Taylor Wimpey Plc · LSE:TW.
Taylor Wimpey — Shareholder Meeting (April 2016)
21 slides from Taylor Wimpey's shareholder meeting presentation, Apr 28, 2016
Slide 1: Taylor Wimpey plc Annual General Meeting
Taylor Wimpey plc Annual General Meeting 28 April 2016
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 3
Slide 4: Group overview
Group overview Pete Redfern Chief Executive 4
Slide 5: 2015 Group financial highlights
2015 Group financial highlights Operating profit* margin Return on net operating assets* 25 30 27.1 20.3 Medium 25 20 22.5 17.9 term target Medium 20 term target 15 13.6 16.8 % % 15 10 10 5 5 0 0 2013 2014 2015 2013 2014 2015 Net asset annual growth NAV Conversion of operating profit* to (pre-cash d
Slide 6: 2015 UK operational highlights
2015 UK operational highlights • Delivered 13,219 new homes in the UK, excluding joint ventures – more than at any point in the last six years • Record year end order book • Accident rate kept low – Annual Injury Incident Rate (AIIR) of 175 per 100,000 employees and contractors (2014: 209) • Short t
Slide 7: 2015 shareholder highlights
2015 shareholder highlights • Total shareholder return from 1 Jan 2015 to 31 Dec 2015 increased to 55.2% 7
Slide 8: 2015 shareholder highlights
2015 shareholder highlights • Subject to shareholder approval, 2015 total dividends declared up 17.6% – 2015 final maintenance dividend of 1.18 pence per share (2014: 1.32 pence per share), to be paid on 20 May 2016 – Total maintenance dividend for the year of 1.67 pence per share (2014 total mainte
Slide 9: 2015 employee highlights
2015 employee highlights • Large local employer employing, on average, 4,299 people and c.13k subcontractors • Voluntary employee turnover rate remained stable during 2015 at 13.3% (2014: 13.6%) • Introduced more training and development opportunities for our employees: – Customer service training –
Slide 10: 2015 employee survey results highlights
2015 employee survey results highlights 97% of employees believe Taylor 94% of employees Wimpey is committed are proud to work for to being an ethical Taylor Wimpey and responsible company 96% of employees 98% of employees think that Taylor believe that Taylor Wimpey Wimpey takes health developments
Slide 11: Customer service
Customer service • Disappointed that our customer satisfaction score slipped in 2015 • 2014 / 2015 – completed an in-depth review of every aspect of the Customer Journey – To understand our customers’ priorities to enable us to deliver at and ahead of expectations Focused on delivering proactive, p
Slide 12: Charity and communities in 2015
Charity and communities in 2015 • Contributed over £335m (2014: £300m) to our local communities via planning obligations • Charitable donations of over £746k (2014: £539k) to registered charities (donations and fundraising), in addition to c.£112k to other organisations 12
Slide 13: Product
Product • Standard house floor plans – working well and in place across over 70% of sites – Offers many advantages: Efficient procurement opportunities Quality of design Build and cost control within the regulatory framework • During 2015, launched a detailed review of our standard product specif
Slide 14: Product
Product 14
Slide 15: Research and development
Research and development • Project 2020 – Aim to explore and evaluate trends, changes and new innovations in design, architecture, technology, materials and methodology in the housebuilding industry – Purpose to create a product range for 2020 and beyond, fully reflecting our customers’ lifestyles a
Slide 16: Current trading and outlook
Current trading and outlook 16
Slide 17: UK current trading
UK current trading • The new build housing market remained very positive across most geographies. In central London, the market continues to be stable • We have performed very well so far in 2016, with increasing customer demand, up 14% • Average private net reservation rates increased to 0.80 sales
Slide 18: Outlook
Outlook • The UK housing market continues to be underpinned by good mortgage availability and employment prospects • We believe that the recent amendments to the Starter Homes provisions reduce the future risk of the scheme and, if passed, these changes will ensure that the Starter Homes initiative
Slide 19: Outlook
Outlook • As at 24 April 2016 we are c.70% forward sold for 2016 private completions, positioning us well for the remainder of the year and beyond • As expected, the rate of build cost inflation has reduced, and we continue to anticipate underlying build cost increases of 3-4% in 2016 • We remain di
Slide 20: Appendices
Taylor Wimpey plc Annual General Meeting 28 April 2016 Appendices 20
Slide 21: 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