1. Investor Presentation May 2005 Kingsdale School – 17 th May 2005 Institutional Fund Managers’ Presentation

2. Investor Presentation May 2005 Andy Sturgess – Managing Director Construction

3. Investor Presentation May 2005 Strength in sector focus approach Aligned to strong investment public & regulated sectors Education Health Affordable Housing Water Rail Well placed to maximise opportunities within changing government procurement initiatives Order book approaching £1 billion Construction Market Alignment

4. Investor Presentation May 2005 Construction Acknowledged as education specialists Award winning PFI expertise Northampton Schools – Preferred Bidder Norwich - ITN stage Building Schools for the Future Education Capabilities

5. Investor Presentation May 2005 Construction Kingsdale School

6. Investor Presentation May 2005 Construction Early contractor involvement Aligning logistics and planning with school Development of design solutions PTFE roof Timber geodesic auditorium Special finishes Safety & Environmental issues - live school Kingsdale School – Technical Challenges

7. Investor Presentation May 2005 Growth in education market - public sector investment Building Schools for the Future Procurement initiative for secondary education Total government spend £2.2 billion per year Plans for primary schools investment £1.9 billion per year Rebuild / refurbish over 8,900 primary schools Real opportunity Construction Education Outlook

8. Investor Presentation May 2005 Sector focused Quality of order book across chosen sectors Culture aligned to collaboration and partnering Significant sustainable opportunities Growth in profits set to continue Construction Summary

9. Investor Presentation May 2005 Greg Fitzgerald – Managing Director Housebuilding

10. Investor Presentation May 2005 Why Are We Different? Develop individually designed schemes Expertise in conversion/restoration High levels of customer focus Strong management teams Excellent record on planning Knowledge and focus on affordable housing Housebuilding

11. Investor Presentation May 2005 Strong Regional Brands Regional companies Midas Homes & Gerald Wood Homes Try Homes Thames Valley Try Homes Southern Region Stamford Homes Operating area Units1216076130 Average selling price £232k£270k£279k£176k Brownfield & conversion 59%100% 58% Customer satisfaction 95%98%90%92% Housebuilding Results for 6 months to 31 st December 04

12. Investor Presentation May 2005 2004 Housebuilding 6 months to 31st December 04 2003Increase % Units 3873675.4 ASP £000 228228- Turnover £m 91.187.64.0 Margin % 13.312.83.9 ROCE % 22.521.64.2 Sales in hand February 05 £m 165.6171.1(3.2) Operating Profit £m 12.111.28.0 Income per Sq. Ft. £ 22019711.7 Landbank February 05 units 2,4642,3425.2 Strategic land February 05 acres 666676(1.5) Key Statistics

13. Investor Presentation May 2005 Current Trading Conditions - Sales More challenging market Increased use of incentives Interest rates close to peak New homes the attractive option Market fundamentals remain sound Housebuilding

14. Investor Presentation May 2005 Current Trading Position - Land Hurdle rates for acquisition raised High level of competition 60% acquired on ‘one-to-one’ basis No sales inflation included in appraisals Housebuilding

15. Investor Presentation May 2005 Current Trading Position - Planning Government involvement Higher proportion of schemes going to appeal - Try Homes 40% - Midas Homes 10% - Stamford Homes nil% Appeal process taking up to 52 weeks High success rate 85% Housebuilding

16. Investor Presentation May 2005 Current Trading Position - Production Traditional build 96% Timber frame 4% Safety record better than industry average Sub-contractor buying gains being achieved Housebuilding

17. Investor Presentation May 2005 Track record of success with mixed tenure development Planning changes require different perspective Partnership approach Strong regional market presence Affordable Housing Capability Housebuilding

18. Investor Presentation May 2005 Three main forms: –Contracting ~ working with 16 affordable housing providers –Enabling ~ generally 25% to 50% requirement on schemes above 14 units –Collaboration ~ Market leader in Southwest ~ Deferred land payment terms Affordable Housing Procurement Housebuilding

19. Investor Presentation May 2005 Expansion Plan 1300 units by 2008 Management structure in place Business plan implemented -Increased market share -Geographic expansion Bolt-on acquisitions (opportunistic) Housebuilding

20. Investor Presentation May 2005 Summary and Outlook Expect to achieve full year planned performance Well placed to capitalise on growth in affordable housing Prepared for tougher market conditions Enhance efficiency through additional cost reductions Good position for 05/06 Confident of achieving expansion plan Housebuilding