1. Half Year Results – 22 February 20121St Michael’s Reach, Marazion, Cornwall Half Year Results to 31 December 2011 Greg Fitzgerald, Chief Executive and Frank Nelson, Finance Director

2. Half Year Results – 22 February 20122 Agenda Overview and Highlights Strategy Financial Review Operating Review Outlook Appendices

3. Half Year Results – 22 February 20123 Excellent financial results Housing market resilient Confident of delivering housebuilding strategy Construction performing well in difficult markets Strong balance sheet Overview Strong market outperformance in H1

4. Half Year Results – 22 February 20124 Highlights Housebuilding margin 1 up 69%Construction margin in line with forecasts 11.0% 6.5% 2.5% 2.2% H1 11H1 12H1 11H1 12 Excellent half year results 1 Excluding significant land sale Profit Before Tax up 89%Dividend up 100% £32.2m £17.0m 4.5p 9.0p H1 11H1 12 H1 11H1 12

5. Half Year Results – 22 February 20125 Strategy Growth beyond 2013 supports enhanced dividend policy Confident of delivering three year transformational expansion plan in housebuilding Housebuilding strategy and outputs beyond 2013 Disciplined growth strategy based on maximising returns, not volume Retain strong southern bias Focus on increasing margins Construction strategy unchanged Maintain top quartile performance Focus on margins and cash rather than size of order book Positioned for growth when markets allow New enhanced and sustainable dividend policy Higher cash generation Dividend twice covered by earnings Progressive growth thereafter

6. Half Year Results – 22 February 20126Thornbury Park, Isleworth, London Financial Review

7. Half Year Results – 22 February 20127 £m20112010% Increase Group revenue746.8575.930% Profit from operations38.617.9116% EBIT35.617.1108% Net finance costs(3.4)(0.1) Profit before tax32.217.089% Taxation(7.1)22%(4.9)29% Profit after tax25.112.1107% Financial Review Earnings Per Share: basic31.1p14.8p110% diluted30.4p14.8p105% Strong growth in EBIT, PBT & EPS Income Statement, Half Year to 31 December

8. Half Year Results – 22 February 20128 1.Operating profit excluding Group 2.Revenue includes share of joint ventures 3.Includes significant land sale. Underlying margin 11.0% 4.Group includes £3.6m additional LTIP charge Financial Review 20112010 £mRevenue 2 Profit/(Loss) from OperationsMargin Housebuilding277.035.0 12.6% 3 6.5% Construction499.910.92.2%2.5% PPP Investments7.71.1NA Group0.3 (8.4) 4 NA TOTAL784.938.64.9%3.0% 75% of Group profits from housebuilding 1 Housebuilding completions20112010 Gross units1,352851 Net of JV partners’ share1,216779 Segmental Analysis, Half Year to 31 December

9. Half Year Results – 22 February 20129 Financial Review Movement in net debt – reflects investment in housebuilding Net debt in line with expectations Investment in land Average debt of £86m over 12 months to 31 December 2011 £325m bank facility in place until 2015 £m Opening net debt 1 Jan 11 Cash from operating activities Working capital movts house- building Working capital movts con- struction InterestTaxOtherDividend Closing net debt 31 Dec 11 (31) 60 (18) (38) (10) (5) (13) (70) (15)

10. Half Year Results – 22 February 201210 Financial Review £m20112010 Total equity468.6435.1 Tangible Net Assets342.5313.7 Net debt(69.8)(30.7) Amounts invested in joint ventures63.353.4 Land436.4392.1 Work in progress250.9193.1 Land creditors(138.4)(74.2) Total invested in housebuilding developments and JVs612.2564.4 Strength maintained See Appendix 3 for balance sheet sector analysis Balance Sheet Highlights, Half Year to 31 December

11. Half Year Results – 22 February 201211 Financial Review Dividend – new enhanced policy Interim dividend doubled Twice covered by earnings Enhanced, sustainable and progressive 7.6p 10.9p 3.3p 9.2p 11.5p 4.5p 9.0p 12.5p 16.0p FY 09 FY 10 FY 11 H1 12  Final  Interim 3.3p

12. Half Year Results – 22 February 201212 Financial Review Housebuilding - gross margin % 1 Construction - cash as % of revenue FY 09 H1 10 FY 10 H1 11 FY 11 H1 12 1 Before significant land sale and after sales costs of circa 2%  Operating margin  Overhead 3.7 6.2 7.1 8.0 5.6 8.1 9.9 12.7 16.1 FY 09 FY 10 FY 11 H1 12 20 22 23 15 11.0 6.1 17.1 19 21 Housebuilding margin progression, construction cash in line with forecast

13. Half Year Results – 22 February 201213 8.6 Financial Review Housebuilding 2 Group 1 FY 09 FY 10 H1 11 FY 11 H1 12 10.9 8.6 15.6 FY 09 FY 10 H1 11 FY 11 H1 12 4.2 4.5 6.2 14.1 Return on net assets growing strongly 1 Group RONA is calculated as EBITA divided by average net assets including goodwill 2 Housebuilding RONA is calculated as housebuilding EBITA divided by average net assets including goodwill 8.2 4.3

14. Half Year Results – 22 February 201214 Kingston Mills, Bradford-on-Avon, Gloucestershire Operating Review Housebuilding

15. Half Year Results – 22 February 201215 Operating Review - Housebuilding COMPLETIONS up 59% 1,352 (H1 11: 851) Record completions with margin significantly up SALES IN HAND 1 up 34% £605m (H1 11: £450m) LAND BANK 1 up 7% 10,700 (H1 11: 10,000) AVGE SALES PRICE 3 up 17% £239k (H1 11: £204k) MARGIN up 69% 11.0% 2 (H1 11: 6.5%) 1 Current at 19 February 2 12.6% after significant land sale 3 Excludes affordable

16. Half Year Results – 22 February 201216 Operating Review - Housebuilding  South 1,081  Midlands/East 271 1,352  Post July 2008 846  Legacy 506 1,352 By land bank Completions Analysis – strong southern focus By area of operation 63% 80%  Private 974  Affordable 378 1,352 By sector 72%

17. Half Year Results – 22 February 201217 Operating Review - Housebuilding By acquisition periodProduct mix 1 Geographical split  Post July 2008 8,150  Legacy 2,550 10,700  Houses 5,600  Apartments 3,000 8,600  South 7,700  Midlands/East 3,000 10,700 Land Bank Analysis – 76% of land bank acquired at current market prices By sector Current at 19 February 1 Excludes affordable  Private 8,600  Affordable 2,100 10,700 76%65%72%80%

18. Half Year Results – 22 February 201218 Operating Review - Housebuilding LegacyPost July 2008 TOTAL 10,000 8,000 6,000 4,000 2,000 0 Development Revenue £m Average Margin 1 £0.6bn £1.8bn £2.4bn 10% 21% 18% Current at 19 February 1 Blended private/affordable – after sales costs of circa 2% Land Bank Delivery – over 20% gross margin on post July 2008 land 2,550 8,150 10,700

19. Half Year Results – 22 February 201219 Operating Review - Housebuilding Forecast Land Bank/Completions – disciplined growth strategy from 2013 Number of sales outlets FY 11 HY 12 FY 12 FY 13 FY 14 78 95 Land bank by acquisition period FY 11 HY 12 1 FY 12 FY 13 FY 14 Revenue by period % FY 11 HY 12 FY 12 FY 13 FY 14  Acquired post July 2008  Legacy  Not yet acquired  Acquired post July 2008  Legacy 100 86 1 Current at 19 February

20. Half Year Results – 22 February 201220 Affordable rent delivering enhanced revenues Secured one of highest awards (£17m) to private developers under Affordable Homes Programme Acquired further public land releases under Delivery Partner Panel Established joint venture arrangements for partnering with key Registered Providers Increased presence within frameworks Affordable Housing – expertise optimising margins Operating Review - Housebuilding

21. Half Year Results – 22 February 201221Edgbaston Cricket Ground Operating Review Construction

22. Half Year Results – 22 February 201222 Operating Review - Construction MARGIN upper quartile 2.2% (H1 11: 2.5%) Performing well in difficult markets CASH upper quartile £149m (H1 11: £174m) ORDER BOOK 1 in line £1.6bn (H1 11: £1.75bn) WORK SECURED 1 maintained 67% (for 2013) (H1 11: 61%) 1 Current at 19 February

23. Half Year Results – 22 February 201223 Operating Review - Construction Order Book – good visibility of revenues £m  Infrastructure 877  Building 534  Partnerships 165 By Client TypeBy Division  Private  Regulated  Public 565242 403732 181112 44 42 14 Current at 19 February

24. Half Year Results – 22 February 201224 Operating Review - Construction Order Book – strength in selected sectors £m  Commercial 152  Education 86  FM 111  Health 59  Other Public & 126 Regulated £m  Water 431  Transport 245  Other Civil Engineering 120  Renewables 42  Communications 33  Energy from Waste 6 BuildingInfrastructure Current at 19 February

25. Half Year Results – 22 February 201225 M74, Glasgow Outlook

26. Half Year Results – 22 February 201226 Market Outlook Housebuilding Mortgage availability continues to improve Government initiatives supporting the market Active land market Planning environment remains uncertain Build costs remain stable Market strongest in south Housebuilding resilient, construction difficult Construction Difficult market conditions Regulated sector strong London and South East most resilient Government support for infrastructure investment

27. Half Year Results – 22 February 201227 Divisional Outlook Housebuilding Strong southern bias and focus on mainstream markets Legacy land bank significantly reduced Good land opportunities Focus on margin growth Strong start to second half Strong housebuilding momentum, visibility in construction Construction Resilient performance maintained Strong foundations in client relationships and frameworks Robust risk management maintained Focus on workload with acceptable returns

28. Half Year Results – 22 February 201228 Group Outlook Confident in ability to further enhance value Housebuilding – disciplined growth strategy Construction – strategy unchanged Dividend policy – enhanced, sustainable and progressive Well positioned to deliver profitable growth

29. Half Year Results – 22 February 201229Halley VI Research Station, Antarctica Half Year Results to 31 December 2011 Greg Fitzgerald, Chief Executive and Frank Nelson, Finance Director

30. Half Year Results – 22 February 201230 Appendices 1.Investment proposition 2.Cash flow summary 3.Balance sheet/debt profile 4.Net finance costs 5.Housebuilding data 5.1Revenue analysis 5.2Sales, completions by buyer type 5.3Forecast land creditors’ payment profile 5.4Trading overview 5.5Analysis of sales reserved, contracted and completed 5.6Private sales, analysis of incentives on reservations 5.7Land bank valuation

31. Half Year Results – 22 February 201231 ROBUST BUSINESS MODEL Top 5 UK housebuilder, top 10 in UK construction Complementary economic cycles Competitive advantage in range of services offered to clients WELL POSITIONED IN ATTRACTIVE MARKETS Southern focused land bank where risk/return is most attractive Delivering strong momentum in margins, profits and returns Higher than average visibility of revenues in construction through regulated exposure Construction offers medium term potential Appendices 1. Investment proposition STRATEGIC CLARITY Successful execution of three year transformation plan in housebuilding Disciplined approach to capital allocation Clear growth strategy for housebuilding beyond 2012/13 DELIVERING GROWTH AND INCOME Value creating strategy fit for market environment Enhanced, sustainable and progressive dividend policy – twice covered by earnings Balance sheet strength retained

32. Half Year Results – 22 February 201232 £m20112010 Cash from operating activities31.19.7 Working capital movements(120.3)(105.9) Net cash used in operations(89.2)(96.2) Interest, tax and dividends(14.3)(10.6) Other(2.6)(0.4) Net cash outflow(106.1)(107.2) Opening net cash36.376.5 Closing net debt(69.8)(30.7) Appendices Cash Analysis Housebuilding (includes loans to JVs)(579.3)(517.2) Construction149.4174.0 Group and Others 360.1312.5 TOTAL(69.8)(30.7) 2. Cash Flow Summary – Half Year to 31 December

33. Half Year Results – 22 February 201233 £m Tangible Net Assets Average Cash/(Debt) Construction(60)160 Housebuilding and Group (NAV after deduction of debt) 403(246) Net Tangible Assets343(86) Notes£m Total net assets per B/S469 Less intangibles(126) Net tangible assets343 3. Balance Sheet/debt profile by sector – illustrative only Appendices

34. Half Year Results – 22 February 201234 £m20112010 Net interest payable on borrowings(3.9)(1.4) Interest receivable from joint ventures0.50.9 Fair value gains on financing activities - interest rate swaps0.30.7 Unwind of discount on shared equity receivables0.80.6 Unwind of discount on payables(1.0)(0.6) Net finance cost of pension fund-(0.3) Other(0.1)- TOTAL(3.4)(0.1) 4. Net Finance Costs – Half Year to 31 December Appendices

35. Half Year Results – 22 February 201235 Appendices 5.1 Housebuilding - Revenue analysis, regional TOTAL  Units 1,352  Revenue £277m WEST  Units 287 (21%)  Revenue £46.1m (17%) EAST & NORTH  Units 271 (20%)  Revenue £42.4m (15%) SOUTH EAST  Units 794 (59%)  Revenue £188.5m (68%)

36. Half Year Results – 22 February 201236 Appendices H1 12FY 11H1 11  Affordable  Private with Shared Equity  Private with Part Exchange  Private - Investor  Private Based on 1,352 completions 5.2 Housebuilding - Sales, completions by buyer type

37. Half Year Results – 22 February 201237 Appendices FY12FY13 TOTAL 150 125 100 75 50 25 0 42.5 77.3 138.4 FY14 18.6 £m 5.3 Housebuilding - Forecast land creditors’ payment profile

38. Half Year Results – 22 February 201238 Appendices 5.4 Housebuilding - Trading overview H1 12 1 H1 11 FY 11 Revenue (£m)256153388 Land cost29.7%28.0%27.4% Build cost53.2%57.7%56.5% Gross margin17.1%14.3%16.1% Admin expense6.1%7.8%8.0% Operating margin11.0%6.5%8.1% 1 Excludes significant land sale

39. Half Year Results – 22 February 201239 Appendices 5.5 Housebuilding - Analysis of sales reserved, contracted, and completed Feb 12Dec 11 Feb 11 £m Private417.3339.9286.4 Affordable166.4161.0155.7 Land Sales 21.1 7.9 Total604.8522.0450.0 For completion in FY12480.2416.2293.9 For completion post FY12124.6105.8156.1 Total604.8522.0450.0 % of projected FY revenue secured78% 68%76% Plots Private1,6551,3581,243 Affordable1,4801,4381,444 Total3,1352,7962,687

40. Half Year Results – 22 February 201240 Appendices 5.6 Housebuilding - Private sales, analysis of incentives on reservations H1 12H2 11H1 11 None52%58%50% Incentives Part exchange12%11%10% Assisted move5% 4% Shared equity11%14%27% Investor sales20%12%9% TOTAL100%

41. Half Year Results – 22 February 201241 Appendices 5.7 Housebuilding - Land bank valuation Strategic land bank of 6,750 plots Cost per plot £000H1 12H1 11FY 11FY 10 Opening land bank51 45 Closing land bank535251 Weighted ASP in land bank217202215203 Plot cost as % of weighted ASP24%26%24%25%

42. Half Year Results – 22 February 201242 Disclaimer Sub- Heading This presentation is being made only to and is directed at persons who have professional experience in matters relating to investments falling within Article 19(1) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the “Order”) or any other persons to who it may otherwise lawfully be communicated (all such persons being referred to as “relevant persons”). Any person who is not a relevant person should not act or rely on this presentation or any comments made during the presentation. This presentation does not constitute or form part of, and should not be construed as, any offer or invitation to subscribe for, underwrite or otherwise acquire, any securities of the Company or any member of its group nor should it or any part of it form the basis of, or be relied on in connection with, any contract to purchase or subscribe for any securities in the Company or any member of its group or any commitment whatsoever. This presentation does not purport to contain all the information that may be required to evaluate any proposed transaction and should not be relied on in connection with any such potential transaction. Any recipient hereof should conduct its own independent analysis of the Company. Recipients should note that the Company will not update or otherwise revise this presentation. The financial information set out in this document does not constitute the Company’s statutory accounts. Statutory accounts for the financial year ended 30 June 2011, which received an auditors’ report that was unqualified and did not contain any statement concerning accounting records or failure to obtain necessary information and explanations, have been filed with the Registrar of Companies.