1. HMI Conference 2004 The challenges facing the Board Peter Johnson CEO George Wimpey Plc Tuesday 7 September 2004

2. The role of the Board  Maintaining standards of Corporate Governance  Approving plans, budgets and major projects  Ensuring management:  is of an adequate calibre  is addressing current business priorities  has an effective strategy to create shareholder value  is listening to its shareholders

3. Current business priorities  Implementing Barker  Managing a changing market

4. Current business issues: Implementing “Barker”  Promoting the message  Promoting free market vs increased regulation  Communicating with Government on delivery  Fulfilling our part of the bargain  Preparing for growth

5. Customer service 50% 55% 60% 65% 70% 75% AprMayJunJulAugSepOctNovDecJanFebMar GW monthly CSM score 20032004 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% AprMayJunJulAugSepOctNovDecJanFebMar Current industry ave recommendation rate Barker target 2007 recommendation rate George Wimpey recommendation rate 20032004

6. GW weekly sales rates: 2002 vs. 2004

7. GW weekly sales rates: 2002 - 2004

8. GW weekly sales rates: 1997 - 2004

9. George Wimpey ASP on reservations 20032004

10. A comparison with the past 1990  Industry stocks were high  Planning was a lesser issue  Many companies were highly geared  Land purchase was poorly disciplined Many companies had to manage for cash  Interest rates were high  Unemployment was high and rising  Mortgage service costs were high  There were many distress sellers The effect on house prices was largely out of our hands 2004  Industry stocks are low  Land with planning is scarce  Companies are well-financed  Land purchase is well-disciplined Companies can manage for their shareholders  Interest rates are low  Unemployment is low and stable  Mortgage service costs are low  Number of distress sellers will be low The effect on our house prices is mainly in our own hands

11. Strategies for shareholder value: The Berkeley example  Exit volume housebuilding: major players have scale benefits  Focus on urban regeneration: area of competitive advantage  Cautious in land market: demand bidding prices too high  Use balance sheet capacity to improve shareholder returns  Return surplus funds which cannot be used at adequate returns within business to shareholders

12. Strategic priorities  Generate positive free cash flow  focus on areas of competitive advantage  avoid areas of competitive weakness  don’t overpay for land  Deploy surplus cash in the interests of shareholders  don’t over-invest in mature markets  don’t grow volumes for the sake of it  use the balance sheet in the shareholders’ interests  give shareholders immediate as well as future cash returns

13. George Wimpey Strategy  Secure margins through land disciplines and cost control  Sustain benefits arising from absolute and relative scale  Structure in place for growth if land available on right terms In UK, prioritise margin and cash over rapid volume growth  Maintain rapid growth rate of Morrison within existing markets Deliver significant volume and profit growth from Morrison  Continue to reduce gearing levels to ~40%  Sustain policy to increase dividends ahead of earnings growth Reduce gearing and increase dividend payout

14. Conclusions  A key time for the industry: Boards face important challenges  Long term, Barker is key: we must deliver our side of the programme, and help Government deliver theirs  Short term, the market is changing: we must adapt our volume targets to reflect a tighter market  Our strategies must reflect the real world: we can only achieve profitable growth if we have competitive advantages  Now is the time to demonstrate we justify higher share prices!