Taylor Wimpey Plc · LSE:TW.
Taylor Wimpey — Shareholder Meeting (April 2017)
24 slides from Taylor Wimpey's shareholder meeting presentation, Apr 27, 2017
Slide 1: Annual General Meeting 27 April 2017
Annual General Meeting 27 April 2017
Slide 2: Disclaimer
Disclaimer This presentation is not intended to, and does not constitute or form part of, any offer, invitation or the solicitation of an offer to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of, any securities in Taylor Wimpey plc or any other invitation or inducement to en
Slide 3: Welcome
Welcome Kevin Beeston Chairman
Slide 4: Group overview
Group overview Pete Redfern Chief Executive
Slide 5: 2016 Group financial highlights
2016 Group financial highlights Return on net operating assets* Total dividends paid 30.7 400.0 30 27.1 355.9 308.4 22.5 300.0 20 % £m 200.0 10 100.0 72.7 0 0.0 2014 2015 2016 2014 2015 2016 2016-2018 medium term target: Average of 30% 2016-2018 medium term target: Total £1.3bn over period Operating
Slide 6: 2016 UK operating highlights
2016 UK operating highlights £1,682m 13.9% £65.5k (2015: £1,779m) (2015: 13.3%) (2015: £59.4k) Total value of year end Voluntary employee Contribution per order book† turnover completion 0.72 20.8% 9,519 (2015: 0.73) (2015: 20.3%) (2015: 8,660) Private net sales rate (per Operating Plots converted f
Slide 7: 2016 shareholder highlights
2016 shareholder highlights Total shareholder return of c.56% over three years to Dec 31 2016. Share price impacted in 2016 due to Brexit related equity market volatility Source: Datastream (Thomson Reuters) Note: The graph shows the value by 31 December 2016, of £100 invested in Taylor Wimpey on 31
Slide 8: 2016 shareholder highlights
2016 shareholder highlights Subject to shareholder approval, 2016 total dividends declared up 10.6% 2016 final ordinary dividend of 2.29 pence per share (2015: 1.18 pence per share), to be paid on 19 May 2017 Total ordinary dividend for the year of 2.82 pence per share (2015 total ordinary: 1.67 pen
Slide 9: Continuous business improvement
Continuous business improvement Health and Business operating Customer service People and Product and safety methods resources production 9
Slide 10: Customer service changes
Customer service changes All businesses transitioned to new customer approach model and using our new Home Quality Inspection (HQI) process All businesses now have a ‘restructured role’ Head of Customer Service and supporting Customer Relationship Managers Full buy-in from all staff to the end to en
Slide 11: Customer service changes – initial impacts
Customer service changes Initial impacts Measurably better standard of finish – delivering up to a 70% decrease in defects during our Home Aftercare checks Increased positive feedback from customers Need to continue to focus on engaging contractors and delivering consistently 11
Slide 12: Leasehold review
Leasehold review Our review into historic lease contracts has been completed, and process of communicating proposals to customers has started. Review was focused on a specific lease structure where ground rent doubles every 10 years until the 50th year Lease structure was used on certain new develop
Slide 13: Leasehold review – financial impact
Leasehold review – financial impact With the Group bearing the financial cost of altering lease terms a gross provision of c.£130m will be recorded as an exceptional item in the 2017 first half accounts, which will have an impact of c.3% of net assets. We expect that the cash outflow will be spread
Slide 14: Production and Project 2020
Production and Project 2020 Project 2020 nearing final conclusions Unsurprisingly there is no silver bullet to production constraints Existing modular / offsite construction methods: Only viable on apartment schemes and certain high volume suburban schemes Lacks the balance of flexibility and effici
Slide 15: Charity and communities in 2016
Charity and communities in 2016 Contributed £363m (2015: £335m) to our local communities via planning obligations Charitable donations of over £875k (2015: over £746k) to registered charities (donations and fundraising), in addition to c.£159k to other organisations (2015: c.£112k) 15
Slide 16: Current trading and outlook
Current trading and outlook Pete Redfern Chief Executive
Slide 17: UK current trading
UK current trading The housing market has remained positive. In central London, the market remains stable We have performed very well, with average private net reservation rates 16% ahead of prior year at 0.93 sales per outlet per week for the year to date (2016 equivalent period: 0.80) Cancellation
Slide 18: Outlook and summary
Outlook and summary Without a major change in interest rates or lending, we expect low but positive house price inflation for the year Our base case is now for a period of low house price growth with regional and market variation Build cost pressures remain but at a manageable level We continue to i
Slide 19: Resolutions and proxy votes
Resolutions and proxy votes Kevin Beeston Chairman
Slide 20: Taylor Wimpey
20 Taylor Wimpey | pic
Slide 21: Proxy vote for Resolutions 1-12
Proxy vote for Resolutions 1-12 Percentage of total votes cast Votes in favour Number Resolution Total votes cast Votes withheld (%) Discretionary (%) Votes against (%) 1 Report & Accounts 2,009,538,323 565,202 99.88 0.11 0.01 2 Dividend 2,009,538,323 186,819 99.86 0.11 0.03 3 Special dividend 2,009
Slide 22: Proxy vote for Resolutions 13-23
Proxy vote for Resolutions 13-23 Percentage of total votes cast Votes in favour Number Resolution Total votes cast Votes withheld (%) Discretionary (%) Votes against (%) 13 Deloitte LLP 2,009,538,323 21,008,829 99.45 0.13 0.42 14 Auditor‘s fees 2,009,538,323 258,220 99.84 0.12 0.04 15 Authority to a
Slide 23: Appendices
Taylor Wimpey plc Annual General Meeting Appendices
Slide 24: Definitions
Definitions Operating profit is defined as profit on ordinary activities before net finance costs, exceptional items and tax, after share of results of joint ventures Return on net operating assets is defined as 12 month rolling operating profit divided by the average of the opening and closing net