Taylor Wimpey increases 2012 full year dividend by 13%

DividendMax Ltd.

Taylor Wimpey increases 2012 full year dividend by 13%

Highlights

Progress against each of our key financial objectives:

• UK operating profit margin* increased to 11.5% (2011: 9.0%**)

• Group return on net operating assets*** increased to 13.6% (2011: 9.8%)

• Tangible net asset value per share 61.5p (2011: 57.3p)

44% increase in Group operating profit* to £230.1 million (2011: £159.5 million)

124% increase in adjusted basic earnings per share to 4.7p (2011: 2.1p)

Significant improvement in UK operational performance:

• 44% increase in operating profit* to £228.8 million (2011: £159.3 million)

• Completed 10,886 homes at an average selling price of £181k (2011: 10,180 homes at £171k)

• Extensive strategic landbank of 100,340 plots (2011: 86,236)

• Total order book value increased by 14% to £948 million at 31 December 2012 (2011: £835 million)

• Customer satisfaction increased to 93.2% (2011: 92.1%)

• Reduction in waste generated per 1,000ft2 built to 3.36 tonnes (2011: 3.44 tonnes)

• Contributed over £175 million to our local communities via Section 106 and Section 75 planning obligations (2011: £161 million)

• Continue to compare favourably with the construction industry with an Annual Injury Incidence Rate (AIIR) of 389 versus the 2011/12 'Construction Sector Rate' of 589

Reduction in net debt to £59.0 million (31 December 2011: £116.9 million) with further improved debt efficiencies

Agreed in principle to merge the two pension schemes as part of ongoing pension exposure management using £100 million Pension Funding Partnership backed by market value show homes

Dividend policy remains unchanged - final dividend of 0.43p proposed (2011 final: 0.38p)

Companies mentioned