Preliminary Results Presentation, Year to 30 th June 2007 Greg Fitzgerald - Chief Executive

1. Preliminary Results Presentation, Year to 30th June 2007 Greg Fitzgerald - Chief Executive Frank Nelson - Finance Director Stephen Teagle - Affordable Housing Director

2. Disclaimer This presentation is being made only to and is directed at (a) persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or (b) any other persons to who it may otherwise lawfully be communicated, falling within Article 49(2) of the Order (all such persons being referred to as “relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any of its comments. The financial information set out in this document does not constitute the Company’s statutory accounts. Statutory accounts for 2006, which received an auditors’ report that was unqualified and did not contain any statement concerning accounting records or failure to obtain necessary information and explanations, have been filed with the Registrar of Companies.

3. Agenda Regeneration Photo • Key Highlights • Financial Review • Operating Review • Initiatives for the Future • Summary and Outlook The Village, St Austell, Cornwall

4. Key Highlights

5. Key Highlights • Profits substantially ahead of last year • Gearing significantly below forecast • Forward order book in construction maintained • Strong in-hand sales position • Land bank increased, resulting from success in regeneration

6. Key Highlights • Significant expansion of Affordable Housing and Regeneration activity • Morrison and Chartdale acquisitions performing ahead of expectations • Acquisition of Linden • Pension legacy addressed • Momentum in all divisions facilitating further growth

7. Key Highlights New Structure

8. Financial Overview

9. Financial Overview Highlights • Group revenue £1.4bn, up 65% • Profit before tax • Pre exceptional £53m, up 63% • Post exceptional £60.2m, up 75% • Earnings per share • Pre exceptional 12.5p, up 29% • Post exceptional 14.3p, up 32% • Dividend 3p, up 20%

10. Financial Overview Highlights • Net debt £99m – strong construction performance • Profit from operations (excluding Linden) up by 43% • Return on average shareholders’ funds of 28% • Pre exceptional tax charge reduced to 27.9% (post exceptional 27.6%) • 5 year banking facility of £450m • Progressing significant joint venture with HBOS

11. Financial Overview Income Statement * Profit from operations is stated before finance costs, exceptional items, amortisation and share of joint ventures’ interest and tax

12. Financial Overview Segmental Analysis to 30th June 2007 – Primary Operating Profit * Profit from operations

13. Financial Overview Segmental Analysis to 30th June 2007 – Profit Before Tax * Management estimate of interest allocation

14. Financial Overview Segmental Analysis to 30th June 2007 – Operating Profit including Affordable Housing and Regeneration *Profit from operations

15. Financial Overview Segmental Analysis to 30th June 2007 - PBT including Affordable Housing and Regeneration *Management estimate of interest allocation

16. Financial Overview Share of the Cake – Net Profits 2007 2006 Excludes Group and PPP Investments

17. Financial Overview Finance Costs

18. Financial Overview Balance Sheet Highlights * Includes £18m net pension deficit (2006: £33m)

19. Financial Overview Cash Flow Summary * Includes proceeds from sale and leasebacks

20. Financial Overview Linden Acquisition • Accounting in line with estimates at acquisition date *Deferred consideration of £13m

21. Operating Review - Building

22. Operating Review - Building Key Highlights • All business units exceeded budget • 84% of work secured for current year • Further penetration of commercial market • New FM business set up SABMiller, Woking

23. Operating Review - Building Key Highlights • Northern operation now fully established • Progress on Highland and Northampton schools on track • Recruitment of quality staff is challenging • Market conditions remain strong Royal Northern College of Music, Manchester

24. Operating Review - Building Forward Order Book Excludes Affordable Housing

25. Operating Review - Infrastructure

26. Operating Review - Infrastructure Key Highlights • Delivering upper quartile returns • 85% of work secured for current year • Creation of transport business from highways and rail activities • Expanding geographical coverage through integration Handsacre Rail Project, Trent Valley

27. Operating Review - Infrastructure Key Highlights • Development of microrenewables capability • New Framework wins including Environment Agency • Good progress on Whitelee and Olympic contracts • Excellent customer satisfaction results • Buoyant market conditions Biosolids Treatment Works, Kings Lynn

28. Operating Review - Infrastructure Forward Order Book

29. Operating Review - Investments

30. Operating Review - Investments Key Highlights • Integration complete, optimising complementary skills • Achieved financial close on SE Essex LIFT • Preferred bidder on St Andrews Community Hospital • Shortlisted on Birmingham Schools BSF • Good pipeline of future projects • New equity model in place • Updated Directors’ Valuation Gaelic Primary School, Inverness

31. Operating Review - Affordable Housing and Regeneration Stephen Teagle – Affordable Housing Director

32. Operating Review - Affordable Housing and Regeneration The Market • Increased public investment to improve supply • Major releases of public sector land • Broadening market engagement by Government • Regeneration funding driving R&D in housing • Estate regeneration displacing decent homes investment • Hybrid GT model attractive to market Green Paper – Gun Wharf, Plymouth

33. Operating Review - Affordable Housing and Regeneration Key Highlights - Regeneration • Established dedicated team • Expertise and capability aligned with market • Secured 6 regeneration sites from EP (1,883 plots) • Shortlisted on 2 further EP sites (530 plots) • Further joint ventures (980 plots) with RSLs on estate regeneration • First JV with National Grid • Mixed use schemes being delivered across Group New Photo Yarborough Estate, Grimsby

34. Operating Review - Affordable Housing and Regeneration Key Highlights – Affordable • Frameworks with 25 RSLs • Pre-qualified for National Grant Programme 08-11 • Significant enhanced revenues achieved • Early involvement in S106 negotiations • Average selling price 06/07 £133k • National Award winner

35. Operating Review - Affordable Housing and Regeneration Key Statistics - including Joint Ventures

36. Operating Review - Affordable Housing and Regeneration Summary and Outlook New Photo • Significant regeneration opportunities • Further business focus to deliver growth • Capitalise on operational synergies • Access Government funding direct • Emphasis on enhancing affordable margins • Buoyant market with strong growth prospects Union Road, London

37. Operating Review - Housebuilding

38. Operating Review - Housebuilding Key Highlights • Record Year • Secured first housing development in Scotland • National House Builder of the Year • Acquisition of Linden Homes • Consolidated position as Top Ten Housebuilder • All business units re-branded • Industry leading customer satisfaction

39. Operating Review - Housebuilding Key Statistics - including Joint Ventures * Includes private housing, S106 and regeneration (excluding contracting)

40. Operating Review - Housebuilding Linden Acquisition • Integration ahead of schedule • Re-organisation costs in line with expectation • Synergy savings and best practice ahead of forecast • Linden London Developments established • Merged business exceeding expectations • Linden management fully integrated into enlarged business Fusion, Woking, Surrey

41. Operating Review - Housebuilding Market Outlook • Challenging market with encouraging sales during summer • Incentive levels within budgeted allowances • Part exchange remains under control • Little exposure to consortium sites • Planning process continues to be difficult • Increased land bank gives greater visibility Watercolour, Redhill, Surrey

42. Initiatives for the Future

43. Initiatives for the Future • Initiatives • Harness Group purchasing power • Speculative housing in Scotland • Development of microrenewable expertise • Mixed tenure development in Partnerships • Expand Facilities Management capability • Strategic equity participation in PFI schemes • Improved Incentive Scheme Tesco, Welwyn Garden City

44. Summary and Outlook

45. Summary and Outlook • Top 10 contractor and housebuilder • All divisions performing well within challenging or strong market conditions • Major focus on Affordable and Regeneration Housing • Successful integration of major acquisitions • Increased land bank providing greater flexibility and visibility • Management team further strengthened • Significant investment for the future • Strong cash generation • Confidence in 2007/08

46. Preliminary Results Presentation Year to 30th June 2007

47. Appendix 1 Office Locations

48. Appendix 2 Affordable Housing and Regeneration • The combined Affordable Housing and Regeneration profit centre will comprise all turnover and profit from three sources: • CONTRACTING • 100% of affordable housing contracting • Currently undertaken primarily by GT Partnerships, but also Midas and Stamford. • ENABLING • 100% of affordable housing Section 106 units • This includes all planning obligations arising from spec schemes where affordable housing comprises < 50%. This is irrespective of the contractual arrangements, or whether schemes are delivered via RSLs or the private sector. • REGENERATION • Mixed tenure regeneration • When publicly commissioned, these developments are generally characterised by a level of affordable provision in excess of local planning policy; may require public gap funding to proceed; and are often on brownfield sites, surplus public land, or within more fragile housing markets. Mixed tenure regeneration schemes incorporate profits arising from all elements; spec and affordable and any additional mixed use. It includes • - all schemes where affordable housing represents 50% or more of a development • - all RSL or public joint venture schemes • - all publicly commissioned schemes e.g., EP sites • For the purpose of these definitions, First Time Buyer Initiative and other publicly commissioned housing is defined as Affordable. The use of the term Regeneration is intended to illustrate those schemes which, whilst incorporating speculative sales risk, provide a different business risk profile. • Profit arising from land sales which meets these policy definitions will also be incorporated, based on unit numbers within the segment.

49. Appendix 3 Housebuilding - Operational Structure Chris Coates South East Ian Baker Mids, S & SW Ian Ralston Thames V Paul Cooper South East Tom Nicholson Chiltern Mike Dempsey Midlands Brendan Blythe North Bill Cawse South West Pat Feighery Southern Toby Ballard Western