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

Agenda WelcomeJohn Robinson IntroductionPeter Johnson H1 financial review Andrew Carr-Locke UK business reviewKeith Cushen US business reviewPeter Johnson Next steps and outlookPeter Johnson 2

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

2002 H1 financial review Andrew Carr-Locke Group Finance Director

First half results º restated for FRS 19 * before June 2001 exceptional items of £14.2m st half 1, % change st half ° Revenue £ m Operating profit * £ m Earnings per share * p Dividend per share p Profit before tax * £ m Interest charge £ m(19.2)(13.1)+ 47 ROACE %

Segmental analysis £ m % change£ m % change st half st half , (4.1) US ˜ GROUP UK Corporate RevenueOperating profit *Operating margin ‘ % * before exceptionals ‘ after fair value adjustments ˜ exchange rate in 2002 $/£=1.45 6

First half completions No % change‘000 % change 5, £ £ UK - social UK - pd 5, UK - total CompletionsAverage selling price 7, GROUP 1,325+ 4$ US 7

UK margin analysis £m % to sales£m % to sales Gross profit st half2001 1st half (70.7)10.7(54.7)8.9Overhead costs Operating profit after FVIs Fair value items Operating profit before FVIs

Impact of FRS (27.6) (8.8) st half st half previously published st half restated 38.9 (12.4) Profit before tax £ m Tax £ m Tax rate % Balance sheet tax asset £ m 9

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

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

Balance sheet capital employed 2002 June 2001 June £ m , (59) (50) Deferred consideration ASSETS EMPLOYED Fixed assets Land (net of creditors) Other current assets Tax and provisions Deferred tax (161) 1, ,135 12

Balance sheet financing 2002 June , June ,135 Shareholders funds Interest cover (times) Gearing Net debt £ m Capital employed £ m £ m 50% % 5.1 Interest cover (times) net of imputed interest

Land owned and controlled ‡ at 12 month build rate Total land value £ m Short term land bank in years ‡ Short term plots Plot change since prior December June ,133 42, , June , , June , June , , UKUS 14

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

UK business performance Keith Cushen George Wimpey UK Managing Director

Financial summary ,9974, , ASP £000 Completions Operating margin * % Revenue £ m Operating profit £ m st half % change st half st half st half 2001 full year 11,537 1, * Before Fair Value Items 17

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

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 H  Wimpey Homes, McLean Homes and McAlpine Homes now fully integrated and benefits being achieved ahead of expectations 19

McAlpine Homes fully integrated  build time being reduced from 24 weeks to George Wimpey standard weeks  high inherited levels of work 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

Restructuring plus McAlpine transforming the business  short term landbank refocused  better balance of prime and secondary locations  land purchased in H 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 H supports higher priced products  >90% of land requirements for 2003 now met  land now being bought at significantly better margins 21

Land repositioning Midlands North South 3.3 years42,303 plotsLandbank at June % 19% 42% 22% 32%36% Dec 2000 Dec % 22% 37% June 2002 Owned and controlled plots 28% 35% 37% 1st half 2002 LPE approved plots 34% 29% 37% 1st half

Restructuring plus McAlpine transforming the business  short term landbank refocused  better balance of prime and secondary locations  land purchased in H 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 H supports higher priced products  >90% of land requirements for 2003 now met  land now being bought at significantly better margins 23

Selling price increase % change st half 5,703 1, st half 4,398 1, Completions TURNOVER £ m Average square footage per unit Average selling price £ per square foot Average selling price per unit £000 24

Restructuring plus McAlpine transforming the business  short term landbank refocused  better balance of prime and secondary locations  land purchased in H 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 H supports higher priced products  >90% of land requirements for 2003 now met  land now being bought at significantly better margins 25

Land purchase margins 26

George Wimpey margin 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

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

Product mix and price range st half % st half % st half % Completions from - apartments Completions > £200, and 2 bed houses Completions £0 -125,000 Completions £125, , bed houses bed houses 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

Options revenue per completion 3,717 1,690 3, ,295 Total George Wimpey Former George Wimpey outlets Former McAlpine outlets st half £ % change st half £ TOTAL SALES REVENUE £ m 0 3,295 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

George Wimpey average selling price 33

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

US business performance Peter Johnson Chief Executive

Financial summary , , ASP $000 Legal completions Operating margin % Revenue $ m Operating profit $ m st half % change st half st half st half 2001 full year 2,

Market US economy  recovery slower and more uncertain than expected  unemployment has remained below 6% throughout H  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

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

Morrison Homes margin improvement plan  H1 margin 8.5% vs % and %  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

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

Next steps Peter Johnson Chief Executive

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

Outlook Peter Johnson Chief Executive

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

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

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

Published results st half st half (13.1)(19.2) (14.2) Operating profit before exceptionals Profit before tax Interest cover before exceptionals Interest charge Exceptionals £ m PBT before exceptionals 47

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

Balance sheet 2002 June , June , , (59) (50) Shareholders funds Deferred consideration ASSETS EMPLOYED Shareholders funds Gearing Net debt CAPITAL EMPLOYED Fixed assets £m Land (net of creditors) Other current assets Tax and provisions Deferred tax (161) 1,249 50% 222p 0 1,135 57% 195p 49

World-wide sales 7, ,881 1,884 9, , ,260 1,698 7,958 UK - total UK -pd GROUP UK - social US st half st half st half st half st half st half SalesAve sitesSelling rate per outlet / week 50

UK housing PD activity analysis 308 1, ,0271, , Average selling price £ / sq ft Average number of sites Average house size sq ft st half nd half 2001 Year st half 51

UK housing turnover analysis nd half 2001 Year 6,768 10, , , st half 5, st half 4, PD - volume ave price £000 turnover £ m TOTAL £ m Other turnover (mainly land sales) ave price £000 turnover £ m Partnership - volume 52

UK housing margin analysis nd half 2001 Year (22.1)(44.8) (38.0)(70.0) st half (27.8) (42.9) st half (22.7) (32.0) Gross margin % OPERATING PROFIT £ m Operating margin % OP MARGIN % before FVI Fair value items (FVI) £ m Gross profit £ m Selling expenses £ m Overhead costs £ m 53

UK housing product mix nd half % 2001 Year % st half % st half % Flats 4 and 5 bedroom houses 1 and 2 bedroom houses 3 bed semi / terraced 3 bed detached

UK housing geographic mix st half nd half 2001 Year st half Scotland South West / Wales North Midlands South East % LEGALS BY AREA 55

UK housing price mix st half nd half 2001 Year st half % LEGALS BY PRICE £

UK housing long term land 3,550 12,750 16, TOTAL Freehold Option st half2001 1st half Gross Acres% Value £ m% % Value £ m % Gross Acres 232, , ,700 57

UK housing short term land nd half 2001 Year 23,860 24,000 15,256 19,277 (6,768) (10,929) 32,348 8,219 40, st half 32,348 2,738 (5,298) 29,788 12,515 42, st half 24,000 4,021 (4,141) 23,860 8,060 31,920 Start of period Controlled TOTAL LAND BANK Net additions Legal completions End of period OWNED PLOTS 58

UK housing land 32,34824,0001, Opening land bank st half2001 1st half Plots Value £ m Cost per plot £000 Value £ m Cost per plot £ (5,298) 29,788 (4,161)(190) 23, (35.9) 34.2 END OF PERIOD Legal completions (108)(26.0) ,139 (1,401) 4, (19)(44) 46.4 (31.4) Land sales / LT land Additions (5)- 59

US housing PD activity analysis 109 2, ,3562, st half nd half 2001 Year st half 89 2, Average no of sites Average house size sq ft Average selling price $/sq ft 60

US housing turnover analysis 1,7582, nd half 2001 Year , st half st half 1,142PD - volume ave price $000 turnover $ m Other -$ m TOTAL$ m 61

US housing margin analysis nd half 2001 Year (25.0) (41.9) (22.7) (41.1) st half (20.3) (21.8) st half (16.9) (18.4) PD -margin % Selling expenses $ m Overhead costs $ m Operating margin % OPERATING PROFIT $ m profit $ m Other - profit $ m TOTAL GROSS PROFIT $ m 62

US housing legals nd half 2001 Year 6661, ,7582, st half st half 318Western US Florida Texas 164 1, ,142 Georgia TOTAL 63

US housing short term land st half 10,160 1,801 (1,325) 10, , nd half 2001 Year 9,8608,330 2,0584,730 (1,758)(2,900) 10,160 2,075 12, st half 8,330 2,672 (1,142) 9,860 1,640 11, Owned start of period Controlled TOTAL LAND BANK LAND SPEND $ m net additions legal completions end of period 64