Full Year Results Presentation for the year ended 31 December March 2013

Transcription

1 Full Year Results Presentation for the year ended 31 December March

2 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 engage in investment activities, nor shall this presentation (or any part of it) nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. Past performance of Taylor Wimpey plc cannot be relied upon as a guide to its future performance. Certain statements made in this presentation are forward looking statements. Such statements are based on Taylor Wimpey s current expectations and beliefs concerning future events and are subject to a number of known and unknown risks and uncertainties that could cause actual events or results to differ materially from any expected future events or results referred to in these forward looking statements. Such statements are also based on numerous assumptions regarding Taylor Wimpey plc s present and future strategy and the environment in which it operates, which may not be accurate. Taylor Wimpey plc will not release any updates or revisions to forward looking statements contained in this presentation except as required by law or regulation. 2

3 Introduction Pete Redfern Chief Executive 3

4 Agenda Strategy and North operating review South operating review Pete Redfern Peter Truscott Financial review Ryan Mangold Strategy and outlook Pete Redfern 4

5 Key financial highlights UK operating margin* increased to 11.5% (2011: 9.0%) Group return on net operating assets** of 13.6% (2011: 9.8%) Tangible net asset value*** per share 61.5p (2011: 57.3p) 44% increase in Group operating profit 124% increase in adjusted earnings per share to 4.7p (2011: 2.1p) Balance sheet strength with adjusted gearing of 21.8% (2011: 23.1%) Final dividend of 0.43p per share proposed (2011 final: 0.38p) * Operating profit is defined as profit on ordinary activities before finance costs and exceptional items, after share of results of joint ventures comparatives have been restated to consolidate the UK Housing and Corporate segment, as the Group now only reports two operating segments. ** Return on net operating assets is defined as operating profit divided by the average of the opening and closing net operating assets, which is defined as capital employed plus intangibles less tax balances. *** Tangible net assets per share is defined as net assets excluding goodwill and intangible assets divided by the number of shares in issue at the period end. 5

6 UK performance summary FY 2012 FY 2011 Change % Legal completions total 10,886 10, % Private 8,842 8, % Affordable 1,946 2,048 (5.0)% JVs % Ave selling price total % Private % Affordable (3.4%) Operating profit m* % Operating margin %* 11.5% 9.0% 2.5 ppt Asset turn % * Operating profit is defined as profit on ordinary activities before finance costs and exceptional items, after share of results of joint ventures comparatives have been restated to consolidate the UK Housing and Corporate segment, as the Group now only reports two operating segments. 6

7 Further significant UK operational improvement 589m of operating cash generated pre-land spend 20% increase in value of private order book as at 31 Dec k contribution per completion 43% of short term owned and controlled landbank is strategically sourced 14,172 new plots approved for purchase 100k + of strategic land plots 7

8 Strategy fine tuning 1. Absolute commitment that a strong margin performance is the way to drive the best sustainable returns 2. Margin underpinned by timing and quality of short term acquisitions and enhanced by extensive strategic land 3. Continual improvement philosophy with a relentless focus on adding value to every existing and new site 4. Significant ongoing investment in great quality people and processes 5. Increasing focus on asset efficiency and maximising the returns on our land investments 6. Active management of investments and structure over the housing cycle, to reduce risk and maximise returns over the long term 8

9 Strategy 1. Absolute commitment that a strong margin performance is the way to drive the best sustainable returns 250 bps growth in UK operating margin Outlet numbers growing naturally, delivering targeted margins Growth in quality and scale of order book 2. Margin underpinned by timing and quality of short term acquisitions and enhanced by extensive strategic land Approx 38k plots approved post first year of significant delivery from this land Strategic landbank stands at over 100k plots 9

10 Strategy 3. Continual improvement philosophy with a relentless focus on adding value to every existing and new site Replanning and value improvement process ongoing on old sites Margin improved above acquisition level on new sites Value improvement philosophy ingrained in business practice 10

11 Investment in people and processes 4. Significant ongoing investment in great quality people and processes Over time, three things matter in our industry: - Land - People and skills - Customers Taylor Wimpey internal culture is very strong: - Very good retention levels - High proportion of internal succession - Great stability of senior team - Increasingly seen as the best place to work in the industry Hungry, fair, self critical but increasingly confident 11

12 Committed, engaged and focused Questions TW overall % Taylor Wimpey is committed to HSE and keeping people safe I fully understand how my work fits into Taylor Wimpey I understand what Taylor Wimpey wants to achieve this year I am clear about what is expected of me on a day-today basis I am confident that Taylor Wimpey will meet its objectives for this year 99% 98% 97% 97% 96% 12

13 Strategy 5. Increasing focus on asset efficiency and maximising the returns on our land investments Group asset turn increased to 1.19x (2011: 1.11x) WIP controls improved, maintained as rates increase Strategies in place to maximise returns from larger sites 6. Active management of our investment plans and structure over the housing cycle, to reduce risk and maximise returns over the long term Growing land position at good returns, maintaining focus on how the business will perform in a future downturn Balance sheet capacity and strength enhanced 13

14 2012 land strategy Began the year with view that 10-12k plots was likely level of acquisitions for land conditions at the time Land market continued to be relatively benign through the year and, with one or two larger purchases, we ended slightly above that range Approved 14,172 plots in 2012 at a c.23% contribution margin* Instigated new grading process to compare location quality across the UK to aid assessment * Net revenue less total build costs less total land costs less direct selling expenses 14

15 Landbank classification Old vs. new, impaired vs. unimpaired, strategic vs. non strategic Does not affect the definition of our strategic landbank consistent year on year, but does affect how we describe and analyse the short term landbank Cut it on three axes: Pre 2009/Post 2009 Definition is post 2009 if the price was struck after Sept 2009 Impaired/Unimpaired Impaired if was subject to an NRV adjustment Strategically sourced/non strategically sourced Strategically sourced if no outline planning at point of taking interest 15

16 Post 2009 completions 2012 was the first year that we have delivered significant levels of completions on post 2009 land. Levels of completions will grow yoy completions Variance to investment margin 3, %

17 Strategic land Consistently shown our commitment to strategic land investment: Over 30k new plots taken into strategic landbank over last three years Annual overhead cost of strategic land teams of c. 6m Current strategic land has grown by c.14k units to100k units at the end of 2012 Around 24% of 2012 completions came from strategic land Of which c.35% was on post 2009 land Target is to grow total to at least 30% of completions from strategic land New acquisitions have been spread across: Traditional option deals on large developments Freehold deals on larger shorter term sites with a strong planning position Option deals on short term sites with planning risk but a strong five year land supply argument Combination of this strategy and planning approach is leading to increasing value from strategic land 17

18 North operating review Pete Redfern Chief Executive 18

19 North Division operating area As at 31 Dec 2012 Short term owned and controlled land portfolio plots Scotland & North East Yorkshire & North West West Midlands North Division FY 2012 North Division FY ,241 9,314 6,160 24,715 24,401 1,351 completions 0.50 sales rate* Land portfolio years Cost per plot 000** ASP in short term owned land portfolio 000 Strategic land plots (> 50% probability) ,589 12,607 14,912 45,108 38,020 1,543 completions 0.56 sales rate* 1,179 completions 0.55 sales rate* ** Based on short term owned plots. NRV is wholly allocated to land, comparable basis to peers *Private sales rate (net) 19

20 The difference community engagement makes 20

21 South operating review Peter Truscott Divisional Chairman, South 21

22 South Division operating area As at 31 Dec 2012 Eastern South West & Wales South East & London South Division FY 2012 South Division FY 2011 Short term owned and controlled land portfolio plots 13,821 11,476 15,397 40,694 40,863 Land portfolio years Cost per plot 000** ASP in short term owned land portfolio 000 Strategic land plots (> 50% probability) ,866 16,308 15,377 53,551 46,216 1,707 completions 0.55 sales rate* 2,098 completions 0.61 sales rate* 2,910 completions 0.67 sales rate* ** Based on short term owned plots. NRV is wholly allocated to land, comparable basis to peers *Private sales rate (net) 22

23 South Division update on priorities Eastern Focus on pull through of strategic land Build order book South East and London Grow outlets Prioritise margin over sales rate South West and Wales Reposition landbank Grow margins 23

24 Bristol coverage Map data 2013 GeoBasis-DE/BKG ( 2009), Google - Current developments Coming soon 24 Strategic land 24

25 London coverage Current Central London Business sites Other Business unit London sites Coming soon sites Strategic land bank 19 active outlets 31 outlets in the landbank 25

26 Central London current developments West Hampstead ASP per sq ft 691 Tufnell Park ASP per sq ft 607 Camden ASP per sq ft 827 Islington ASP per sq ft 822 North Kensington Ladbroke Grove The City Thames Barrier ASP per sq ft 445 Westminster Map data 2013 GeoBasis-DE/BKG ( 2009), Google - 26

27 Central London Outlets* 2 5 c.7 c.7 c.8 Completions* * Including our share of JVs 27

28 Financial review Ryan Mangold Group Finance Director 28

29 2012 Market conditions A year of stability and a flat market Mortgage availability remained largely restrictive Positive impact of Government initiatives: NewBuy, FirstBuy and Funding for 200, ,000 Lending Average house price % ,000 50,000 Mortgage costs to household income % /01/ /01/ /01/ Source: Data Stream, Barclays / Woolwich Affordability Index and Nationwide national average house price per year 29

30 Summary results Continuing Group m FY 2012 FY 2011 Change % H Revenue 2, , % Gross profit % Gross margin% 17.6% 15.9% 1.7 ppt 17.8% Operating profit* % Operating margin % 11.4% 8.8% 2.6 ppt 11.1% Profit before taxation and exceptional items Post tax exceptional profit / (loss) Adjusted basic earnings per share % (9.8) N/A p 2.1p 123.8% 1.5p Tangible NAV per share 61.5p 57.3p 7.3% 58.0p Return on net operating assets 13.6% 9.8% 3.8 ppt 11.6% * Profit on ordinary activities for continuing operations before finance costs, exceptional items and tax and after share of results of joint ventures. 30

31 Segmental analysis FY 2012 FY 2011 Change % FY 2010 Revenue 2, , % 1,767.7 UK 1, , % 1,736.6 Spain % 31.1 Operating profit % UK** % Spain % (3.6) Net operating assets 1, , % 1,633.8 UK** 1, , % 1,563.9 Spain (1.1)% 69.9 Order book value - m % UK % Spain (2.9)%

32 Per plot 000 UK housing cost per plot analysis 200 Key Contribution margin % % % % % % 34.2 Selling expenses Build cost Land cost H H H H H H Sq ft per unit % PD apartments 27% 27% 26% 26% 25% 23% Average outlets Completions 4,791 5,136 4,679 5,444 5,030 5,758 32

33 UK operating profit drivers m FY 2011 ASP Volume Build cost Net land cost EGF O'hds inflation O'hds & other FY m real overhead savings versus 2010 base delivered against 10m target by 2012 On track for real term savings of 20m versus 2010 by

34 Net finance cost Continuing Group m FY 2012 FY 2011 Change % Interest on borrowings (39.3)% Interest receivable (1.2) (3.7) (67.5)% Sub-total (37.2)% Pensions (29.7)% Derivatives and FX 0.3 (1.0) N/A Land creditors and other (48.1)% Total net finance cost * (35.6)% Period end net debt (49.5)% Period end gearing % (53.1)% Period end pension deficit & PRMA (IAS19) % * pre exceptional 34

35 Summarised Group balance sheet m 31 Dec Dec 2011 Change 1 July 2012 Long term assets and JVs % 41.8 Land 2, , % 1,965.2 WIP % Debtors % Land creditors (375.0) (306.4) 22.4% (302.8) Other creditors (588.4) (591.1) 0.5% (563.9) Pensions and post retirement benefits (244.2) (210.2) (16.2)% (301.3) Provisions (95.1) (95.1) - (94.5) Net Operating Assets 1, , % 1,672.1 Tax % Net debt (59.0) (116.9) (49.5)% (135.2) Net assets 1, , % 1,873.4 Tangible net value per share - pence %

36 UK completions and balance sheet 100% 80% 60% 40% 20% 0% 2010 FY Completions 2011 H1 Completions 2011 H2 Completions 2012 H1 Completions 2012 H2 Completions ST Owned & Controlled Landbank FY 2012 Post 2009 short term land Post 2009 strategic land Pre 2009 strategic land Pre 2009 unimpaired land Pre 2009 impaired land ASP in owned landbank of 184k (2011: 174k) Land cost is 19.0% of ASP (2011: 19.4%) 36

37 UK Work in Progress m 31 December 2012 WIP (excluding part exchange) 31 December December 2010 Gross NRV (31.0) (53.8) (83.0) Net Part exchange units Total WIP WIP per closing outlet* WIP Turn** Closing outlets * Calculated on gross WIP excluding part exchange **Calculated as a three-point average of gross closing WIP excluding part exchange 37

38 Tax m Current tax Deferred tax Net tax At 1 January 2012 (59.5) Income statement 63.6 (40.0) 23.6 Statement of comprehensive income Cash paid (3.1) - (3.1) At 31 December (321.6) Underlying tax rate of 19.4% m charge arising from 2% rate reduction m credit arising from recognition of DTA and utilisation of unrecognised losses - 3.6m tax credit relating to land remediation relief Net unrecognised UK deferred tax asset of 31m at expected 21% rate 38

39 Pensions Deficit increased by 34.3m from 2011 Movement mainly due to impact on discount rates from fiscal measures partially mitigated by lower inflation and improved asset performance Agreed in principle with our Trustees to merge the two schemes as part of ongoing pension management - Pension Partnership Funding structure backed by market value show homes of 100m to facilitate the merger - Annual 0.8m cost saving - Deficit repair flexibility - Triennial valuation will be December Current cash contributions remain Completed GW ETV exercise with 15% members electing to transfer out Continue to assess and implement measures to manage volatility 39

40 Cash flows m FY H H1 FY 2011 Operating cash flow pre land Land spend (including land creditors) (436.5) (256.6) (179.9) (403.2) Working capital & other movements (53.7) (38.4) (15.3) (27.2) Pension contributions in excess of charge (52.4) (36.2) (16.2) (84.7) Cash generated from operations Interest and tax movements (30.3) (11.7) (18.6) (73.7) Net cash generated from operating activities (5.4) (34.8) Investing activities (0.2) (1.1) Financing activities (21.9) (8.3) (13.6) (8.4) Movement in net debt (before fx) (18.1) Net working capital investment of 73.3m Net debt at 59.0m (31 December 2011: 116.9m, 1 July m) Land creditors of 375.0m: 240.1m due within 1 year 40

41 Capital structure & returns Operating margin* % (0.3) Net operating asset turn** Return on net operating assets % (0.2) Repurchased a further 15.2m of % Senior Notes due 2015, with remaining 149.4m redeemable at 105.2% on 31/12/2013 Agreed option to extend Prudential/M&G 100m loan to 2020*** Controlled use of land creditors at 375.0m with 21.8% adjusted gearing (FY 2011: 23.1%) Total dividend of 0.62 pence per share proposed (FY 2011: 0.38 pence) * Based on a rolling 12 months ** Based on average of opening and closing net operating assets *** Subject to redeeming remaining Senior Notes due 2015 Including land creditors 41

42 Strategy and outlook Pete Redfern Chief Executive 42

43 2013 sales performance H (to w/e 24/02/13) H H Ave outlets open Ave sales rate (net) Ave sales price Private sales rate (net) Private sales price Cancellation rate (private) 14% 15% 15% Better quality sites, higher ASP FY 2012: 127 new outlets opened (H1 2012: 55, FY 2011: 128) Please note: data based on reservations excluding JVs 43

44 Order book position As at Total H (to w/e 24/02/13) 31/12/12 01/07/12 31/12/11 Order book value m 1, Order book units 6,551 5,966 5,720 5,379 ASP in order book Outlets at end of period Order book value m per outlet PD Order book value m Order book units 3,828 3,138 3,380 2,802 ASP in order book Around 50% forward sold for 2013 as at the end of the first 8 weeks 44

45 Outlook 2013 and beyond Market conditions are grounds for cautious optimism for the sector - Improving mortgage market - Improving lead indicators on the ground And for TW in More new land. More strategic land. Larger order book. More outlets - Focus on maximising returns on every penny of investment and beyond - Continue to focus on quality and plan for the future - Maintain focus on the risks as well as the rewards - A developer not a builder 45

46 Summary We have transitioned from recovery into a long term value add strategy over the last three years 2012 was a key year, we expected the step up in margin, but our focus was on delivering a step up in returns alongside that, and...preparing for the future We have been investing significantly in new strategic land for three years, that is continuing and now bearing fruit We will continue to be self critical, there is a lot of improvement potential in our industry and investment in people is key to that 46

47 Questions and Answers 47

48 Future investor communications 25 April 2013 IMS and AGM Early July 2013 Trading update 31 July Half Year results presentation October/November Investor and analyst day 48

49 Taylor Wimpey plc Full Year Results Presentation for the year ended 31 December 2012 Appendices 49

50 Contents Group financial information UK Housing financial information Spain Housing financial information Spain Housing financial information Insert Text Here Insert Text Here 50

51 Appendices Group financial information 51

52 Summary income statement* Continuing Group m FY 2012 FY 2011 Change % H Revenue 2, , % Cost of sales (1,662.7) (1,520.3) 9.4% (744.5) Gross profit % Net operating expenses (128.6) (129.4) (0.6)% (62.0) Profit on ordinary activities before finance costs and tax % 99.7 Net finance cost (44.8) (69.6) (35.6)% (22.7) Share of results of JVs % 1.2 Profit before tax % 78.2 Tax charge (36.0) (24.2) 48.8% (29.9) Profit for the period % 48.3 * Before exceptional finance costs of 22.4m relating to accrued interest regarding an historic potential tax liability for which a favourable resolution was reached and an exceptional tax credit of 59.6m. 52

53 Group completions Full year 2012 Completions Ave selling price Number Change* 000 Change* UK private 8, % % UK affordable 1,946 (5.0)% 112 (3.4)% UK joint ventures % % UK total 10, % % Spain % 197 (17.2)% Total 11, % *Change from FY

54 Land disposals m FY 2012 FY 2011 Proceeds UK Spain - - Total Gross profit UK* Spain - - Total Land disposals are included in revenue and cost of sales. * Includes land provision releases 54

55 Exceptional items m FY 2012 FY 2011 Interest on tax liability Pension ETV - (5.8) Borrowing / interest exceptionals - (5.5) Current tax Total 82.0 (9.8) 55

56 Cash flow summary m FY 2012 H H FY 2011 Operating profit* - continuing discontinued Pension curtailment Other non-cash items (6.5) Increase in inventories (104.2) (83.8) (20.4) (7.1) Increase in receivables (50.7) (11.2) (39.5) (12.9) Increase/(decrease) in payables (12.0) (38.8) Pension in excess of income statement charge (52.4) (36.2) (16.2) (84.7) Cash generated by operations *Profit/(loss) on ordinary activities before finance costs and tax, before share of results of joint ventures. 56

57 m FY 2012 H H FY 2011 Cash generated by operations Tax (0.8) (16.4) Interest paid (33.3) (15.5) (17.8) (57.3) Net cash from/(used in) operating activities (5.4) (34.8) Investing activities (0.2) (1.1) Financing activities (21.9) (8.3) (13.6) (8.4) Cash flow for the period (18.1) Net debt b/f (116.9) (135.2) (116.9) (654.5) Movement in net debt (before fx) Cash flow summary continued (18.1) FX and fair values adjustments (0.2) 3.8 Closing Net debt (59.0) (59.0) (135.2) (116.9) 57

58 Pensions m FY 2012 FY 2011 Movement in present value of defined benefit obligations TWGPLAF GWSPS Total UK Total UK Brought forward Contributions employer (23.4) (29.0) (52.4) (84.9) Interest cost Expected return on assets (42.2) (36.8) (79.0) (82.3) Actuarial losses ETV Carried forward

59 Appendices UK Housing financial information 59

60 Number of residential units approved 60

61 Operating performance review North Division As at 31 Dec 2012 Scotland & North East Yorkshire & North West West Midlands North Division FY 2012 North Division FY 2011 No of outlets* Private sales rate (net) Completions 1,351 1,543 1,179 4,073 3,995 Average Selling Price South Division As at 31 Dec 2012 Eastern South West & Wales South East & London South Division FY 2012 South Division FY 2011 No of outlets* Private sales rate (net) Completions 2,098 1,707 2,910 6,715 6,128 Average Selling Price * Excluding JVs 61

62 Build cost FY 2012 FY 2011 FY 2010 Total build cost per plot Private build cost per plot Total build cost per sq ft ( /sq ft) Private build cost per sq ft ( /sq ft) % apartments of private completions 24% 26% 26% Total average square foot per unit

63 Private development product mix Completions % FY H2 H1 FY H2 H1 Apartments 24% 23% 25% 26% 26% 26% 1 / 2 / 3 bed houses 42% 41% 43% 40% 40% 39% 4 / 5 bed houses 34% 36% 32% 34% 34% 35% Total 100% 100% 100% 100% 100% 100% 63

64 Customer segmentation H H H H H First Time Buyers 27% 37% 32% 29% 28% Second Time Buyers 39% 46% 46% 43% 46% Investors 11% 6% 8% 5% 8% Social housing 23% 11% 14% 23% 18% figures based on gross sales. 64

65 Net operating assets m FY 2012 FY 2011* FY 2010* Fixed assets Investment in joint ventures Land 2,002 1,972 1,937 WIP Total inventories 2,716 2,614 2,600 Debtors Land (372) (304) (317) Other (578) (581) (593) Total creditors (950) (885) (911) Pension liability and PRMA (242) (208) (244) Provisions (95) (95) (45) Net operating assets 1,667 1,607 1,564 * UK balance sheet for FY11 and FY10 have been restated to include the results of the corporate operating segment. 65

66 Land portfolio - plots 31 Dec Dec 2011 Owned Controlled Pipeline Total Total Detailed planning 35,226 3, ,028 36,853 Outline planning 11,900 3, ,367 21,846 Resolution to grant 3,488 7, ,569 8,300 Sub-total 50,614 14,795 1,555 66,964 66,999 Allocated strategic 3,759 5, ,662 9,349 Non allocated strategic 28,506 60,527 1,645 90,678 76,887 Total 82,879 81,189 3, , ,235 66

67 Land portfolio - net cost 31 Dec Dec Dec 2010 m Owned Controlled Total Total Total Detailed planning 1, ,296 1,204 1,140 Outline planning Resolution to grant Sub-total 1, ,774 1,745 1,684 plots 50,614 14,795 65,409 65,264 63,556 Strategic plots 32,265 66,394 98,659 84,236 76,626 Total 1, ,964 1,918 1,854 Of the short term owned and controlled land portfolio: 24% - post 2009 strategic land 26% - pre 2009 impaired land 19% - pre 2009 strategic land 7% - pre 2009 unimpaired land 24% - post 2009 short term land * NRV is wholly allocated to land comparable basis to peers 67

68 Approvals in FY 2012 North South Total FY 2011 No. of plots approved 6,392 7,780 14,172 11,756 Average site size (plots) Average cost per plot (exc. fees) k Average cost per plot as a % of ASP % 27% 25% 24% % of affordable housing 13% 26% 20% 24% % of apartments 3% 23% 14% 18% 68

69 Sales performance H H H H H Ave outlets open Ave sales rate (net) Ave sales price Private sales rate (net) Private sales price Cancellation rate (private) 15% 15% 16% 15% 21% Please note: data based on reservations excluding JVs 69

70 Order book value As at 31/12/12 01/07/12 31/12/11 03/07/11 31/12/10 Total Order book value m Order book units 5,966 5,720 5,379 5,983 4,684 ASP in order book Outlets at end of period Order book value m per outlet PD Order book value m Order book units 3,138 3,380 2,802 3,128 2,387 ASP in order book

71 UK housing cost per plot analysis Land Cost 000 Land Cost % Build Cost 000 H H H H H H % 20.9% 22.1% 19.4% 22.3% 22.2% Build Cost % 55.1% 56.9% 58.1% 59.1% 60.3% 60.9% Selling Expenses Selling Expenses % Contribution margin 000 Contribution margin % 3.9% 3.1% 3.9% 3.7% 4.0% 3.6% % 19.1% 15.9% 17.8% 13.4% 13.3% 71

72 000 s FY 2012 FY 2012 % of ASP FY 2011 Change ASP % Net land cost* (39.6) 21.8% (35.8) 3.8 Build cost (101.5) 56.0% (100.2) 1.3 Other direct cost and selling expenses Private and affordable contribution Total average square footage per unit Contribution analysis per unit (6.4) 3.5% (6.5) % N/A * NRV is wholly allocated to land comparable basis to peers 72

73 Appendices Spanish Housing financial information 73

74 Financial summary m FY 2012 FY 2011 Change % Average number of active sites (6.2)% Legal completions % Mainland Spain % Mallorca % Average selling price ( 000) (17.2)% Average selling price ( 000) (10.9)% Revenue m % Operating profit m* % Operating margin %* 4.1% 0.7% 3.4 ppt Order book m (1.1)% Net operating assets m (1.1)% Total landbank plots 1,815 1, % * Pre-exceptional and continuing operations 74