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Disclaimer. The information in this presentation does not constitute an offer to sell or an invitation to buy shares in George Wimpey Plc or any other invitation or inducement to engage in investment activities. Past performance cannot be relied upon as a guide to future performance. 2.

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  1. Disclaimer The information in this presentation does not constitute an offer to sell or an invitation to buy shares in George Wimpey Plc or any other invitation or inducement to engage in investment activities. Past performance cannot be relied upon as a guide to future performance 2

  2. George Wimpey PlcInterim Resultsfor the 26 weeks to 3 July 2005 Tuesday 6 September 2005

  3. Welcome John Robinson Chairman

  4. Agenda • H1 Financial Review Andrew Carr-Locke • UK Business Review Pete Redfern • US Business Review Peter Johnson • Strategy and Outlook Peter Johnson 5

  5. H1 2005 financial review Andrew Carr-Locke Group Finance Director

  6. IAS reconciliationIncome statement £m H1 2005 H1 2004 UK GAAP* IAS UK GAAP* IAS Operating profit 158.0 156.5 181.6 181.8 Interest (27.3) (34.2) (23.1) (27.9) PBT 130.7 122.3 158.5 153.9 Tax (41.0) (37.9) (49.1) (47.8) Profit after tax 89.7 84.4 109.4 106.1 7 *Consistent 2004 UK GAAP basis

  7. First half results £m H1 2005 H1 2004* Change Turnover 1,190 1,220 -2% Operating profit 156.5 181.8 -14% Interest charge (34.2) (27.9) +23% Profit before tax 122.3 153.9 -21% Earnings per share 21.5p 27.7p -22% NAV per share 348p 296p +52p Dividend per share 5.7p 5.2p +10% ROACE** 22.7% 25.6% 8 *restated for IAS **last 12 months

  8. Segmental analysis Turnover Operating profit Operating margin £m Change £m Change H1 2005 H1 2004 GWUK 858 -10% 107 -32% 12.4% 16.4% Morrison Homes* 332 +24% 55 +64% 16.4% 12.4% Other - - (5) - Total 1,190 -2% 157 -14% 9 *Exchange rate in 2005 $/£=1.87, 2004 $/£=1.81

  9. First half completions Completions Ave selling price No Change £ / $ Change GWUK private 4,154 -11% £194,000 - GWUK affordable 422 -6% £88,000 +2% GWUK 4,576 -10% £185,000 - Morrison Homes 1,996 +16% $302,000 +9% GROUP TOTAL 6,572 -3% 10

  10. Cash flow summary H1 2005 H1 2004* £m Operating profit 157 182 Land spend (502) (462) Land realisations 284 284 Other working capital movements (134) (137) CASH INFLOW FROM OPERATIONS (195) (133) Interest (27) (23) Tax (55) (55) Dividends (41) (16) Exchange rate effects (31) 5 Other movements (11) (3) INCREASE IN NET DEBT (360) (225) 11 *restated for IAS

  11. Balance sheet - net assets 3 Jul 2005 30 Jun 2004* £m Fixed assets and joint ventures 45 29 Land 2,136 1,767 Land creditors (240) (147) Other net operating assets 546 451 Tax and provisions (94) (63) Net pension deficit (145) (129) TOTAL NET ASSETS EMPLOYED 2,248 1,908 * restated for IAS 12

  12. Balance sheet -financing 3 Jul 2005 30 June 2004* Shareholders’ funds £m 1,367 1,154 Net debt £m 881 754 Capital employed £m 2,248 1,908 Gearing 64% 65% Interest cover last 12 months 7.1x 7.6x Cash interest cover last 12 months 9.4x 9.8x 13 * restated for IAS

  13. Financial summary • Results now published under IAS • Challenging market conditions in the UK • GWUK margins down 4.0pp, volumes down 10% • Continued strength in the US • Morrison margins up 4.0pp, volumes up 16% • Group PBT down 21% at £122m • Gearing in line with prior year at 64% • ROCE at 22.7% remains healthily above cost of capital • Half year dividend increased by 10% to 5.7p 14

  14. Impact of IASInterest charge – net payable £m H1 2005 H1 2004 UK GAAP basis* (27.3) (23.1) Interest charge on discounted pension liabilities under IAS 19 (4.2) (4.0) Reallocate JV interest 0.6 - Interest charge on discounted land creditors (3.1) (1.4) Notional interest expense booked to cost of inventory 1.1 0.6 Movement on interest rate derivatives (1.3) - IAS basis (34.2) (27.9) 15 *Consistent 2004 UK GAAP basis

  15. Financial summary • Results now published under IAS • Challenging market conditions in the UK • GWUK margins down 4.0pp, volumes down 10% • Continued strength in the US • Morrison margins up 4.0pp, volumes up 16% • Group PBT down 21% at £122m • Gearing in line with prior year at 64% • ROCE at 22.7% remains healthily above cost of capital • Half year dividend increased by 10% to 5.7p 16

  16. UK business review Pete Redfern Chief Executive, GWUK

  17. George Wimpey Laing Homes H1 2005 H1 2004 H1 2005 H1 2004 Financial summary Total completions 4,177 4,560 399 533 Private completions 3,793 4,220 361 423 Private ASP £182,900 £183,600 £316,400 £308,100 Turnover £m 739.3 809.3 119.1 142.9 Gross margin % 24.3% 26.8% 20.3% 23.1% GWUK H1 2005 H1 2004* Operating profit £m 106.7 156.2 Operating margin % 12.4% 16.4% 18 * restated for IAS

  18. UK market conditions • Market continues to be • tough but steady • very price sensitive and incentive led • Second hand market (down 30%) affecting new build sales and conversion rates. • Summer visitor levels are slightly better than last year • cancellation rates below peak in November 2004 • Geographically no clear difference in market conditions, • in the South slightly more confidence in the short term • Apartment market is particularly price sensitive - occupier and investor 19

  19. Ave weekly sales ratesGWUK 2003 – 2005 1.2 1 0.8 0.6 Sales per site per week 0.4 0.2 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 20 2003 2004 2005

  20. Net sales prices on reservationsGWUK 2003 – 2005 210 200 190 180 ASP achieved on reservations £000s 170 160 150 140 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 21 2003 2004 2005

  21. Price points 1400 1200 2005 1000 2004 800 Total completions 600 400 200 0 £0-50k £51-100k £101-150k £151-200k £201-250k £251-300k £301-500k £500k+ 22 Price band

  22. Product mix PD completions % H1 2005 H2 2004 H1 2004 Apartments 34% 29% 32% 2 / 3 bed houses 32% 29% 35% 4 / 5 bed houses 34% 42% 33% 100% 100% 100% 23

  23. Margin reconciliation H1 2005 H1 2004 Change FY 2004 Turnover 100% 100% - 100% Land costs 26.5% 23.9% (2.6)% 24.2% Build & other costs 49.7% 49.7% 0.0% 49.5% Direct selling expenses 4.7% 3.8% (0.9)% 3.3% Overhead costs 6.6% 6.1% (0.5)% 5.2% Operating profit 12.4% 16.4% (4.0)% 17.8% 24

  24. Build Costs • Underlying cost pressures remain, pressure on labour rates and availability has reduced • Material cost pressure remains high, driven by higher energy and other input costs, partly balanced by scale • Cost management program enabled us to hold build costs • Confident of £20m cost saving program, c.£17m impacts on 2005 with much of the balance locked up in WIP and build • Key initiative is rationalisation of house types • September 2004 - every business had own house designs • no core national range since 2001 • today - a ‘preferred range’ of 30 products 25

  25. Landbank • Planning approvals achieved on 14,500 plots in last 12 months Owned and controlled plots Long term acres Jun 2005 Jun 2004 Jun 2005 Jun 2004 North 15,555 15,630 4,784 4,908 Midlands 12,360 12,147 5,329 5,497 South 16,648 16,078 6,218 7,720 City 3,559 2,398 - - Laing 6,258 4,648 - - TOTAL 54,380 50,901 16,331 18,125 26

  26. Land cost • Cost per plot of 2005 acquisitions is higher due to Laing / South mix • Continued focus on larger sites where competition slightly reduced and scale gives advantage • Significant skills developed since 2003 on partnership schemes like Bracknell and Dartford For PD owned plots only H1 2005 Landbank ASP £000s 194.5 194.3 Cost per plot £000s 52.3 54.0 Land value % ASP 26.6% 27.8% 27

  27. Bracknell case study • Existing planning consent - 584 PD units, 146 affordable units • Phased land payment terms, above standard gross margin • Pursuing enhanced planning application, including 38% affordable provision • c.£260k average selling price • Mix includes • c.20% 1&2 bed apartments • 2-5 bed houses • EcoHomes ‘Very Good’ • Anticipated site start Feb 06 • based on existing consent 28

  28. Dartford case study • 794 private development units, 340 affordable units • Phased land payment terms, above standard gross margin • 39% apartments across the development • c.£230k average selling price • Design codes for integrated mixed use development • Land acquired fully serviced • ‘Fastrack’ - dedicated transport service • Anticipated site start mid 06 29

  29. Summary • Challenging first half • market tough, use of incentives essential • order book at 90% of expected full year volumes, margins below first half • build cost pressures significant but balanced by savings • Outlook for H2 • early to call autumn market • balance between customer demand and supply availability is critical factor • cost pressures remain but mitigated by savings • operating margins improved by volume weighting 30

  30. US business review Peter Johnson Group Chief Executive

  31. US housing marketcontinued healthy economic data… • Employment • 240,000+ new jobs in July, 169,000 in August • unemployment at four-year low • Consumer confidence • up to 105.6 in August (vs. 106.2 max 2004 and 2005) • 30-year mortgage rates • 5.71% - still near record lows 32

  32. US housing marketunderpinned by demographics US Homeownership rates 71% 70% 69% A homeownership rate of 70% in 2010 would imply the creation of c.1.28m households pa from 2004-2010, compared to the 800,000 created pa from 1999-2004 68% 67% 66% 70.0 69.2 68.6 68.3 65% 68.0 67.5 66.9 66.4 64% 65.7 65.4 65.1 64.1 64.1 64.1 63% 64.0 63.9 62% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2010E Source: CSFB 33

  33. Morrison HomesH1 performance • More outlets open in continuing businesses • 1 Jan = 89 outlets 1 Sep = 98 outlets H1 2005 H1 2004 Change Visitor rates per site 19.6 18.2 +8% Sales rates per site 1.15 1.08 +6% Ave selling price $302,000 $278,000 +9% 34

  34. Financial summary H1 2005 H1 2004* Change Legal completions 1,996 1,714 +16% Ave selling price $302,000 $278,000 +9% Revenue $m 621 484 +28% Operating profit $m 101.9 60.3 +69% Operating margin % 16.4% 12.4% +4.0pp 35 * restated for IAS

  35. Margin performance • Margins above these levels in sales proceeding • Implied operating margin LPEs year to date = 16.5% • H1 cost inflation c.7% annualised (Source: CSFB) • Some labour and material shortages in strongest markets H1 2005 H1 2004 Change Gross margin 27.1% 24.0% +3.1pp Operating margin 16.4% 12.4% +4.0pp 36

  36. Land • Land in place for growth in 2006 and largely in place for 2007 • Good regional balance Jun 05 Dec 04 Jun 04 Plots owned / under option 19,661 18,892 17,456 Plots controlled 3,058 2,687 2,606 Total landbank 22,719 21,579 20,062 Net additions (plots, last 6 months) 2,765 4,144 3,866 Land spend $m (last 6 months) 156 174 108 37

  37. Progress on strategy:four platforms for growth • Focus on growing markets • major beneficiaries of underlying trends • Establish satellites in neighbouring markets • land in place to support 2006 growth in Reno, Ft Myers and Daytona Beach • Product development • continued success of townhome product • Performance improvement in Texas and exit from Atlanta • Texas completions + sales proceeding up 53% in H1 • Atlanta exit largely complete 38

  38. Morrison Homes marketsmajor beneficiaries of underlying trends Job Growth last 12 mths Rank SF Permits H1 2005 Rank 000s California 321 1 104 2 Florida 262 2 106 1 Texas 185 3 82 3 Arizona 116 6 43 6 Colorado 58 18 21 12 TOTAL 941 - 355 - Total US 2,947 887 32% Morrison Markets 40% 39

  39. Morrison Homes marketsmajor beneficiaries of underlying trends Job Growth last 12 mths Rank SF Permits H1 2005 Rank Morrison completions last 12 mths 000s California 321 1 104 2 1,004 Florida 262 2 106 1 1,954 Texas 185 3 82 3 780 Arizona 116 6 43 6 528 Colorado 58 18 21 12 184 TOTAL 941 - 355 - 4,450 Total US 2,947 887 32% Morrison Markets 40% 40

  40. Progress on strategy:four platforms for growth • Focus on growing markets • major beneficiaries of underlying trends • Establish satellites in neighbouring markets • land in place to support 2006 growth in Reno, Ft Myers and Daytona Beach • Product development • continued success of townhome product • Performance improvement in Texas and exit from Atlanta • Texas completions + sales proceeding up 53% in H1 • Atlanta exit largely complete 41

  41. Summary • Excellent first half performance • visitor levels, sales rates, selling prices all up • Strongly placed for second half • 94% sold or completed for 2005 • order book margins and prices above first half • volumes may be held back by materials shortages • Well-positioned for continued growth • land already in place to support continuing volume growth in 2006 and largely in place for 2007 42

  42. Strategy and outlook Peter Johnson Group Chief Executive

  43. Strategy Market background UK • underpinned by continuing supply shortfall • price growth likely to be limited • opportunities at lower price points US • underpinned by demographics and economy • remains strong with wide regional variations • will come off peak but remain at historically high levels 44

  44. Strategy UK - focus remains on volume growth • plans in place to deliver through • expanding existing regions • new Laing regions • new George Wimpey satellites • Government initiatives offer potential for new business • implementation depends on market and land prices US - sustainedvolume growth • “four platforms” growth plan in place • land and detailed business plans in place to support growth • these plans could deliver 10,000 unit business within 5 years 45

  45. Outlook UK • current sales rates ahead of same period 2004 • premature to draw conclusions on autumn market • if sales rates sustained, full year total volumes similar to 2004 • by 1 September 90% completed or in order book • margins in order book below first half actuals US • visitor and sales rates remaining strong • full year volumes still expected to be up c.10% • small volume risk from materials and labour shortages • by 1 September 94% completed or in order book • margins and prices in order book above first half actuals 46

  46. George Wimpey PlcInterim Resultsfor the 26 weeks to 3 July 2005 APPENDIX

  47. Impact of IASBalance sheet £m H1 2005 H1 2004 IAS UK GAAP IAS UK GAAP Fixed assets & JVs 45 44 29 29 Land 2,136 2,143 1,767 1,771 Land creditors (240) (244) (147) (151) Other current assets* 547 544 451 452 Tax & provisions (94) (103) (63) (69) Net pension deficit / SSAP 24 prepaid (145) - (129) - TOTAL NET ASSETS EMPLOYED 2,248 2,384 1,908 2,032 48 *Primarily elimination of interim dividend for IAS

  48. Group reservations Reservations Ave sites Per outlet / per week H1 2005 H1 2004 H1 2005 H1 2004 H1 2005 H1 2004 GWUK private 5,936 6,641 321 294 0.71 0.87 GWUK affordable 1,201 835 - - - - GWUK TOTAL 7,137 7,476 321 294 - - US TOTAL 2,804 2,932 93 104 1.16 1.08 GROUP TOTAL 9,941 10,408 414 398 - - 49

  49. GWUK -turnover analysis H1 2005 H1 2004 H2 2004 2004 full year Private - volume 4,154 4,643 6,631 11,274 ave price £000s 194.5 194.9 192.4 193.5 turnover £m 808 905 1,276 2,181 Affordable - volume 422 450 508 958 ave price £000s 87.7 85.9 92.5 89.8 turnover £m 37 39 47 86 Other turnover 13 8 26 34 TOTAL £m 858 952 1,349 2,301 50

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