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Interim Results Presentation 2004

Galliford Try plc. Interim Results Presentation 2004. Introduction David Calverley Financial Review Frank Nelson Construction Andy Sturgess Housebuilding Greg Fitzgerald Summary and Outlook David Calverley. Agenda. Introduction. David Calverley - Chief Executive.

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Interim Results Presentation 2004

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  1. Galliford Try plc Interim Results Presentation 2004

  2. Introduction David Calverley Financial Review Frank Nelson Construction Andy Sturgess Housebuilding Greg Fitzgerald Summary and Outlook David Calverley Agenda

  3. Introduction David Calverley - Chief Executive

  4. Housebuilding: A leading regional developer with strong local brands, specialising in individually designed developments with expertise in brownfield, conversion and a strong focus on customer service. Introduction - Strategy • Construction • A market leader in the delivery of a complete construction service through a partnership approach, with a strong sector focus.

  5. Introduction – Strategic Review • Plan For Growth - Construction • Partnership approach & sector focus • Build on recent successes in public and regulated sectors • Emphasis on sustainable predictable profits • Margins in medium term to be in upper quartile of 2% • Plan for Growth - Housebuilding • Build on success as strong regional developer • Emphasis on mainstream market • Expand unit sales by 50% over next 3 years • Finance from internal resources

  6. Financial Review Frank Nelson – Finance Director

  7. Financial Review – Summary Profit & Loss Account For the half year ended 31 December 2003 (£m) Dec 2003 (£m) Dec 2002 Turnover (including joint ventures) 356.4 299.9 Profit before interest (pre exceptional) 11.4 7.0 Interest (1.8) (1.5) Profit before tax (pre exceptional) 9.6 5.5 Exceptional charge - (2.0) Profit before tax (post exceptional) 9.6 3.5 Earnings per share: Pre exceptional 3.1p 1.7p Post exceptional 3.1p 1.1p Dividend per share 0.55p 0.5p

  8. Financial Review – Segmental Analysis For the half year ended 31 December 2003 Group Turnover (£m) (including joint ventures) Profit/(loss) (£m) Dec 2002 Dec 2003 Dec 2003 Dec 2002 Construction 268.7 226.2 2.0 (2.0) Housebuilding 87.6 73.2 11.2 10.5 Group 0.1 0.5 (1.8) (1.5) Exceptional charge - (2.0) 356.4 299.9 11.4 5.0 Less net interest payable (1.8) (1.5) Profit before tax 9.6 3.5 £1.5m of the exceptional charge in the half year to 31 December 2002 is in construction and £0.5m is in group.

  9. Financial Review – Cash Flow Summary For the half year ended 31 December 2003 Dec 2002 (£m) Dec 2003 (£m) Group operating profit (post exceptional) 11.0 4.9 Depreciation and amortisation 0.9 0.9 Net land spend (6.0) (7.1) Work in progress movement 2.1 (9.9) Other working capital 3.8 (2.3) Net cash flow from operating activities 11.8 (13.5) Interest (1.2) (1.3) Tax (2.1) (2.1) Capital expenditure (0.3) (0.9) Dividends (2.2) (2.2) Other 0.2 (2.3) Movement in net debt 6.2 (22.3)

  10. Financial Review – Balance Sheet, Financing Dec 2003 (£m) Jun 2003 (£m) Shareholders’ funds 65.5 59.7 Net debt 11.6 17.8 Total capital employed 77.1 77.5 Gearing 18% 30% Interest cover (post exceptional charge) 6.3 5.2

  11. Construction Andy Sturgess – Managing Director

  12. Construction - Profitability % Net Margin 0.8% 0.6% 0.4% -0.3% -0.9%

  13. Construction – Economic Forecasting Business Units Communications Rock & Alluvium Partnerships North South Central Market Sectors Water Rail Infrastructure Health & Education PFI/PPP Commercial Interiors Affordable Housing Telecommunications Ground Engineering Growth >10% Growth 5-10% Growth 0-5% Decline 5-10%

  14. Construction - Water • Scottish Water • AMP 4 Renewals • Welsh Water • United Utilities • Anglian Water • Yorkshire Water

  15. Construction - Health • LIFT Programme • Liverpool & Sefton (£60m) • Barnet, Enfield & Haringey (£32m) • Coventry (£42m) • DTC Frameworks

  16. Construction - Education • Bedford Schools PFI – On Site • Caludon Castle School & Community College PFI Project, Coventry – Preferred Bidder • Northampton PFI – One of Two (£100m) • Birmingham Schools PFI 2 – One of Two (£55m) • Building Schools for the Future

  17. Construction - Rail • Frameworks Continue • TOC’s • Virgin Rail Framework

  18. Construction – Affordable Housing • Changes in Procurement Route • PFI • Joint Development • Key Worker Accommodation

  19. Construction – Forward Order Book Work In Hand (£m) Turnover (£m) Half Year to Dec 03 Total Work In Hand Non Price Competitive Market Sectors Total Non Price Competitive 35.0 Water 213.6 213.6 17.2 Rail 65.6 65.6 15.3 Infrastructure 48.0 42.0 13.5 Health 136.8 136.8 35.7 Education 98.9 50.1 63.8 Commercial 48.2 17.3 34.0 Interiors 24.2 20.1 27.2 Affordable Housing 28.5 27.6 20.8 Telecommunications 6.5 6.5 6.2 Ground Engineering 3.3 3.3 268.7 673.6 580.1 86%

  20. Construction – Key Success Factors • Sector Focus • Earliest Involvement in Life Cycle of Project • Collaborative Working • Design Management • Our People • Risk Management • Ability to Say No

  21. Housebuilding Greg Fitzgerald – Managing Director

  22. Housebuilding – Strong Regional Brands 30% 39% 31%

  23. Increased profits Performance of Midas again equal to the very best in the industry Good progress with infrastructure works at Fairfield Margin enhancement measures introduced which will show significant savings Monthly performance measures proving effective Awards received recognising company performance Value of current order book 22% above last year Housebuilding - Highlights

  24. Housebuilding – Key Statistics 6 months to 31st Dec 2003 2002 Increase % Units 367 318 15.4 ASP (£000) 228 206 10.7 Income per sq foot (£) 197 171 15.2 Turnover (£m) 87.6 73.2 19.7 Operating Profit (£m) 11.2 10.5 6.7 Margin (%) 12.8 14.3 (1.5) ROCE (%) 21.6 21.8 (0.2) Order book at Feb 04 (£m) 83.5 68.6 21.7 Land Bank - Units 2282 2380 (4.1) Strategic Land – Acres 676 622 8.7

  25. Housebuilding – Planned Growth

  26. New management in place at Stamford Expertise in affordable housing Sustainable levels of house price inflation in the mainstream market Expansion plan agreed and being implemented Expect to achieve full year planned performance Housebuilding - Summary

  27. Summary and Outlook David Calverley - Chief Executive

  28. Plan for growth Experienced and ambitious management team Robust finances Stringent programme of cost control and risk management Construction Success in securing work in target markets On track with margin improvement Housebuilding Market conditions remain healthy Forward order book up 22% on last year Board confident of delivering increasing value to shareholders Summary and Outlook

  29. Interim Results Presentation 2004 Galliford Try plc Interim Results Presentation 2004

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