Taylor Wimpey Plc · LSE:TW.
Taylor Wimpey — Shareholder Meeting (April 2019)
24 slides from Taylor Wimpey's shareholder meeting presentation, Apr 25, 2019
Slide 1: Annual General Meeting 25 April 2019
Annual General Meeting 25 April 2019
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 Chair Taylor | ple Wimpey
Slide 4: Board of Directors
Board of Directors Kevin Beeston Chair Pete Chris James Jennie Daly Kate Gwyn Burr Angela Humphrey Group Operations Barker Singer Redfern Carney Jordan Director Knight CBE Chief Executive Group Finance Group Legal Director Director and DBE Company Secretary Executive Directors Non Executive Director
Slide 5: Group overview
Group overview Pete Redfern Chief Executive
Slide 6: 2018 Group financial highlights
2018 Group financial highlights Return on net operating assets* Cash conversion* 33.4 30.8** 32.5** 100 92.6 30 81.0** 87.2** 20 % % 10 0 0 2016 2017 2018 2016 2017 2018 2018-2023 medium term target: 2018-2023 medium term target: Increase to 35% Convert 70-100% of operating profit* into operating ca
Slide 7: 2018 UK operating highlights
2018 UK operating highlights 90% 14.5% 3.93 (2017: 89%) (2017: 14.0%) (2017: 3.74) Customer satisfaction – Voluntary employee Construction Quality would you recommend turnover Review – score out of 6 8-week score 0.80 228 15.28p (2017: 0.77) (2017: 152) (2017: 13.79p) Private net sales rate Health a
Slide 8: 2018 shareholder highlights
2018 shareholder highlights ▪Total shareholder return of 83% over five years to 31 Dec 2018 Total Shareholder Return 3,000 2,500 Value (£) (rebased) 2,000 1,500 1,000 500 0 Dec 2008 Dec 2009 Dec 2010 Dec 2011 Dec 2012 Dec 2013 Dec 2014 Dec 2015 Dec 2016 Dec 2017 Dec 2018 FTSE 350 Housebuilder Index
Slide 9: Dividend payment profile
Dividend payment profile Change Paid (or to be paid) FY 2017 to pence per share FY 2019*** FY 2018 FY 2017 FY 2018 Ordinary dividend* c.7.6 4.9 4.6 6.5% Special dividend** c.10.7 10.4 9.2 13.0% Total c.18.3 15.3 13.8 10.9% Change Paid (or to be paid) FY 2017 to £m FY 2019*** FY 2018 FY 2017 FY 2018
Slide 10: Dividend security and growth
Dividend security and growth ▪ Excess cash flow will continue to be returned to shareholders in the form of special dividends ▪ Ordinary dividend scaled to be sustainable in ‘normal’ downturn ▪ Stress tested in a variety of scenarios including a 20% fall in house prices and a 30% fall in volumes ▪ A
Slide 11: A new and customer centred strategy
A new and customer centred strategy 11
Slide 12: Customers and communities
Customers and communities ▪ 8-week “Would you recommend” score* for 2018 was 90% (2017: 89%), 8-week “Would you recommend” making us a 5-star homebuilder score ▪ 9-month “Would you recommend” score* for 2018 was 76% (2017: 76%) 100% 90% 86.2% 89.0% 90.3% ▪ Create places and communities where our cus
Slide 13: Making a difference in our local communities in 2018
Making a difference in our local communities in 2018 ▪ Contributed £455 million (2017: £413 million) to our local communities via planning obligations ▪ Charitable donations of over £1.1 million (2017: over £1m) to registered charities (donations and fundraising), in addition to c.£170k to other org
Slide 14: Becoming the employer of choice
Becoming the employer of choice Growing talent from within Direct labour and apprentices Diversity ▪ Address industry skills shortage ▪ Reduce impact of industry skills ▪ 2018 mean gender pay gap of 6% ▪ Non-negotiable focus on health shortage (2017: 1%) and safety ▪ 748 key trades people employed ▪
Slide 15: Right first time build quality
Right first time build quality ▪ A key foundation stone for customer satisfaction ▪ Saves significant time, cost and energy in putting things right ▪ Our employees want to be proud of the homes they build ▪ Consistency is key: internal quality assurance drive with the roll out of our Consistent Qual
Slide 16: Best in class efficient engine room
Best in class efficient engine room ▪ Streamline supply chain and standardise products and processes ▪ Prioritise research and development, look for better solutions ▪ Use technology to free up valuable management time ▪ Employ more standard house types, benefiting the production process ▪ Increase
Slide 17: Optimising our strong landbank
Optimising our strong landbank ▪ The land and planning environment is structurally different in this cycle and is more balanced and effective today than at any point over the last 30 years ▪ Our investment and scale continue to be based on our view of land quality and capital risk in a cyclical mark
Slide 18: Current trading and outlook
Current trading and outlook Pete Redfern Chief Executive
Slide 19: UK current trading
UK current trading ▪ The market for new build housing has remained stable in the first four months of 2019, with continued good accessibility to mortgages and low interest rates for customers, combined with high employment levels ▪ Sales have continued to be at encouraging levels with average privat
Slide 20: Outlook and summary
Outlook and summary ▪ Trading through the spring selling season has been good, with robust customer confidence despite the wider political uncertainty ▪ We have made good progress on outlet openings, with progress slightly ahead of our expectations ▪ We have seen higher than expected cost inflation
Slide 21: Taylor Wimpey plc
21 Wimpey | plc
Slide 22: Resolutions and proxy votes
Resolutions and proxy votes Kevin Beeston Chair
Slide 23: Appendix
Taylor Wimpey plc Annual General Meeting Appendix
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