Taylor Wimpey Plc · LSE:TW.
Taylor Wimpey — FY2009 Earnings Presentation
98 slides from Taylor Wimpey's earnings presentation, Mar 3, 2010
Slide 1: Taylor Wimpey plc Results Presentation twelve months to 31 December 2009
Taylor Wimpey plc Results Presentation for the twelve months to 31 December 2009 03 March 2010 1 1
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 e
Slide 3: Basis of preparation of comparative pro forma information
Basis of preparation of comparative pro forma information To assist investors in understanding the performance of the combined Taylor Wimpey plc Group, pro forma comparative analyses have been prepared, by aggregating the previously reported information of the former Taylor Woodrow plc (“TW”) and of
Slide 4: Introduction
Introduction Pete Redfern, Chief Executive 4 4
Slide 5: Agenda
Agenda • Introduction Pete Redfern • UK Housing Pete Redfern • Taylor Morrison Sheryl Palmer • Financial review Chris Rickard • Outlook and summary Pete Redfern 5
Slide 6: 2009 summary
Introduction 2009 summary • A year of two distinct halves • Half one focus was on stabilisation and cash flow • Debt negotiation, recapitalisation and operating cash generation • Driving build cost reduction and repositioning of product mix • Tail end of house price falls and land write downs • Star
Slide 7: 2009 key highlights
Introduction 2009 key highlights • Returned to operating profitability in H2 2009 in UK and US • Increased selling prices by 9% on UK H2 completions compared to H1 • Total costs reduced significantly • UK build cost per sq ft reduced by 4.4% from H1 to H2 • NA ongoing build cost reductions • Further
Slide 8: UK Housing
UK Housing Pete Redfern, Chief Executive 8 8
Slide 9: UK Housing Performance summary
UK Housing Performance summary FY 2009 H2 2009 H1 2009 FY 2008 Change % Legal completions – total 10,186 5,484 4,702 13,394 (24.0)% Private 8,432 4,578 3,854 10,585 (20.3)% Affordable 1,709 869 840 2,751 (37.9)% JVs 45 37 8 58 (22.4)% Ave selling price – total £000 160 166 153 171 (6.4)% Private £00
Slide 10: UK Housing 2009 market conditions
UK Housing 2009 market conditions • Entered the year against a backdrop of widespread economic uncertainty • Q1 - small erosion of price across market, balanced by reduced incentives • Q2+ - prices stabilise and start to slowly rise, performance varies by region and product • Halifax and Nationwide
Slide 11: UK Housing Sales performance
UK Housing Sales performance H1 2010 H2 H1 H2 H1 (to w/e 2009 2009 2008 2008 21/02/10) Ave outlets open 309 322 363 420 489 Ave sales rate (net) 0.57 0.63 0.65 0.40 0.65 Ave sales price £000 177 160 164 159 175 Private sales rate (net) 0.56 0.48 0.61 0.33 0.45 Private sales price £000 178 178 169 17
Slide 12: UK Housing Changing our product mix
UK Housing Changing our product mix • Reducing level of apartments • 38% on H1 completions vs. 28% H2 vs. 23% in landbank • Significant replans to target most marketable mix e.g. reducing 3 storey in certain locations etc • Ongoing drive in product range towards new national housetype range • Increa
Slide 13: UK Housing Sales and marketing
UK Housing Sales and marketing • One brand – Taylor Wimpey • 189 sites re-branded in 2009 • All legacy brands phased out by mid 2010 • Efficient use of marketing spend • Reduction of 33% in S&M costs • New website launched during 2009 • Benefits of sales tactics and execution • Manage sales pace to
Slide 14: UK Housing Landbank
UK Housing Landbank 31 Dec 2009 31 Dec 2008 Owned Controlled Pipeline Total Total Detailed planning 36,553 908 434 37,895 42,053 Outline planning 17,909 4,313 205 22,427 27,096 Resolution to grant 3,049 3,357 72 6,478 6,260 Sub-total 57,511 8,578 711 66,800 75,409 Allocated strategic 5,051 6,423 110
Slide 15: UK Housing Landbank valuation
UK Housing Landbank valuation Cost per plot £000 FY 2009 H1 2009 FY 2008 FY 2007 FY 2006 Opening landbank 35 35 45 43 43 Closing landbank 30 31 35 45 43 Weighted average ASP 166 165 149 186 181 in landbank Plot cost as a % of 18% 19% 23% 24% 24% weighted average ASP • Plot cost for 2009 completions
Slide 16: UK Housing New land approvals in 2009
UK Housing New land approvals in 2009 Key data North South Total No. of plots 685 2,318 3,003 Average cost per plot (exc. fees) £k 24.8 16.0 18.0 % of apartments in new approvals in London 93% % of apartments in new approvals exc. London 22% % of affordable housing 36% 22% 33% • Good opportunities a
Slide 17: UK Housing Replans
UK Housing Replans Replanned In process Replan Do not Outline Total of being intended require planning plots Plots as at 31 Dec 2009 replanned replanning status North Division 4,354 5,300 2,647 5,064 5,921 23,286 % of total 18.7% 22.8% 11.4% 21.7% 25.4% South Division 3,848 3,287 5,155 12,976 18,248
Slide 18: UK Housing Build cost
UK Housing Build cost H1 2009 H2 2009 Total build cost per plot £000 107 105 % change (1.9)% Total build cost per sq ft (£/sq ft) 113 108 % change (4.4)% • We expect further progress on build cost per square foot in 2010, and target remains in place • ‘Headwind’ of regulatory costs absorbed year on
Slide 19: UK Housing Margin drivers
UK Housing Margin drivers £210,000 1040 £190,000 1020 £170,000 1000 £150,000 980 £ per unit Sq ft £130,000 960 £110,000 940 £90,000 920 £70,000 900 H1 06 H2 06 H1 07 H2 07 H1 08 H2 08 H1 09 H2 09 Private development sq ft Revenue per unit Build cost per unit 19
Slide 20: Taylor Morrison
Taylor Morrison Sheryl Palmer, President and CEO, Taylor Morrison 20 20
Slide 21: Taylor Morrison North America performance
Taylor Morrison North America performance FY 2009 H2 2009 H1 2009 FY 2008 Change % Legal completions 4,755 2,822 1,933 5,421 (12.3) US ave selling price US$000 255 250 259 291 (12.4) Canada ave selling price C$000 347 328 366 426 (18.5) Joint venture legal completions - - - - - PBIT £m* 48.1 29.5 18
Slide 22: Taylor Morrison 2009 market conditions
Taylor Morrison 2009 market conditions • Market in Canada remains robust • House prices in Toronto rose by 7% in 2009 • House prices in Ottawa rose by 6% in 2009 • US market stable from around March following a weak January/February • Case-Shiller Home Price Indices started to show improvement in ea
Slide 23: North America market overview: affordability
Taylor Morrison North America market overview Affordability 2009 2008 Change ppt 2005 ratio Arizona 83.6% 69.4% 14.2 52.5% California 52.8% 40.7% 12.1 19.9% Colorado 69.4% 64.7% 4.7 56.2% Florida 66.3% 48.5% 17.8 35.2% Texas 63.6% 59.6% 4.0 61.2% US all markets 63.3% 54.0% 9.3 46.6% Ontario 23.9% 24
Slide 24: North America market overview: months of supply
Taylor Morrison North America market overview Months of supply Dec 2009 Dec 2008 Change% Dec 2007 (second hand sales) Arizona 4.7 10.0 (53.0) 18.1 California 3.2 5.1 (37.3) 13.8 Colorado 5.1 6.1 (16.4) 7.8 Florida 11.5 19.5 (41.0) 28.4 Texas 6.5 8.4 (22.6) 6.8 US all markets 6.5 13.6 (52.2) 11.4 Ont
Slide 25: A strong presence in local markets
Taylor Morrison A strong presence in local markets 2009 sub-market Rank Market Share Phoenix, Arizona 3 6.3% Sacramento, N California 4 6.9% West Florida 3 6.0% Toronto low-rise 4 3.7% Toronto high-rise 5 4.5% North Florida 5 3.7% Professional Builder Magazine 2009 US national ranking* 9 • 75% of ou
Slide 26: Taylor Morrison Sales performance
Taylor Morrison Sales performance H1 2010 (to FY 2009 FY 2008 FY 2007* w/e 21/02/10) Ave outlets open 129 172 234 241 Ave sales rate (net) 0.6 0.6 0.4 0.6 Ave sales price £000 173 171 175 174 US ave sales price US$000 258 255 291 347 Canada ave sales price C$000 402 347 426 370 Ave cancellation rate
Slide 27: US sales and marketing
Taylor Morrison US sales and marketing • Significant benefits achieved through rationalisation and cost efficiencies • Realigned internal and external commissions • Reviewed staffing model with market dynamics • Internal design center vs. outsourcing model • Single brand from January 2008 • National
Slide 28: Landbank scale and value
Taylor Morrison Landbank scale and value Landbank plots* Land cost (net)# Net cost per plot FY 2009 FY 2008 FY 2009 FY 2008 FY 2009 FY 2008 US$m US$m US$000 US$000 Arizona 6,739 5,551 157.9 232.0 23.4 41.8 California 1,550 2,049 190.3 214.7 122.8 104.8 Central 2,574 2,479 83.2 86.0 32.3 34.7 Florida
Slide 29: Access to finished lots
Taylor Morrison Access to finished lots As at 31 Dec 2009 Landbank plots* Raw land Under Finished lots Total development Arizona 1,733 3,010 1,996 6,739 California 366 119 1,065 1,550 Central 1,158 79 1,337 2,574 Florida 2,056 1,535 3,974 7,565 Canada 2,672 558 3,033 6,263 Total 7,985 5,301 11,405 2
Slide 30: Taylor Morrison Summary
Taylor Morrison Summary • Record affordability in many US markets, coupled with reducing inventory levels give cause for optimism • Another strong performance from Monarch • Expect ‘normal’ seasonal patterns to be distorted during 2010 • Operating at scale in our submarkets • Excellent order book •
Slide 31: Financial review
Financial review Chris Rickard, Group Finance Director 31 31
Slide 32: Financial review Overview
Financial review Overview • Summary financials • Tax • Pensions • Net debt • Financial/operational objectives 32
Slide 33: Summary 2009 results
Financial review Summary 2009 results £m 2009 2008 continuing continuing** Revenue 2,595.6 3,467.7 Operating profit* 37.7 86.3 Net finance costs (139.4) (168.6) Share of results of joint ventures 5.6 7.6 Loss before taxation (96.1) (74.7) Adjusted basic loss per share*** (4.3p) (7.2p) Tangible NAV p
Slide 34: Exceptional items
Financial review Exceptional items £m FY 2009* FY 2008 NRV write down 527.0 1,012.8 Impairment of goodwill and other - 816.1 intangible assets Restructuring costs 8.9 35.1 Refinancing costs 44.8 20.5 Operating exceptional items 580.7 1,884.5 Exceptional finance costs 23.1 10.5 Before taxation 603.8
Slide 35: Divisional performance at constant exchange rates
Financial review Divisional performance at constant exchange rates FY 2009 H2 2009 H1 2009 FY 2008 £m Revenue Operating Revenue Operating Revenue Operating Revenue Operating profit/ profit/ profit/ profit/ (loss)* (loss)* (loss)* (loss)* UK 1,700.4 14.3 956.0 21.6 744.4 (7.3) 2,390.1 50.6 Housing No
Slide 36: Cash flow summary
Financial review Cash flow summary £m FY 2009 FY 2008 Operating loss* - continuing (543.0) (1,798.2) - discontinued - 2.1 - total Group (543.0) (1,796.1) Non-cash exceptional items 527.5 1,828.9 Other non-cash items 2.3 28.4 Land spend (459.9) (672.1) Other working capital 787.7 810.9 Total decrease
Slide 37: Cash flow summary continued
Financial review Cash flow summary continued £m FY 2009 FY 2008 Cash generated by operations 269.9 155.9 Tax 109.1 112.6 Interest paid (172.7) (114.9) Dividends - (108.6) Own shares 510.1 2.7 Capex, JVs, interest received, 13.1 5.8 acquisitions and disposals Cash flow for the year 729.5 53.5 Net deb
Slide 38: Cash generation
Financial review Cash generation £m Sterling 2008 net debt 2008 fx rates 2009 fx rates Flexed 2008 net debt Sterling 938.4 1.00 1.00 938.4 Canadian (77.6) 1.77 1.69 (81.3) Euro’s 95.7 1.03 1.13 87.2 US dollars 571.7 1.44 1.61 511.3 Other 1.1 1.1 1,529.3 2008 net debt* 1,456.7 2009 net debt 750.9 Red
Slide 39: Summarised balance sheet
Financial review Summarised balance sheet £m 31 Dec 2009 31 Dec 2008 Long term assets and JVs 62.5 83.2 Land 2,341.9 3,244.3 WIP 1,261.4 1,646.3 Total inventories 3,603.3 4,890.6 Debtors 195.5 229.2 Land creditors (325.7) (659.0) Other creditors (712.9) (853.8) Total creditors (1,038.6) (1,512.8) 2,
Slide 40: Group inventories
Financial review Group inventories As at 31 Dec 2009 As at 31 Dec 2008* £m UK NA Spain and Total Total Housing Housing Gibraltar Housing Land not under development Gross 1,079.4 181.8 23.6 1,284.8 1,387.5 NRV (260.8) (97.3) (5.4) (363.5) (401.4) Net 818.6 84.5 18.2 921.3 986.1 Land under development
Slide 41: Deferred tax assets
Financial review Deferred tax assets FY 2009 FY 2009 FY 2008 FY 2008 £m gross tax gross tax Recognised UK 404 113 - - Other 17 6 16 5 Recognised total 421 119 16 5 Unrecognised UK 1,340 375 883 248 US NOL 264 102 376 147 NRV 268 103 295 115 Other 162 62 106 42 US total 694 267 777 304 Other jurisdic
Slide 42: Pensions
Financial review Pensions FY 2009 FY 2008 GW TW NA Total GW TW NA Total Assets 669.6 726.8 15.9 1,412.3 606.2 659.2 15.1 1,280.5 Liabilities (872.0) (925.8) (20.9) (1,818.7) (761.9) (771.8) (24.0) (1,557.7) Net deficit (202.4) (199.0) (5.0) (406.4) (155.7) (112.6) (8.9) (277.2) Percentage of total a
Slide 43: Pension funding position
Financial review Pension funding position £m Movement in IAS 19 funding position Deficit at 31 December 2008 277.2 Cost of benefit accrual 4.1 Financing cost 34.3 Employer contributions (50.1) Gain on asset returns (102.7) Loss on change in assumptions 273.6 Gain on liabilities experience (29.1) Exc
Slide 44: Summary of our pensions review
Financial review Summary of our pensions review • Commenced employee consultation process to cease DB accrual in GWSPS (and replace pension provision with a DC arrangement) • Also reviewing, in conjunction with the Trustees, the following proposals: • Changes to scheme investment strategy • Implemen
Slide 45: Net debt summary
Financial review Net debt summary Borrowings Facility Utilised Blended rate for Headroom utilised Fixed rate debentures (repayable 2012) £ Eurobonds 370.2 370.2 8.5% - US $ Private Placements 329.7 329.7 8.1% - £ Private Placements 22.0 22.0 8.6% - 721.9 721.9 8.3% - Floating rate bank borrowings Sy
Slide 46: Orderbook
Financial review Orderbook 31 Dec 2009 31 Dec 2008 No. ASP 000 No. ASP 000 UK PD 3,048 180 1,887 167 UK PH 2,383 113 2,344 105 US 764 307 727 296 Canada 2,452 316 2,062 293 Spain and Gibraltar 45 234 178 324 ASPs shown in local currency 46
Slide 47: Financial/operational objectives
Financial review Financial/operational objectives • Continued focus on cash management • Implementation of initiatives outlined today to appropriately manage the risk of the pension deficit • Review scope and timing of refinancing opportunities • Increased focus on margin improvement 47
Slide 48: Outlook and summary
Outlook and summary Pete Redfern, Chief Executive 48 48
Slide 49: Outlook and summary Taylor Wimpey plc
Outlook and summary Taylor Wimpey plc • Ongoing debt reduction desirable whilst retaining flexibility • Pension scheme liabilities in active management – risk/volatility reduction key • Significant potential tax assets – working to crystallise gains over next two years • Actions in place to grow pro
Slide 50: Outlook and summary Taylor Wimpey UK
Outlook and summary Taylor Wimpey UK • Housing market slowly improving • Mortgage position not ‘normal’ but improving • Broad based improvement across regions/products/customer groups • Optimistic about ongoing recovery, cautious about election impact • Business has clear plans for self improvement
Slide 51: Outlook and summary Taylor Morrison
Outlook and summary Taylor Morrison • Housing market stabilising across US; Canadian market remains robust • Regional pattern showing variations: some weak areas, some ‘hot spots’ • Affordability like never before, consumer confidence growing • Expect timing of recovery to be distorted by foreclosur
Slide 52: Future investor communications
Future investor communications • 29 April 2010 IMS and AGM • Early July 2010 Trading statement • Early August 2010 Half Year Results 52
Slide 53: Q&A
Qée&A Wimpey
Slide 54: Appendices
Taylor Wimpey plc Results Presentation for the twelve months to 31 December 2009 Appendices 54 54
Slide 55: Appendices Contents
Appendices Contents • Group financial information • UK Housing financial information • Taylor Morrison financial information • Spain and Gibraltar Housing financial information 55
Slide 56: Segmental analysis Full year 2009
Segmental analysis Full year 2009 Revenue PBIT* PBIT margin* £m Change £m Change 2009 2008 UK Housing 1,700.4 (28.9)% 14.3 (73.0)% 0.8% 2.2% North America 824.3 (16.0)% 48.1 (19.7)% 5.8% 6.1% Spain & Gibraltar 61.0 2.0% (1.4) 58.3% 2.3% (4.0)% Corporate and 9.9 (72.7)% (17.7) (24.6)% other Total 2,5
Slide 57: Group completions Full year 2009
Group completions Full year 2009 Completions Ave selling price No Change* £000 Change* UK private 8,432 (20.3)% 171 (8.6)% UK affordable 1,709 (37.9)% 108 (0.1)% UK joint ventures 45 (22.4)% 182 (29.5)% UK total 10,186 (24.0)% 160 (6.4)% US 3,347 (20.5)% 161 (0.9)% Canada 1,408 16.5% 195 (11.2)% Nor
Slide 58: Group net reservations
Group net reservations £m Reservations Ave outlets Per outlet / per week FY 2009 FY 2008 FY 2009 FY 2008 FY 2009 FY 2008 UK private 9,593 9,512 338 448 0.55 0.40 UK affordable 1,748 3,277 UK total 11,341 12,789 US 3,384 3,991 151 210 0.43 0.37 Canada 1,798 1,088 21 24 1.67 0.86 North America Total 5
Slide 59: Net operating assets by market
Net operating assets by market £m 31 Dec 31 Dec % change 30 Jun 2009 2008 2009 UK Housing* 1,693.1 2,585.7 (34.5)% 2,027.6 US Housing 415.1 546.7 (24.1)% 436.8 Canada Housing 143.0 131.1 9.1% 124.6 Spain & Gibraltar Housing 103.5 128.0 (19.1)% 117.8 Total Housing 2,354.8 3,391.5 (30.6)% 2,706.8 Corp
Slide 60: Group Housing landbank
Group Housing landbank FY 2009 UK Taylor Spain & Total Morrison Gibraltar Landbank (with planning*) Owned 57,511 24,691 1,733 83,935 Controlled 8,578 4,371 168 13,117 Total landbank 66,089 29,062 1,901 97,052 Landbank years 6.5 6.1 8.4 6.4 FY 2008 Landbank (with planning*) Owned 67,552 22,657 1,953
Slide 61: Land disposals
Land disposals £m FY 2009 FY 2008 Proceeds UK 47.9 58.0 North America 10.4 39.0*** Spain and Gibraltar - - Total 58.3 97.0 Profit/ (loss) UK** (4.1) (2.2) North America (8.8) 4.4 Spain and Gibraltar - - Total (12.9) 2.2 In line with the former Taylor Woodrow policy, land disposals are included in re
Slide 62: Consolidated net finance cost
Consolidated net finance cost £m FY 2009 FY 2008 Change % Interest on borrowings 109.1 127.9 (14.7) Interest receivable (10.6) (8.5) 24.7 Sub-total 98.5 119.4 (17.5) Pensions 34.3 11.7 193.2 Derivatives and FX (11.8) 10.8 (109.3) Land creditors and other 18.4 26.7 (31.0) Total net finance cost * 139
Slide 63: Financial covenants (as amended post Placing & Open Offer)
Financial covenants (as amended post Placing & Open Offer) Testing Date Operating Tangible Net Worth Asset Leverage cash flow £m £m Cover 31/12/2009 (51) 676 72% 31/03/2010 111 580 76% 30/06/2010 139 497 79% 30/09/2010 159 404 82% 31/12/2010 70 310 85% 31/03/2011 (138) 485 83% 30/06/2011 (22) 411 84
Slide 64: Financial covenants
Financial covenants Position as at 31 December 2009 Actual Covenant Headroom Operating cash flow £m 457.1 (51.0) 508.1 Tangible net worth £m 1,554.3 675.5 878.8 Asset leverage 27.5% 72.2% 44.7% All figures exclude Canada operations, which are contractually ring-fenced Operating cash flow future test
Slide 65: Pension membership as at 31 December 2009
Pension membership as at 31 December 2009 GW TW Total Actives 479 - 479 Deferred 8,408 5,677 14,085 Pensioners 5,781 4,055 9,836 Total 14,668 9,732 24,400 65
Slide 66: 2009 Taxation
2009 Taxation Pre-exceptional Exceptional Post-exceptional £m Result before tax* (96.1) (603.8) (699.9) Tax charge (14.3) 73.6 59.3 Effective tax rate % 14.9 12.2 8.5 * The exceptional credit of £73.6m is made up of a UK tax credit of £25.4m relating to the reinstatement of the pension deferred tax
Slide 67: Exchange rates
Exchange rates FX rates 2009 2008 Ave Year end Ave Year end US$ 1.58 1.61 1.79 1.44 C$ 1.78 1.69 1.94 1.77 Eur 1.13 1.13 1.24 1.03 67
Slide 68: UK Housing Revenue analysis
UK Housing Revenue analysis 2009 2008 FY H2 H1 FY H2 H1 Private volume* 8,432 4,578 3,854 10,585 5,857 4,728 ASP £000 171 177 163 187 175 202 revenue £m 1,440 811 629 1,979 1,025 954 Affordable volume* 1,709 869 840 2,751 1,209 1,542 ASP £000 108 107 109 108 107 108 revenue £m 184 93 91 296 129 167
Slide 69: UK Housing Margin analysis
UK Housing Margin analysis 2009 2008 FY H2 H1 FY H2 H1 Revenue £m 1,700 956 744 2,390 1,230 1,160 Land cost £m (434) (273) (161) (636) (343) (293) Build cost £m (1,073) (572) (501) (1,434) (768) (666) Gross profit £m 193 111 82 320 119 201 Gross margin % 11.3 11.6 11.0 13.4 9.6 17.3 Direct Selling £
Slide 70: UK Housing Capital employed
UK Housing Capital employed (excludes tax and intercompany) 31 Dec 2009 31 Dec 2008 Fixed assets 5 7 Investment in joint ventures 30 45 Stocks Land 2,034 2,857 WIP 692 873 Other 31 27 Total stocks 2,757 3,757 Debtors 104 155 Creditors Land (276) (553) Other* (890) (787) Total creditors (1,166) (1,34
Slide 71: UK Housing WIP pipeline
UK Housing WIP pipeline Private plots build status (plots) Sold* Unsold – split by build stage Total under build All stages Foundation Superstructure Roof Second Build All stages tile Fix complete Dec 09 2,396 887 585 430 343 219 2,464 Jun 09 2,915 1,241 597 537 355 280 3,010 Mar 09 2,478 1,506 689
Slide 72: UK Housing Private development activity mix
UK Housing Private development activity mix 2009 2008 FY H2 H1 FY H2 H1 Average house size sq ft 1,003 1,018 986 973 995 947 Average selling price (£/sq ft) 170 174 165 192 177 211 72
Slide 73: UK Housing Sales incentives
UK Housing Sales incentives Sales incentives used in FY 2009 H2 2009 H1 2009 H2 2008 H1 2008 plots sold No incentive/price 54% 56% 53% 45% 33% Move up buyer Part exchange 10% 9% 10% 4% 7% Assisted move 6% 6% 5% 6% 19% First time buyer FTBI/Own home/TW 9% 10% 8% 14% 11% Shared Equity Deposit paid 5%
Slide 74: UK Housing Customer segmentation
UK Housing Customer segmentation FY 2009 H2 2009 H1 2009 FY 2008 FY 2007 First Time Buyers 30% 27% 32% 26% 18% Second Time Buyers 45% 43% 47% 34% 35% Investors 12% 10% 14% 14% 17% Social housing 13% 20% 7% 26% 30% 2009 and 2008 figures based on gross sales. 2007 figures based on customer survey retu
Slide 75: UK Housing Private development geographic mix
UK Housing Private development geographic mix FY 2009 FY 2008 Completions ASP £000 Completions ASP £000 Scotland and North 1,229 171 1,534 191 East Yorkshire and North 1,513 149 1,953 156 West West Midlands 945 164 1,083 167 North 3,687 160 4,570 171 Eastern 1,666 177 2,358 193 South West 1,368 165
Slide 76: UK Housing Private development product mix
UK Housing Private development product mix 2009 2008 Completions % FY H2 H1 FY H2 H1 Apartments 33 28 38 34 34 34 1 / 2 / 3 bed houses 35 38 32 36 36 35 4 / 5 bed houses 32 34 30 30 30 31 Total 100 100 100 100 100 100 76
Slide 77: UK Housing Private development price mix
UK Housing Private development price mix* 2009 2008 % FY H2 H1 FY H2 H1 £51 – 100k 14 11 17 8 12 3 £101 – 150k 34 34 34 29 31 26 £151 – 200k 28 29 27 30 29 31 £201 – 250k 15 16 14 18 17 20 £251 – 300k 4 4 4 8 6 10 £301 – 500k 5 6 4 6 5 9 £500k + - - - 1 - 1 Total 100 100 100 100 100 100 *Based on le
Slide 78: UK Housing Landbank mix
UK Housing Landbank mix Short term Cost per plot Land cost % of No. of landbank £000 per plot Apartments Owned plots outlets plots as a % of ASP in landbank North Division As at 31 Dec 2009 146 20,927 20.9 14.0% 22.0% As at 30 June 2009 162 22,092 22.6 14.7% 21.7% % change (9.9)% (5.3)% (7.5)% (0.7)
Slide 79: UK Housing Regional landbank data
UK Housing Regional landbank data FY 2009 North South Total Total plots owned and 23,286 42,803 66,089 controlled with consent or resolution to grant Land years 5.8 7.0 6.5 Strategic land – plots 33,266 51,213 84,479 FY 2008 Total plots owned and controlled with consent or resolution to grant 26,966
Slide 80: UK Housing Land spend commitments as at December
UK Housing Land spend commitments as at December 2009 Actual Estimated Estimated 2009 2010 2011+ £m £m £m Payments made to date 323 Expected payments in respect of - 126 unconditional contracts as at Dec 2009 Expected payments in respect of - 50 conditional contracts as at Dec 2009 Total 323 176 106
Slide 81: UK Housing Private development average weekly sales rates
UK Housing Private development average weekly sales rates 1 0.8 0.6 0.4 0.2 0 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 1 3 5 7 9 -0.2 2007 2008 2009 2010 81
Slide 82: Taylor Morrison Revenue analysis
Taylor Morrison Revenue analysis 2009 2008 FY H2 H1 FY H2 H1 US Volume 3,347 2,068 1,279 4,212 2,535 1,677 ASP £000 161 149 173 163 158 154 Revenue £m 539 318 221 685 427 258 Canada Volume 1,408 754 654 1,209 792 417 ASP £000 195 187 203 220 212 213 Revenue £m 275 142 133 266 177 89 Other Revenue £m
Slide 83: Taylor Morrison US financial summary
Taylor Morrison US financial summary FY 2009 FY 2008 Change % Legal completions 3,347 4,212 (20.5) Ave selling price £000 161 163 (1.2) Homes revenue £m 539.2 684.5 (21.2) Other revenue £m 3.1 26.4 (88.3) Total revenue £m 542.3 710.9 (23.7) Joint venture legal completions - - - PBIT £m* (6.8) 15.8 (
Slide 84: Taylor Morrison Canada financial summary
Taylor Morrison Canada financial summary FY 2009 FY 2008 Change % Legal completions 1,408 1,209 16.5 Ave selling price £000 195.1 219.9 (11.3) Homes revenue £m 274.7 265.7 3.4 Other revenue £m 7.3 5.0 46.0 Total revenue £m 282.0 270.7 4.2 Joint venture legal completions - - - PBIT £m* 54.9 44.1 24.5
Slide 85: Taylor Morrison Margin analysis
Taylor Morrison Margin analysis 2009 2008 FY H2 H1 FY H2 H1 Revenue £m 824.3 468.2 356.1 981.6 618.6 363.0 Land cost* £m (81.1) (50.0) (31.1) (85.1) (41.3) (43.8) Development cost £m (101.3) (63.2) (38.1) (147.1) (87.5) (59.6) Build cost £m (496.8) (274.4) (222.4) (587.3) (388.4) (198.9) Other net i
Slide 86: Taylor Morrison Capital employed
Taylor Morrison Capital employed(excludes goodwill, tax and intercompany) £m 31 Dec 2009 31 Dec 2008 Fixed assets 2 3 Investment in joint ventures 22 22 Stocks Land 232 448 WIP 493 507 Total stocks 725 955 Debtors 79 58 Creditors Land (40) (83) Other (181) (223) Total creditors (221) (306) Provision
Slide 87: Taylor Morrison Managing WIP – inventory levels
Taylor Morrison Managing WIP – inventory levels NA Completed Spec Inventory 1,200 1,000 800 600 400 200 - Au 7 Au 8 Au 9 D 7 D 8 D 9 07 08 09 07 08 09 7 8 9 6 Fe 7 Fe 8 9 0 0 0 -0 -0 -0 r-0 r-0 r-0 -0 -0 -0 -0 n- n- n- b- g- b- g- b- g- ct ct ct ec ec ec ec Ap Ap Ap Ju Ju Ju Fe O O O D Phoenix Calif
Slide 88: Taylor Morrison Regional performance
Taylor Morrison Regional performance Revenue* PBIT** PBIT margin FY 2009 FY 2008 FY 2009 FY 2008 FY 2009 FY 2008 £m £m £m £m % % Arizona 78.4 122.8 (3.5) 0.3 (4.5) 0.2 California 146.1 183.9 1.6 (0.2) 1.1 (0.1) Central 170.0 183.3 11.1 10.9 6.5 5.9 Florida 147.8 220.8 4.0 16.9 2.7 7.7 Canada 282.0 2
Slide 89: Taylor Morrison US sales performance
Taylor Morrison US sales performance H1 2010 FY FY FY (to w/e 2009 2008 2007* 21/02/10) Ave outlets open 113 151 215 216 Ave sales rate (net) 0.4 0.4 0.4 0.4 Ave sales price £000 159 161 163 174 Ave sales price US$000 258 255 291 347 Ave cancellation rate 20% 21% 32% 31% Order book value £m 186.8 14
Slide 90: Taylor Morrison Canada sales performance
Taylor Morrison Canada sales performance H1 2010 FY FY FY (to w/e 2009 2008 2007* 21/02/10) Ave outlets open 17 21 25 25 Ave sales rate (net) 0.8 1.7 0.8 1.6 Ave sales price £000 238 195 220 185 Ave sales price C$000 402 347 426 370 Ave cancellation rate 1% 1% 3% 1% Order book value £m 441.6 458.4 3
Slide 91: Taylor Morrison Price mix
Taylor Morrison Price mix 2009 2008 Completions % FY H2 H1 FY H2 H1 £0 – 75k 7 5 10 5 7 6 £76 – 125k 38 39 36 35 36 36 £126 – 250k 44 43 45 45 42 46 £251 – 375k 9 10 7 12 12 10 £376 – 500k 1 2 2 2 2 1 £501 – 750k 1 1 - 1 1 1 £751k +* - - - - - - Total 100 100 100 100 100 100 * Category includes comp
Slide 92: Taylor Morrison Geographic mix
Taylor Morrison Geographic mix 2009 2008 Completions FY H2 H1 FY H2 H1 Arizona 683 454 229 980 617 363 California 630 413 217 798 487 311 Central 991 611 380 1,084 649 435 Florida 1,043 590 453 1,350 782 568 Canada 1,408 754 654 1,209 792 417 Total 4,755 2,822 1,933 5,421 3,327 2,094 Joint Ventures
Slide 93: Taylor Morrison Total landbank
Taylor Morrison Total landbank 60,000 50,000 40,000 30,000 Plots 20,000 10,000 0 2002 2003 2004 2005 2006 2007 2008 2009 US Canada 93
Slide 94: Taylor Morrison Short term land
Taylor Morrison Short term land 2009 2008 Owned FY H2 H1 FY H2 H1 Start of period 22,657 23,546 22,657 28,537 26,401 28,537 Additions 7,186 4,341 2,845 2,378 1,786 592 Legal completions* (5,152) (3,196) (1,956) (8,258) (5,530) (2,728) End of period 24,691 24,691 23,546 22,657 22,657 26,401 Controlle
Slide 95: Taylor Morrison Landbank by region: owned and controlled
Taylor Morrison Landbank by region: owned and controlled FY 2009 FY 2008 Owned Controlled Total Owned Controlled Total Arizona 6,739 488 7,227 5,551 343 5,894 California 1,550 363 1,913 2,049 409 2,458 Central 2,574 554 3,128 2,479 827 3,306 Florida 7,565 2,181 9,746 8,409 2,147 10,556 Total US 18,4
Slide 96: Taylor Morrison Well positioned landbank – Florida
Taylor Morrison Well positioned landbank – Florida 96
Slide 97: Spain and Gibraltar Housing Financial summary
Spain and Gibraltar Housing Financial summary FY 2009 FY 2008 Change % Ave no of active sites 18 20 (10.0)% Legal completions 225 214 5.1% Mainland Spain 101 79 27.8% Mallorca 74 99 (25.3)% Gibraltar 50 36 38.9% Ave selling prices £000 260 270 (3.7)% Revenue £m 61.0 59.8 2.0% PBIT £m* (1.4) (2.4) 41
Slide 98: Spain and Gibraltar Short term land
Spain and Gibraltar Housing Spain and Gibraltar Short term land Short term land FY 2009 FY 2008 Change % Landbank plots 1,901 2,121 (10.4) Landbank years 8.4 9.9 (1.5) yrs 98