005: 317.0p)

• Gearing 40.1% (2005: 44.1%)

Interim Results 2006

Iain Napier

Chief Executive Officer

Los Arqueros, Costa del Sol,Spain

6

Group Housing

* Capital employed is pre-goodwill and on a 12 months basis; profit from operations is before joint ventures’ interest and tax

Kentmere Place, Timperley, UK

2006 H1 2005 H1 Change 2005 FY

• Profit from operations * £189.9m £195.4m -3% £456.0m

• Operating margin * 15.4% 16.8% -1.4 ppt 15.9%

• ROACE * 19.1% 21.7% -2.6 ppt 22.9%

• Homes completions 5,052 5,065 - 12,516

• Order book £1,622m £1,591m 2% £1,318m

Mirasol, Florida, USA

7

Group Land Spend – H1 *

£m UK North

America

Spain Total

2006 2005 2006 2005 2006 2005 2006 2005

With planning 271 162 223 161 29 17 523 340

Without planning 15 13 11 5 - - 26 18

Total 286 175 234 166 29 17 549 358

* Includes joint ventures

8

Group Housing Landbank

UKNorth

America Spain TotalLandbank (with planning)

Owned 32,875 20,728 1,996 55,599Controlled 5,623 15,308 242 21,173

Total landbank 38,498 36,036 2,238 76,772

Land bank years 4.6 5.2* 6.0 4.9*

Strategic land:Potential plots 78,000Acres 17,800

* Based on home and lot completions in North America

9

UK HousingMarket Environment

• An improving market environment • Increased visitor and reservation rates

• Lower cancellation rates

• Supply remains substantially below demand

• Planning remains difficult and subject to delays

• Margin pressures remain for consented land

10

UK HousingIncome Summary

2006 H1 2005 H1 Change%

2005 FY

Ave no. of active sites 202 213 -5 204

Home completions 3,369 3,194 5 8,178

All homes ASP £’000 193 195 -1 185

Order book £m 649 602 8 411

Revenue £m 742 681 9 1,647

Profit from operations £m * 82 108 -24 233

Operating margin % 11.0 15.9 -4.9 ppt 14.2

* Capital Employed is pre-goodwill; profit from operations is before joint ventures’ interest and tax

11

2006 H1 2005 H1 Change% pt

2005 FY

Homes Operating margin 11.5% 14.1% -2.6 12.7%

Land profits & other (0.5)% 0.7% -1.2 1.0%

Sale of Quartermile land - 1.1% -1.1 0.5%

UK Hsg Operating margin 11.0% 15.9% -4.9 14.2%

* Includes joint ventures before interest and tax

UK HousingMargin movement *

12

2006 H1 2005 H1 Change% pt

2005 FY

Homes Revenue 100.0% 100.0% - 100.0%

Land costs (24.0)% (22.9)% -1.1 (23.4)%

Build & Infrastructure costs (58.8)% (56.9)% -1.9 (58.6)%

Homes Gross margin 17.2% 20.2% -3.0 18.0%

Overhead (5.7)% (6.1)% 0.4 (5.3)%

Homes Operating margin 11.5% 14.1% -2.6 12.7%

* Includes joint ventures before interest and tax

UK HousingMargin movement *

13

UK HousingPrivate and Social Mix – H1 *

Private Social Total2006 2005 2006 2005 2006 2005

Home completions 2,914 2,919 455 275 3,369 3,194

Avg selling price (£’000) 207 204 105 87 193 195

Total square footage (‘000s) 2,901 3,011 359 204 3,260 3,215

ASP/ft2 (£) 208 198 133 117 200 193

* Including joint ventures

14

UK HousingPerformance

• Site numbers • Operated off fewer sites in H1 2006

• Site openings will increase in H2

• Increased land spend to deliver ongoing growth

• Standard Housing • 44% of 2006 H1 completions are standard

• Part exchange • Stock levels down to £44m

• Product Mix • Small number of low margin apartment schemes being worked through

• Strategic land • 21% of H1 2006 completions

• 44% of the landbank originated from strategic sources

15

UK HousingOwned landbank *

Plots Cost £m Cost/plot £’000

Owned 31.12.05

30,605 1,141 37

Completions (4,231) (204) (48)

Additions, net 6,501 277 43

Owned 30.06.06

32,875 1,214 37

* Including joint ventures

16

North America HousingMarket environment

• Long-term fundamentals remain strong:• Economic growth

• Population and household growth

• Immigration

• Arizona, California and Florida have all softened

• Texas now a better market after several years of flat performance

• Canadian market remains good, assisted by the recent reduction in Goods & Services Tax (GST)

• Order book strong, but reservations per site per week reduced

17

North America Housing Income Summary

2006 H1 2005 H1 Change%

2005 FY

Ave no. of active sites 100 80 25 85

Home completions 1,512 1,668 -9 3,932

Lot completions 1,463 1,017 44 2,735

Home ASP £’000 243 216 13 248

Order book $m 1,630 1,643 -1 1,421

Revenue £m 447 445 - 1,142

Profit from operations £m * 96 74 29 200

Operating margin % 21.5 16.7 4.8 ppt 17.5

* Capital Employed is pre-goodwill; profit from operations is before joint ventures’ interest and tax

18

North America Housing Performance• Forward sales • Order book excluding Florida waterfront high-

rise up 16%

• Over 85% sold on forecast 2006 volumes

• Mid market • Less exposure to highly-geared customers and interest rate sensitivities

• Landbank • 5.2 years

• >40% of landbank is controlled through options

• Land development

• Margins similar to home sales

• Quick capital turn

• Scale • Not a national homebuilder

• Critical mass in chosen submarkets

19

Spain & Gibraltar HousingMarket environment

• Market focused on Costas and Balearics• Mallorca remains strong• Alicante and Malaga softer• Longer-term fundamentals remain strong

• Significant market for second/retirement homes• Increase in Europeans approaching retirement• Ease of access via low cost airlines

• Taylor Woodrow is the only UK plc developer in Spain• Over 2/3 buyers are British• Name offers reassurance to UK buyers

20

Spain & Gibraltar Housing Income Summary

2006 H1 2005 H1 Change

%2005 FY

Ave no. of active sites 25 22 14 22Home completions 171 203 -16 406Home ASP £’000 190 163 17 169

Order book £m 92 86 6 81

Revenue £m 44 37 19 76

Profit from operations £m 12 13 -8 23

Operating margin % 27.3 34.5 -7.2 ppt 30.4

21

Spain & Gibraltar Housing Performance

• Land • Landbank remains level at 2,238 plots, 89% owned

• 6.0 years land supply

• Taken opportunity to reduce holdings in the Malaga area

• Forward sales • Order book up 6% to £92m

• Future growth • Expect growth in the medium term

22

Construction Income Summary

2006 H1 2005 H1 Change%

2005 FY

PBT £m 7.2 9.4 -23 13.0

Internal work 12% 16% -4 ppt 12%

External order book at period end £m

1,087 777 40 707

Interim Results 2006

Peter Johnson

Finance Director

National Assembly for Wales, UK

24

£m 2006 H1 2005 H1 Change %

2005 FY

Revenue* 1,494.4 1,449.3 3 3,556.4Operating profit before other items 189.7 192.8 470.3Profit on sales of investments 5.4 10.1 10.2

Operating profit* 195.1 202.9 -4 480.5Joint ventures’ interest and taxes (2.0) (2.2) (5.5)

Profit from operations 193.1 200.7 -4 475.0Net interest & other finance charges (32.3) (30.3) (64.0)

Profit before tax 160.8 170.4 -6 411.0Tax (48.8) (52.8) 8 (124.5)Minorities (0.5) (0.5) (0.8)

Profit for the year 111.5 117.1 -5 285.7

Basic EPS 19.5p 20.8p -6 50.6pDiluted EPS 19.2p 20.6p -7 49.8p

* Including joint ventures

Group Income Statement

25

Net Interest and Other Finance Charges

2006 H1 2005 H1 Change % 2005 FY

£’m £’m £’m

Net interest 27.0 25.6 5 54.4

Pension fund charges 2.1 2.3 -9 4.2

Amortisation of discount on land creditors 3.2 2.4 33 5.4

32.3 30.3 7 64.0

26

Movements in Revenue

Including joint ventures

1,494

1,449

61 6

29 (52)

1

1300

1350

1400

1450

1500

1550

H1 05Revenue

HousingUK

HousingNA

HousingSpain

Const'n Property H1 06Revenue

£m

27

Movements in Profits from Operations

Before joint ventures’ interest and tax

203 195

(3)(1)(26) 22

100

120

140

160

180

200

220

H1 05 Housing UK Housing NA HousingSpain

Const'n H1 06

£m

28

Profit from Operations – Net Cash from Operating Activities

(409)

193

(54)

(310)

(45)

(5)

(71)

(490)

63

-410

-360

-310

-260

-210

-160

-110

-60

-10

40

90

140

190

Profit fromOp

Land/WIP Creditors Debtors Other Cash fromOp

Incometaxes

Interest Net Cashfrom Op

£m

29

Group Balance Sheet ratios

*Profit from Operations is before joint ventures’ interest and tax

Capital Employed is pre-goodwill and ROACE is on a 12 months basis.

** Interest payable net of other finance charges.

2006 H1 2005 H1 Change 2005 FY

Average no. of shares for eps (m) 572.4 562.9 2% 564.6

Equity per share (p) 345.4 317.0 9.0% 338.4

Gearing (%) 40.1 44.1 -4.0 ppt 23.7

ROACE (%) * 20.4 22.4 -2.0 ppt 24.6

Average net debt (£m) 794 784 1% 823

Land creditors 293.4 163.8 79% 241.9

Interest cover ** 7.2 7.8 -8% 8.7

30

Pension Fund

* Excludes BUPA obligations of £2.6m (1.01.06: £2.7m)

GrossDeferred

TaxNet

£m £m £m

Opening IAS19 Deficit 1.01.06 * 220 66 154

Closing IAS19 Deficit 30.06.06 * 204 61 143

• Reached an agreement in principle on basis of future funding:• Propose to increase past service deficit funding payments from

£4.8m to £20m for 10 years

• Cashflow, not profit from operations impact

• Intend to close Fund to future accrual for existing members

• Review investment strategy

Interim Results 2006

Iain Napier

Chief Executive Officer

Keycol Hill, Sittingbourne, UK

32

Outlook for 2006UK

• Anticipate modest growth in home completions for full year

• Expect modest increase in private homes Average Selling Prices in second half

• Margins in order book slightly above H1 levels

• Market remains attractive on fundamentals

• Landbank in place to deliver future growth as market conditions allow.

33

Outlook for 2006North America, Spain & Construction• Continue to expect good growth in full year profits in North

America, despite softening in some markets:• Strong order book and landbank

• Some moderation of house price inflation

• Growth in home completions will drive profit progression

• Autumn selling season will be critical in determining level of year end order book.

• Spain and Construction are likely to remain stable

• Geographic portfolio provides alternative investment and growth options.

Interim Results 2006

Q and A

Sugar Lakes, Texas, USA

Interim Results 2006 - Handouts

36. Next guidance to market

37 - 42. Group financial information detail

43 - 47. UK Housing detail

48 - 51. NA Housing detail

52. Spain & Gibraltar Housing detail

53. Analysis of Stocks and WIP

36

Next guidance to market

• Analyst presentation November 2006

• FY trading statement early January 2007

• Preliminary results presentation 20 February 2007

37

Group Balance Sheet

£mOpening Equity 1.01.06 1,928

Retained profit 112Dividends (51)Other recognised income and expenses (12)New share capital subscribed 3Proceeds from sale of own shares 3Change to income relating to own shares (2)Other (1)

Closing Equity 30.06.06 1,980

38

Earnings per share2006 H1 2005 H1 Change 2005 FY

No. m No. m No. m

Opening shares 591.9 586.6 1% 586.6Options/share purchase plan 2.2 1.9 16% 5.3Closing shares 594.1 588.5 1% 591.9Weighted average 572.4 562.9 2% 564.6

£m £m £m

Net earnings 111.5 117.1 -5% 285.7

Basic earnings per share 19.5p 20.8p -6% 50.6p

Diluted earnings per share 19.2p 20.6p -7% 49.8p

39

Exchange

£m Nth America Other Total

Turnover 17.0 0.8 17.8

Operating profit 3.3 0.2 3.5

Profit before tax 3.3 0.2 3.5

US Canada Euro

2006 H1 Av. Exchange Rate 1.81 2.04 1.45

2005 H1 Av. Exchange Rate 1.85 2.29 1.48

40

Operating Margin - First Half vs. Second half

% H1 H2 FY2006 2005 2005 2005

UK Housing* 11.0 15.9 13.0 14.2

North America Housing*

21.5 16.7 18.0 17.5

Spain/Gibraltar Housing

27.3 34.5 26.4 30.4

Total Housing 15.4 16.8 15.3 15.9

Property - - 11.3 8.2

Construction* 2.0 3.2 0.5 1.8

Total* 13.1 14.0 13.2 13.5

* Before joint ventures’ interest and tax

41

Group HousingPortfolio Strategy*

Profit from Operations %

Landbank plots

2006 H1

2005 FY

2005 H1

2006 H1

2005 FY

2005 H1

UK 43% 51% 55% 38,498 34,985 34,974

North America

51% 44% 38% 36,036 37,910 38,073

Spain 6% 5% 7% 2,238 2,265 1,520

* Includes joint ventures before interest and tax

42

Segmental AnalysisOperating

Profit *Operating Margin *

ROACE

£m 2006 H1

2005 H1

2006 H1

2005 H1

2006 H1

2005 H1

UK Housing 82.0 108.1 11.0% 15.9% 9.9% 13.8%

NA Housing 96.0 74.4 21.5% 16.7% 31.4% 37.5%

Spain Housing 11.9 12.9 27.3% 34.5% 37.4% 56.2%

Total Housing 189.9 195.4 15.4% 16.8% 16.3% 19.4%

Construction 5.2 7.5 2.0% 3.2% - -

Total 195.1 202.9 13.1% 14.0% 17.6% 19.8%

* Includes joint ventures before interest and tax

43

UK Housing A balanced business mix *

Ratios based on home completions

* Including joint ventures

2006 2005H1 H1

ProductHouses 55% 65%Apartments 45% 35%

Private 86% 91%Social 14% 9%

Price point<£180k 55% 53%£180-260k 30% 31%>£260k 15% 16%

2006 2005H1 H1

DivisionScotland & North 38% 41%Central & West 31% 28%East & South 31% 31%

LocationBrownfield 67% 68%Greenfield 33% 32%

44

UK HousingRegional Business Mix – 2006 H1 *

Scotland & North

Central & West

East & South

Total

Home completions 1,265 1,044 1,060 3,369

Avg selling price £000 202 180 196 193

Total square footage ‘000s

1,393 955 912 3,260

ASP/ft2 £ 183 197 228 200

Total plots owned and controlled with consent

14,838 9,950 13,710 38,498

Land years 4.8 3.8 5.1 4.6

Raw land - Gross acres 7,000 6,000 4,800 17,800

* Including joint ventures

45

UK HousingMix by housing type – H1 *

2006 2005

Private Social Total Private Social Total165

1,032

845

790

87

2,919

208 42

1,205 157

65

11

-

275

779

652

70

2,914

83

254

98

18

2

455

1 bed 291 207

2 bed 1,459 1,189

3 bed 877 910

4 bed 670 801

5+ bed 72 87

Total 3,369 3,194

* Including joint ventures

46

UK HousingLandbank *

2006 H1 2005 FY 2005 H1 2004 FY

Landbank plotsowned 32,875 30,605 28,152 28,773controlled 5,623 4,380 6,822 3,686

Landbank 38,498 34,985 34,974 32,459

Landbank years 4.6 4.3 4.2 3.6

Strategic landpotential plots 78,000 80,000 75,000 84,000gross acres 17,800 18,300 20,000 20,300

* Including joint ventures

47

UK HousingCapital Employed

£m 2006 H1 2005 H1 2005 FYFixed Assets 2.4 1.2 1.7Investment in joint ventures 31.4 61.0 62.4Stocks

Land 1,310.0 1,152.3 1,199.3WIP 710.6 687.0 621.2Other 71.4 78.0 68.5

Total stocks 2,092.0 1,917.3 1,889.0Debtors 257.9 225.6 183.3Creditors

Land (223.1) (128.0) (188.8)Other (432.4) (423.5) (362.5)

Total creditors (655.5) (551.5) (551.3)Total capital employed* 1,728.2 1,653.6 1,585.1Average capital employed* 1,656.6 1,568.0 1,533.7

* Excluding goodwill of £357.5m and average based on period end balance

48

North America HousingA balanced business mix *

** Based on turnover, other ratios based on home completions* Including joint ventures

2006 2005H1 H1

ProductHouses 83% 81%Apartments 17% 19%

Price point<$250k 32% 41%$250-500k 39% 37%>$500k 29% 22%

2006 2005H1 H1

Region**Canada 19% 19%Arizona 22% 15%California 24% 36%Florida 26% 26%Texas 9% 4%

LocationBrownfield 11% 10%Greenfield 89% 90%

49

North America HousingRegional Business Mix 2006 H1

Arizona California Canada Florida Texas Total

Home completions 535 230 382 237 128 1,512

Average selling price £’000

155 465 157 369 235 243

Lot completions 672 - 466 224 101 1,463

Average no. selling sites

13 8 33 25 21 100

Plots owned with consent

4,944 1,939 3,905 7,068 2,872 20,728

Plots controlled 3,262 1,792 5,860 3,865 529 15,308

Total Plots 8,206 3,731 9,765 10,933 3,401 36,036

% change on 2005 -10% -1% -5% -5% 1% -5%

Land bank years 3.3 5.2 4.6 10.9 5.5 5.2

50

North America HousingLandbank *

2006 H1 2005 FY 2005 H1 2004 FY

Landbank plots

owned 20,728 18,323 18,947 14,430

controlled 15,308 19,587 19,126 15,579

Landbank 36,036 37,910 38,073 30,009

Landbank years 5.2 5.7 6.7 5.0

* Including joint ventures

51

North America HousingCapital Employed

2006 H1 2005 H1 2005 FYFixed Assets 4.4 3.1 4.0Investment in joint ventures 41.1 55.9 51.2Stocks

Land 959.0 691.6 716.5WIP 685.7 412.1 395.5Other 34.6 41.4 41.8

Total stocks 1,679.3 1.145.1 1,153.8Debtors 156.8 148.8 121.1Creditors

Land (46.6) (34.6) (29.3)Other (489.5) (448.7) (448.4)

Total capital employed* 1,345.5 869.6 852.4Average capital employed* 1,098.9 722.4 729.6

US$m

* Excluding goodwill of $10.9m and average based on period end balance

52

Spain & Gibraltar HousingLandbank

2006 H1 2005 FY 2005 H1 2004 FY

Landbank plots 2,238 2,265 1,520 1,233

Landbank years 6.0 5.6 3.3 3.1

53

Analysis of Stocks and WIP at 30.06.06

£m Land WIP Other Total

UK Housing

1,310.0 710.6 71.4 2092.0

NA Housing

518.3 370.7 18.7 907.7

SpainHousing

88.1 50.5 3.3 141.9

Other - 4.9 0.5 5.4

Total 1,916.4 1,136.7 93.9 3,147.0