Interim Results for half year ended 30 June 2002

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

3. Agenda Welcome John Robinson Introduction Peter Johnson H1 financial review Andrew Carr-Locke UK business review Keith Cushen US business review Peter Johnson Next steps and outlook Peter Johnson 2

4. 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

5. 2002 H1 financial review Andrew Carr-Locke Group Finance Director

6. 2002 1st half 2001 1st half ° % change Revenue £ m 1,018 + 44 707 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 15.7 10.1 + 56 Earnings per share * p Dividend per share p 3.2 2.9 + 10 21.2 16.8 ROACE % First half results ºrestated for FRS 19 * before June 2001 exceptional items of £14.2m 5

7. Segmental analysis Revenue Operating profit * Operating margin ‘ % £ m % change £ m % change 2002 1st half 2001 1st half UK 793 11.4 10.5 + 55 90.5 + 68 US ˜ 225 + 19 19.1 + 25 8.5 8.1 Corporate (4.1) 1,018 + 44 105.5 + 59 GROUP 10.4 9.4 * before exceptionals ‘ after fair value adjustments ˜ exchange rate in 2002 $/£=1.45 6

8. 7,028 + 27 First half completions Completions Average selling price No % change ‘000 % change UK - pd + 27 £140 + 19 5,298 UK - social 405 + 71 £63 + 4 5,703 + 30 UK - total US 1,325 + 16 $245 + 4 GROUP 7

9. 2002 1st half 2001 1st half % to sales £m £m % to sales 21.2 Gross profit 161.2 20.3 108.7 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 after FVIs 90.5 11.4 54.0 10.5 UK margin analysis 8

10. 2002 1st half 2001 1st half restated 2001 1st half previously published 86.3 38.9 Profit before tax £ m 38.9 Tax £ m (27.6) (12.4) (8.8) Tax rate % 32 32 23 Balance sheet tax asset £ m 15.6 30.6 - Impact of FRS 19 9

11. 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

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

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

14. £ m 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 5.1 8.2 Balance sheet financing 13

15. Total land value £ m Short term plots Plot change since prior December Short term land bank in years ‡ Landowned and controlled UK US June 2002 June 2001 June 2002 June 2001 1,133 790 120 116 42,303 31,920 12,536 11,500 + 1,736 - 1,530 + 301 + 1,530 3.3 3.0 4.1 4.1 ‡ at 12 month build rate 14

16. 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 McAlpine 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

17. UK business performance Keith Cushen George Wimpey UK Managing Director

18. 2002 1st half 2001 1st half 2000 1st half 2001 full year 2001 - 2002 1st half % change + 30 Completions 5,703 4,398 4,997 11,537 + 55 Revenue £ m 793 512 532 1,406 140 118 109 + 19 ASP £000 123 90.5 54.0 54.4 + 68 Operating profit £ m 173.6 Operating margin * % 12.1 10.5 10.2 12.4 Financial summary * Before Fair Value Items 17

19. Market and sales • national market strong throughout H1 • benefit of additional outlets from McAlpine acquisition • visitor levels 33% higher than H1 2001 • first half selling rates increased by 12% • limited exposure to Central London • <4% of George Wimpey sales to buy-to-let 18

20. Restructuring complete • £40 m overhead savings following integration of Wimpey Homes and McLean Homes and acquisition of McAlpine 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 H1 2002 • Wimpey Homes, McLean Homes and McAlpine Homes now fully integrated and benefits being achieved ahead of expectations 19

21. McAlpine Homes fully integrated • build time being reduced from 24 weeks to George Wimpey standard 13 - 15 weeks • high inherited levels ofwork in progress reduced • large range of McAlpine 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

22. Restructuring plus McAlpine transforming the business • short term landbank refocused • better balance of prime and secondary locations • land purchased in H1 2002 sustains new geographic mix • average selling price up 19% to £140,000 • 15% of sales in H1 in excess of £200,000 • land purchased in H1 2002 supports higher priced products • >90% of land requirements for 2003 now met • land now being bought at significantly better margins 21

23. Landbank at June 2002 42,303 plots 3.3 years LPE approved plots Owned and controlled plots 1st half 2001 June 2002 Dec 2001 Dec 2000 1st half 2002 42% 49% North 34% 41% 28% 29% 22% 22% 19% Midlands 35% South 37% 37% 36% 32% 37% Land repositioning 22

24. Restructuring plus McAlpine transforming the business • short term landbank refocused • better balance of prime and secondary locations • land purchased in H1 2002 sustains new geographic mix • average selling price up 19% to £140,000 • 15% of sales in H1 in excess of £200,000 • land purchased in H1 2002 supports higher priced products • >90% of land requirements for 2003 now met • land now being bought at significantly better margins 23

25. 2002 1st half 2001 1st half % change 5,703 Completions 4,398 + 30 1,062 1,051 Average square footage per unit + 1 Average selling price £ per square foot 132.3 112.6 + 18 140 118 Average selling price per unit £000 + 19 793 512 TURNOVER £ m + 55 Selling price increase 24

26. Restructuring plus McAlpine transforming the business • short term landbank refocused • better balance of prime and secondary locations • land purchased in H1 2002 sustains new geographic mix • average selling price up 19% to £140,000 • 15% of sales in H1 in excess of £200,000 • land purchased in H1 2002 supports higher priced products • >90% of land requirements for 2003 now met • land now being bought at significantly better margins 25

27. Land purchase margins 26

28. George Wimpeymargin 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

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 McAlpine sites • average selling prices on order book >£153,000 • up 23% on order book at August 2001 28

30. 51 46 52 4 + bed houses Product mix and price range 2002 1st half % 2001 1st half % 2000 1st half % 18 Completions from - apartments 9 6 10 13 1 and 2 bed houses 14 26 26 3 bed houses 29 Completions £0 -125,000 50 67 72 24 35 26 Completions £125,000 - 200,000 15 7 4 Completions > £200,000 29

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 McAlpine sites • average selling prices on order book >£153,000 • up 23% on order book at August 2001 30

32. 2002 1st half £ 2001 1st half £ % change 3,717 3,295 + 13 Former George Wimpey outlets Former McAlpine outlets 1,690 0 Total George Wimpey 3,224 3,295 - 2 TOTAL SALES REVENUE £ m 17.1 13.7 + 25 Options revenue per completion 31

33. 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 McAlpine sites • average selling prices on order book >£153,000 • up 23% on order book at August 2001 32

34. George Wimpey average selling price 33

35. George Wimpey One business one brand • new brand developed to support single business focus on customer • new brand will be rolled out during H2 2002 • all rebranding costs charged to H1 profits • new customer management and service procedures introduced to raise service levels to best in the industry 34

36. US business performance Peter Johnson Chief Executive

37. 2002 1st half 2001 1st half 2000 1st half 2001 full year 2001 - 2002 1st half % change + 16 Legal completions 1,325 1,142 947 2,900 Revenue $ m + 20 326 272 221 693 245 236 224 + 4 ASP $000 238 27.7 22.1 12.2 66.4 + 25 Operating profit $ m Operating margin % 8.5 8.1 5.5 9.6 Financial summary 36

38. Market US economy • recovery slower and more uncertain than expected • unemployment has remained below 6% throughout H1 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 H1 37

39. Morrison Homes sales performance • average number of outlets up 22% on H1 2001 • visitor levels up 54% on H1 2001 • selling rate 10% down on very strong H1 2001 • selling prices up 4% on H1 2001 • average square foot unchanged • $ per square foot up from $98 to $102 38

40. Morrison Homes margin improvement plan • H1 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

41. 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

42. Next steps Peter Johnson Chief Executive

43. 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

44. Outlook Peter Johnson Chief Executive

45. 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

46. 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

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

49. Published results £ m 2002 1st half 2001 1st half Operating profit before exceptionals 105.5 66.2 Interest charge (19.2) (13.1) PBT before exceptionals 86.3 53.1 Exceptionals - (14.2) 86.3 38.9 Profit before tax 8.2 5.1 Interest cover before exceptionals 47

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