Taylor Wimpey Plc · LSE:TW.
Taylor Wimpey — FY2019 Earnings Presentation
84 slides from Taylor Wimpey's earnings presentation, Feb 26, 2020
Slide 1: Full Year Results Presentation for the year ended 31 December 2019
Full Year Results Presentation for the year ended 31 December 2019 26 February 2020
Slide 2: Disclaimer
Disclaimer For the purposes of this notice, this “presentation” shall include these slides and any question-and-answer session that follows oral briefings by representatives of Taylor Wimpey plc. This presentation is for information purposes only and is not intended to, and does not constitute or fo
Slide 3: Agenda
Agenda Introduction 2019 UK operational Financial review, Strategy and Pete Redfern overview cost levers and cash priorities Jennie Daly generation Pete Redfern Chris Carney 3 Results Presentation for the year ended 31 December 2019
Slide 4: Introduction
Introduction Pete Redfern Chief Executive
Slide 5: TW – our 2019 year
TW – our 2019 year ● Highlights – increasing the sustainability of our business ● Stable market with robust customer demand despite wider uncertainty ● UK completions up by 5% to 15,520, a record for Taylor Wimpey ● £599.7 million paid in total dividends in 2019 ● Annual Injury Incidence Rate has re
Slide 6: 2019 UK operational overview
2019 UK operational overview Jennie Daly Group Operations Director
Slide 7: 2019 market – the backdrop
2019 market – the backdrop ● Confidence – a stable market despite uncertain political and economic backdrop ● Market fundamentals – supply and demand remained resilient in the new homes market ● Pricing – overall flat with modest growth in the North and weakness in London and the South East and at h
Slide 8: Operational analysis
Operational analysis FY 2019 FY 2018 Private Average Private Average sales rate Completions selling price sales rate Completions selling price (net) excl. JVs £000 (net) excl. JVs £000 North 0.88 6,709 230 0.75 6,431 219 Central and South West 1.10 5,484 260 0.88 5,259 252 London and South East incl
Slide 9: Site based ROCE
Quality additions to a strong landbank 40.0% ● Short term landbank stood at c.76k plots at the end of 38.0% December 2019 (2018: c.76k 36.0% plots) ● Strategic land pipeline was c.140k Site based ROCE* 34.0% potential plots at the end of December 2019 (2018: c.127k 32.0% plots) 30.0% ● Acquired 7,26
Slide 10: Land market and politics
Land market and politics ● Short term land market ● Market relatively flat particularly in last six months of 2019 ● London market ● Poor underlying availability and value, and uncertainty in the market ● Strategic land market ● Noticeable pressure on minimum prices, options premium and cost caps, i
Slide 11: 2019 operational performance – our KPIs
2019 operational performance – our KPIs Customer FY 2019 FY 2018 FY 2017 Customer satisfaction – would you recommend 8-week score % * 89 90 89 Customer satisfaction – would you recommend 9-month score %** 77 76 74 Build quality Construction Quality Review – average score out of 6 4.13 3.93 3.74 Aver
Slide 12: 2019 operational performance – our KPIs
2019 operational performance – our KPIs Efficiency FY 2019 FY 2018 FY 2017 Net private sales rate per outlet per week 0.96 0.80 0.77 Private legal completions per outlet 48.2 41.8 40.4 Order book value £m 2,176 1,782 1,628 Order book volume – number of homes 9,725 8,304 7,136 Employee Employee turno
Slide 13: Continual Quality Improvement
Continual Quality Improvement ● Quality Managers introduced across the business ● Delivering support and guidance to Site Managers, direct labour and the supply chain ● Supplier and contractor engagement ● Collaborating with suppliers to develop a quality platform, expand knowledge of site teams and
Slide 14: Construction Quality Review
Construction Quality Review Taylor Wimpey CQRs by division - results to end Dec 2019 Year on year results for benchmark group 1 builders* 4.2 4.4 Average score for all benchmark group 1 build stages in 2019 4.2 4.0 4 3.8 3.8 3.6 3.6 3.4 3.4 3.2 3.2 3 3.0 Scotland, North West & Midlands East & Wales
Slide 15: Help to Buy
Help to Buy ● The current scheme conditions require completions by December 2020 ● A new Help to Buy scheme (April 2021 – March 2023) – first time buyers only, subject to regional price caps ● 76% of our Help to Buy sales in 2019 were to first time buyers, of which 79% were within proposed regional
Slide 16: Sector regulatory backdrop
Sector regulatory backdrop ● Majority Government and stabilising political environment ● Busy short term outlook for the regulatory environment: ● Future Homes Standards - Approved Documents L (energy) and F (ventilation) ● Electric vehicle charging ● “First Homes” consultation ● Planning White Pape
Slide 17: A good start to the year
A good start to the year Customer interest – organic website visits Website calls 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 Week number Week number 2017 2018 2019 2020 2017 2018 2019 2020 Brochure requests Appointments booked 1 4 7 10 13 16
Slide 18: Market performance – to date
Market performance – to date H1 2020 (w/e 23 Feb 2020) H2 2019 H1 2019 H2 2018 H1 2018 Average outlets open 240 243 257 266 280 Private sales rate (net) 0.97 0.92 1.00 0.76 0.83 Private sales price £000 333 314 298 290 296 Cancellation rate (private) 14% 16% 14% 15% 13% ● 89 new outlets opened in 20
Slide 19: Financial review, cost levers and cash generation
Financial review, cost levers and cash generation Chris Carney Group Finance Director
Slide 20: Summary Group results
Summary Group results £m (before exceptional items) FY 2019 FY 2018 Change Revenue 4,341.3 4,082.0 6.4% Gross profit* 1,044.1 1,074.5 (2.8)% Gross profit margin % 24.1 26.3 (2.2)ppt Operating profit* 850.5 880.2 (3.4)% Operating profit margin % 19.6 21.6 (2.0)ppt Profit before tax and exceptional it
Slide 21: UK performance summary
UK performance summary FY 2019 FY 2018 Change Legal completions – excl JVs 15,520 14,822 4.7% Private 12,043 11,421 5.4% Affordable 3,477 3,401 2.2% Average selling price – excl JVs 269 264 1.9% Private £000 305 302 1.0% Affordable £000 141 137 2.9% Legal completions – JVs 199 111 79.3% Share of pro
Slide 22: Indicative movements in UK operating profit margin
Indicative movements in UK operating profit margin Annual Impact on FY 2019 income FY 2018 to FY 2019 change statement Market inflation on selling prices c.1.0%* 0.7% Market inflation on build cost c.4.5% (2.6)% Net economic benefit captured (1.9)% Market impact of landbank evolution (0.2)% Net mark
Slide 23: UK margin drivers
UK margin drivers £000 per unit FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 ASP 229.7 255.0 264.4 263.9 268.6 Net land cost* (42.4) (45.4) (45.4) (41.7) (42.9) Build cost (121.9) (137.9) (143.7) (147.4) (156.6) Direct selling expenses (6.0) (6.2) (6.0) (5.9) (5.7) Private and affordable gross profit 59.
Slide 24: Levers to offset future build cost inflation
Levers to offset future build cost inflation 3% 0% Underlying cost Procurement and Reduction in Reduction in Increased use of Benchmarking Reduced wastage Range of outcomes inflation supply chain savings variations dayworks standard housetypes Targeted reduction - high Targeted reduction - low 24 Re
Slide 25: Summary Group balance sheet
Summary Group balance sheet Group £m 31 Dec 2019 31 Dec 2018 Change Long term assets and JVs 115.3 100.2 15.1 Land 2,735.9 2,757.7 (21.8) WIP 1,460.1 1,430.5 29.6 Debtors 204.7 190.4 14.3 Land creditors (729.2) (738.6) 9.4 Other creditors (773.2) (824.4) 51.2 Pensions and post retirement benefits (8
Slide 26: Group cash generation
Group cash generation £m FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Operating profit 641.2 768.1 844.1 880.2 850.5 Payments to the pension scheme (19.9) (20.1) (20.1) (32.2) (45.3) Decrease / (increase) in net land (26.9) 63.3 (4.2) 15.8 (14.5) Decrease / (increase) in WIP and other (167.5) (189.1) (83
Slide 27: Strong cash generation underpinned by margin and low land cost
Strong cash generation underpinned by margin and low land cost 25% 20% 15% 10% 5% 0% 2015 2016 2017 2018 2019 Operating cash flow margin* % Operating profit margin % UK land cost as % of revenue * See definitions slide in the appendix 27 Results Presentation for the year ended 31 December 2019
Slide 28: 2020 guidance
2020 guidance Targeting slightly lower sales rate than 2019 Completions Volumes expected to be slightly lower in 2020 Affordable c.22% Year end net cash c.£350m FY: aiming to maintain margin broadly in line with 2019 H1: margins will show pressure vs H1 19 from 2019 build cost inflation and selling
Slide 29: Summary
Summary • Good underlying performance in 2019 despite build cost inflation • 2020 focus on cost discipline • Further embed zero based approach to overheads • Continue deployment of cost and efficiency workstreams • Driving value from enhanced reporting • Future cash generation underpinned by strong
Slide 30: Strategy and priorities
Strategy and priorities Pete Redfern Chief Executive
Slide 31: Building a sustainable advantage
Building a sustainable advantage Customers Build quality Strategy for Apprentices Land strategy – • Extensive • Quality large sites • Implemented mix of sites customer Managers • Multiple factory across the • Optimising the service training • Consistent approach business balance of small • Community
Slide 32: How we now see the environment we operate in
How we now see the environment we operate in Political ● Majority Government is more supportive operating environment for land buying environment ● Improved customer confidence following election ● Brexit uncertainty has reduced, though still a process to complete ● Will start to now see the regulat
Slide 33: Strategic improvements
Strategic improvements ● Setting out firm targets for great, well rounded customer service ● Deliver a 5* “Would you recommend?” rating every year ● Improve our 9-month customer satisfaction surveys to a consistent annual 80% ● Deliver quality homes measured by maintaining a CQR score of at least 4.
Slide 34: Environmental factors
Environmental factors Area of focus Where we are CO2 emission (direct) • 43% cut in our CO2 emission intensity since 2013 • On track to meet our goal of 50% reduction by 2023 • To introduce a science-based target this year Waste recycled • 97% in 2019 (2018: 96%) Timber frame • Increase usage reduci
Slide 35: Sustainability / environment strategy
Sustainability / environment strategy ● Where we are ● Sustainability Champions designated to operate in each business ● R&D investment ● Trialling products to further improve energy performance and reduce carbon footprint, without adding significant cost or complexity ● Project 2020 homes in Oxford
Slide 36: Medium term targets
Medium term targets 2018-2023 medium term targets 2019 2018 Return on net operating assets Increase to 35% 31.4% 33.4% Cash conversion* Convert 70-100% of operating profit into operating cash flow 82.6% 92.6% Operating profit margin Maintain at c.21-22% 19.6% 21.6% Landbank years Short term owned an
Slide 37: Operating margin bridge
Operating margin bridge 0.2 22.5% 0.3 0.5 0.8 +1.5 0.1 21.0% 1.1 0.1 0.2 0.5 +1.4 0.5 19.6% 19.6 2019 Landbank Build cost Price optimisation Customer service, Apprentices & Target evolution efficiencies inc. vs sales rate DSE & overhead direct trades Range Targeted improvement - high standard produc
Slide 38: 2020 priorities
2020 priorities Customers Financial returns People and environment • 5-Star ‘Would you • Building on strategy for • Sustainability and carbon recommend’ score large sites to balance strategy • Improvement in 9-month margin and volume • Transitioning apprentice score • Cost reduction and programme in
Slide 39: Q&A
Q & A 39 Results Presentation for the year ended 31 December 2019
Slide 40: Future investor communications
Future investor communications ● 23 April 2020 AGM and trading update ● 29 July 2020 Half year results 2020 40 Results Presentation for the year ended 31 December 2019
Slide 41: Appendices
Appendices Full Year Results Presentation for the year ended 31 December 2019 Taylor Wimpey plc
Slide 42: Group financial highlights
Group financial highlights Return on net operating assets Cash conversion 32.5 33.4 31.4 100 87.2 92.6 82.6 30.0 20.0 % % 10.0 0.0 0 2017 2018 2019 2017 2018 2019 2018-2023 medium term target: Increase to 35% 2018-2023 medium term target: Convert 70-100% of operating profit into operating cash flow*
Slide 43: Summary income statement
Summary income statement* Group £m FY 2019 FY 2018 Change H1 2019 Revenue 4,341.3 4,082.0 6.4% 1,732.7 Cost of sales (3,297.2) (3,007.5) 9.6% (1,323.1) Gross profit 1,044.1 1,074.5 (2.8)% 409.6 Net operating expenses (201.6) (199.6) 1.0% (97.5) Profit on ordinary activities before 842.5 874.9 (3.7)%
Slide 44: Cash flow summary
Cash flow summary Group £m FY 2019 H2 2019 H1 2019 FY 2018 Profit from ordinary activities before finance costs* 856.8 544.7 312.1 828.8 (Increase) / decrease in inventories (21.7) 218.2 (239.9) (1.7) Exceptional items (credit) / charge (14.3) (14.3) - 46.1 Other operating items** (118.6) (30.4) (88
Slide 45: Investing in quality and sustainability: UK build cost per plot
Investing in quality and sustainability UK build cost per plot 160.0 0.6 0.2 ( 1.0 ) 1.0 156.6 6.7 Build cost per plot £k 150.0 0.4 1.3 147.4 140.0 31 Dec 2018 Increase in Mix Build cost inflation Investment in Investment in Increase in Cost efficiencies 31 Dec 2019 average size at 4.5% build qualit
Slide 46: Group segmental analysis
Group segmental analysis FY 2019 FY 2018 Operating Operating Operating Operating profit profit margin RONOA profit profit margin RONOA £m % % £m % % North 320.0 20.7 37.1 307.1 21.6 36.6 Central and South West 316.2 21.8 39.9 344.7 25.6 45.3 London and South East incl. 234.9 19.3 22.8 270.6 22.4 25.
Slide 47: North Division – segmental analysis
North Division – segmental analysis Scotland, North East and North West and North Division North Division As at 31 Dec 2019 North Yorkshire Yorkshire Midlands FY 2019 FY 2018 Number of outlets 53 38 27 118 135 Private sales rate (net) 0.86 0.89 0.90 0.88 0.75 Completions 2,648 1,978 2,083 6,709 6,43
Slide 48: Central and South West Division – segmental analysis
Central and South West Division – segmental analysis Central and South Central and South East and Wales and West Division West Division As at 31 Dec 2019 Central West FY 2019 FY 2018 Number of outlets 39 28 67 72 Private sales rate (net) 1.12 1.08 1.10 0.88 Completions 3,007 2,477 5,484 5,259 Averag
Slide 49: London and South East Division – segmental analysis
London and South East Division – segmental analysis London and South London and South South East excl. East Division East Division As at 31 Dec 2019 London market† London market† FY 2019 FY 2018 Number of outlets 44 11 55 49 Private sales rate (net) 0.97 0.98 0.97 0.80 Completions 2,643 684 3,327 3,
Slide 50: Net private sales by price band
Net private sales by price band £201k – £251k – £301k – £451k – £601k – Net private sales <£200k £250k £300k £450k £600k £1m >£1m Total North 1,697 1,729 1,308 961 82 13 - 5,790 Central and South West 466 783 997 1,593 247 23 - 4,109 London and South East 110 254 314 1,087 411 295 121 2,592 Total 2,
Slide 51: UK market performance – affordable homes
UK market performance – affordable homes H1 2020 (w/e 23 Feb 2020) 31 Dec 2019 31 Dec 2018 Change Average outlets open 240 250 273 (8.4)% Affordable order book £m 753 772 605 27.6% Affordable order book units 5,302 5,426 4,452 21.9% Affordable order book ASP £000 142 142 136 4.4% Data based on reser
Slide 52: Central London market performance
Central London market performance H1 2020 (w/e 23 Feb 2020) H2 2019 H1 2019 H2 2018 H1 2018 Average outlets open 4 5 6 7 8 Private sales rate (net) 0.97 1.12 0.54 0.36 0.47 Private sales price £000 1,074 1,035 1,006 1,092 896 Cancellation rate (private) 18% 14% 24% 39% 12% Data based on reservations
Slide 53: Financing
Financing ● Net cash at 31 Dec 2019: £545.7 million (31 Dec 2018: £644.1 million) ● Adjusted gearing* including land creditors of 5.5% (2018: 2.9%) ● Average net cash during 2019: £157.0 million (2018: £259.6 million) ● Borrowings and facilities: ● £550 million Revolving Credit Facility ● Fully undr
Slide 54: Help to Buy – a manageable adjustment
Help to Buy – a manageable adjustment First time buyers using Help to Buy as a % of total 2019 Homes England Region Help to Buy price cap** private completions % within price cap North East £186,100 20% 35% North West £224,400 40% 67% Yorkshire & The Humber £228,100 36% 72% East Midlands £261,900 38
Slide 55: Tax
Tax Asset / (liability) Current tax £m Deferred tax £m Net tax £m As at 1 January 2019 (69.9) 40.7 (29.2) Income statement* (149.1) (12.9) (162.0) SOCI / SOCIE 1.1 2.5 3.6 Cash paid 149.0 - 149.0 Other (including foreign 1.0 (0.5) 0.5 exchange) As at 31 December 2019 (67.9) 29.8 (38.1) ● Pre-excepti
Slide 56: Pension fund contributions
Pension fund contributions ● Funding update as at 31 December 2019 ● Technical provisions deficit of £76 million and funding level of 97.0% ● Deficit contributions of £40 million per year re-instated from January 2019 until the earlier of full funding or Q4 2020 ● Funding level is re-assessed quarte
Slide 57: Pensions
Pensions Movement in present value of defined benefit obligations Total UK £m FY 2019 FY 2018 FY 2017 FY 2016 Pre-IFRIC 14 (surplus) / deficit brought forward (33.1) (23.9) 232.7 177.1 Employer contributions* (47.1) (34.1) (23.1) (23.1) Administration cost 1.8 1.9 3.0 3.3 Interest (income) / charge
Slide 58: Cash management
Cash management UK metrics FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Completions (excl JVs) 13,219 13,808 14,387 14,822 15,520 Total sq ft per unit 1,029 1,021 1,013 1,017 1,030 ASP £ per sq ft 223 250 261 259 261 Build cost £ per sq ft 118 135 142 145 152 Land cost £ per sq ft 41 44 45 41 42 % privat
Slide 59: Dividend payment profile
Dividend payment profile Change Paid (or to be paid) pence per share FY 2020*** FY 2019 FY 2018 FY 2018 to FY 2019 Ordinary dividend* c.7.63 7.64 4.88 55% Special dividend** 10.99 10.70 10.40 3% Total c.18.62 18.34 15.28 20% Change Paid (or to be paid) £m FY 2020*** FY 2019 FY 2018 FY 2018 to FY 201
Slide 60: UK land commitments
UK land commitments 2019 2018 £m < 1 yr 1-2 yrs 2-5 yrs 5+ yrs total total Committed cash payments in respect of unconditional land 333 193 190 24 740 749 contracts Expected cash payments in respect of conditional land 148 65 79 3 295 367 contracts ● Included in unconditional land contracts at 31 De
Slide 61: Managing UK working capital
Managing UK working capital WIP cash spend vs P&L charge 3,000 100% 90% 2,500 80% 70% 2,000 60% £m 1,500 50% 40% 1,000 30% 20% 500 10% - 0% 2015 2016 2017 2018 2019 Development & construction costs in WIP P&L charge (direct build costs) in previous 12 months Cash spend in previous 12 months % of nex
Slide 62: Movement in Group net assets
Movement in Group net assets Breakdown of 31 Dec 2019 £m 31 Dec 2018 £m movement % Opening net assets 3,226.8 3,137.3 N/A Pre-exceptional net earnings 662.3 694.5 20.5% Net impact of exceptional items (after tax) 11.6 (37.9) 0.4% Actuarial losses after tax (7.2) (69.6) (0.2)% Net share scheme and ot
Slide 63: UK net operating assets
UK net operating assets £m 31 Dec 2019 31 Dec 2018 Fixed assets 59 51 Investment in JVs 55 48 Land 2,645 2,659 WIP 1,392 1,363 Total inventories 4,037 4,022 Debtors 203 189 Land creditors (710) (716) Other creditors (712) (744) Total creditors (1,422) (1,460) Pension liability and PRMA (85) (134) Pr
Slide 64: UK planning permissions
UK planning permissions 20,000 Sites with implementable planning permission 18,000 16,000 96.8% 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2.6% Permissions gained Completions * Average Permissions Average completions 0.3% 0.3% Started o
Slide 65: Finance charges
Finance charges £m FY 2019 FY 2018 Change Financial indebtedness 5.5 5.2 5.8% Foreign exchange movements 1.1 1.0 10.0% Unwind of land creditors and other 21.5 18.5 16.2% items Pensions 3.2 1.1 190.9% Interest on IFRS 16 leases 0.5 0.5 - Total 31.8 26.3 20.9% 65 Results Presentation for the year ende
Slide 66: UK land pipeline
UK land pipeline 31 Dec 2019 31 Dec 2018 Plots Owned Controlled Total Total Detailed planning 39,118 4,342 43,460 43,996 Outline planning 14,642 5,084 19,726 18,619 Resolution to grant 881 11,545 12,426 13,380 Short term 54,641 20,971 75,612 75,995 Short term with implementable 36,833 36,833 40,795
Slide 67: UK land portfolio ‒ net cost
UK land portfolio ‒ net cost 31 Dec 2019 31 Dec 2018 £m Owned Controlled Total Total Detailed planning 1,865 26 1,891 1,934 Outline planning 428 86 514 473 Resolution to grant 16 24 40 54 Sub-total 2,309 136 2,445 2,461 plots 54,641 20,971 75,612 75,995 Strategic 97 94 191 185 plots 33,329 106,895 1
Slide 68: UK short term landbank
UK short term landbank 100,000 8,387 ( 15,719 ) 90,000 7,268 80,000 75,995 ( 200 ) 75,612 ( 119 ) 70,000 60,000 Plots 50,000 40,000 30,000 20,000 10,000 - 31 Dec 2018 Plots acquired Strategic land Completions incl. JVs Land sales Review and scope 31 Dec 2019 conversion changes Data includes JV plots
Slide 69: UK strategic pipeline
UK strategic pipeline 160,000 18,299 ( 8,387 ) 140,224 2,895 140,000 127,417 - 120,000 100,000 Plots 80,000 60,000 40,000 20,000 - 31 Dec 2018 Plots acquired Strategic land conversion Land sales Review and scope changes 31 Dec 2019 Excludes land with less than 50% certainty of achieving planning per
Slide 70: UK landbank
UK landbank ● Land cost in short term owned landbank is 14.9% of ASP (2018: 15.2%), supported by strategic pipeline conversions ● Land cost as % of ASP on 2019 approvals 16.2% (2018: 19.2%) ● Potential revenue in the landbank at 31 Dec 2019 was £53 billion (31 Dec 2018: £50 billion), comprising shor
Slide 71: North Division - land
North Division - land Scotland, North East and North West and North Division North Division As at 31 Dec 2019 North Yorkshire Yorkshire Midlands FY 2019 FY 2018 Short term owned and controlled land portfolio plots 14,817 9,095 7,449 31,361 29,009 Land portfolio years 5.6 4.6 3.6 4.7 4.5 Cost per plo
Slide 72: Central and South West Division - land
Central and South West Division - land Central and South Central and South West Division West Division As at 31 Dec 2019 East and Central Wales and West FY 2019 FY 2018 Short term owned and controlled land 17,486 14,656 32,142 33,512 portfolio plots Land portfolio years 5.8 5.9 5.9 6.4 Cost per plot
Slide 73: London and South East Division - land
London and South East Division - land London and South London and South South East excl. East Division East Division As at 31 Dec 2019 London market† London market† FY 2019 FY 2018 Short term owned and controlled land 6,639 5,470 12,109 13,474 portfolio plots Land portfolio years 2.5 6.4 3.4 4.1 Cos
Slide 74: Site size of strategic land conversions
Site size of strategic land conversions Number of strategic land plot Number of strategic land sites UK in planning as at end of 2019 in planning as at end of 2019 Super large (751+) 7,700 5 Large (376-750) 3,679 7 Medium (201-375) 1,695 6 Small (1-200) 3,220 27 Total 16,294 45 Strategically sourced
Slide 75: Making the most of large sites
Making the most of large sites Private sales rate Private sales rate No. of outlets* per outlet No. of outlets* per outlet FY 2019 FY 2019 FY 2018 FY 2018 Super large (751+) 22 1.39 30 1.08 Large (376-750) 46 1.35 44 0.96 Medium (201-375) 80 0.95 76 0.84 Small (1-200) 102 0.70 123 0.64 Total 250 0.9
Slide 76: Customer service
Customer service Customer satisfaction (Would you FY 2019 average FY 2018 average recommend?) 8-week score Homes legally completed Oct 18-Sep 19 Homes legally completed Oct 17-Sep 18 Taylor Wimpey UK Ltd 89% 90% North 88% 91% Central and South West 91% 90% London and South East 90% 91% 9-month score
Slide 77: Land disposals
Land disposals Proceeds £m FY 2019 FY 2018 UK 37.9 56.4 Spain - 0.2 Total 37.9 56.6 Gross profit £m UK 19.3 17.6 Spain - (1.6) Total 19.3 16.0 Land disposals are included in revenue and cost of sales 77 Results Presentation for the year ended 31 December 2019
Slide 78: FTB mortgage payments as % of pay / interest rates
FTB mortgage payments as % of pay / interest rates 100% 16 90% 14 80% 12 70% % of take home pay 10 60% Interest rate 50% 8 40% 6 30% 4 20% 2 10% 0% - 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 Source: Nationwide / Bank of England Interest rate Lond
Slide 79: Real house prices
Real house prices £300,000 £250,000 £200,000 £150,000 £100,000 £50,000 £0 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Nominal prices Real prices Source: Nationwide • Nominal price
Slide 80: UK customer segmentation
UK customer segmentation Total reservations FY 2019 H2 2019 H1 2019 FY 2018 H2 2018 H1 2018 First time buyers 34% 31% 38% 34% 33% 35% Second time buyers 34% 31% 37% 31% 30% 32% Affordable 27% 32% 20% 30% 31% 29% Investor 5% 6% 5% 5% 6% 4% Total 100% 100% 100% 100% 100% 100% Help to Buy* 34% 30% 40%
Slide 81: UK product mix
UK product mix Private completions FY 2019 H2 2019 H1 2019 FY 2018 H2 2018 H1 2018 Apartments 11% 11% 11% 12% 14% 10% 1 / 2 / 3 bed houses 48% 49% 47% 48% 47% 49% 4 / 5 / 6 bed houses 41% 40% 42% 40% 39% 41% Total 100% 100% 100% 100% 100% 100% Data based on completions excluding JVs 81 Results Prese
Slide 82: UK sales performance
UK sales performance H1 2020 (w/e 23 Feb 2020) H2 2019 H1 2019 H2 2018 H1 2018 Average outlets open 240 243 257 266 280 Average sales rate (net) 1.00 1.37 1.24 1.09 1.16 Average selling price £000 326 253 269 244 254 H1 2020 (w/e As at 23 Feb 2020) 31 Dec 2019 30 June 2019 31 Dec 2018 1 July 2018 To
Slide 83: Spain financial summary
Spain financial summary FY 2019 FY 2018 Change Average number of active sites 21 21 - Legal completions 323 342 (5.6)% Average selling price £000 373 304 22.7% Average selling price €000 429 344 24.7% Revenue £m 120.4 104.2 15.5% Operating profit £m 32.1 29.2 9.9% Operating profit margin % 26.7 28.0
Slide 84: 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. ● Adjusted basic earnings per share represents earnings attributed to the shareholders of the parent, excluding exceptional items