creating 
sustainable 
value
annual report and accounts 2014
annual report and accounts 2014 wwwtaylorwimpeycouk visit us online at wwwtaylorwimpeycouk
our vision is to be the uk’s 
leading residential developer  
for creating value and  
delivering quality inside this report
strategic report
2 proactively managing the cycle
4 key highlights for 2014
6 where we operate
8 chairman’ s statement
10 chief executive’ s review
14 2014 market conditions 
16 our strategy
18 our business model
26 our approach to risk management
28 principal risks and uncertainties 
30 sustainability 
34 operating review
40 group financial review
directors’ report governance
44  board of directors 
46 corporate governance
52 general board governance
56 nomination committee report
60 audit committee report
66  remuneration report
86 statutory regulatory and other information
financial statements
93 independent auditor’ s report
97 consolidated income statement
98  consolidated statement of  
comprehensive income 
99 consolidated balance sheet
100  consolidated statement of changes in equity
101  consolidated cash flow statement
102  notes to the consolidated financial statements
136 company balance sheet
137 notes to the company financial statements
142 particulars of principal subsidiary undertakings
143 five year review
shareholder information
144 notice of annual general meeting
147 notes to the notice of meeting 
152 shareholder facilities
153 principal operating addresses
key to other items in this report
throughout this report you will find the 
following icons for particular points of interest
kpi cross reference to information online
kpi cross reference to information in this report
kpi key performance indicator
kpi cross reference to our sustainability report
sustainability
a full sustainability report is published 
separately online and is available from  
wwwtaylorwimpeycoukcorporate
sustainability
key information about our approach  
to sustainable development is available  
in the following areas of this report
governance
pages 4655
approach and policies
pages 1623 2629 3033
our people
pages 9 13 19 2223 25 3839
health and safety
pages 10 18 21 29 3637
the essential read
see our chairman’s 
statement on page 8
see our group 
financial review  
on page 40
see our chief 
executive’s review 
on page 10
see our corporate governance report for 
2014 on page 46
wwwtaylorwimpeycouk
1
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 proactively managing the cycle
a transformation to a value driven 
business with a long term focus
during the second half of 2014 we saw a return to  
a healthier and more balanced housing market after  
a very strong first half of the year 
the uk housing market continues to grow and 
we have continued to see positive signs with  
prices increasing slowly this is underpinned by  
solid consumer confidence and good mortgage 
availability and affordability
land is the critical ‘raw material’ for our 
business and the ability to purchase the 
right sites in the right locations at the right 
price and at the right point in the cycle is a 
key driver of shareholder value
designing a sustainable community  
that meets the needs of local residents 
is attractive to potential customers  
and provides attractive returns for 
shareholders requires a consultative  
and iterative process of community 
engagement
we work with selected subcontractors  
and build using carefully sourced materials 
to ensure that the homes that we sell  
are of a high quality and are built safely 
efficiently costeffectively and with  
minimal impact on the environment
buying a home is a significant financial 
and emotional investment we aim to 
make buying moving into and living  
in a taylor wimpey home as easy as 
possible for our customers
this value cycle requires significant input 
from skilled and committed people to 
deliver aspirational highquality homes  
and communities for our customers
developing sustainable homes and 
communities is a timeconsuming 
process but this provides us with the 
opportunity to undertake regular reviews 
over the life of each development to 
identify potential improvements
kpi see pages 20 24 32 and 35 for more information kpi see pages 2021 24 32 and 3536 for more information kpi see pages 21 24 32 and 3638 for more information kpi see pages 22 25 33 and 38 for more information kpi see pages 2223 25 33 and 3839 for more information kpi see pages 23 25 33 and 39 for more information
we aim to balance the long term economic 
stability and growth of our company with our 
responsibilities to the environment society 
and the economies in which we operate 
we believe that sustainability is fundamental 
to each aspect of our value cycle and 
therefore to the long term success of 
our company 
operating sustainably is both the right 
thing to do and brings significant 
business benefits
kpi   see an example of our business model in action on 
our chobham manor development on pages 2425
our business model
sustainability
kpi see pages 3033 for more information
our aim is to build homes and communities 
that our customers will aspire to and that 
enhance the local area 
we are working towards being a more 
socially environmentally and economically 
sustainable company 
sold
selecting land delivering  
customer service
our people optimising 
value
managing the planning 
and community 
engagement process
getting the 
homebuilding  
basics right
delivering value across the cycle
our vision is to become the uk’s leading residential developer for creating value  
and delivering quality across the housing cycle since we set out the strategy in 
2011 we have seen the transformation of taylor wimpey to a value driven business 
with a long term focus firmly on generating the best quality sustainable returns
our strategy
kpi see pages 1617 for more information 
strategic principles 
 − absolute commitment that a strong margin 
performance is the way to drive the best 
sustainable returns
 − margin underpinned by timing and quality 
of short term acquisitions and enhanced by 
extensive strategic land pipeline
 − continual improvement philosophy with  
a relentless focus on adding value to every 
existing and new site
 − significant ongoing investment in  
great quality people and processes
 − increasing focus on asset efficiency  
and maximising the returns on our  
land investments
 − active management of investments  
and structure over the housing cycle  
to reduce risk and maximise returns 
over the long term
cultural principles
 − if something is worth doing it’s worth 
doing properly
 − if we make a mistake we put it right
 − we are competitive and don’t accept 
second best
 − we will not compromise in ensuring that 
everyone leaves our sites safe and well
 − we behave with integrity are honest  
and forthright and support each other
 − we strive to enhance the environment and 
local community and to run our business in 
a way that is sustainable
 − knowledge and information are key we 
take our decisions on fact not emotion
 − we value individuals from diverse 
backgrounds and aim to develop potential 
to the mutual benefit of the individual and 
the business
taylor wimpey plc
annual report and accounts 2014
wwwtaylorwimpeycouk
19
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243
18 24 25
our business model continued
proactively managing  
everything we do
 
our people
as part of this regeneration scheme 
we have committed to increasing the 
employment and employability of local 
residents we have specific targets in place 
for employing construction workers and 
apprentices from underrepresented groups 
such as those from black and minority ethnic 
backgrounds women and disabled people  
we will also provide a range of work 
experience voluntary work and training 
courses for local people  college students 
and have targets for supporting local 
suppliers and subcontractors including 
small and medium enterprises
optimising value
our joint proposals with london  
quadrant for chobham manor were selected 
as part of a highly competitive bid process on 
the basis of offering the most attractive financial 
proposal alongside the best design and delivery 
credentials for this landmark scheme a percentage 
of private revenue received will be paid to the lldc 
with land payment made on a per plot basis when 
each home is completed thus providing extremely 
efficient cash flow and a shared risk approach 
chobham manor is one of the most highprofile 
developments in london and will set the 
standard for future housing development 
on the olympic site
delivering 
customer service
chobham manor’s stateoftheart show 
complex is one of the largest in the london 
residential property sector it is constructed 
over three levels with an impressive reception 
office space and an interactive area which 
features a 100inch interactive touch table 
smaller touch screens and ipads allowing visitors 
to take a virtual tour of chobham manor and 
the surrounding area and browse the homes 
for sale visitors can also save and compare 
floorplans of the new homes email 
screenshots to themselves and even 
see the view from the property
selecting land
the home of chobham manor – 
queen elizabeth olympic park – is the 
uk’s biggest ever remediation project 
delivered as part of the london 2012 
olympic and paralympic games legacy 
the land now occupied by chobham manor 
used to house the olympic and paralympic 
basketball arena and is currently being 
redeveloped with 850 quality new homes 
once completed chobham manor will 
be one of the largest developments 
of family housing in london
getting the 
homebuilding  
basics right
at chobham manor our focus is on creating 
highquality sustainable homes and 
communities and we are delivering this through 
creating london’s traditional family 
neighbourhood of terraced and mews houses  
a number of homes will be multigenerational 
properties designed specifically for chobham 
manor to appeal to multiple generations of the 
same family in addition to quality new homes 
we will also deliver significant supporting 
infrastructure such as commercial and 
retail space play areas communal 
gardens and public open spaces
managing the planning  
and community  
engagement process
chobham manor is being designed to fully 
capture the familyfriendly nature of the 
neighbourhood while embracing the heritage of 
east london life with its famous community spirit 
and vibrant cultural diversity we are undertaking 
considerable consultation with a diverse range 
of local communities and other stakeholders 
in addition we have committed to long term 
community development plans including a 
range of innovative projects involving 
local people
kpi  for more information about chobham 
manor visit wwwchobhammanorcouk
taylor wimpey plc
annual report and accounts 2014
wwwtaylorwimpeycouk
24 25
kpi  see pages 1823 for more information
completed 12454 homes across the uk up 65 with  
an 115 increase in total average selling price to £213k 
2013 11696 homes at £191k
2014 record uk operational delivery 
 − 39 of completions were from strategically sourced  
land 2013 29
 − contribution per completion increased by 278  
to £496k per home 2013 £388k 
 − worked with communities planners and landowners  
to convert a record 10779 plots from the strategic 
pipeline
 − contributed £300 million to local communities in  
which we build across the uk via planning obligations 
providing infrastructure affordable homes public 
transport and education 
our strategic response
repositioned business 
following the sale of our north american business  
in 2011 we became a ukfocused residential developer 
with a small operation in spain
long term strategy articulated
our long term strategic objectives are through the  
cycle measures
 − earn top quartile operating profit

 margin
 − deliver at least a 15 return on net operating assets

 
through the cycle
 − grow net assets by 10 per annum on average 
through the cycle including returns to shareholders 
20112013 
clear and effective strategy executed well
2014
a strong position in a stable housing market
kpi see pages 2425 for more information
the market context
2011 onwards was a period of stability in the underlying 
housing market following a sharp downturn in 2008 and 
2009 whilst sentiment improved and customer confidence 
gradually increased mortgage availability and affordability 
remained the key constraint on the industry the introduction 
of various government initiatives including funding for 
lending and most notably help to buy in april 2013 
increased both the accessibility to and the affordability  
of mortgages
taylor wimpey plc
annual report and accounts 2014
2 20152017
optimally positioned to deliver more in the good 
trading environment and on a sustainable basis 
kpi see pages 1415 for more information
industry macro economic trends
 − significant demand in the uk after low transaction levels
 − low near term market risk
 − housing continues to remain high on the political agenda 
with recognition of the importance of housebuilding to the 
economy and the need for more quality homes in the uk 
by all of the main political parties
 − customer confidence solid underpinned by low interest 
rates and high levels of employment
value of  
mortgage approvals 
105
in 2014
total
private
housing associations 
council
london
uk
2014 market conditions
industry and market overview
we are currently operating in a housing market underpinned by a significant structural demand and supply imbalance housing remains high 
on the political agenda with recognition of the importance of housebuilding to the economy and the need for more quality homes in the uk  
by all of the main political parties whilst there remains uncertainty around the outcome of the general election in may consumer confidence 
remains solid and is supported by healthy underlying demand low interest rates and high levels of employment we therefore consider that  
the uk near term market risk is low
increase in 
planning approvals
21
year on year  
q1q3 2014
planning
the changes to the planning system in the last few years including the localism act and national planning policy framework are having a 
positive impact on the planning system we continue to monitor this along with the recently introduced community infrastructure levy cil 
and the time taken to achieve implementable planning permission to start on site
planning policy and regulation
planning remains the fundamental constraint in the uk  
in recent years there have been a number of changes  
to the planning system with the implementation of the 
national planning policy framework localism act the 
community infrastructure levy cil and the national 
planning policy guidance 
planning approvals
according to the home builders federation hbf 
planning approvals increased by 21 year on year  
to 161283 in the year to september 2014 
mortgage availability and affordability 
we build a wide range of homes from onebedroom apartments to fivebedroom houses with prices ranging from below £100000 to  
over £3 million the majority of the homes that we build are sold to individual purchasers who take on significant mortgages to finance  
their purchases mortgage availability and affordability therefore are key factors
during 2014 we have continued to see an improvement 
in customer sentiment and an increase in sales rates  
as customers already feeling more confident were able 
to gain access to a healthier mortgage market helped 
through help to buy and a more willing and competitive 
banking system
in 2014 mortgage availability including for higher loan  
to value mortgages continued to improve with the total 
value of mortgage approvals for home purchases up 
105 at £124894 million 2013 £112985 million 
according to the bank of england data with property 
transactions 136 higher at 1219710 2013 1073560 
05 
bank of england  
base rate  
in 2014
c141k 
uk housing  
completions  
in 2013  2014
affordability in 2014
with the bank of england base rate remaining low  
at 05 throughout 2014 mortgage affordability has 
improved with interest rates for new build properties 
approximately 065 lower than in 2013 
average mortgage payments as a  of takehome pay 
also rose slightly to 340 for the first three quarters  
of 2014 from 326 in 2013 according to nationwide 
this remains below the recent peak in 2007
completions 
the new build market in the uk accounts for c10 of all transactions taylor wimpey is one of the largest homebuilders in the uk  
building 12454 homes in 2014 in addition we build affordable housing across the uk representing 175 of our 2014 completions
housing completions
in 2014 we completed 12454 homes up 65  
2013 11696 at an average selling price of £213k 
115 higher than in 2013
according to the department for communities and  
local government dclg during the financial year 
ended 2013  2014 total completions in the uk increased 
4 to c141k with private developers accounting for 
c79 of the total completions this is still well below  
the recent peak of 2006  2007 of 219k and significantly 
below the current estimate of new homes needed in the 
uk per annum of 250k
 
 
 
 
 
 
source dclg source bank of england
source hbf source nationwide  bank of england
mortage payments as  of 
takehome pay  interest rates
xx
interest rate 
16
14
12
10
8
6
4
2
1983 1987 2014 1992 1996 2001 2005 2010
0
10
 of takehome pay 20
30
40
50
60
70
80
90
100
1970 1980 1991 2002 2014
uk housing completions by sector
number of completions
financial year ending
0 400000
value of approvals for mortgages
jan 2013 dec 2013 dec 2014
xx
£m 0 14000 7000
residential units approved – 
 change year on year   
xx
north of england midlands southern england england wales scotland great britain
● 2014 q1q3
● 2013
● 2012
● 2011
0
10
20
20
30
10
30
40
50
60
70
80
taylor wimpey plc
annual report and accounts 2014
wwwtaylorwimpeycouk
14 15
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243
our strategy
our medium term targets 20152017 our long term strategy through the cycle t aylor wimpey investment proposition
we are confident that we can achieve our objectives  
and ultimately our vision as a result of three key 
differentiating factors
1  we have invested in new land in a disciplined way  
at the right time and in the right locations this has 
been supported by record conversions in the last  
few years from our strategic pipeline adding to the 
scale quality and future profitability of the landbank
2  we have a clear view on the right size of our 
business and our focus is on delivering sustainable 
growth and value generation in a balanced 
consistent way through the housing cycle
3  we believe that the underlying quality of the  
business is very important and is worth investing  
in this includes our nonnegotiable approach to 
health and safety and our focus on people and 
customer service
dividend and cash return policy 
in 2014 we set out the principles and policy of returning 
surplus cash to shareholders at the appropriate times  
in the cycle this is in addition to our regular maintenance 
dividend which is set at 2 of net assets 
going forward surplus cash returns will continue  
to form a significant proportion of our annual total  
return to shareholders
a key part of the rationale of our approach to running  
the business in a sustainable way is to give investors  
a significant consistent and reliable dividend stream 
more information on 2014 and 2015 dividend  
can be found on page 12
t o become the uk’s leading residential 
developer for creating value and 
delivering quality for all our stakeholders
operating proﬁt  margin 
2012 2013 2014 179
179
136
112
return on net operating assets  
2012 2013 2014 225
225
168
133
net assets growth 
including returns to shareholders  
2012 2013 2014 158
158
142
94
we remain disciplined and focused on the long term continuing to target improvement across all measures to deliver 
the best quality and sustainable returns for our shareholders our strategy has not changed since we articulated it in 
2011 and neither have our key strategic financial objectives which were purposefully set as through the cycle measures
in may 2014 we announced a set of stretching 
financial targets for the period from 2015 to 
2017 to challenge the business to deliver  
more over the medium term 
these targets each of which is applicable for the 
period from 2015 to 2017 are to achieve 
–  an average operating profit margin of 20 
over the three year period 
–  a return on net operating assets of at least 
20 per annum 
–  an average increase in net assets including 
returns to shareholders of 15 per annum 
over the three year period 
we also added a further financial target which  
we believe is an important measure of delivery  
for this phase of the cycle this is focused on 
converting a high proportion of our profitability 
into cash reflecting the move from the strong 
investment phase of the last four years to a  
new phase focused on delivery this new target  
again applying for the period from 2015 to 2017 
is to achieve
–  an average conversion of at least 65 of 
operating profit into operating cash flow †††  
over the three year period
average cash conversion of at least 65 of operating
proﬁt into operating cash ﬂow ††† over 20152017 
2012 2013 2014 43
43
42
48
note definitions can be found on page 5 note definitions can be found on page 5
kpi see pages 1825 for our business model
our strategy 
our long term strategic objectives are
 − earn top quartile operating profit  margin
 − deliver at least a 15 return on net operating assets  
through the cycle
 − grow net assets by 10 per annum on average 
through the cycle including returns to shareholders
our strategy is underpinned by our strategic principles 
set out on page 18
our cultural principles 
we want to earn returns but how we do this is equally 
important to us our cultural principles underpin 
everything we do these are set out on page 19
our business model 
our business model is based on a value cycle and each 
component of the value cycle is important in order to 
achieve our strategic objectives each element of our 
business model and how this impacts our strategy is 
detailed in full on pages 18 to 25
taylor wimpey plc
annual report and accounts 2014
wwwtaylorwimpeycouk
16 17
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243
kpi  see pages 1617 for more information
2014 highlights
stretching group financial targets announced for 
20152017 reflecting our confidence with good 
progress made in 2014 
 − operating profit

 margin up 430 basis points  
to 179 2013 136
 − return on net operating assets

 up 570 basis 
points to 225 2013 168 
 − tangible net asset value per share
†
 increased by 
119 to 779 pence 2013 696 pence 158 
growth in net assets before cash distributions 
 − £497 million cash returned to shareholders  
in 2014 154 pence per share with a further 
c£250 million 768 pence per share to be 
returned in july 2015 as previously announced 
subject to shareholder approval
 − maintenance dividend payout doubled to 2  
of net assets reflecting both confidence in our 
performance and the resilience of the uk 
housing market
 − total maintenance dividend for 2014 of 156 
pence per share 2013 069 pence per share 
with final dividend of 132 pence per share 
2013 047 pence per share proposed 
maximising future strength
 − strong order book of £1397 million 31 december 2013 
£1246 million reflecting site locations and products where 
customers choose to live 
 − optimum landbank scale at c75k plots with over 50 
sourced from the strategic land pipeline
 − strategic pipeline of c110k potential plots 
focused on medium term targets for 20152017 and 
sustainability of returns 
 − average 20 operating profit

 margin
 − at least 20 return on net operating assets

 each year
 − average 15 pa increase in net asset value including 
returns to shareholders
 − an average conversion of at least 65 of operating profit

 
into operating cash flow
†††
 over the three year period
note definitions can be found on page 5
3
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243
wwwtaylorwimpeycouk group return on net 
operating assets
225
in 2014
cash return to 
shareholders
£497m  
in 2014
c£250m 
in 2015
highlights
 − completed 12454 homes across the uk up 65 with an 115 increase in total  
average selling price to £213k 2013 11696 homes at £191k
 − continued to focus on maximising future strength
 − optimum landbank scale at c75k plots with over 50 sourced from the strategic  
land pipeline
 − acquired 8315 highquality plots in the uk short term land market 
 − worked with communities planners and landowners to convert a record 10779 plots  
from the strategic pipeline
 − excellent year end order book representing 6601 homes 31 december 2013 6627  
and a total value of £1397 million 31 december 2013 £1246 million
 − £497 million cash returned to shareholders in 2014 154 pence per share with a further 
c£250 million 768 pence per share to be returned in july 2015 as previously announced 
subject to shareholder approval
 − maintenance dividend payout doubled to 2 of net assets reflecting both confidence  
in our performance and the resilience of the uk housing market 
 − total maintenance dividend for 2014 of 156 pence per share 2013 069 pence per 
share with final dividend of 132 pence per share 2013 047 pence per share proposed 
strong progress made towards medium term targets
201 4 was a record year  
for the group and we are 
well positioned for the future
group operating  
profit margin
179
in 2014
tangible net asset  
value per share
†
779p
in 2014
key highlights for 2014
kpi see pages 4043 for our group finance review
kpi see pages 3439 for our operating review
taylor wimpey plc
annual report and accounts 2014
4 revenue £m
£26861m
2012
20190
22955
2013 2014
26861
operating proﬁt £m
£4807m
2261
3129
2013 2014
4807
2012
proﬁt before tax and 
exceptional items £m
£4501m
1818
2684
2012 2013 2014
4501
continuing group
 operating profit is defined as profit on ordinary activities before net finance costs exceptional items and tax after share of results of joint ventures
 return on net operating assets is defined as 12 month rolling operating profit divided by the average of the opening and closing net operating assets which is defined  
as net assets less net cash less deferred tax balances
 2012 has been restated following the adoption of ias19 ‘employee benefits’ amended 2011 with changes in the presentation of certain costs relating to the defined  
benefit schemes
†
 tangible net assets per share is defined as net assets before any accrued dividends excluding goodwill and intangible assets divided by the number of shares in issue  
at the period end
††
 adjusted basic earnings per share represents earnings from continuing operations excluding exceptional items and tax on exceptional items divided by the weighted  
average number of shares in issue during the period
†††
 operating cash flow is defined as cash generated by operations before taxation and interest paid
tangible net assets 
per share
†
 p
779p
615
696
2012 2013 2014
779
total maintenance 
dividend p
062
069
2012 2013 2014
156
156p
return on net 
operating assets 
225
133
168
2012 2013 2014
225
year end net 
cash  debt £m
£1128m
590
54
2012 2013 2014
1128
adjusted basic earnings 
per share p
††
112p
46
67
2012 2013 2014
112
proﬁt for the year before 
exceptional items £m
£3597m
2012
1466
2147
2013 2014
3597
wwwtaylorwimpeycouk
5
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 where we operate
taylor wimpey is a national 
developer operating at a local  
level from 24 regional businesses 
across the uk 
we also have a small operation  
in spain 
operating across  
24 regional business units
 head office
 regional offices 
 london market
  scotland and north east 
  yorkshire and north west
  west midlands
  easter n
  south west and wales
  south east and london
uk housing map key
kpi see pages 3439 for our operating review
kpi see pages 1415 for 2014 market conditions
taylor wimpey plc
annual report and accounts 2014
6 north
our north division covers scotland the north east yorkshire 
the north west and the west midlands
south
our south division incorporates our businesses in the east  
south west and wales and south east including london
we build highquality homes in the popular locations of costa blanca costa del sol and  
the island of mallorca we build homes that appeal to both spanish and foreign buyers  
our spanish housing business represents approximately 1 of group revenue
highlights
 − completed 164 homes 2013 118
 − average selling price increase of 92 to €250k 2013 €229k
 − order book increased by 33 to £584m 2013 £439m
kpi see page 39 for more information on our spanish housing business
spain housing
highlights
 − average selling price increased 142 to £233k  
in 2014 from £204k in 2013
 − private sales rate of 069 homes per outlet per  
week 2013 070
 − average plot cost as a  of average selling price  
in the owned landbank of 184 2013 189
london
 − strong and established presence in london  
building around 1000 homes a year
 − growing and diverse portfolio across the london 
boroughs delivering a variety of homes and 
communities for all market segments
completions excluding jvs
● scotland 
and north east
● yorkshire 
and north west
● west 
midlands
30
39
31
5016
2013 4505
average selling price £k
£183k
scotland 
and north 
east 
197
173
yorkshire 
and north 
west
west 
midlands
average 
selling 
price north
183 183
completions excluding jvs
● eastern
● south west 
and wales
● south east 
and london
27
25
48
7278
2013 7042
average selling price £k
£233k
eastern
196
202
south 
west and 
wales
south 
east and 
london
average 
selling 
price south
270
233
highlights
 − average selling price increased 64 to £183k  
in 2014 from £172k in 2013
 − private sales rate increased to 058 homes per  
outlet per week 2013 054
 − average plot cost as a  of average selling price  
in the owned landbank of 151 2013 157
wwwtaylorwimpeycouk
7
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 focused on creating value and delivering 
quality across the housing cycle
“ i am delighted to report that in 2014 
shareholders have continued to benefit  
from the results of our strategy”
kevin beeston
chairman
and additional surplus cash returns at the appropriate 
time in the cycle more information on our dividend  
policy and strategy can be found on page 12
we remain committed to paying a regular annual 
maintenance dividend reflecting both confidence in  
our performance and the resilience of the uk housing 
market we have announced our intention to double  
this payout to 2 of net assets subject to shareholder 
approval the 2014 final maintenance dividend of  
132 pence per share 2013 047 pence per share if 
approved by shareholders at the annual general meeting 
agm will be paid as a conventional cash dividend on 
20 may 2015 to shareholders on the register at close  
of business on 10 april 2015 shareholders are once 
again being offered the opportunity to reinvest all of their 
maintenance dividend under the dividend reinvestment 
plan drip
in february 2014 we set out the principles and the first 
stages of our cash return plan and returned £497 million 
in july 2014 through 2014 we have continued to 
outperform our own expectations both in terms of  
cash generated and our forecast cash requirements 
reflecting this performance at our half year results  
in july 2014 the additional cash return in 2015 was 
increased by £50 million to £250 million equating to  
768 pence per ordinary share subject to shareholder 
approval this will be paid on 3 july 2015 as a cash 
dividend to all shareholders on the register at close of 
business on 22 may 2015 further details are set out in 
the notice of meeting on page 144 following a change 
in the law with effect from april 2015 companies are 
unable to offer shareholders a choice over the form of  
a cash return shareholders will however be offered the 
opportunity to reinvest all of their 2015 special dividend 
under the drip your attention is drawn to an important 
message regarding the drip on page 152 the board 
intends to keep the mechanics of how the company 
will pay its special dividends under regular review 
the way we do business
for taylor wimpey the way in which we conduct 
ourselves both internally and externally matters  
the board is firmly of the view that strong values and 
culture are the cornerstone of our success and that they 
are key to protecting and enhancing our reputation both 
internally and externally we recognise that we have both 
the obligation and the opportunity to lead by example 
and that whilst we inevitably do not get everything right 
we continue to embrace these responsibilities and strive 
to improve in everything we do 
during the year we have had a particular focus on 
customer service following a fall in our externally rated 
2014 performance and positioning the business for the future
it is very pleasing to note that during the period since we set out our strategy  
in 2011 we have seen the transformation of taylor wimpey underpinned by  
our clarity of focus and value driven business model during this time we have 
consistently outperformed the pace of improvement that we aspired to whilst 
continuing to improve the quality of our business and positioning it to achieve  
our vision of becoming the uk’s leading residential developer for creating value 
and delivering quality i am delighted to report to you that 2014 has not only been 
a further step in the journey to achieve this long term ambition but that we also 
delivered an excellent inyear performance delivering 54 growth in operating 
profit converting a record 10779 plots from the strategic land pipeline – more 
than any time in our history – and commencing an additional cash return policy  
to shareholders over and above our regular maintenance dividend i set out  
more details on this below in december 2014 we were also delighted to be 
readmitted to the ftse 100 share index 
returns to shareholders
in 2014 shareholders have continued to benefit from the results of our strategy 
with a 26 increase in 2014 total shareholder returns and 433 cumulative 
earnings per share growth in the last three years our dividend return is an 
inherent part of our strategy and the board has set out a policy of making cash 
returns to shareholders through both regular maintenance dividend payments  
chairman’s statement
taylor wimpey plc
annual report and accounts 2014
8 customer satisfaction score from 90 to 87 and a 
general belief that customers expect and deserve an 
enhanced level of service whilst an external score  
of 87 continues to be high by industry and historic 
standards we are committed to improving further our 
service to our customers we have embarked on several 
initiatives and introduced additional resourcing to improve 
what we do and how we do it for our customers – further 
detail is set out on page 38
we have an implicit obligation to serve the local communities 
in which we operate and firmly believe that this responsibility 
grows with our success in 2014 we invested £300 million 
in communities pursuant to planning obligations in england 
wales and scotland 2013 £227 million providing 
infrastructure affordable housing and community  
facilities including schools transport and play areas 
more information about our efforts including local 
sponsorships and partnerships and our support of  
charity partners can be found on page 31 and within  
our sustainability report which will be available from  
27 march at wwwtaylorwimpeycoukcorporate
sustainability 
corporate governance
we have a strong track record of good corporate 
governance which your board will continue to strengthen 
underpinned by a robust and effective governance 
framework and risk management structure more 
information on what this means can be found within  
our corporate governance report and the reports  
of the board committees on pages 46 to 85 this is 
further enhanced by the policies and guidelines we have 
in place setting standards concerning ethics sound 
business practices and wider governance which are 
regularly reviewed and can be found on our website 
we value open and honest dialogue and work hard  
to maintain high levels of trust and transparency with  
all of our stakeholders as your chairman i continue to 
proactively meet with a number of investors and industry 
representatives to answer their questions and to gain  
a better understanding of their policies and views on 
governance
we also understand and support the importance of  
linking executive reward to the longer term objectives  
of t aylor wimpey and in turn the longer term interests  
of shareholders and are very alert to the need for fair and 
proportionate remuneration arrangements we have again 
consulted very constructively with our major shareholders 
and their representative bodies concerning both 2014 and 
2015 policy and practice more information on this can  
be found in the remuneration committee report on  
pages 66 to 85
the board has reviewed the 2014 uk corporate 
governance code the ‘code’ announced in september 
2014 and welcomes the new changes which will apply 
to our 2015 financial year consistent with past practice 
the board has already moved to comply with certain 
aspects of the code
2014 board evaluation 
in accordance with the code the board is required to 
undertake a formal and rigorous annual evaluation of  
its own performance and that of its committees and 
individual directors it is also a requirement that the 
evaluation should be externally facilitated at least once 
every three years the evaluation is a very important part 
of the corporate governance framework and is taken very 
seriously by the board its committees and also by each 
individual director in 2014 the evaluation was externally 
facilitated by independent board evaluation via a very 
comprehensive process involving all directors and  
others who work closely with the board both internal  
and external i am pleased to report to you that this  
review confirmed that your board is a wellfunctioning 
and effective board which serves the company well and 
takes its duties and responsibilities very seriously naturally 
there are areas for improvement and the board has 
reviewed and will be acting upon the recommendations 
a summary of the main findings from the evaluation are 
outlined on pages 50 to 51
our people
the board is particularly proud of the level of eligible 
employee participation in the company’ s allemployee 
share plans namely sharesave 37 and sip 27  
each plan gives employees the opportunity of owning  
their own personal stake in t aylor wimpey and our future 
success we believe that this is important as it encourages 
a greater sense of alignment between our employees and 
our shareholders together with a greater sense of pride 
and sense of ownership further all executive directors 
hold shares significantly in excess of individual guidelines 
and similar individual guidelines have also been applied  
to senior management below board level more details  
of our share schemes can be found on pages 70 to 71
we continue to progress our diversity and inclusivity 
initiatives as we recognise that there are still improvements 
to be made and that we are still in the early part of the 
overall journey more detail on our initiatives is set out  
in the corporate governance section
as i reflect on a very successful 2014 i would like to 
express my sincere thanks and appreciation to all 4014 
taylor wimpey employees for their professionalism hard 
work and dedication throughout 2014 i am confident 
that we have in place the strategy people and framework 
to continue to create value and deliver quality for all our 
stakeholders in the years ahead
kpi  corporate governance 
pages 4651 
kpi  board of directors  
pages 4445
board diversity
● male 6
● female 2
75
25
employee diversity
● male
● female
67
33
senior management diversity
● male 6
● female 2
75
25
wwwtaylorwimpeycouk
9
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 we are well positioned for the future 
chief executive’s review
2014 summary
in 2014 we saw the positive benefit of the improved 
environment in all of our regional markets and we were 
pleased to see greater balance across the regional 
markets coming into effect in the second half of 2014 
with slower and more sustainable price growth after  
a very strong first half
customer demand remained high across all regions  
and was helped by a more affordable and accessible 
mortgage market due both to help to buy and a more 
competitive lending environment 
against this backdrop and in line with our strategy  
we have continued to grow steadily and sustainably 
delivering increased completions and creating additional 
value increasing operating profit by 536 to £4807 
million 2013 £3129 million
2014 was an important year for the group as we met  
or exceeded all previous financial targets and committed 
to delivering more by setting new stretching targets for 
the medium term which i will detail later we are pleased 
that in 2014 we have made significant progress towards 
all of these medium term targets more information on  
our financial performance can be found in the group 
financial review section on pages 40 to 43 alongside  
this there were many operational highlights including 
achieving a record contribution per completion of £496k 
2013 £388k significantly increasing our intake of 
trainee and apprentice programmes and contributing 
£300 million to local communities across the uk via 
planning obligations providing infrastructure affordable 
homes public transport and education 
health and safety is our nonnegotiable top priority and 
we were particularly pleased to see that this was reflected 
in our 2014 employee survey which found that 99  
of our staff believe that taylor wimpey is committed  
to health and safety and keeping people safe we have 
continued to keep our uk annual injury incidence rate 
aiir low at 209 per 100000 employees and contractors 
in 2014 2013 207 we reduced our aiir for major 
injuries from 60 in 2013 to 26 in 2014
proactively managing the cycle 
our views about managing the cycle have not changed 
housebuilding is a cyclical industry and whilst sensible 
measures from government interest rate setters and 
regulators can help to reduce the scale of that cyclicality 
we do not believe it can be removed completely 
therefore whilst we remain focused on delivering strong 
returns and growth we are also mindful of mid and long 
term risk this means that we need to take a more active 
approach to managing the cycle than has been historically 
undertaken in the business or the sector we are 
2014 group highlights
 − 672 increase in adjusted basic earnings per share
††
 to 112 pence  
from 67 pence
 − 536 increase in operating profit to £4807 million 2013 £3129 million 
 − continued to keep our uk annual injury incidence rate low at 209 per  
100000 employees and contractors in 2014 2013 207
 − £497 million cash returned to shareholders in 2014 and c£250 million  
announced for 2015 subject to shareholder approval 
 − doubled our maintenance dividend payout to 2 of net assets subject  
to shareholder approval 
“ we have delivered an excellent 2014 
performance growing steadily and  
sustainably and creating additional value”
pete redfern
chief executive
taylor wimpey plc
annual report and accounts 2014
10 pete redfern
chief executive
responsibilities 
as head of the gmt my responsibilities include key strategic  
and operational decisions corporate responsibility and health  
and safety
ryan mangold
group finance director
responsibilities 
ryan’s role covers all areas of finance including tax treasury 
and managing the group’s defined benefit pension scheme 
as well as information technology ryan also plays an active part 
in our investor relations programme
james jordan
group legal director and company secretary
responsibilities 
james is responsible for our company secretariat department  
as well as overseeing all legal matters from plot conveyancing  
to land buying
anne billsonross
group human resources director
responsibilities 
anne has responsibility for all areas of human resources including 
recruitment benefits talent and performance management
fergus mcconnell
divisional chairman north
responsibilities 
fergus oversees the 10 regional businesses within our  
north division he is also the project sponsor for our new  
it system
peter truscott
divisional chairman south
responsibilities 
peter heads our south division which contains 14 regional businesses 
and also has responsibility for our business in spain
peter andrew
uk land and planning director
responsibilities 
peter oversees our strategic land team and is leading our response  
to the evolving uk planning system
ingrid skinner
managing director central london
responsibilities 
ingrid oversees the central london regional business and 
also has responsibility for the integrated london strategy 
lee bishop
major developments director
responsibilities 
lee is managing our new major developments business which  
has been specifically created to secure and project manage large  
scale land opportunities lee joined the gmt on 1 january 2015
currently operating in a housing market underpinned  
by a significant structural demand and supply imbalance 
housing remains high on the political agenda with 
recognition of the importance of housebuilding to the 
economy and the need for more quality homes in the  
uk by all of the main political parties whilst there remains 
uncertainty around the outcome of the general election in 
may consumer confidence remains solid and is supported 
by healthy underlying demand low interest rates and high 
levels of employment we therefore consider that the uk 
near term market risk is low 
we believe that we are currently operating at the early 
stages of the housing cycle the charts on pages  
14 to 15 show some of the key external measures  
we follow closely and these will change depending  
on the stage of the cycle however the housing cycle  
is influenced by many factors and these should not 
be viewed in isolation
our strategy 
taylor wimpey’s vision is to become the uk’s leading 
residential developer for creating value and delivering 
quality across the housing cycle since we set out our 
strategy in 2011 we have seen the transformation of 
taylor wimpey to a value driven business with a long 
term focus on generating the best quality sustainable 
returns we are confident that we can achieve this as  
a result of three key differentiating factors
1  we have invested in new land in a disciplined way  
at the right time and in the right locations this has 
been supported by record conversions in the last few 
years from our strategic pipeline adding to the scale 
quality and future profitability of the landbank
2  we have a clear view on the right size of our 
business and our focus is on delivering sustainable 
growth and value generation in a balanced 
consistent way through the housing cycle
3  we believe that the underlying quality of the  
business is very important and is worth investing  
in this includes our nonnegotiable approach to 
health and safety and our focus on people and 
customer service
following a period of strong investment we are  
now at our optimum size of landbank at c75k plots 
equating to csix years of supply at current completion 
levels we have therefore moved to a land replacement 
position in the short term land market and together 
with the increasing profitability of the business are 
becoming increasingly cash generative this has 
enabled us to move to a phase focused on delivery 
maximising the returns from our investments and 
the group management t eam
the group management team gmt which is responsible for the day to day 
running of the company comprises
kpi view full biographies online at wwwtaylorwimpeycoukaboutuswhoweare
wwwtaylorwimpeycouk
11
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 our focus is on maximising the returns  
from our investments and ensuring that  
the business is optimally positioned to  
deliver sustainable returns
continuing to ensure that the business is optimally 
positioned to deliver those returns on a sustainable 
basis in may 2014 we announced a set of stretching 
financial targets for the period 2015 to 2017 to 
challenge the business to deliver even more over  
the medium term
these targets each of which is applicable for the 
period 2015 to 2017 are to achieve 
 − an average operating profit margin of 20 over  
the three year period 
 − a return on net operating assets of at least  
20 per annum 
 − an average increase in net assets including returns 
to shareholders of 15 per annum over the three 
year period 
 − an average conversion of at least 65 of operating 
profit into operating cash flow
†††
 over the three 
year period
whilst we clearly do not expect to deliver all of these 
three year targets in 2015 we do expect to show 
significant progress towards all of them 
more information on these targets and how they fit into 
our long term strategy through the cycle can be found  
on pages 16 to 17
our strategy is underpinned by our strategic principles 
set out on page 18 
we want to earn returns but how we do this is equally 
important to us our cultural principles underpin 
everything we do these are set out on page 19
our business model is based on a value cycle and  
each component of the value cycle is important in order 
to achieve our strategic objectives each element of  
our business model is detailed in full on pages 18 to 25  
we believe that sustainability is fundamental to each 
aspect of the value cycle and therefore to the long  
term success of the company further information on 
sustainability can be found on pages 30 to 33 and within 
our dedicated sustainability report 2014 
dividend and cash return policy 
in 2014 we set out the principles and policy of returning 
surplus cash to shareholders at the appropriate times in 
the cycle in addition to our regular maintenance dividend 
reflecting both our confidence in our performance and 
the underlying resilience of the market we have 
announced the doubling of the maintenance dividend 
payout to 2 of net assets which is at the top end  
of previous guidance subject to shareholder approval 
this will give a proposed 2014 final maintenance dividend 
of 132 pence per share to be paid on 20 may 2015 to 
shareholders on the register at the close of business on 
10 april 2015 2013 final dividend 047 pence per share 
in combination with the interim dividend of 024 pence 
per share 2013 interim dividend 022 pence per share 
this gives a total maintenance dividend for the year of 
156 pence per share 2013 total maintenance 069 
pence per share
on 3 july 2014 we commenced the return of surplus 
cash to shareholders with a £497 million special  
cash payment equating to 154 pence per share  
as we previously announced on 30 july 2014 we will 
return approximately £250 million to shareholders on  
3 july 2015 equating to 768 pence per ordinary share 
to shareholders on the register at close of business on  
22 may 2015 subject to shareholder approval at the 
2015 agm going forward surplus cash returns will 
continue to form a significant proportion of our annual 
total return to shareholders these cash returns will be 
set on an annual basis in line with the cash generation  
of the business they will be announced at our half year 
results and paid the following year a key part of the 
rationale of our approach to running the business in  
a sustainable way is to give investors a significant 
consistent and reliable dividend stream 
chief executive’s review continued
total order  
book value
£1397m
in 2014
short term owned and 
controlled landbank
c75k 
plots in 2014
operating profit

 margin 
179
in 2014
taylor wimpey plc
annual report and accounts 2014
12 our customers
in 2014 we achieved a customer satisfaction rate of 87 
2013 90 with the decrease reflecting the challenge  
to deliver our homes on time as the labour market 
adapted to the better sales market whilst this remains 
high in comparison to historic trends we are very 
disappointed that this has decreased during 2014 we 
began an indepth review of every aspect and stage of 
our customer journey to identify areas of improvement 
and to deliver a better homebuying experience for our 
customers this is a very important area for us and will 
continue to be a key focus in 2015 and on an ongoing 
basis as we work to realise improvements to our service 
and to our customers’ experience more information can 
be found on pages 22 and 38
our people 
i would like to take this opportunity to reiterate kevin’s 
words of thanks to the teams and the individuals across 
our business i believe we have the best people in  
the industry and we want to make taylor wimpey  
the employer of choice and establish a culture 
where individuals from all backgrounds can reach 
their full potential 
whilst we have done a lot over the last few years in 
developing our people we recognise there is still more  
to do we will be focusing on the areas of learning and 
development and building on our success in our training 
programmes in 2015
our new group human resources director anne billson
ross is working with our gmt and the wider business to 
update the human resources strategy for t aylor wimpey 
and drive further improvement in 2015 
i am also extremely proud of the efforts of our employees 
around the country supporting our chosen charities  
in total during 2014 we raised over £539k 2013 £415k 
for registered charities through donations and fundraising 
more information on this can be found on page 31 just 
one example of this was in march 2014 where nearly 200 
of our staff from across 80 of the regional businesses 
completed taylor wimpey’s inaugural teambuilding event 
in the brecon beacons with an aim to climb the welsh 
national park’s 10 highest mountains in 10 hours for the 
youth adventure trust a charity which provides 
adventure camps and day activities for disadvantaged 
children aged between 11 and 14 to enable them to 
experience success learn to go beyond their own 
expectations and grow in confidence our 45 teams 
raised over £141k this was the highest amount raised  
in a single event in the charity’s history we are also 
looking forward to building on this with our next all
employee challenge in may 2015 
diversity 
during 2014 we continued to focus on diversity and 
inclusion we remain committed to the belief that 
embracing diversity and inclusion will enable taylor 
wimpey to succeed through a workforce that is creative 
and innovative we continue to actively embrace the 
business and local communities in which we operate  
and will strive to reflect their richness and character by 
including such aspects as gender race and religion but 
also diversity of thought background and experience  
in 2014 we undertook a range of activities including 
establishing a senior management working party to 
create a diversity and inclusion strategy for further  
detail please see pages 57 to 59
outlook 
looking forward and as i mentioned previously we  
are currently operating in a housing market underpinned  
by a significant structural demand and supply imbalance 
housing remains high on the political agenda with 
recognition of the importance of housebuilding to the 
economy and the need for more quality homes in the  
uk by all of the main political parties whilst there remains 
uncertainty around the outcome of the general election  
in may consumer confidence remains solid and is 
supported by healthy underlying demand low interest 
rates and high levels of employment we therefore 
consider that the uk near term market risk is low
the beginning of the spring selling season has seen  
both demand and trading at the better end of our 
expectations net private sales rates for the year to date 
we 1 march 2015 of 070 are at healthy levels 2014 
equivalent period 072 and within the range we see as 
sustainable with slower market growth we anticipate 
reducing build cost pressure in 2015 
as at 1 march 2015 we are 51 forward sold for private 
completions for 2015 with a strong total order book of 
£1657 million 2014 equivalent period £1529 million
this together with our strong landbank with over 50  
of plots sourced from the strategic pipeline positions us 
well for 2015 and beyond we remain confident that our 
long term strategy enhanced by the stretching medium 
term targets we announced in may 2014 will enable us 
to maximise the best quality returns from our investments 
on a sustainable basis across the housing cycle
for more information
2014 market conditions pages 1415
an overview of the industry and market in 2014
our strategy pages 1617
a more detailed look at how our medium term  
targets fit in with our long term strategy through  
the cycle and our investment proposition
group financial review pages 4043
our 2014 financial performance
wwwtaylorwimpeycouk
13
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 total
private
housing associations 
council
2014 market conditions
industry and market overview
we are currently operating in a housing market underpinned by a significant structural demand and supply imbalance housing remains high 
on the political agenda with recognition of the importance of housebuilding to the economy and the need for more quality homes in the uk  
by all of the main political parties whilst there remains uncertainty around the outcome of the general election in may consumer confidence 
remains solid and is supported by healthy underlying demand low interest rates and high levels of employment we therefore consider that  
the uk near term market risk is low
increase in 
planning approvals
21
year on year  
q1q3 2014
planning
the changes to the planning system in the last few years including the localism act and national planning policy framework are having a 
positive impact on the planning system we continue to monitor this along with the recently introduced community infrastructure levy cil 
and the time taken to achieve implementable planning permission to start on site
planning policy and regulation
planning remains the fundamental constraint in the uk  
in recent years there have been a number of changes  
to the planning system with the implementation of the 
national planning policy framework localism act the 
community infrastructure levy cil and the national 
planning policy guidance 
planning approvals
according to the home builders federation hbf 
planning approvals increased by 21 year on year  
to 161283 in the year to september 2014 
c141k 
uk housing  
completions  
in 2013  2014
completions 
the new build market in the uk accounts for c10 of all transactions taylor wimpey is one of the largest homebuilders in the uk  
building 12454 homes in 2014 in addition we build affordable housing across the uk representing 175 of our 2014 completions
housing completions
in 2014 we completed 12454 homes up 65  
2013 11696 at an average selling price of £213k 
115 higher than in 2013
according to the department for communities and  
local government dclg during the financial year 
ended 2013  2014 total completions in the uk increased 
4 to c141k with private developers accounting for 
c79 of the total completions this is still well below  
the recent peak of 2006  2007 of 219k and significantly 
below the current estimate of new homes needed in the 
uk per annum of 250k
 
 
 
source dclg
source hbf
1970 1980 1991 2002 2014
uk housing completions by sector
number of completions
financial year ending
0 400000
residential units approved – 
 change year on year   
xx
north 
of england midlands
southern 
england england wales scotland
great 
britain
● 2014 q1q3
● 2013
● 2012
● 2011
0
10
20
20
30
10
30
40
50
60
70
80
taylor wimpey plc
annual report and accounts 2014
14 value of  
mortgage approvals 
105
in 2014
london
uk
mortgage availability and affordability 
we build a wide range of homes from onebedroom apartments to fivebedroom houses with prices ranging from below £100000 to  
over £3 million the majority of the homes that we build are sold to individual purchasers who take on significant mortgages to finance  
their purchases mortgage availability and affordability therefore are key factors
during 2014 we have continued to see an improvement 
in customer sentiment and an increase in sales rates  
as customers already feeling more confident were able 
to gain access to a healthier mortgage market helped 
through help to buy and a more willing and competitive 
banking system
in 2014 mortgage availability including for higher loan  
to value mortgages continued to improve with the total 
value of mortgage approvals for home purchases up 
105 at £124894 million 2013 £112985 million 
according to the bank of england data with property 
transactions 136 higher at 1219710 2013 1073560 
05 
bank of england  
base rate  
in 2014
affordability in 2014
with the bank of england base rate remaining low  
at 05 throughout 2014 mortgage affordability has 
improved with interest rates for new build properties 
approximately 065 lower than in 2013 
average mortgage payments as a  of takehome pay 
also rose slightly to 340 for the first three quarters  
of 2014 from 326 in 2013 according to nationwide 
this remains below the recent peak in 2007
 
 
 
source bank of england
source nationwide  bank of england
mortage payments as  of 
takehome pay  interest rates
xx
interest rate 
16
14
12
10
8
6
4
2
1983 1987 2014 1992 1996 2001 2005 2010
0
10
 of takehome pay
20
30
40
50
60
70
80
90
100
value of approvals for mortgages
jan 2013 dec 2013 dec 2014
xx
£m
0 14000 7000
wwwtaylorwimpeycouk
15
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 our strategy
our long term strategy through the cycle
t o become the uk’s leading residential 
developer for creating value and 
delivering quality for all our stakeholders
operating proﬁt

 margin 
2012 2013 2014
179
179
136
112
return on net operating assets

 
2012 2013 2014
225
225
168
133
net assets growth 
including returns to shareholders  
2012 2013 2014
158
158
142
94
we remain disciplined and focused on the long term continuing to target improvement across all measures to deliver 
the best quality and sustainable returns for our shareholders our strategy has not changed since we articulated it in 
2011 and neither have our key strategic financial objectives which were purposefully set as through the cycle measures
note definitions can be found on page 5
kpi see pages 1825 for our business model
our strategy 
our long term strategic objectives are
 − earn top quartile operating profit

 margin
 − deliver at least a 15 return on net operating assets

 
through the cycle
 − grow net assets by 10 per annum on average 
through the cycle including returns to shareholders
our strategy is underpinned by our strategic principles 
set out on page 18
our cultural principles 
we want to earn returns but how we do this is equally 
important to us our cultural principles underpin 
everything we do these are set out on page 19
our business model 
our business model is based on a value cycle and each 
component of the value cycle is important in order to 
achieve our strategic objectives each element of our 
business model and how this impacts our strategy is 
detailed in full on pages 18 to 25
taylor wimpey plc
annual report and accounts 2014
16 our medium term targets 20152017 t aylor wimpey investment proposition
we are confident that we can achieve our objectives  
and ultimately our vision as a result of three key 
differentiating factors
1  we have invested in new land in a disciplined way  
at the right time and in the right locations this has 
been supported by record conversions in the last  
few years from our strategic pipeline adding to the 
scale quality and future profitability of the landbank
2  we have a clear view on the right size of our 
business and our focus is on delivering sustainable 
growth and value generation in a balanced 
consistent way through the housing cycle
3  we believe that the underlying quality of the  
business is very important and is worth investing  
in this includes our nonnegotiable approach to 
health and safety and our focus on people and 
customer service
dividend and cash return policy 
in 2014 we set out the principles and policy of returning 
surplus cash to shareholders at the appropriate times  
in the cycle this is in addition to our regular maintenance 
dividend which is set at 2 of net assets 
going forward surplus cash returns will continue  
to form a significant proportion of our annual total  
return to shareholders
a key part of the rationale of our approach to running  
the business in a sustainable way is to give investors  
a significant consistent and reliable dividend stream 
more information on 2014 and 2015 dividend  
can be found on page 12
in may 2014 we announced a set of stretching 
financial targets for the period from 2015 to 
2017 to challenge the business to deliver  
more over the medium term 
these targets each of which is applicable for the 
period from 2015 to 2017 are to achieve 
–  an average operating profit margin of 20 
over the three year period 
–  a return on net operating assets of at least 
20 per annum 
–  an average increase in net assets including 
returns to shareholders of 15 per annum 
over the three year period 
we also added a further financial target which  
we believe is an important measure of delivery  
for this phase of the cycle this is focused on 
converting a high proportion of our profitability 
into cash reflecting the move from the strong 
investment phase of the last four years to a  
new phase focused on delivery this new target  
again applying for the period from 2015 to 2017 
is to achieve
–  an average conversion of at least 65 of 
operating profit into operating cash flow
 †††  
over the three year period
average cash conversion of at least 65 of operating
proﬁt into operating cash ﬂow
†††
 over 20152017 
2012 2013 2014
43
43
42
48
note definitions can be found on page 5
wwwtaylorwimpeycouk
17
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 land is the critical ‘raw material’ for our 
business and the ability to purchase the 
right sites in the right locations at the right 
price and at the right point in the cycle is a 
key driver of shareholder value
designing a sustainable community  
that meets the needs of local residents 
is attractive to potential customers  
and provides attractive returns for 
shareholders requires a consultative  
and iterative process of community 
engagement
we work with selected subcontractors  
and build using carefully sourced materials 
to ensure that the homes that we sell  
are of a high quality and are built safely 
efficiently costeffectively and with  
minimal impact on the environment
buying a home is a significant financial 
and emotional investment we aim to 
make buying moving into and living  
in a taylor wimpey home as easy as 
possible for our customers
this value cycle requires significant input 
from skilled and committed people to 
deliver aspirational highquality homes  
and communities for our customers
developing sustainable homes and 
communities is a timeconsuming 
process but this provides us with the 
opportunity to undertake regular reviews 
over the life of each development to 
identify potential improvements
kpi see pages 20 24 32 and 35 for more information kpi see pages 2021 24 32 and 3536 for more information kpi see pages 21 24 32 and 3638 for more information kpi see pages 22 25 33 and 38 for more information kpi see pages 2223 25 33 and 3839 for more information kpi see pages 23 25 33 and 39 for more information
our business model
sustainability
kpi see pages 3033 for more information
our aim is to build homes and communities 
that our customers will aspire to and that 
enhance the local area 
we are working towards being a more 
socially environmentally and economically 
sustainable company 
sold
selecting land managing the planning 
and community 
engagement process
getting the 
homebuilding  
basics right
delivering value across the cycle
our vision is to become the uk’s leading residential developer for creating value  
and delivering quality across the housing cycle since we set out the strategy in 
2011 we have seen the transformation of taylor wimpey to a value driven business 
with a long term focus firmly on generating the best quality sustainable returns
our strategy
kpi see pages 1617 for more information 
strategic principles 
 − absolute commitment that a strong margin 
performance is the way to drive the best 
sustainable returns
 − margin underpinned by timing and quality 
of short term acquisitions and enhanced by 
extensive strategic land pipeline
 − continual improvement philosophy with  
a relentless focus on adding value to every 
existing and new site
 − significant ongoing investment in  
great quality people and processes
 − increasing focus on asset efficiency  
and maximising the returns on our  
land investments
 − active management of investments  
and structure over the housing cycle  
to reduce risk and maximise returns 
over the long term
taylor wimpey plc
annual report and accounts 2014
18 land is the critical ‘raw material’ for our 
business and the ability to purchase the 
right sites in the right locations at the right 
price and at the right point in the cycle is a 
key driver of shareholder value
designing a sustainable community  
that meets the needs of local residents 
is attractive to potential customers  
and provides attractive returns for 
shareholders requires a consultative  
and iterative process of community 
engagement
we work with selected subcontractors  
and build using carefully sourced materials 
to ensure that the homes that we sell  
are of a high quality and are built safely 
efficiently costeffectively and with  
minimal impact on the environment
buying a home is a significant financial 
and emotional investment we aim to 
make buying moving into and living  
in a taylor wimpey home as easy as 
possible for our customers
this value cycle requires significant input 
from skilled and committed people to 
deliver aspirational highquality homes  
and communities for our customers
developing sustainable homes and 
communities is a timeconsuming 
process but this provides us with the 
opportunity to undertake regular reviews 
over the life of each development to 
identify potential improvements
kpi see pages 20 24 32 and 35 for more information kpi see pages 2021 24 32 and 3536 for more information kpi see pages 21 24 32 and 3638 for more information kpi see pages 22 25 33 and 38 for more information kpi see pages 2223 25 33 and 3839 for more information kpi see pages 23 25 33 and 39 for more information
we aim to balance the long term economic 
stability and growth of our company with our 
responsibilities to the environment society 
and the economies in which we operate 
we believe that sustainability is fundamental 
to each aspect of our value cycle and 
therefore to the long term success of 
our company 
operating sustainably is both the right 
thing to do and brings significant 
business benefits
kpi
   see an example of our business model in action on 
our chobham manor development on pages 2425
sold
delivering  
customer service
our people optimising 
value
cultural principles
 − if something is worth doing it’s worth 
doing properly
 − if we make a mistake we put it right
 − we are competitive and don’t accept 
second best
 − we will not compromise in ensuring that 
everyone leaves our sites safe and well
 − we behave with integrity are honest  
and forthright and support each other
 − we strive to enhance the environment and 
local community and to run our business in 
a way that is sustainable
 − knowledge and information are key we 
take our decisions on fact not emotion
 − we value individuals from diverse 
backgrounds and aim to develop potential 
to the mutual benefit of the individual and 
the business
wwwtaylorwimpeycouk
19
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 sold
sold
our strategy to deliver enhanced value
we are highly selective with regard to the 
types of sites that we buy focusing on the 
quality of the land rather than the number  
of plots acquired we employ dedicated  
land teams in each of our 24 regional 
businesses who use their expertise and  
local knowledge to identify potential high
quality sustainable sites
progress in 2014
added 17371 plots net to the short term 
landbank of which over 50 were converted 
from the strategic pipeline to maintain our 
optimum scale of c75k plots average selling 
prices increased in 2014 to £213k 2013 
£191k primarily as the result of enhanced 
our strategy to deliver enhanced value
we believe that a positive and structured 
approach to working with others is at the 
heart of a successful scheme residential 
development is a local business and we work 
in partnership with the communities in which 
we build to deliver homes that meet their 
requirements and aspirations
progress in 2014
contributed £300 million to our local 
communities via section 106 and section  
75 planning obligations 2013 £227 million 
continued to work to bring forward 
development with a record of 10779 plots 
converted from the strategic pipeline
selecting land managing the planning  
and community  
engagement process
our business model continued
our key performance indicators kpis
strategically sourced completions 
objective
kpi
we are targeting more than 40 of our completions from 
the strategic pipeline per annum in the medium term
definition
number of completions which originally did not have 
planning permission when we acquired a commercial 
interest in them expressed as a percentage of  
total completions
why is it key to our strategy
the strategic pipeline enhances our ability to increase the 
contribution per legal completion because of the inherent 
margin uplift from strategic plots it also allows us to take 
a long term view of sites 
2012 2013 2014
29
24
39
owned and controlled plots with planning 
objective
kpi
we aim to maintain sufficient land in our portfolio  
to enable us to remain selective in future purchases
definition
the total number of plots that we either own or control 
with some form of planning consent 
why is it key to our strategy
we operate in a planning constrained environment 
having a portfolio of land in place is key to planning  
the required scale of our building operations for future 
home completions it enables us to be selective in  
land purchases
2012 2013 2014
75136
70628
65409
locations and market sales price increases 
which contributed to the rise in contribution 
per legal completion to £496k from £388k 
in 2013 also added c18k new potential 
plots to the strategic pipeline which stood  
at c110k potential plots as at 31 december 
2014 39 of 2014 completions were 
sourced from the strategic land pipeline 
2013 29
priorities for 2015
continue to manage our investments and 
landbank in line with the cycle we aim to 
source more than 40 of completions from 
the strategic pipeline per annum in the 
medium term
short term 
landbank
c75k
 plots in 2014
kpi see our sustainability report 2014 for more information
conversion of strategic pipeline 
objective
kpi
we aim to convert on average c6k plots per annum  
in the medium term
definition
number of plots which originally did not have planning 
permission when we took a commercial interest in the 
land which we have promoted through the planning 
process and achieved some form of planning on in this 
way we convert potential plots from the strategic pipeline 
to plots in the short term landbank 
why is it key to our strategy
the strength of our strategic pipeline plots on which  
we are trying to achieve a planning consent is a key 
differentiator and enables us to be extremely selective  
in the short term land market and also reduces the 
pressure on the teams we work with landowners local 
authorities and communities to promote the strategic 
pipeline through the planning process and achieve 
planning permission 
2013 2014
10779
9210
taylor wimpey plc
annual report and accounts 2014
20 sold sold
our strategy to deliver enhanced value
we are committed to providing a safe place 
in which our employees and subcontractors 
can work we are also committed to high 
standards of environmental management 
the building process is carefully managed  
by our sitebased and regional production 
teams to ensure quality minimise disruption 
to residents in the surrounding areas and to 
protect and enhance the value of each site
progress in 2014
continued to keep our annual injury incidence 
rate aiir low at 209 2013 207 per 100000 
employees and contractors we reduced our 
getting the 
homebuilding  
basics right
updated our community engagement toolkit 
following internal engagement and launched 
our new economic benefits toolkit
priorities for 2015
continue to investigate digital aspects of  
community engagement
continue to work to bring forward 
developments by securing planning on our 
strategic pipeline and continuing to progress 
planning on our short term landbank
aiir for major injuries from 60 in 2013 to  
26 in 2014
provided an average of 53 days hse  
training per person for our site management 
and operational staff 2013 43
b
 continued 
our site safety supervisor training for 
groundworkers’ supervisors
priorities for 2015
improve or as a minimum maintain the same 
aiir as in 2014 introduce the next stages of 
our hse theme initiative 
53
days hse training per 
person for site 
management and 
operational staff
converted
10779
plots from strategic 
pipeline in 2014
health and safety
a
objective
kpi
we are committed to ensuring that our employees and 
subcontractors and everyone who visits our sites goes 
home safe and uninjured 
definition
reportable all reportable and major injury frequency rate 
per 100000 employees and contractors annual injury 
incidence rate
why is it key to our strategy
health and safety is our nonnegotiable top priority  
as well as having a moral duty to maintain safety on site 
accidents and injuries can have a detrimental impact on 
the business through additional costs delays andor 
reputational damage 
2012 2013 2014
209
207
311
a   as of april 2012 the uk health  safety executive 
hse changed the definition of reportable injuries from 
those where the injured person was off work for over 
three days to being off work for more than seven days
b we changed our methodology for calculating hs 
training days for site management and operational staff 
in 2014 data for 2013 and 2012 has been amended 
accordingly
wwwtaylorwimpeycouk
21
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 our business model continued
our strategy to deliver enhanced value
we want to be the residential developer  
of choice for employees we want to attract 
and retain the best people by having a culture 
that people identify with where they can 
realise their full potential and achieve success 
and satisfaction we will continue to seek a 
balance of internal and external appointments 
in order to combine career development with 
the introduction of new perspectives and 
innovative approaches
our strategy to deliver enhanced value
no matter what the size or price of a 
property for each customer the home  
that they are buying is aspirational to them 
we will maintain our focus on delivering 
highquality homes and a consistently 
excellent ‘customer journey’ to all of  
our customers we continue to make 
improvements to our online capabilities 
including our website and use of social  
media such as facebook and twitter
progress in 2014
we are very disappointed that the customer 
satisfaction rate decreased from 90 to 
87 during 2014 we began an indepth 
review of every aspect and stage of our 
customer journey to identify areas of 
improvement and to deliver a better 
homebuying experience for our customers 
taylor wimpey sales academy was  
highly commended in the best customer 
satisfaction initiative category at the 
housebuilder awards 2014
priorities for 2015
customer service will remain a key area of 
focus we will draw up a comprehensive 
customer service strategy and action plans
sold
delivering customer service
our people
our key performance indicators kpis continued
 
customer satisfaction 
objective
kpi
we strive to maintain and improve our customer satisfaction 
scores at 90 or above
definition
percentage of customers satisfied or very satisfied with 
their new home as measured by the national new homes 
survey undertaken by the nhbc on behalf of the hbf eight 
weeks after legal completions
why is it key to our strategy
delivering high levels of customer satisfaction enhances  
the reputation of our business and reduces the costs 
associated with rectifying poorquality work 
2012 2013 2014
87
90
93
184
staff graduated from 
the sales academy 
in 2014
c  uk employee turnover has been calculated using  
a different methodology since 2013 data for 2012 has 
been amended accordingly this data is for voluntary  
turnover only
kpi see our sustainability report 2014 for more information
 
employee turnover
objective
kpi
we aim to attract and retain the best people in the industry 
and give them opportunities to develop to their full potential 
definition
voluntary resignations divided by number of total 
employees 
why is it key to our strategy
our employees are one of our greatest competitive 
advantages and they are crucial to executing the strategy 
we aim to keep this within a range of 515
2012 2013 2014
71
75
71
c

taylor wimpey plc
annual report and accounts 2014
22 progress in 2014
during 2014 we significantly increased 
recruitment for our apprenticeship graduate 
and trainee schemes taking on 99 apprentices 
including 29 site management apprentices 
50 management trainees and 19 graduates 
2013 total 89
priorities for 2015
continue with learning and development 
programmes and expand development 
opportunities across our senior teams 
continue with our trainee graduate and 
apprenticeship schemes
our strategy to deliver enhanced value
we look to optimise the value of each site not 
only during the initial acquisition process but 
throughout the planning and development 
stages so that the original value is not only 
protected but enhanced we achieve this  
by undertaking a series of thorough reviews 
of each site at all stages of its life cycle  
using our value improvement and tracking 
processes to ensure that we are continually 
optimising and delivering the value within our  
land portfolio
progress in 2014
continued to review every site through our 
value improvement meetings delivered an 
additional 27 2013 17 of contribution 
margin on completions on land acquired 
post2009
priorities for 2015
continue to actively review every site and 
optimise new sales outlets prior to opening 
implement new sustainability strategy and 
make progress towards our intensity 
reduction target of 25 of direct emissions 
by 2018
optimising value
 
contribution per legal completion 
objective
kpi
we strive to maximise the level of contribution per  
home sold
definition
revenue net of incentives less build costs land costs  
and direct selling costs divided by the number of homes 
completed excluding joint ventures
why is it key to our strategy
our strategy is focused on value and we continue to 
prioritise both short and long term margin performance 
increasing the contribution per plot is a key driver to 
achieving this
2012 2013 2014
£496k
£388k
£339k
total order  
book value
£1397m
in 2014
forward order book as a percentage 
of completions 
objective
kpi
we look to maximise and maintain a strong order book 
definition
the number of homes in our year end order book 
expressed as a percentage of the number of homes 
completed during the year excluding joint venture 
completions
why is it key to our strategy
a strong order book provides our customers with good 
visibility and provides greater stability for business planning 
and enhances our ability to deliver the best experience for 
customers whilst driving the most value for shareholders 
2012 2013 2014
537
574
553
recruited
168
graduates  
apprentices and 
trainees
wwwtaylorwimpeycouk
23
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 24
our business model continued
proactively managing  
everything we do
selecting land
the home of chobham manor – 
queen elizabeth olympic park – is the 
uk’s biggest ever remediation project 
delivered as part of the london 2012 
olympic and paralympic games legacy 
the land now occupied by chobham manor 
used to house the olympic and paralympic 
basketball arena and is currently being 
redeveloped with 850 quality new homes 
once completed chobham manor will 
be one of the largest developments 
of family housing in london
getting the 
homebuilding  
basics right
at chobham manor our focus is on creating 
highquality sustainable homes and 
communities and we are delivering this through 
creating london’s traditional family 
neighbourhood of terraced and mews houses  
a number of homes will be multigenerational 
properties designed specifically for chobham 
manor to appeal to multiple generations of the 
same family in addition to quality new homes 
we will also deliver significant supporting 
infrastructure such as commercial and 
retail space play areas communal 
gardens and public open spaces
managing the planning  
and community  
engagement process
chobham manor is being designed to fully 
capture the familyfriendly nature of the 
neighbourhood while embracing the heritage of 
east london life with its famous community spirit 
and vibrant cultural diversity we are undertaking 
considerable consultation with a diverse range 
of local communities and other stakeholders 
in addition we have committed to long term 
community development plans including a 
range of innovative projects involving 
local people
taylor wimpey plc
annual report and accounts 2014
24 25
 
our people
as part of this regeneration scheme 
we have committed to increasing the 
employment and employability of local 
residents we have specific targets in place 
for employing construction workers and 
apprentices from underrepresented groups 
such as those from black and minority ethnic 
backgrounds women and disabled people  
we will also provide a range of work 
experience voluntary work and training 
courses for local people  college students 
and have targets for supporting local 
suppliers and subcontractors including 
small and medium enterprises
optimising value
our joint proposals with london  
quadrant for chobham manor were selected 
as part of a highly competitive bid process on 
the basis of offering the most attractive financial 
proposal alongside the best design and delivery 
credentials for this landmark scheme a percentage 
of private revenue received will be paid to the lldc 
with land payment made on a per plot basis when 
each home is completed thus providing extremely 
efficient cash flow and a shared risk approach 
chobham manor is one of the most highprofile 
developments in london and will set the 
standard for future housing development 
on the olympic site
delivering 
customer service
chobham manor’s stateoftheart show 
complex is one of the largest in the london 
residential property sector it is constructed 
over three levels with an impressive reception 
office space and an interactive area which 
features a 100inch interactive touch table 
smaller touch screens and ipads allowing visitors 
to take a virtual tour of chobham manor and 
the surrounding area and browse the homes 
for sale visitors can also save and compare 
floorplans of the new homes email 
screenshots to themselves and even 
see the view from the property
kpi
  for more information about chobham 
manor visit wwwchobhammanorcouk
wwwtaylorwimpeycouk
25 our approach to risk management
our risk assessment and management process
as with any business taylor wimpey faces a number of risks and uncertainties in the course of the day to day operations it is only  
by effectively identifying and managing these risks that we are able to deliver on our strategic objectives of improving operating margin  
return on net operating assets cash conversion and net asset value across the cycle 
the successful management of risk is essential to  
enable the group to deliver its strategic objectives 
our risk management and internal control framework 
defines the procedures that manage and mitigate risks 
facing the business rather than eliminate risk altogether 
and can only provide reasonable and not absolute 
assurance against material misstatement or loss
our risk management framework consists of risk  
registers that are maintained at all organisational  
levels which detail the risks faced by the group  
its operating companies and the central teams that 
support the business and a wider stakeholder group  
the registers identify key operational financial and 
strategic risks to the business with strategic risks  
being identified as part of the business planning process 
our risk registers take into account the significance of 
health safety and environmental issues together with 
social and governance matters of the group and use  
a standardised methodology for the assessment of risk
the standard methodology used in risk management 
requires each risk identified to be assessed and 
measured according to a risk matrix this matrix 
accounts for the likelihood and impact of each risk 
mitigating actions and hence the remaining or 
residual risk 
the risks identified are assessed for the potential  
effect on the group’s short and long term value our risk 
registers are refreshed on an ongoing basis as part of our 
financial planning cycle the registers feed into a formal 
halfyearly risk assessment that identifies the principal 
risks see pages 28 and 29 and allows the board to 
reevaluate the identified strategic risks facing the group
strategic objectives
risk management  mitigation
principal risks  uncertainties
the board supported by the 
gmt and the audit committee 
will identify the principal risks 
based on the assessment of the 
material risk register the principal 
risks will be disclosed with the 
half and full year results 
feedback regarding changes to 
principal risks is given to the risk 
owners who have been identified 
to manage the specific risk on 
behalf of the group
group material risk register
the material risk register is 
maintained by the gmt and 
reviewed by the audit committee 
with the promotion removal or 
change of risks being made as 
part of their assessment of the 
risk summaries and their views 
of the changes in the strategic 
risks facing the group each 
material risk on the register will 
be assessed as to its likely 
impact based on the group’s 
standard methodology
bu  central forecast  
and planning process
all risk registers are reevaluated 
and completed as part of the 
formal budget process every six 
months each regional business 
unit and central function will 
reassess with their senior 
management the risks they  
are facing and update their  
risk registers as required
bu  central risk register
from individual risk registers all 
risks are grouped to produce a 
business unit and central risk 
summary these risk summaries 
are discussed and assessed by 
the gmt and audit committee 
the gmt assessment includes  
a comparison of the risk 
summaries over time taking into 
account any changes in the risk 
impact assessment and their 
views on the strategic risks facing 
the group
identifying and managing our risks
kpi see pages 2829 for more information
taylor wimpey plc
annual report and accounts 2014
26 risk materiality process
the board determines the nature and extent of the principal risks it is willing to take in achieving its strategic objectives whilst maintaining 
sound risk management and internal control systems
the board oversees the risk and control framework  
of the group and the chief executive is responsible  
for implementing any necessary improvements with  
the support of the gmt in line with the uk corporate 
governance code the board holds formal risk reviews 
halfyearly the board reviews the risk profile of the group 
and the significant risks with the mitigating factors
at the meeting in february 2015 the board completed its 
annual assessment of risks this followed the audit 
committee’s formal assessment of risk which was 
supported by the detailed risk assessment by  
the gmt and their review of the effectiveness of internal 
controls the key risks affecting the group were identified 
and agreed with the board together with the actions and 
processes required to reduce their likelihood of 
occurrence and to mitigate their impact
principal risks probability
whilst the principal risks to the group being able to execute its business  
strategy have not fundamentally changed since 2013 the likelihood of the  
risk factors occurring may have changed the table below shows the residual 
likelihood of each risk following our risk mitigation strategies in both 2013 and 
2014 the table does not consider the relative size of the associated financial  
or reputational impacts for each principal risk item
medium
low high
2013
2013
2013
2013
2014
2014
2014
2014
2013
2014
2013
2014
a   government policy and  
planning regulations
b   impact of market environment on  
mortgage availability and demand
c   material costs and  
availability of subcontractors
d   ability to attract and retain  
highcalibre employees
e  land purchasing
f  site and product safety
wwwtaylorwimpeycouk
27
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 principal risks and uncertainties
kpi
the table below summarises the group’s principal risks and uncertainties these are not listed by order of importance we also maintain  
a sustainability and climate change risk and opportunity register to monitor other sustainability issues that could affect the group  
more information is available in our sustainability report at wwwtaylorwimpeycoukcorporatesustainability
a
relevance to strategy potential impact on kpis mitigation progress in 2014
government policy and 
planning regulations
the implementation of the  
national planning policy framework  
the localism act and the community 
infrastructure levy cil has had  
a significant impact on the planning 
system a further change in  
government policy although  
unlikely following an election could  
have a disrupting or destabilising  
effect on the planning system
responsibility
 − chief executive
 − director of land and planning
 − other members of our senior 
management team
 − regional managing directors
our ability to build our homes  
and communities is dependent  
on obtaining planning permissions  
and other regulatory requirements  
and permits
although the new planning system  
is having a positive effect it is still a 
relatively new system with the powers 
within the processes still being tested 
the risk of extended timeframes for 
gaining consent or legal challenge 
continues any further structural 
change to the process following an 
election although unlikely could have  
a slowing effect on planning consent
cil is currently being taken up slowly 
by local authorities there is a risk of 
planning applications being delayed 
refused or challenged post april 2015
 − inability to obtain suitable 
consents or unforeseen 
delays could impact on  
the number or type of homes 
that we build we may be 
required to fund higher levels 
of planning obligations or 
additional costs to meet 
increased regulatory 
requirements 
 − the locally produced cil 
charge schedules may 
increase costs and so  
impact the viability of current 
developments in addition 
where local cil charges are 
not in place there could be  
an impact on gaining planning 
consent or judicial review 
challenge
 − this could have a detrimental 
impact on the contribution  
per plot 
we have responded to the 
changes in planning policy by 
introducing a comprehensive 
communityled planning strategy 
which improves communications 
with all parties but especially local 
communities thereby enhancing 
our ability to deliver developments 
that meet local requirements
we consult with government 
agencies and opposition parties 
on housing policy both directly 
and indirectly as a member of 
industry groups to highlight 
potential issues and to understand 
any proposed changes to 
regulations
our customer and community 
engagement strategy is 
becoming embedded and 
having a positive effect
we have been successful in 
gaining planning consents 
through the year with particular 
emphasis on the conversion  
of the strategic land pipeline
we continued our participation 
in the local plans management 
group pmg via the hbf  to 
ensure local plans are robust 
and cil charge schedules are 
appropriate
b
impact of market 
environment on mortgage 
availability and demand
mortgage availability is a key constraint 
on the demand for housing following 
the mortgage market review in april 
2014 stricter guidelines were 
introduced for lenders to assess 
mortgage affordability in 2015 the bank 
of england’s financial policy committee 
fpc gained new powers including 
setting loantovalue and debtto
income limits for residential mortgages
also whilst the government has 
extended phase 1 of the help to buy 
scheme to 2020 there is uncertainty 
over the impact when the scheme is 
removed
responsibility
 − group management team
 − uk sales and marketing director
 − regional sales and marketing 
directors
the majority of the homes that we  
build are sold to individual purchasers 
who take on significant mortgages  
to finance their purchases a change  
in business confidence or employment 
opportunities can impact on the 
demand for housing in particular  
the ability for first time buyers and 
investors to purchase homes is 
impacted by changes in mortgage 
availability at the higher loantovalue 
levels as it would impact on the level  
of deposits required
the new fpc policies may lead to  
a delay in mortgage approvals and 
restrict the volume of approvals
 − a reduction in effective 
demand for new homes  
below normal levels could 
negatively impact on both 
profitability and cash 
generation this would have 
an adverse effect on return  
on net operating assets and 
net debt
our local teams select the 
locations and home designs  
that best meet the needs of the 
local community and customer 
demand in the present and future 
we evaluate new outlet openings 
on the basis of local market 
conditions and regularly review  
the pricing and incentives that  
we offer 
we work closely with the  
financial services industry to 
ensure customers receive good 
advice on the procurement of 
mortgage products
we offer the government
backed help to buy scheme 
and have seen strong interest 
in the scheme amongst our 
customers 
we launched a new taylor 
wimpey website in 2013  
to provide best in industry 
customer experience and 
better insight into the  
taylor wimpey products
throughout 2014 we have 
continued to develop good 
working relationships with 
established mainstream 
lenders and those wishing  
to increase volume within  
the new build market
c
material costs and 
availability of 
subcontractors
an increase in production following  
the recovery of the housing market  
may reduce the availability of materials 
and subcontractors resulting in an 
unexpected increase in costs it has 
also put pressure on utility firms to  
keep up with the pace of installation 
leading to build programme and 
completion delays
responsibility
 − head of procurement
 − regional commercial directors 
in order to optimise our build cost 
efficiency whilst retaining the flexibility 
to commence work on new sites  
as planning consents allow the vast 
majority of work carried out on site  
is performed by subcontractors 
without the introduction of new 
resources into the housing market 
labour and material prices could 
increase
 − if the availability of 
subcontractors or materials  
is insufficient to meet demand 
this could lead to increased 
build times increased costs 
and thereby reducing 
profitability 
 − lack of skilled subcontractors 
could also result in higher 
levels of waste being produced 
from our sites and lower  
build quality
we maintain regular contact with 
suppliers and negotiate contract 
volume pricing and duration  
as appropriate in addition we 
provide both highlevel and site 
specific programme information  
to aid with demand planning
competencies are considered as 
part of our subcontractor selection 
process particularly in relation to 
health and safety quality previous 
performance and financial stability 
we work to address the skills 
shortage through apprenticeship 
schemes and the construction 
industry training board
during 2014 industry volumes 
continued to increase the 
demand for building materials 
the group has agreed product 
allocations and volumes  
with key suppliers to mitigate 
against extended lead times 
and potential shortages
we have made progress  
in delivering increased build 
efficiency by the ongoing 
review of our standard house 
types and selective regional 
cost benchmarking
taylor wimpey plc
annual report and accounts 2014
28 kpi
kpi
d
relevance to strategy potential impact on kpis mitigation progress in 2014
ability to attract and retain 
highcalibre employees
recruiting employees with inadequate 
skills or in insufficient numbers or not 
being able to retain key staff with the 
right skills for the future could have  
a detrimental impact on our business
responsibility
 − chief executive
 − group hr director
 − every employee managing people
our value cycle requires significant 
input from skilled people to deliver 
quality homes and communities  
for our customers 
with the recovery in the housing 
market there is a greater incidence  
of ‘poaching’ in the housebuilding 
market this together with the recent 
changes in the planning system has 
meant that the demand for highquality 
trained employees has increased and  
is key to achieving our strategic goals
 − not having the right teams 
in place could lead to delays 
in build quality issues 
reduced sales levels 
poor customer service 
and reduced profitability
we closely monitor employee 
turnover levels on a monthly  
basis and conduct exit interviews 
as appropriate to identify any 
areas for improvement 
we benchmark our remuneration 
to ensure we are competitive 
within the industry and have 
succession plans in place for key 
roles within the group we hold 
regular development reviews to 
identify training requirements
during 2014 we increased  
our intake of apprentice and 
trainee schemes 
a programme for all senior 
managers was introduced  
to support open dialogue and 
constructive conversation with 
employees the graduate and 
apprenticeship programmes 
continued developing skills at 
entry level positions
an assessment and 
development centre was run 
for employees with potential for 
director level roles to support 
robust development plans 
e
land purchasing
the purchase of land of poor quality  
at too high a price or incorrect timing  
of land purchases in relation to the 
economic cycle could impact future 
profitability
responsibility
 − group management team
 − divisional managing directors
 − regional managing directors
 − regional land and planning directors
 − strategic land managing directors
land is the major ‘raw material’ for  
the group and the limited availability  
of goodquality land at an attractive 
price throughout the housing cycle 
leads to significant competition
purchasing land of the appropriate 
quality on attractive terms at the right 
time and scale in the economic cycle 
will enhance the group’s ability to 
deliver future profit growth as the 
housing market recovers
 − purchasing poorquality or 
mispriced land or incorrectly 
timing land purchases would 
have a detrimental impact on 
our profitability and returns 
 − the purchasing of insufficient 
land would reduce the group’s 
ability to actively manage its 
land portfolio and create  
value for shareholders
our land teams select and 
appraise each site our appraisal 
process ensures each project is 
financially viable consistent with 
our strategy and appropriately 
authorised dependent on the 
proposed scale of expenditure 
we strive to be the developer  
of choice by adopting a 
comprehensive approach 
encompassing land vendors  
land agents local councils and 
local communities 
our strategic land teams work 
alongside regional businesses to 
identify and secure land with the 
potential for future development 
and promote it through the 
planning system
the short term land market 
remained balanced and 
disciplined throughout  
2014 enabling us to continue 
to source and invest in short 
term valuecreating land 
opportunities at investment 
margins of around 20 
operating margin following  
a period of strong investment 
we are now at our optimum 
size of landbank in 
combination with the strong 
conversion of the strategic 
pipeline our reliance on 
purchasing short term land  
has diminished providing 
some insulation from an 
increase in land price
f
site and product safety 
building sites are inherently dangerous 
places unsafe practices  
by our employees or subcontractors 
have the potential to cause death  
or serious injury
responsibility
 − chief executive
 − director of health safety and 
environment
 − every employee and subcontractor
our operations involve and interface 
with a large number of people  
people range from employees and 
subcontractors to customers and  
their families who live on or visit our 
sites each day we want all of these 
people to go home at the end of the 
day safe and uninjured
 − in addition to the potentially 
tragic personal impact of  
an accident on site or after 
customer completion there  
is potential for legal proceedings 
financial penalties reputational 
damage and delay to the  
site’s progress
we have a comprehensive health 
safety and environmental hse 
management system in place 
which is integral to our business 
this is supported by our policies 
and procedures to ensure that we 
live up to our intention of providing 
a safe and healthy working 
environment and build homes  
that comply with the required 
regulations we provide extensive 
hse training for our employees 
we run hse induction training 
poster campaigns as well as 
providing regular site toolbox talks 
for our contractors and operatives
all hse issues are reviewed by  
the gmt and where appropriate 
actions put in place to rectify 
issues or prevent a recurrence  
we continue to compare 
favourably with the uk  
housebuilding and construction 
industry in terms of site safety 
we have continued to keep  
our annual injury incidence  
rate aiir low at 209 per 
100000 employees and 
contractors in 2014 2013 
207 we reduced our aiir for 
major injuries from 60 in 2013 
to 26 in 2014 during 2014  
we continued our site safety 
training extending training to 
over 2750 groundworkers’ 
supervisors each receiving  
a site safety supervisory 
qualification 
we introduced additional 
working platform lifts on all  
our scaffolds resulting in a 
significant reduction in the  
risk of injury from falls or slips 
particularly from operatives 
working at midfloor or roof 
level we introduced specialist 
equipment on all sites to  
make ladders safer to use
wwwtaylorwimpeycouk
29
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 our approach to sustainability 
our aim is to balance the long term economic stability 
and growth of our company with our responsibilities to 
the environment society and the economies in which 
we operate 
ultimate executive accountability for sustainability and 
climate issues continues to rest with our chief executive 
pete redfern our sustainability steering group ssg 
coordinates our sustainability activities at the 
operational level
taylor wimpey continues to be a constituent of the 
dow jones sustainability europe index and the 
ftse4good index series we participate annually in cdp 
the carbon disclosure project and received a score of 
88 for disclosure and performance band c in 2014 
2013 75  d we are delighted that taylor wimpey 
was highly commended in the ftse 250 sustainability 
reporting category of the pwc building public trust 
awards 2014 which aim to recognise trust and 
transparency in corporate reporting
sustainability
creating sustainable communities
our sustainability recognition
 − our cambourne development in cambridgeshire was named best low  
or zero carbon initiative at the housebuilder awards 2014
 − our city mills development in london won best regeneration project  
at the national housing awards 2014
 − 96 of our employees believe that taylor wimpey takes its social and 
community responsibilities seriously
global ghg emissions for period 1 january to 31 december
2014 2013
category t otal emissions tonnes co
2
e
emissions from combustion of fuel scope 1 16436 16177
emissions from electricity heat steam and cooling purchased for own use scope 2 11885 10526
t otal scope 1 and 2 emissions 28322 26703
emissions intensity emissions per 100 sqm of completed homes 245 248
percentage reduction in direct carbon emissions intensity scope 1 and 2 12 
 not available due to using a new emissions measurement methodology in 2013 due to the introduction of mandatory carbon reporting this means that 2013 data is not entirely 
comparable to previous years
methodology
we have used the ghg protocol corporate accounting and reporting standard revised edition data gathered to fulfil our requirements under the crc energy efficiency 
scheme and mandatory carbon reporting requirements and emission factors from the government’s ghg conversion factors for our corporate reporting
we have reported on the emissions sources required under the companies act 2006 strategic report and directors’ reports regulations 2013 apart from the exclusions 
noted the reported sources fall within our consolidated financial statement and are for emissions over which we have financial control we do not have responsibility for any 
emissions sources that are not included in our consolidated statement
the following sources of emissions were excluded or partexcluded from this report
–  fugitive emissions refrigerant gases excluded on the basis of difficulty in acquiring disparate data
–  gas and electricity of partexchange properties excluded on the basis of immateriality due to very few completions of this type
–  certain joint venture properties where taylor wimpey was not part of the handover process in these cases other housebuilders have captured mcrrelated data
–  combined heat and power chp plants excluded on the basis of difficulty in acquiring data
kpi  please see our sustainability report 2014 for further information on our emissions data and methodology at wwwtaylorwimpeycoukcorporatesustainability
taylor wimpey plc
annual report and accounts 2014
30 integrating sustainability 
in 2013 we launched our sustainability strategy  committing 
t aylor wimpey to working towards being a more socially  
environmentally and economically sustainable company 
and in 2014 we continued our work towards this 
our sustainability strategy sets out a range of strategic 
commitments that relate to key social environmental and 
economic issues the strategy works alongside our energy 
and carbon strategy  our six sustainability principles apply 
to all of our business activities from identifying land through 
to completing and handing over our developments these 
can be found within our sustainability report 2014
key initiatives in 2014 included reviewing our internal 
processes with regard to flood risk undertaking a water 
audit and a biodiversity review investigating climate change 
adaptation and continuing with our energy reduction 
programme on sites in sales areas and in offices 
we continue to maintain best practice community 
engagement and health and safety remains a non
negotiable top priority 
we do much more than build homes
our operations add significant additional value to 
communities in which we build for example job creation 
improvements to local environments and infrastructure as 
well as contributions to education and community facilities 
creating sustainable and vibrant communities 
during 2014 we contributed £300 million to local 
communities via section 106 and section 75 planning 
obligations 2013 £227 million since 2010 we have 
invested over £930 million
we also support charities at both a national and regional 
level housing and homelessness continued to be key 
areas of focus for us in 2014 underpinned by our long
standing partnership with centrepoint and our network  
of six regional homelessness charities across the uk as  
well as crash and crisis in addition during the year we 
also supported a range of other charitable causes including 
macmillan cancer support y outh adventure t rust and 
mayor’ s fund for london 
in total during 2014 we raised over £539k 2013 £415k  
for registered charities through donations and fundraising
human rights
we support the united nations’ universal declaration of 
human rights and have policies and processes in place  
to ensure that we act in accordance with our cultural  
values which encompass areas such as equal opportunities 
anticorruption and whistleblowing we do not consider this 
a material issue in our business
greenhouse gas emissions ghg
we continue to take steps to improve our approach to 
climate change mitigation adaptation and transparency  
data is provided as tonnes of carbon dioxide equivalent 
co
2
e and covers 100 of our housing operations 
including our sites offices business travel as a result  
of waste disposal and throughout our supply chains 
our 2014 scope 1 and 2 data has been externally verified 
by the carbon t rust
outlook
being a sustainable business is fundamental to each 
component of our business model and the long term 
success of our company  we will continue to measure 
monitor and report annually on our sustainability 
performance and will strive to further integrate sustainability  
into every aspect of our business in 2015 
more information about our sustainability activities 
further information about our sustainability activities and policies can be found  
within our dedicated sustainability report and on our website 
kpi wwwtaylorwimpeycoukcorporatesustainability
visit our website for more information about our approach to land and planning  
sustainability design and developing communities as well as case studies  
of developments we have built in your area 
kpi wwwtaylorwimpeycoukaboutus
sustainability report 2014
building 
more
than homes
 our aim is to balance the long term economic 
stability and growth of our company with our 
responsibilities to the environment society  
and the economies in which we operate
invested 
£300m
via section 106 and  
section 75 planning 
obligations
donated or  
fundraised over  
£539m
for registered charities  
in 2014
wwwtaylorwimpeycouk
31
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 sold
selecting land managing the planning 
and community 
engagement process
getting the 
homebuilding  
basics right
sustainability continued
evaluating our progress 
we continue to set and benchmark ourselves against annual sustainability targets and a series of key performance indicators please see our 
sustainability report 2014 for further information on progress in 2014 and targets for 2015
our sustainability 
reporting was highly 
commended in the pwc 
building public trust 
awards 2014
progress
 − continued to focus on selecting the right land 
and developing it in a sustainable manner
 − launched new guidance for employees  
on our approach to sustainable 
development
 − reached our optimal short term landbank 
size and strengthened our strategic land 
pipeline with a record performance where 
we converted over 10k plots from the 
strategic pipeline into the short term 
landbank
targets for 2015
 − continue to focus on selecting the right land 
and developing it in a sustainable manner
 − average of 40 of strategically sourced 
completions per annum in the medium term
 − strategic pipeline conversion target of  
c6k plots per annum in the medium term
progress
 − continued to undertake tailored 
development specific engagement with  
local communities on each and every  
one of our uk sites
 − updated and reissued our community 
engagement toolkit
 − further developed the website pages  
for our proposed developments and 
promoted our website as a community 
engagement tool
 − undertook pilots of social media use in 
community engagement to understand  
how social media could contribute to  
our community engagement process
 − continued to provide employees with 
training on our integrated approach to 
sustainable development community 
engagement and design
 − launched an economic benefits toolkit  
for use during consultation
 − launched a new curriculum pack to help  
our regional business units to engage  
with local school pupils and their parents
targets for 2015
 − continue to investigate digital aspects  
of community engagement including 
analysing the outcomes of our social  
media engagement pilots
 − continue to maintain best practice 
community engagement
progress
 − produced new guidance on design in  
our approach to placemaking
 − reviewed internal processes with regard  
to flood risk undertook a water audit and 
biodiversity review and investigated climate 
change adaptation
 − continued with our energy reduction 
programme on sites in sales areas  
and in offices
 − our scope 1 and 2 carbon emissions 
intensity reduced by 12 in 2014 we 
expect a greater reduction in 2015 as our 
energy reduction programme progresses
 − our construction waste increased in 
comparison to 2013 levels however 
we continue to compare favourably with 
our peers
 − introduced a major new hse theme 
initiative and new procedures on safe 
working at height
targets for 2015
 − reduce our mains water consumption 
from our metered uk offices by 3 per  
full time employee and develop a  
businesswide water reduction strategy 
 − use the findings of our biodiversity 
review to develop a biodiversity strategy
 − continue to progress towards our carbon 
intensity reduction target of 25 by 2018
 − develop and implement action plans for 
reducing construction waste by 15
 − continue with our energy reduction 
programme on sites in sales areas  
and in offices
 − improve or as a minimum maintain the 
same annual injury incidence rate aiir 
achieved in 2014
taylor wimpey plc
annual report and accounts 2014
32 sold
delivering customer service our people optimising  
value
progress
 − undertook more detailed research and 
continued with our indepth customer 
service review with a view to developing a 
customer service strategy and action plans 
in 2015 
 − increasing customer satisfaction has been  
a clear priority for us and we have created  
a new role of customer director
 − we are disappointed that our customer 
survey results in 2014 mean that we will  
achieve a fourstar rating for customer 
satisfaction in 2015 we aim to achieve a 
fivestar rating again as soon as possible
 − reviewed and updated the 40 existing 
modules of our sales academy and 
introduced community engagement  
and sustainability modules
targets for 2015
 − customer service will remain a key area  
of focus for us in 2015 
 − draw up a comprehensive customer  
service strategy and action plans 
 − continue to develop our marketing academy
progress
 − recruited a new group human 
resources director as well as creating  
new roles of head of talent and senior 
resourcing manager
 − continued to work on diversity 
and established a diversity and  
inclusivity committee
 − recruited 99 apprentices including  
29 site management apprentices 50 
management trainees and 19 graduates
 − undertook our employee engagement 
survey
 − continued to develop our approach  
to learning and development for our 
production and technical employees
targets for 2015
 − update the human resources strategy 
for taylor wimpey
 − continue our current graduate management 
trainee and trade apprenticeship schemes 
and attract at least 20 new graduates  
20 management trainees and 100  
new apprentices
 − undertake an annual employee survey
 − expand the development opportunities 
across our senior teams
progress
 − continued to do much more than build 
homes using our approach to design and 
our planning agreement contributions to 
add social environmental and economic 
value to the wider communities in which 
we operate
 − ran initiatives with schools colleges  
and higher education providers to provide 
educational projects work experience  
jobs and help with employability
 − became involved in a wide range of 
charitable and community activities 
throughout the uk
 − continued to support homelessness 
charities
targets for 2015
 − continue to add social economic  
and environmental value to the wider 
communities in which we operate and 
continue to report on progress
 − expand the membership of our charity 
committee and review our charity focus
our east london 
regional business  
was named private 
developer of the  
year at the first  
time buyer  
magazine readers’ 
awards
achieved 
70 
pride in the job  
quality awards  
in 2014
wwwtaylorwimpeycouk
33
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 taylor wimpey plc is a ukfocused residential developer 
with a small operation in spain our operating review  
is uk only as the majority of metrics do not apply to the 
spanish business a short summary of the spanish 
business follows
sales completions and pricing
in 2014 we saw the benefit of the improved environment 
in all of our regional markets we were pleased to see 
greater balance across the regional markets coming into 
effect in the second half of 2014 with slower and more 
sustainable price growth after a very strong first half
customer demand remained high across all regions  
and was helped by a more affordable and accessible 
mortgage market due to both help to buy and a  
more competitive lending environment 
we have maintained steady and sustainable volume 
growth total home completions increased by 65 to 
12454 including our share of joint venture completions 
up from 11696 in 2013 of which 175 were affordable 
housing completions 2013 182 our net private 
reservation rate for the full year was 064 homes per 
outlet per week 2013 062 with cancellation rates still  
at low levels at 14 2013 13 
average selling prices on private completions increased 
by 114 to £234k 2013 £210k this increase is both  
a result of our underlying shift to better quality locations 
and capturing market sales price increases which  
came through largely in the first half of the year our  
total average selling price increased by 115 to £213k 
2013 £191k 
contribution per completion increased by 278 to a 
record £496k per home 2013 £388k
as at 31 december 2014 our order book represented 
6601 homes 31 december 2013 6627 homes which 
we believe is the optimal size for the business at this point 
of the cycle this order book increased in value by 121 
to £1397 million 31 december 2013 £1246 million 
driven largely by the strength of private reservations  
as at 31 december 2014 the average price in the private 
order book increased by 165 to £283k 31 december 
2013 £243k 
we ended the year with 305 outlets 31 december 2013 
314 with the decrease due to faster outlet closings in a 
healthier market and the time required to meet additional 
a strong underlying business 
with a focus on quality
operating review
completed
12454
homes  
in 2014
average selling price
£213k
in 2014
highlights
 − completed 12454 homes across the uk up 65 with an 115 increase  
in total average selling price to £213k 2013 11696 homes at £191k
 − acquired 8315 highquality plots in the uk short term land market 
 − worked with communities planners and landowners to convert a record  
10779 plots from the strategic pipeline
 − excellent year end order book representing 6601 homes 31 december 2013 
6627 and a total value of £1397 million 31 december 2013 £1246 million
 − continued to keep our annual injury incidence rate low at 209 per 100000 
employees and contractors in 2014 2013 207
 − increased recruitment of 99 apprentices including 29 site management 
apprentices 50 management trainees and 19 graduates 2013 total 89
taylor wimpey plc
annual report and accounts 2014
34 planning permission requirements to start working on 
site we expect the total number of outlets to increase in 
2015 reflecting our success in the land market and our 
continued focus to get newly acquired sites and phases 
opened properly and efficiently 
we continue to grow our london presence across all the 
boroughs in a selective and managed way focusing on 
achieving the best returns during 2014 we operated on 
an average of 18 outlets in london 
selecting 
land
the value we create for our shareholders communities 
and for customers all starts with land and it is the area  
we add most value through planning allowing us to 
generate the best quality returns
taylor wimpey is differentiated by the strength 
and quality of its landbank this is as a result of our 
disciplined approach to land investment and our long 
term view of value and is ultimately the source of our 
future profitability and cash generation as at the end 
of december 2014 our total land portfolio including 
the strategic pipeline stood at a potential c£39 billion 
in revenue at current prices our land portfolio continues 
to generate excellent returns for shareholders in excess 
of our investment targets our landbank is broadly 
spread across the country in targeted quality locations 
supported by strong demographics and economics in 
the villages towns and cities where people want to live
the short term land market remained balanced and 
disciplined throughout 2014 enabling us to continue  
to source and invest in short term valuecreating land 
opportunities at investment margins of around 20 
operating margin in 2014 we acquired 8315 plots in the 
short term land market 2013 9560 plots as previously 
announced we have now reached our optimal short term 
landbank size and so we are currently maintaining rather 
than growing the short term proportion of our landbank 
as at the end of december 2014 our short term landbank 
stood at c75k plots equivalent to csix years of supply at 
current completion levels the average selling price in the 
uk short term owned landbank in 2014 has increased by 
133 to £222k 2013 £196k driven by the quality of 
additions and the improvement in the housing market 
our success and expertise in sourcing and converting 
land which does not have residential planning consent  
at the time we take a commercial interest our strategic 
pipeline is a key part of our strategy and underpins our 
confidence in delivering sustainable margins through the 
cycle we have one of the largest strategic pipelines in 
the sector which stands at c110k potential plots  
31 december 2013 c110k potential plots a large 
strategic pipeline enables us to manage our cash flows 
and underpins our profitability by providing a source  
of land supply at enhanced margins this also protects 
the quality of the short term landbank decreasing the 
pressure on the teams across the business to compete  
in the short term land market we worked with local 
authorities and communities to convert a further  
10779 plots from the strategic pipeline to the short term 
landbank in 2014 a record for taylor wimpey 2013 
9210 plots this is well in excess of our medium term 
conversion target of c6000 plots per annum this 
provides us with increased choices and opportunities  
and we will pursue land disposals on larger sites where 
we can achieve the best value we continue to invest  
in new opportunities and in 2014 we added c18k new 
potential plots to the strategic pipeline in 2014 a record 
39 of our completions were sourced from the strategic 
pipeline 2013 29 our aim is to increase completions 
from the strategic pipeline to over 40 per annum in  
the medium term with over 50 of our landbank  
now comprising strategically sourced land 2013 50  
we are well placed to deliver strong strategic pipeline 
performance and generate value from this part of  
our landbank 
managing the planning 
and community 
engagement process
we do much more than build homes we are first and 
foremost a local business and an important contributor  
to the local communities in which we build and to the 
sustainability of those communities and areas 
we operate as a very local business and firmly believe  
we have an implicit commitment to serve the local 
communities in which we work with this responsibility 
growing with our success in 2014 we contributed 
£300 million to local communities in which we build 
across the uk via planning obligations providing local 
infrastructure affordable homes public transport 
and education 2013 £227 million in addition we 
continued to sponsor numerous local teams and 
events from football teams through to gardening clubs
we know that local communities do not always welcome 
housing developments in their area so it is essential that 
we seek to engage consult and work in partnership with 
communities and all interested stakeholders both before 
we submit a planning application and during the life cycle 
of the site in this way we can listen to their concerns and 
incorporate these within our plans where possible
wwwtaylorwimpeycouk
35
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 during 2014 we organised 158 days of community 
events and exhibitions and 266 community meetings  
we were delighted that 96 of our employees believe 
that taylor wimpey takes its social and community 
responsibilities seriously
we aim to be the residential developer that everyone 
wants to deal with and through our creative approach  
to the planning system focus on localism and efforts  
to become the preferred partner we believe we are 
becoming the landbuyer of choice 
planning is fundamental to the success of our business 
and we aim to progress sites through planning as 
efficiently as possible we support the government’s 
localism act and work closely with local authorities  
and communities throughout the planning process and 
beyond we aim to create development proposals that 
are financially viable benefit the local community and 
provide the housing that is needed 
our taylor wimpey website includes pages for all of our 
proposed developments throughout the uk and we have 
continued to develop and improve the functionality and 
content of these pages in 2014 by the end of 2014 we 
had trained relevant employees in all of our regional 
business units on how to design fill and update the 
content of these pages
we are committed to publishing information on proposed 
developments online so that members of local 
communities and other interested parties can easily  
find out what we are planning and where we would like 
people to register their interest so we can update them 
on progress above all we want wider and more diverse 
groups and individuals to get involved and tell us their 
views whether positive or negative 
getting the 
homebuilding  
basics right
getting the basics right means effective processes 
consistently applied 
health and safety
the health and safety of individuals on our sites is  
our nonnegotiable top priority we are committed to 
providing a safe place in which our employees and 
subcontractors can work and our customers can live 
this was reflected in our 2014 employee survey which 
found that 99 of staff believe that taylor wimpey is 
committed to health and safety and keeping people safe
we have a comprehensive hse health safety and 
environmental strategy in place with accompanying 
action site operational plans we have continued to keep 
our annual injury incidence rate aiir for reportable 
injuries low at 209 per 100000 employees and 
contractors in 2014 2013 207 we reduced our 
aiir for major injuries from 60 in 2013 to 26 in 2014 
in 2014 we provided an average of 53 days per 
person of formal hse training to our site operational 
staff 2013 43
a
 and 02 days to other support staff 
2013 02 we continue to provide a range of training for 
our operatives from induction training and hse training 
poster campaigns to regular onsite hse training briefing 
sessions known as toolbox talks 
we continue to engage extensively with contractors and 
operatives on health and safety working in partnership 
with them to continually find safer ways of carrying out 
their tasks on site during 2014 we launched our hse 
theme initiative which provides a new approach to 
hse communication and supervision on site 
we continued our groundworker training and 
engagement and supervision initiative in 2014 and have 
now trained a total of 2753 groundworkers’ supervisors 
since the initiative began in 2012 in 2014 we introduced 
additional working platform lifts on all our scaffolds 
significantly reducing the risk of injury from falls or slips 
operating review continued
achieved 
70 
pride in the job  
quality awards  
in 2014
safety training 
53 
days for site  
operational staff 
health and safety continues to be our  
nonnegotiable top priority
a we changed our methodology for calculating hs training days for site 
management and operational staff in 2014 data for 2013 and 2012 
has been amended accordingly
taylor wimpey plc
annual report and accounts 2014
36 particularly when operatives are working at midfloor 
or roof level we introduced specialist equipment on 
all sites to make ladders safer to use 
quality product range 
we build homes that people want to live in we are proud 
of the homes we build and the communities we create 
our focus is on providing highquality welldesigned 
sustainable homes and communities that meet the needs 
and aspirations of local residents our mix of homes is 
informed by the local area
we continue to offer a wide range of homes from 
apartments to five bedroom houses with prices ranging 
from under £100k to over £3 million
in 2014 the proportion of apartments in our private 
completions was 18 2013 20 strategically we  
look to maintain this level at between 20 and 25 of 
our business the average square footage of our private 
completions also increased slightly to 1042 square feet 
2013 1038 square feet
we are pleased to report that taylor wimpey achieved  
its strongest performance yet in the national house
building council nhbc pride in the job awards 2014 
with our site managers winning a total of 70 quality 
awards 2013 68 23 seals of excellence 2013 17  
and five regional awards 2013 five regional winner 
andy shaw from our midlands regional business  
was also named runnerup in the multistorey builder 
category at the supreme awards for his work at our  
diglis water development in worcester
during 2014 our house type range was fully utilised on  
all appropriate sites as at the end of january 2015 this 
range was plotted on c70 of active sites these homes 
are designed to be highquality and extremely energy 
efficient alongside being costeffective and safe to build 
they are also extremely flexible with different internal 
layouts and exteriors that can be varied to complement 
local landscapes and streetscapes this in combination 
with our national deals and our scale will help to mitigate 
expected build cost inflation
build costs and efficiency
our scale affords us the benefit of strong purchasing 
power and we achieve significant cost savings across  
our regional businesses with national agreements with  
a number of suppliers 
during 2014 the improved market resulted in underlying 
build cost increases excluding house type mix impact  
of c5 this was broadly spread between labour and 
materials during the year manufacturing of key 
components of housebuilding such as bricks increased 
to keep pace with the growth of the industry and as a 
result we are now seeing reduced pricing pressure on 
materials we anticipate that build cost inflation should 
somewhat reduce as the industry adjusts to the 
increased labour and material demand it is pleasing to 
note that capacity for key supplies is increasing following 
greater certainty on the rate of housebuilding
national deals account for 90 of key materials  
we purchase and are supplied through our central 
procurement division which focuses on achieving best 
supplier value assessing sustainability credentials and 
helping to achieve a more secure supply source our 
internal supply chain logistics business taylor wimpey 
logistics is also an important part of our supply chain 
management in the current environment taylor wimpey 
logistics sources bulk materials directly from 
manufacturers generally using national contracts 
providing us with an alternative route to delivery and 
aiding efficiency with the preparation of ‘just in time’  
build packs for each stage of the building process
we rely upon our suppliers and subcontractors and strive 
to work in partnership with them to ensure their safety on 
our sites to treat them fairly and with respect and to 
make sure that they are paid promptly
environment 
we remain committed to high standards of environmental 
management on all of our developments and sites we 
strive to keep any adverse effects that our activities may 
have on local environments and communities such as 
pollution and ecological damage to a minimum and to 
make a positive contribution to the environment of the 
areas we build in 
we acknowledge the global threat of climate change 
and are committed to reducing our emissions energy 
use waste and water use in 2014 we continued with 
our energy reduction programme on sites in sales areas 
and in offices we also conducted a review of climate 
change adaptation our scope 1 and 2 carbon emissions 
intensity reduced by 12 in 2014 we expect a greater 
reduction in 2015 as our energy reduction programme 
progresses
we have a comprehensive waste and resource  
strategy and action plan for our housing operations and 
our supply chain we see materials as resources using 
them more efficiently through design and on site recovery 
and keeping waste generated to a minimum in 2014 we 
saw our construction waste increase to 458 tonnes per 
100 square metres of completed floor area 2013 359 
our research indicates that nationally there has been 
upward pressure on waste generation figures in 2014  
 during 2014 our house type range 
was fully utilised on all appropriate sites
wwwtaylorwimpeycouk
37
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 we have identified numerous potential contributory 
factors the principal one being skills shortages 
associated with the upswing in homebuilding activity  
in 2015 we will develop and implement action plans for 
reducing our construction waste by 15 even at our 
2014 level of waste generation our construction waste 
figures compare very favourably with our peers
new homes are considerably more energyefficient  
than older housing stock and we are committed to  
building increasingly energyefficient homes in line with 
government policy and build regulations our ‘fabric 
first’ approach to energy efficiency which concentrates 
on highly insulated walls and windows helps owners  
to save energy and money 
housebuilding can impact on biodiversity so we need to 
ensure that we build sensitively with regard to the ecology 
of the land being developed during 2014 we undertook 
an indepth review of biodiversity with a view to 
developing a biodiversity strategy for taylor wimpey
we undertook a water audit in 2014 and have reported 
on water use for the first time in our sustainability 
report 2014
we carry out flood risk assessments on all sites in 
consultation with water authorities and the environment 
agency as required to ensure appropriate design for 
each site flooding is an issue in the uk and we take 
flood risk extremely seriously in 2014 we reviewed our 
internal processes to ensure that we effectively assess 
and manage flood risk now and in the future 
sold
delivering 
customer service
we have a strong and sustainable customer base  
with over 90 owner occupiers first time buyers 
accounted for 35 of our sales 2013 38 
we continue to offer a wide range of products to assist 
first time buyers our prices are set locally and we use 
targeted customer incentives on a site by site basis 
knowing that our customers’ circumstances vary
we know each home we build is aspirational to the 
customer who purchases it regardless of price and we 
want our processes and quality to reflect this it is critical 
that as our business grows we continue to concentrate 
on maintaining a high level of customer service 
in 2014 we achieved a customer satisfaction rate  
of 87 2013 90 with the decrease reflecting the 
challenge to deliver our homes on time as the labour 
market adapted to the better sales market whilst this 
remains high in comparison to historic trends we are  
very disappointed that this has decreased during 2014 
we began an indepth review of every aspect and  
stage of our customer experience to identify areas of 
improvement and to deliver a better homebuying 
experience for our customers this is a very important 
area for us and will continue to be a key focus in  
2015 and on an ongoing basis as we work to realise 
improvements to our service and to our customers’ 
experience
sales and marketing
over the years our customers’ communication 
preferences have changed with visits to our website  
from mobile devices increasing by 42 as well as 
increased visits during 2014 our awardwinning website 
has proven very successful in generating 13 more 
telephone calls than 2013
the government’s help to buy equity loan remains very 
popular with our customers during 2014 approximately 
35 of total sales used the scheme and we worked  
with c4400 households to take the first step to home 
ownership or to move up the housing ladder approximately 
73 of sales through help to buy in 2014 were to first 
time buyers 
our people
our people are one of our greatest competitive 
advantages 
we believe that having the right people with the right  
skills at all levels in our organisation is critical to building  
a quality business and delivering our strategy 
we are an important local employer during 2014 we 
directly employed on average c3900 people across  
the uk during 2014 we also indirectly employed an 
average of 11450 operatives to work on our sites  
in an increasingly competitive market we are pleased 
that our voluntary employee turnover rate remained low 
during 2014 at 71 2013 75 
operating review continued
indirectly  
employed 
11450 
operatives to  
work on our  
sites in 2014
directly employed
c3900 
people on  
average in 2014
taylor wimpey plc
annual report and accounts 2014
38 we have consistently invested in our future success 
through employee learning and development whilst 
increasing our apprenticeship and trainee schemes 
across a number of areas during 2014 we significantly 
increased our recruitment for these schemes taking  
on 99 apprentices including 29 site management 
apprentices 50 management trainees and 19 graduates 
2013 total 89
we have also been assessing how to attract the best 
people and how we retain and reward them during  
2014 we introduced a number of initiatives including  
an enhanced employee discount scheme of up to 20 
subject to certain criteria when buying a taylor wimpey 
home to reward and encourage long term loyalty of our 
employees we believe that employee share ownership  
is important and so we were also particularly pleased  
that over 50 of all eligible employees participated in  
the company’s allemployee share schemes or held 
shares of the company during 2014 
optimising value
our ability to constantly increase efficiency and tightly 
control costs is part of the taylor wimpey culture and 
remains central to delivering enhanced returns 
this extends to and encompasses all aspects of our 
business as we strive to optimise and capture value  
at every level from procurement through to delivery 
we actively review every site both new and old  
through our value improvement meetings which are  
held quarterly and are tracked centrally this allows  
us to benchmark our success and identify opportunities 
for further improvement ranging from replanning of  
sites to redesign and selective enhancements to our 
specification we are committed to not only delivering 
what we set out to do but by delivering more instilling  
a discipline of capturing inflation during 2014 we 
achieved a 27 2013 17 increase in achieved 
contribution margin on completions on land we had 
acquired post2009 
we have improved our uk net operating asset turn to 
129 times 2013 125 times and routinely consider 
opportunities on sites which we already own to assess 
possible ways of bringing forward the delivery of much 
needed new homes we balance our culture of driving 
continuous quality improvement with a desire and focus 
on continuing to improve our asset efficiency over the 
next year we will be working to ensure a smoother profile 
of completions through the year which will have a 
significant impact on our internal business efficiency 
delivery of good customer service and management  
of costs
spain housing
the spanish market remained stable during 2014  
our newly acquired sites performed well due to their 
better quality locations driving a significant improvement 
in performance during 2014 we completed 164 homes 
2013 118 at an average selling price of €250k 2013 
€229k the total order book as at 31 december 2014 
stood at 233 homes 31 december 2013 195 homes 
the spanish business delivered an improved operating 
profit for 2014 of £42 million 2013 £01 million 
looking ahead we remain cautiously optimistic whilst 
conscious of the macro european economic environment 
where the majority of customers are based
 our newly acquired sites in spain performed 
well due to their better quality locations driving  
a significant improvement in performance 
wwwtaylorwimpeycouk
39
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 group financial review
focused on delivering sustainable  
returns through the cycle
group financial review of continuing operations 
the financial review is presented at group level which 
includes spain
income statement
group revenue from continuing operations increased  
by 170 to £26861 million in 2014 2013 £22955 
million from completions of 12618 including joint 
ventures 2013 11814 the increase was driven by 
much improved selling prices in the uk up 115 to 
£213k 2013 £191k and uk volume growth of 65  
to 12294 completions 2013 11547 excluding joint 
ventures average selling prices on private completions 
increased by 114 to £234k 2013 £210k in the uk 
with this increase both a result of our underlying shift  
to better quality locations and capturing market sales 
price increases
the uk land cost per unit sold at £451k is higher than 
£412k in the prior year particularly reflecting the better 
quality locations traded from in 2014 this contributes 
positively to the sales price growth and overall profitability 
of the group total uk land cost per completion as a 
percentage of selling prices was 212 2013 215 
reflecting the benefits of conversions from the strategic 
land pipeline partially offset by product mix and an 
increase in volumes from the london market 
build cost per unit in the uk increased to £113k  
2013 £105k reflecting higher quality mix driven product 
specification and the impact of build cost inflation other 
direct costs and selling expenses per unit decreased to 
£53k 2013 £59k
we are focused on maximising the contribution per 
completion as we seek to drive the quality of returns 
contribution per completion increased by 278 to 
£496k for 2014 2013 £388k as a result of better 
quality locations and improving market conditions 
offsetting land and build cost increases
gross profit before exceptional items of £6209 million 
2013 £4493 million increased by 382 and included 
a positive contribution of £159 million 2013 £454 
million positive contribution represents the amount  
of previously written down inventory allocated to a plot 
which has resulted in a gross profit on completion this 
can be due to revenue outperformance cost efficiencies 
or product mix improvements these amounts are stated 
before the allocation of overheads which are excluded 
from the group’s net realisable value exercise 
in 2014 14 2013 32 of the group’s uk 
completions were from sites that had been previously 
impaired in spain 50 plots 2013 95 were completed 
that had previously been impaired the group anticipates 
2014 highlights
 − operating profit margin up 430 basis points to 179 2013 136
 − return on net operating assets up 570 basis points to 225 2013 168 
 − tangible net asset value per share
†
 increased by 119 to 779 pence  
2013 696 pence 158 growth in net assets before cash distributions
 − £497 million cash returned to shareholders in 2014 154 pence per share  
with a further c£250 million 768 pence per share to be returned in  
july 2015 as previously announced subject to shareholder approval 
 − maintenance dividend payout doubled to 2 of net assets subject  
to shareholder approval 
“ in 2014 we have made strong progress 
towards our medium term targets”
ryan mangold
group finance director
taylor wimpey plc
annual report and accounts 2014
40 that c7 of short term owned and controlled impaired 
plots will complete in 2015 
operating profit increased to £4807 million 2013 
£3129 million delivering an operating profit margin of 
179 2013 136 an increase of 430 bps the uk 
operating profit margin in the second half of the year  
was 193 h2 2013 140 these improvements have 
been driven by the ongoing benefits of the quality of our 
short term land acquisitions and by our conversion of the 
strategic pipeline 
preexceptional net finance costs for the period were 
£306 million 2013 £445 million reflecting the buyback 
of the outstanding 10375 senior notes at the end  
of 2013 improving net debt efficiency as well as lower 
average net borrowings of £1487 million during the  
year 2013 £1693 million 
preexceptional profit before tax for the year from 
continuing operations increased by 677 to £4501 
million 2013 £2684 million the preexceptional tax 
charge was £904 million 2013 £537 million with an 
underlying tax rate of 201 2013 200
this resulted in a profit before exceptional items for 
2014 of £3597 million 2013 £2147 million 675  
up on the prior year
basic earnings per share were 116 pence 2013 75 
pence the adjusted basic earnings per share from 
continuing operations
††
 were 112 pence 2013 67 
pence up 672 reflecting the strong improvement  
in trading and more efficient debt structure following  
the senior note repurchase in december 2013
during 2014 in line with improved market conditions  
the group recorded a net reversal of £187 million of 
inventory writedowns 2013 £456 million the net 
reversal in the year consisted of a release of previous 
impairments £270 million and additional writedowns 
to the lower of cost and net realisable value £83 million 
balance sheet
net operating assets were £22650 million 31 december 
2013 £19996 million reflecting a net investment 
of £4091 million 2013 £928 million year on year 
in land and work in progress funded mostly by 
increased profitability return on net operating assets 
increased by 570 basis points to 225 2013 168 
ahead of our medium term target of 200 reflecting 
improved profitability and balance sheet discipline
group net operating asset turn increased to 126  
times 2013 123 times as a result of trading from  
better quality locations and focused land and work  
in progress investment
relative to our medium term targets of adding 15 to  
net assets before any cash distributions to shareholders 
net assets at 31 december 2014 increased by 158 
before cash distributions and 126 overall year on year 
to £25353 million 31 december 2013 £22518 million 
the net asset increase was driven by profitability in the 
period offset by the £230 million maintenance dividend 
and the £497 million cash return 
as at 31 december 2014 the group held inventory that 
had been written down to net realisable value of £2966 
million 31 december 2013 £4901 million of which the 
balance in the uk was £2696 million 31 december 2013 
£4599 million as at 31 december 2014 the associated 
financial highlights
2014 group results uk spain housing consolidated
completions including jvs 12454 164 12618
revenue £m 26524 337 26861
operating profit £m 4765 42 4807
operating profit margin  180 124 179
profit before tax and before exceptional items £m 4501
profit before exceptional items £m 3597
basic earnings per share p 116
adjusted earnings per share
††
 p 112
maintenance dividends per share – total p 156
wwwtaylorwimpeycouk
41
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 £m
0 250 200 50 100 150
2011 2012 2013 2014
group financial review continued
cash generation 
at this stage in the cycle and given our strong land 
position the focus on converting a high proportion  
of our profitability into cash is an important measure  
the chart below shows cash generated by operations  
on an annual basis
retirement benefit obligations of £1838 million at  
31 december 2014 31 december 2013 £1838 million 
comprise a defined benefit pension liability of £1824 
million 2013 £1822 million and a postretirement 
healthcare liability of £14 million 2013 £16 million  
the deficit in the pension scheme has increased by 
£02 million due to changes in actuarial assumptions 
most notably the discount rate applied to the scheme 
however this has been offset by strong asset growth and 
cash contributions in the period in 2014 we contributed 
£363 million in pension contributions 2013 £481 million  
cash flow
net cash increased substantially to £1128 million at  
31 december 2014 from £54 million at 31 december 
2013 total land spend including land creditors was 
£7957 million 2013 £5747 million during the year we 
increased our investment in work in progress including 
increasing our presence in the central london market 
year on year with work in progress in central london  
of £670 million as at 31 december 2014 31 december 
2013 £390 million in 2014 we paid £146 million 
in interest costs 2013 £352 million £727 million in 
dividends and purchased £100 million of own shares  
for settlement of future vesting of share schemes  
this improvement in net cash is largely as a result  
of outperformance in underlying trading whilst at the 
same time continuing to invest in our landbank as we 
approached our optimal scale average net debt for  
the year was £1487 million 2013 £1693 million
pensions
following the completion of the initial valuation for the 
merged pension scheme as at 31 december 2013 we 
reached agreement with the pension trustees on the 
future deficit repair contributions total contributions 
have been reduced to £23 million per annum from 2015 
onwards versus the £53 million previously committed 
this reduction in the funding requirement reflects the 
decrease in the pension deficit since the last triennial 
trustee valuation due mainly to asset performance 
and the various liability management initiatives we have 
undertaken in conjunction with the trustees as well 
as the improvement in the strength of the business
in conjunction with the trustees the scheme has 
completed a £2062 million medically underwritten buyin 
with partnership life assurance company ltd of the top 
pension liabilities removing a significant level of mortality 
risk and hence liability volatility the price paid for the 
insurance policy was £94 million below the technical 
provisions for those members insured furthermore  
as part of greater flexibility for the scheme membership 
we have completed a flexible retirement offer where 
approximately £25 million of the liability has been 
transferred from the scheme
these initiatives coupled with the active liability hedging 
framework we have in place continue to reduce the risk 
and volatility of the pension obligations
writedowns were £2062 million 31 december 2013 
£2651 million of which the balance in the uk was 
£1581 million and principally related to 15 locations 
as at 31 december 2014 7 of our short term owned 
and controlled land was impaired 31 december 2013 
12 with 71 of the short term owned and controlled 
landbank purchased after 2009 over half of which was 
sourced through our strategic pipeline resulting in a land 
cost to average selling price in the owned landbank of 
173 31 december 2013 184
we continue to use land creditors as a way of funding 
land acquisitions where this makes the most commercial 
sense and is valueenhancing for the business land 
creditors increased to £4877 million 2013 £3490 million 
and combined with net cash resulted in adjusted gearing 
of 148 31 december 2013 153
the mortgage debtor balance was £1048 million at  
31 december 2014 31 december 2013 £1075 million 
with the decrease due to £168 million of loan redemptions 
in the period being partially offset by a further fair value 
gain of £39 million 31 december 2013 £55 million gain
our deferred tax asset declined to £1575 million  
31 december 2013 £2466 million due to utilisation 
against profits in the period there are no further 
unrecognised uk trading tax losses and based on 
forecast profitability we expect the group to have fully 
utilised its deferred tax asset arising from uk trading 
losses by the end of 2015
taylor wimpey plc
annual report and accounts 2014
42 approval of the strategic report
this strategic report was approved by 
the board of directors and signed on its behalf by
 
pete redfern
chief executive
financing structure
as at 31 december 2014 the group had total committed 
debt facilities of £650 million providing significant financial 
capacity during february 2015 agreement was reached 
to extend the existing revolving credit facility to mature  
in 2020 and at reduced margins and fees this will result 
in an annual interest saving of £25 million the average 
maturity of our committed facilities is now extended to  
five years
the strength of the group’s balance sheet and continued 
strong operational and financial performance has been 
reflected in the continued improvement of t aylor wimpey’ s 
corporate credit ratings the most recent being the 
investment grade rating by fitch 
going concern
the directors remain of the view that the group’s 
financing arrangements and balance sheet strength 
provides both the necessary facilities and covenant 
headroom to enable the group to conduct its business 
for at least the next 12 months accordingly the 
consolidated financial statements are prepared  
on a going concern basis
accounting standards
the consolidated financial statements have been 
produced in accordance with international financial 
reporting standards ifrs as endorsed and adopted  
for use in the eu there have been no changes to 
international accounting standards during 2014 that  
have a material impact on the group results
value distributed during 2012  2014
●
 2012
●
 2013
●
 2014
£m
300 150 200 250 50 100 0
contribution to
local communities
employment pension
contributions
taxes net investment
in land
net investment
in wip
debt
servicing
dividends
  operating profit is defined as profit on ordinary activities from continuing operations before net finance costs and exceptional items and tax after share of results of joint ventures
  return on net operating assets is defined as 12 month rolling operating profit divided by the average of the opening and closing net operating assets which is defined as net assets 
less net cash less deferred tax balances
†
  tangible net assets per share is defined as net assets before any accrued dividends excluding goodwill and intangible assets divided by the number of shares in issue at the period end
††
 adjusted basic earnings per share represents earnings from continuing operations excluding exceptional items and tax on exceptional items divided by the weighted average number 
of shares in issue during the period
†††
 operating cash flow is defined as cash generated by operations before taxation and interest paid
the chart shows how value is distributed amongst stakeholders and invested in the business
wwwtaylorwimpeycouk
43
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 board of directors
kevin beeston
chairman
appointed as a director and to the post of chairman 
in july 2010 kevin chairs the nomination committee 
and is a member of the remuneration committee  
he is chairman of equiniti group limited and 
domestic  general limited he was formerly 
chairman of serco group plc and a non executive 
director of imi plc
pete redfern
chief executive
appointed as a director and to the post of chief 
executive in july 2007 he was previously group 
chief executive of george wimpey plc and before 
that successively held the posts of finance director 
and chief executive of george wimpey’s uk housing 
business he is a non executive director and member 
of the audit and remuneration committees of travis 
perkins plc and a trustee of the homelessness  
charity crisis
ryan mangold
group finance director
appointed as a director and to the post of group 
finance director in november 2010 ryan previously 
held the post of group financial controller before 
joining taylor wimpey ryan was group financial 
controller of mondi group for five years prior to 
which he held a number of senior finance roles  
with the anglo american plc group of companies
james jordan
group legal director and company secretary
appointed group legal director and company 
secretary in july 2011 james a solicitor was 
previously group company secretary and general 
counsel of george wimpey plc from february 2002 
until july 2007 when he was appointed to the same 
position with taylor wimpey plc before joining the 
group james held senior legal and company secretary 
roles in industry which included positions with the 
rugby group plc and english china clays plc 
kate barker dbe
independent non executive director
appointed as a non executive director in april 2011 
kate is a member of the audit nomination and 
remuneration committees she is a business 
economist and is presently a trustee director  
and chairman of the british coal superannuation 
scheme a senior adviser to credit suisse and a non 
executive director of electra private equity plc and the 
yorkshire building society previously kate was a 
member of the bank of england’s monetary policy 
committee mpc from 2001 until may 2010 during 
this period kate also led two major policy reviews  
for government on housing supply and on land  
use planning before joining the mpc she was chief 
economic adviser at the cbi kate was awarded a 
cbe in 2005 for services to social housing and a dbe 
in 2014 for services to the economy
baroness ford of cunninghame
independent non executive director
appointed as a non executive director on  
25 april 2013 margaret is a member of the 
nomination committee and also is chairman of the 
remuneration committee she is chairman of stv 
group plc and grainger group plc and a non 
executive director of segro plc she is an honorary 
professor of real estate at glasgow university and an 
honorary member of the royal institute of chartered 
surveyors margaret formerly chaired the olympic 
park legacy company english partnerships 
barchester healthcare limited and may gurney 
integrated services plc prior to these appointments 
margaret had a long career in management 
consulting with price waterhouse and then eglinton 
management centre which she founded
mike hussey
independent non executive director
appointed as a non executive director in july 2011 
mike is a member of the audit and nomination 
committees he is chief executive of almacantar  
a private property investment and development 
company which he founded in february 2010  
he has held a number of senior roles in the property 
sector most recently as an executive board director 
of land securities plc prior to that position mike  
was head of leasing and marketing for canary wharf 
group plc and held a number of senior posts in the 
property industry with the british council for offices 
the city property association and as chairman  
of the regeneration and development committee  
of the british property federation he is a trustee  
of the royal college of surgeons of england
taylor wimpey plc
annual report and accounts 2014
44 rob rowley
independent non executive director  
and senior independent director
appointed as a non executive director in january 
2010 and as senior independent director in april 
2010 rob is chairman of the audit committee  
and a member of the nomination and remuneration 
committees he is a non executive director and 
chairman of the audit committee of 
moneysupermarketcom group plc and is a non 
executive director of morgan advanced materials plc 
and greene king plc he was previously deputy 
chairman of cable and wireless plc a director  
of reuters plc and a non executive director of 
prudential plc taylor nelson sofres plc and intu 
properties plc where he was chairman of the  
audit committee
nomination committee current members 
kevin beeston committee chairman  
kate barker margaret ford mike hussey 
and rob rowley 
kpi for more information see page 56
audit committee current members 
rob rowley committee chairman kate 
barker and mike hussey
kpi for more information see page 60
remuneration committee current members 
margaret ford committee chairman kevin 
beeston kate barker and rob rowley 
kpi for more information see page 66
standing from left to right rob rowley  
margaret ford kate barker dbe  
and james jordan
seated from left to right ryan mangold  
pete redfern kevin beeston and mike hussey
board diversity
kpi see pages 5859 for more information
executive group board non executive
xx
2
6
0
3
2 2
● male ● female
board gender diversity
2010 2011 2012 2013 2014
xx
33
22 22 22
25
our broad independent non executive 
director experience
● financial services
● property
● marketing
● media
● healthcare
● public sector
● economist
● materials
4
3
1
1
1
1
1
1
non executive board tenure
● 02 years
● 35 years
2 2
wwwtaylorwimpeycouk
45
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 corporate governance
achievements for 2014
 − continuing full compliance with the 2012 edition of the uk 
corporate governance code and embracing the key elements  
of the latest september 2014 edition of the code which will  
apply to the 2015 financial year
 − full compliance with the requirements of the bis regulations  
and related legislation on the reporting of remuneration 
 − establishing a diversity and lnclusivity committee designed  
to drive forward our agenda in these areas
 − the independent externallyfacilitated board evaluation concluded 
that the company has a wellfunctioning and effective board which 
takes its duties and responsibilities very seriously 
 − further embedding of good governance and improvement  
of controls at all levels of the business through completing  
the successful rollout of enhanced business systems and 
progressing the updating of key process manuals
2015 t argets
 − to further embed improved diversity and inclusivity processes 
across the group and to better monitor and report on progress 
using an improved hr data capture system
 − to address the recommendations arising out of the board  
evaluation including
 − formalising and refining the comprehensive induction processes  
for new directors
 − a continuing focus on succession planning for all key roles across 
the group
 − to continue ongoing improvement of the overall quality of board 
reports and presentations 
 − to ensure full compliance with the 2014 uk corporate governance 
code which will apply to the 2015 financial year
“ the board takes corporate 
governance very seriously  
and this has been  
demonstrated over many  
years with full compliance with 
the uk corporate governance 
code good governance should 
be focused on how the board 
itself operates effectively and 
also the culture within which our  
businesses operate and 
conduct themselves”
dear shareholder
in my capacity as chairman of the board i am very pleased to  
again have this opportunity to make a personal statement on the 
company’s approach to corporate governance
as i have said before the board takes corporate governance very 
seriously and this has been demonstrated over many years with full 
compliance with the uk corporate governance code ‘the code’ 
and also with its predecessor versions to demonstrate the board’s 
proactive approach to corporate governance the company has 
consistently sought to comply with planned improvements to the 
code and with wider governance initiatives often in advance of their 
formal application to our reporting years the board receives regular 
briefings and updates on corporate governance both at board and 
committee meetings and where necessary in between such 
meetings which all directors find very helpful 
this report on corporate governance sets out and explains in clear 
terms the processes in place which are essential for delivery of the 
long term success of the company whilst ensuring that we comply 
with all applicable laws and regulations as well as of course meeting 
the requirements of our shareholders and their representative bodies 
with whom we are always very pleased to engage and have once 
again proactively done so during 2014 and into 2015 the board 
believes that good governance should be focused not only on how 
the board itself operates effectively but also on the culture within 
which all of our businesses operate and conduct themselves
the board welcomed the implementation of the government’s  
new regulations on the reporting of remuneration which required 
additional disclosure to our shareholders in last year’s annual report 
more generally 2014 was a year of consolidation in the area of good 
governance as the improvements set out in the 2012 version of the 
code bedded in and the changes proposed in the latest edition  
of the code published in september 2014 were considered by  
the board 
taylor wimpey plc
annual report and accounts 2014
46 these changes which apply to reporting for 2015 cover a number  
of areas including in the areas of going concern risk management 
and internal control requiring remuneration to be designed to 
promote the longterm success of companies encouraging greater 
shareholder dialogue and further ways to improve the functioning  
of a board through wider areas of diversity the board supports each  
of these changes and these areas are discussed in greater detail in 
this report and also in the separate reports of the audit nomination 
and remuneration committees which appear later
pursuant to best practice the board conducts its annual evaluation 
exercise via an independent external facilitator once in every three 
years and it was carried out in this way during 2014 the exercise  
was very comprehensive and involved all directors both collectively 
and individually plus feedback and insight from external advisers and 
senior employees who work closely with the board consistent with 
previous exercises the evaluation proved to be very useful and whilst 
it was pleasing to note that the report concluded that the board is 
wellfunctioning and effective and is one which takes its responsibilities 
and duties very seriously it also found that there are certain areas for 
improvement i can confirm that the board will be focusing on these 
areas during 2015 and more detail is set out on page 50 
this report also seeks to explain what your board of directors  
does and describes how it is responsible for setting the culture and 
values of the company ensuring that the company is run in the best 
interests of its shareholders as well as other stakeholders and how  
it interacts with its shareholders in explaining the company’s strategic 
goals and performance against them from a governance perspective 
it is not just a case of what is done but also and just as importantly 
how it is done – therefore we try and avoid a simple box ticking type 
approach preferring our governance to be something that is properly 
embedded in our people processes and decision making
a key part of my role as chairman of the board is to ensure that the 
board retains an appropriate level of independence in order to allow 
the independent non executive directors to challenge the executive 
directors constructively whilst at the same time also supporting them 
to implement the strategy and run the business effectively another 
key part of my role is to ensure that the board has the right blend of 
skill independence and knowledge and this is something that is kept 
under regular review in conjunction with the nomination committee
as a board we regularly review health safety and environmental 
performance our business strategy key risks the market operational 
matters customer services human resources diversity corporate 
responsibility community engagement our financial position and 
performance governance and legal matters and shareholderrelated 
matters including the make up of our share register this is done 
through the consideration and discussion of regular reports  
submitted by the executive directors and through other reports  
and presentations from our senior management and external 
advisers the board and individual directors also undertake regular 
visits to our regional businesses and also to their development sites 
in 2014 the board visited the west scotland business unit where it 
held a board meeting and also met with the local management team 
and staff whilst taking the opportunity to visit a number of 
developments where it received a series of presentations 
appointments and succession
as reported last year tony reading stepped down from the board  
on 17 april 2014 as an independent non executive director broadly 
coinciding with the conclusion of his third threeyear term of office 
margaret ford succeeded him as chairman of the remuneration 
committee from that time and in order to comply with the code  
and the requirement for there to be three independent non executive 
directors on the committee kate barker was also appointed to  
the committee
more details on appointments and succession planning which are 
led by the nomination committee which makes recommendations  
in these areas to the board are set out in the nomination committee 
report on pages 56 to 59
at the annual general meeting of the company to be held on  
23 april 2015 agm all directors will again be subject to reelection 
by shareholders in accordance with the code biographical details  
of each director can be found on pages 44 to 45
i believe that the balance of the board with myself as chairman 
three executive directors and four independent non executive 
directors will continue to provide the right blend of experience 
expertise and challenge to ensure good governance so as to enable 
the company to successfully implement its strategy 
share  
price up 
c267 
201114
roce up  
from 146 to 
179
 201114
tsr up 
c282
 201114
wwwtaylorwimpeycouk
47
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 may 2014
 −receiving a performance and strategic 
update from the south west divisional 
businesses
june 2014
 −reviewing the first projection of the 
company’s full year results
 −reviewing the company’s current strategy  
in the light of the first year end projection
 −receiving a performance and strategic 
update from the south east divisional 
businesses
april 2014
 −reviewing the draft interim management 
statement to update shareholders on 
progress for the year to date
 −reviewing arrangements for the 2014 annual 
general meeting
 −receiving a performance and strategic 
update from the west london regional 
business
february 2014
 −reviewing the draft 2013 annual report  
and accounts and the corporate  
responsibility report
 −conducting the annual risk review 
 −determining the final maintenance dividend for 
2013 and any special dividend for 2014 to be 
proposed to shareholders
 −approving the draft preliminary announcement 
of the company’s full year results
 −determining actions arising from the 2013 
board appraisal
board committees
the board has three committees audit nomination and 
remuneration
during 2014 the audit committee completed its schedule of work 
designed to ensure full compliance with the provisions of section  
c of the code in relation to financial reporting and risk assessment  
full details are set out in the audit committee report on pages  
60 to 65 in brief the committee
 − established processes to enable it to satisfy itself and recommend 
to the board that the information presented to shareholders in  
this report and accounts is as a whole a fair balanced and 
understandable assessment of our position and prospects  
see page 64
 − reviewed the performance of the external auditor deloitte llp  
before recommending to the board that a resolution be proposed 
for their reappointment at the agm see page 62
 − undertook its very important role with regard to risk management 
and internal controls so that the company can closely monitor  
its exposure to risks which could impact upon the future prospects 
of the company and achievement of its strategic objectives  
see page 63
the committee has during the year continued to focus closely  
on these key areas and will continue to do so throughout 2015
the committee also welcomes the new guidance on risk 
management internal control and related financial and business 
reporting issued by the financial reporting council frc in 
september 2014 which it believes will enhance governance in these 
areas more details are set out in the audit committee report on 
pages 60 to 65 
the nomination committee has been closely involved during 2014  
in reviewing
 − the balance diversity independence and effectiveness of the board
 − a detailed review of succession and contingency planning across 
the group in order to achieve the company’s strategic aim of 
attracting developing and retaining the best quality people at all 
levels of the company and to improve our talent management
 − reviewing strategy establishing targets and driving and monitoring 
progress in improving diversity generally throughout the group
these remain key priorities for further development during 2015
additional reporting on its activities including more details of progress 
and plans in each of these areas in line with the code is set out in 
the nomination committee report on pages 56 to 59
board activities and priorities
board meetings consist of a mix of regular and standard items considered at each meeting and also special items which arise from time  
to time either annually or as part of key project related work the latter are set out below regular items include receiving and reviewing the 
business of board committee meetings and the minutes of such meetings held since the last board meeting a health safety and environmental 
report reports from the chief executive on trading and investment people the political environment and on customer services
corporate governance continued
our board and committee structure
audit  
committee
nomination 
committee
remuneration 
committee
taylor wimpey plc
annual report and accounts 2014
48 december 2014
 −determining and approving the budget for 
2015 apportioning performance targets  
and resources around the businesses
 −consideration of the externallyfacilitated 
annual board evaluation
 −consideration of the 2015 insurance 
programme
 −detailed update on litigation
 −consideration of special dividend mechanism 
for 2015 to be proposed at the 2015 agm
september 2014
meeting held in the west scotland business 
unit including meetings with the local team 
and site visits 
october 2014
 −reviewing the draft budgets for 2015 
performance and apportioning performance 
targets and resources around the businesses 
 −detailed update on health and safety
july 2014
 −reviewing the half year results for 2014
 −reviewing the draft interim statement for 2014 
 −determining and approving the interim 
maintenance dividend for 2014 
 −considering the outcome of the half year risk 
review and the report of the audit committee 
on the detailed work thereof
 −considering feedback from meetings with 
shareholders and analysts
during 2014 the remuneration committee has continued its primary 
responsibility of ensuring that executive remuneration is geared to the 
enhancement of shareholder value and the delivery of the company’s 
strategy and that the rewards for achieving or exceeding those 
targets are not excessive full details are set out in the remuneration 
committee report on pages 66 to 85 key areas the committee 
focused on or considered are set out below
 − the engagement with major shareholders and their representative 
bodies on key remuneration matters in respect of which the 
committee very much values and welcomes their input
 − the further developments in remuneration planning set out in  
the september 2014 revision to the code which were welcomed 
by the committee and details of the committee’s plans for their 
implementation are set out in the remuneration committee report 
on pages 66 to 85
 − the remuneration policy approved by shareholders at last year’s 
agm in respect of which no changes are proposed or required 
details of which are set out in the remuneration committee report 
on pages 66 to 85 and which incorporates some minor updating 
so as to reflect the actual operation of the policy since its adoption 
and approval by shareholders at the 2014 agm
as noted above due to the fact that there has been no change to  
the remuneration policy the business of the 2015 agm includes  
only one resolution on remuneration – namely the advisory vote on 
the way in which the policy has been applied during 2014 as set  
out in the remuneration report on pages 66 to 85 for 2015 the 
committee has reviewed the performance targets set for the 
company’s discretionary reward schemes and has taken into 
account the likely impact of government support schemes
the terms of reference of each of the board committees including 
an explanation of their role and the authority delegated to each by the 
board appear on the company’s website wwwtaylorwimpeycouk
corporateinvestorrelationscorporategovernance
kpi  see pages 6685 for more information
there are also reports from the finance director on the latest management accounts and financing position forward performance 
forecasts city expectations competitor data risk it and pensions reports from the group legal director on claims and litigation  
by and against the company developments in corporate governance and other compliance and shareholder matters and a general 
update from the company’s stockbroker
wwwtaylorwimpeycouk
49
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 diversity
diversity and inclusivity has continued to be a key item on the overall 
uk governance agenda during 2014 and the company has attended 
and supported a number of government initiatives and events within 
taylor wimpey diversity and inclusivity has remained a key priority for 
the board’s agenda and this will continue to be the case during 2015 
our ambitions and views are set out in our diversity policy which 
can be found on pages 57 to 59 and on the company’s website 
wwwtaylorwimpeycoukcorporateinvestorrelationscorporate
governance
full details of our strategy and progress made to date towards the 
policy objectives are set out in the nomination committee report  
on pages 56 to 59
kpi  see pages 5759 for more information
board evaluation
pursuant to the code the board carries out a formal and rigorous 
annual evaluation which is externally facilitated at least once every 
three years in accordance with this requirement the 2014 board 
evaluation was externally facilitated through independent board 
evaluation a firm which specialises in and which has considerable 
experience in this field having carried out evaluations on several 
ftse 100 boards the evaluation is an important part of the 
board’s corporate governance framework and both the process 
and outcome are always taken very seriously by the board  
each committee and by each individual director
performance evaluation of the board its committees  
and other functions
the outcome of the 2013 board evaluation was reported on  
in detail in last year’s corporate governance report the main action 
points arising from that exercise and action taken in respect of each 
are set out below
 − a more definitive split between the chief executive’s strategic 
reporting on progress and prospects and more detailed 
operational reviews from senior executives below board level
this was addressed during 2014 by appending to the ceo’s report 
to each board meeting the operational reports of the divisional 
chairmen of our uk operating business and by their attendance  
at certain board meetings so as to provide the board with greater 
insight and granularity into the progress in achieving the company’s 
strategic goals at a more operational level set out on pages 16 to 17
 − further work to ensure the progress made in the area of diversity  
is embedded into the company’s day to day operations and 
forward planning
this was addressed during 2014 by establishing a diversity and 
inclusivity committee comprising representatives of the board  
and representatives of the businesses and hr to drive the  
diversity improvement strategy forward and help to embed suitable 
processes throughout the business and by undertaking a number  
of initiatives designed to improve awareness in recruiting training  
and promotion processes
 − further work to refine succession planning and related development 
programmes for executives
this remains an ongoing priority and was addressed in part during 
2014 by the making of four senior appointments the group hr 
director the customer director the planning director and the group 
financial controller each having diverse backgrounds that provide 
both an appropriate balance of skills experience and knowledge to 
enable their duties to be discharged effectively and enhance and 
strengthen the overall depth of the management team
 − additional reporting in three key areas land investment analysis 
people development and operations and prospects in the  
london area
these were addressed during 2014 by introducing separate reporting 
in each area to each board meeting which are considered both in 
their own right and also in relation to the company’s overall strategic 
direction and operational progress
as previously mentioned the 2014 board evaluation was externally 
facilitated in compliance with the code requirement that this exercise 
be undertaken in this way at least once every three years the board 
considered a number of external facilitators before appointing 
independent board evaluation ibe which has no other connection 
with the company and which specialises purely in this line of work
the evaluation process consisted of the following
 − a comprehensive preliminary briefing of ibe by the chairman  
and the group legal director and company secretary
 − attendance of a board and board committee meeting by  
ibe as observers prior to the commencement of interviews
 − detailed and confidential interviews conducted with each director 
on an individual basis based on a previously circulated list of topics 
prepared by ibe and also covering other topics raised  
by ibe and by individual directors
 − interviews with senior executives who interact with the board and 
also with key external advisers namely the company’s auditor 
broker and remuneration advisers
 − a report was compiled by ibe including recommendations based 
on best practice for boards as described in the code and other 
appropriate corporate governance guidelines a report was also 
prepared by ibe on each individual director covering as 
appropriate the chairmanship of the board and each board 
committee audit nomination and remuneration
board and committee evaluation process
corporate governance continued
action 
monitor
planning 
meetings including 
agreeing scope 
with facilitator 
juneaug
questionnaires 
circulated and 
11 interviews 
take place
sepnov
attendance 
by facilitator at 
boardcommittee 
meetings 
oct
presentation 
by facilitator to 
the board on 
main findings
dec
consideration 
by the board 
action plan agreed  
for 2015 follow up by 
the chairman with 
individual directors 
decfeb
taylor wimpey plc
annual report and accounts 2014
50  − ibe met with the chairman to feedback its main findings arising out 
of the overall evaluation following which the report on the board 
was discussed by the board at its december 2014 meeting which 
was attended by ibe and progress on the action points at its 
meeting in february 2015
following the december board meeting and as part of the process 
ibe also provided independent feedback to each committee chairman 
on the performance of the relevant board committee to the senior 
independent director sid on the performance of the chairman and 
the chairman on the performance of each individual director
feedback was then provided on an individual basis by the sid to  
the chairman and vice versa and through the chairman discussing 
each individual director’s own performance assessment with the 
relevant director on a onetoone basis
as mentioned earlier it was pleasing to note that ibe concluded that 
the board is wellfunctioning and effective and is one which takes its 
responsibilities and duties very seriously nevertheless there is always 
scope for improvement and the board has already started focusing 
on the action points identified which include
 − that there should be a continuing emphasis on succession planning 
across the group and that this should include board level 
appointments including the committee chairmen
 − the holding of an additional nomination committee meeting each  
year in addition to any ad hoc meetings to further consider 
succession planning and related matters
 − that there should be additional formality around the induction 
process for new directors as whilst the process is comprehensive 
it could be more carefully documented
 − that there should be further additional opportunities for showcasing 
talent with the board and
 − to continue the ongoing improvement of the quality of board 
reports and presentations
these and other more administrative action points will be kept  
under regular review by the board and progress against them  
will be reported on in the 2015 annual report and accounts
conclusion
i believe that your board remains effective and continues to work  
well i am confident that the board has the right balance of skills 
expertise and professionalism to continue to deliver strong governance 
whilst allowing the executive directors to implement and deliver the 
strategy set out on pages 16 to 17 i am pleased with the board’s 
activity with regard to corporate governance but we continually look 
for ways to learn and improve as ever i very much look forward to 
meeting with shareholders at the agm on 23 april 2015 and as 
always along with all of your directors who will all be present at the 
agm remain available to answer or respond to your questions 
concerns and suggestions at any time 
statement of compliance 
for the year ended 31 december 2014 the company complied  
with all the provisions of the code the financial conduct authority’s 
fca disclosure and transparency rules subchapters 71 and  
72 which set out certain mandatory disclosure requirements the 
fca’s listing rules 986r 987r and 987ar which include the 
‘comply or explain’ requirement and the bis directors’ remuneration 
reporting regulations and narrative reporting regulations these 
regulations are publicly available at
 − the code can be found at wwwfrcorguk
 − the fca’s disclosure and transparency rules can be found  
at wwwfshandbookinfofshtmlfcadtr
 − the fca’s listing rules can be found at wwwfshandbookinfofs
htmlfcalr
 − the bis directors’ remuneration reporting regulations and  
narrative reporting regulations can be found at wwwgovuk 
yours sincerely
kevin beeston
chairman
2014 evaluation actions taken during the year recommendations for the future
this year’s evaluation details of which are 
set out on page 50 was facilitated externally 
via an extremely comprehensive process it 
confirmed that the board is wellfunctioning 
and effective with a good balance of skills 
and a positive but not unchallenging 
atmosphere around the board table 
inevitably a number of recommendations 
arose from the evaluation and the board will 
work on these during the course of 2015 
 
the main action items coming out of  
the 2013 evaluation related to maintaining  
an ongoing focus on succession planning 
throughout taylor wimpey improved 
reporting to the board on certain key matters 
to continue to drive the diversity agenda 
forward and giving the board more exposure 
to senior and upcoming management
these action items have each been 
addressed during 2014 and details of  
the action taken appear on page 50
the recommendations from the 2014  
board evaluation included the need for  
a continued emphasis on succession 
planning showcasing talent for succession 
planning purposes additional formality 
around the induction process for new 
directors and to continue the ongoing 
improvement of the overall quality of board 
reports and presentations these are more 
fully set out on this page
each of these key areas will remain firmly  
on the board’s agenda during 2015 and  
will be reported on in the 2015 annual 
report and accounts
kpi  see page 50 for more information kpi  see page 50 for more information kpi  see page 51 for more information
wwwtaylorwimpeycouk
51
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 t aylor wimpey plc board
kevin beeston
chairman
number of meetings in 2014 8
directors attendance
kevin beeston
chairman 8
pete redfern 
chief executive 8
ryan mangold 
group finance director 8
james jordan 
group legal director and company secretary 8
rob rowley 
senior independent director 7
kate barker 
independent non executive director 8
margaret ford 
independent non executive director 8
mike hussey 
independent non executive director 8
t ony reading
a
 
former director 2
a resigned 17 april 2014 
the board and its committees 
as at the date of this report the board consists of eight directors 
namely the chairman three executive directors and four 
independent non executive directors their names responsibilities 
and other details appear on pages 44 to 45 on 17 april 2014  
in line with the code tony reading retired from the board having 
served nine years including previously on the board of george 
wimpey prior to its merger with taylor woodrow to create taylor 
wimpey plc in 2007 upon his retirement margaret ford succeeded 
him as chairman of the remuneration committee having been 
appointed to the board in april 2013 other changes to committee 
membership saw kate barker join the remuneration committee on 
17 april 2014 so as to ensure that the committee had at all times 
three independent non executive directors in line with the code  
and pete redfern ceased to be a member of the nomination 
committee with effect from 1 january 2015 
the role of the independent non executive directors is to offer advice 
and guidance to the executive directors using their wide experience  
in business and from their diverse backgrounds details of which  
are set out in their biographies on pages 44 to 45 and in the board 
diversity analysis on page 45 they also provide a constructive 
challenge scrutinising the performance of the executive directors  
and satisfying themselves as to the integrity of the financial 
information made available both to the board and to the company’s 
shareholders the non executive directors also play an important 
part in the appointment or removal of executive directors and in 
general succession planning for the board and other executive 
positions below board level
the board met on eight occasions during 2014 and there was full 
attendance at all meetings save for one as noted opposite the 
board has considered the number of board meetings that take place 
each year and has concluded that eight meetings remain appropriate 
but will keep the number under review 
directors make every effort to attend all board and applicable 
committee meetings as strongly evidenced by the attendance 
records over several years where exceptionally a director is unable 
to attend a meeting it is board policy that the chairman andor the 
group legal director and company secretary the secretary will  
as soon as possible brief the director fully on the business transacted 
at the meeting and on any decisions that have been taken in addition 
the views of the director are sought ahead of the meeting and 
conveyed to those attending the meeting by the chairman andor  
the secretary as appropriate this process was followed in respect  
of the one meeting which rob rowley could not attend during the 
year due to illness for that particular meeting details of the attendance 
of each director at board and committee meetings are set out in the 
tables on pages 52 56 60 and 66
the board discharges its responsibilities by providing strategic  
and entrepreneurial leadership of the company within a framework  
of strong governance effective controls and a culture of openness 
and transparency which enables opportunities and risks to be 
assessed and managed it sets the company’s strategic aims 
ensures that the necessary financial and human resources are  
in place for the company to meet its objectives and reviews 
management performance
the board is responsible for the company’s culture and for defining 
and setting the company’s values and standards which it does 
amongst other things through a number of policies and codes of 
conduct and ensures that its obligations to its shareholders and 
other stakeholders are clearly understood and met the board is led 
in these respects by the chairman who ensures the board operates 
correctly setting its culture and by extension that of the company  
in its operations and its dealings with all stakeholders
as also set out in our 2014 sustainability report formerly called  
the corporate responsibility report the board is fully committed  
to providing a safe place in which our employees and subcontractors 
can work and that our customers can visit and to high standards  
of environmental management the board receives detailed reports 
on health safety and environmental matters at each board meeting  
in respect of the company’s operations in the uk and spain  
the company’s detailed carbon reporting as required by bis  
is set out on page 30
operational management of the company’s business is undertaken 
by the chief executive who receives advice from the group 
management team gmt the gmt is the most senior executive 
committee and in addition to the chief executive consists of the 
group finance director the group legal director and company 
secretary the two divisional chairmen the group hr director the 
land and planning director and the managing director of each of the 
central london region and major developments division the gmt 
meets fortnightly including once each month with the six divisional 
managing directors as a wider group operational team
general board governance
taylor wimpey plc
annual report and accounts 2014
52 the board also receives regular reports and minutes from the 
treasury committee which meets under the chairmanship of the 
group finance director and also comprises the secretary one of  
the two divisional chairmen who rotate periodically and the group 
treasurer the key activities of the treasury committee are broadly  
to monitor and keep under review the group’s financial risks financial 
policies financial facilities covenant compliance and insurance 
programme and assisted in this respect by the membership of a 
divisional chairman to review these areas in the light of current and 
proposed strategic and operational requirements
the following documents are available for review on the company’s 
website at wwwtaylorwimpeycoukcorporateinvestorrelations
corporategovernance 
 − schedule of matters specifically reserved for the decision  
of the board 
 − terms of reference of the board committees audit nomination 
and remuneration which outline their objectives and responsibilities 
and which define a programme of activities to support the 
discharge of those responsibilities and
 − policies covering operational compliance corporate responsibility 
and stakeholder matters which are reviewed whenever necessary 
to take account of developments in corporate governance 
changes in legislation and revised processes
all directors have access to the advice and services of the secretary 
the board has an established procedure whereby directors may  
take independent professional advice at the company’s expense  
where they judge it necessary to do so in order to discharge their 
responsibilities as directors
the board took advice during the year from slaughter and may  
on the preparation of documentation relating to the proposed  
special dividend for 2015
advice was also received from deloitte during the year via the  
audit committee on the significant governance developments  
during the year 
the board receives at each meeting a report from jpmorgan 
cazenove cazenove on the sector and the relative performance  
of the company’s share price
all businesses and employees are expected to operate at all times  
to the highest standards of integrity and conduct in all matters 
concerning the group accordingly there is a code of business 
conduct which sets out the standard for individual dealings both 
internally and externally formal policies have been adopted which  
set out the ethical framework within which all taylor wimpey 
companies are required to undertake their business – this includes  
in line with the bribery act 2010 an anticorruption policy which 
requires an annual signoff by designated senior management  
these policies are available for review on the company’s website 
wwwtaylorwimpeycoukcorporateinvestorrelationscorporate
governance and relevant reporting against these is provided to the  
audit committee by the head of internal audit
board and committee balance diversity independence  
and effectiveness
it is the company’s policy in line with the code that proposed 
appointments to the board and succession planning are based  
on merit and judged against objective criteria whilst also having  
due regard to the benefits of diversity and inclusiveness including 
gender age disability ethnicity experience and thinking the board 
also continues to recognise its responsibility to comply with the 
recommendations of the davies report and has stated that it will 
aspire at least to maintain the current level of representation of women 
on the board two out of eight representing 25 of directors
board and committee roles and responsibilities
the work of each of the board committees audit nomination  
and remuneration is described later in this report
relevant skills and expertise
it is a requirement of the code that the board and its committees 
should have the appropriate balance of skills experience independence 
and knowledge of the company to enable duties and responsibilities 
to be discharged effectively the board considers that each director 
brings relevant and complementary skills experience and background 
to the board details of which are set out below and additional 
information is also set out in the biographies on pages 44 and  
45 and also on page 149
kevin beeston chairman has a wealth of commercial financial  
and high level management experience including being a former  
ceo of a ftse 100 company kevin also has significant experience 
of chairing boards of both public and private companies and of  
being a non executive director and sitting on audit nomination  
and remuneration committees
pete redfern ceo has operational responsibility for delivering  
the company’s strategy in a profitable safe and environmentally 
responsible manner pete has significant financial operational and 
management experience gained from his various roles in industry  
and from his time at kpmg in 2014 he joined the board of travis 
perkins plc as an independent non executive director and serves  
on that company’s audit and remuneration committees which  
will only add to his breadth of experience at plc board level
ryan mangold group finance director has operational responsibility  
for managing the company’s finances ryan has financial treasury 
risk and financial control expertise including that gained from his  
time with mondi group and anglo american plc
james jordan group legal director and company secretary  
is a solicitor and oversees compliance with legal and regulatory 
obligations and manages the secretariat and legal departments 
james has significant legal commercial transactional and regulatory
governance related experience
kate barker independent non executive director is an industry
recognised economist and has led policy reviews for the government  
in the areas of land use planning and housing supply kate also 
brings a wider economic insight gained through her various roles 
including as a member of the oversight board of the office for 
budget responsibility
wwwtaylorwimpeycouk
53
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 margaret ford independent non executive director has wide
ranging experience in a number of sectors and also has extensive 
knowledge of the property sector gained through various roles 
margaret has significant plc experience including the chairmanship  
of both boards and board committees she also sits in the house  
of lords 
mike hussey independent non executive director has indepth 
expertise in land development and marketing particularly in london 
gained from his previous roles as a director of land securities plc  
and as head of leasing and marketing of the canary wharf group plc 
mike is currently ceo of almacantar a property development fund  
he founded in 2010
rob rowley independent non executive director and senior 
independent director has a wealth of financial commercial and 
management expertise principally from his time as finance director 
of reuters plc and deputy chairman of cable  wireless plc rob 
has substantial experience as a non executive director including the 
chairing of audit committees and has recent and relevant financial 
experience as required by the code
division of responsibilities
the board has an established framework of delegated financial 
commercial and operational authorities which define the scope  
and powers of the chief executive and of operational management 
in line with the code the roles and responsibilities of the chairman  
and the chief executive have been clearly defined set out in  
writing and signed by kevin beeston and pete redfern in their 
respective capacities
ensuring there is no conflict of interest
in order to assist directors in complying with their duty to avoid 
conflicts or possible conflicts of interest it is standard procedure  
that the board must first give its clearance to such potential conflicts 
of interest which would include directorships or other interests in 
outside companies and organisations following which an entry is 
then made in the statutory register which the company maintains  
for this purpose 
whenever any director considers that he or she is or may be 
interested in any contract or arrangement to which the company  
is or may be a party the director gives due notice to the board in 
accordance with the companies act 2006 and the company’s 
articles of association in such cases unless allowed by the articles 
any director with such an interest is not permitted to participate in  
any discussions or decisions relating to the contract or arrangement 
during 2014 no such matters arose
the board undertakes a regular review of each director’s interests  
if any outside of the company and is satisfied that in line with the  
code all directors are able to allocate sufficient time to the company  
to enable them to discharge their responsibilities as directors effectively 
where there have been any outside commitments the board is 
satisfied that they do not detract from the extent or quality of time 
which the director is able to devote to the company
annual reelection to the board
the code now requires every director to seek election or reelection 
as appropriate at each year’s annual general meeting agm 
accordingly at the 2015 agm every director irrespective of the  
date of his or her appointment and the length of his or her service  
on the board will be submitted for reelection
details of the resolutions to be proposed in this respect and 
supporting biographical details of the directors appear in the  
notice of meeting on pages 144 to 151
as part of the 2014 board evaluation process the board reviewed  
and reaffirmed that it considers each of the non executive directors  
to be independent in character and judgement and that there are  
no relationships which could affect the director’s judgement 
the chairman at the time of his appointment on 1 july 2010  
met the independence criteria as set out in the code 
information and professional development
the company has procedures whereby newly appointed directors 
including non executive directors receive a formal induction  
this includes training and continuing familiarisation with the 
company’s business strategy operations including health and 
safety and systems the principles underlying the discharge of  
their duties as directors and wider issues relating to the housing 
sector the induction also includes meetings with key executives  
and function heads advisers and site visits as part of the 2014 
board evaluation the comprehensive induction process will be  
further formalised whilst also being subject to specific tailoring for 
individual directors as appropriate 
all directors visit group operations on a regular basis engaging  
with employees at all levels in order to foster and maintain an 
understanding of the business board visits are arranged each year  
to operations and at least one board meeting per annum takes place 
in a regional business over three days an important outcome of the 
2014 board evaluation was formally noting the scale of the beneficial 
impact that such visits can have on group businesses
the group legal director and company secretary acts as  
secretary to the board and its committees and he attends all 
meetings it is board policy that wherever possible a formal agenda 
and reports are issued electronically to directors in respect of all 
board and committee meetings at least one week prior to the 
meeting in order to allow sufficient time for detailed review and 
consideration beforehand formal minutes are prepared in respect  
of all board and committee meetings and are then circulated and 
submitted for approval at the next meeting all board papers are 
circulated electronically and board meetings have been effectively 
‘paperless’ for several years which has worked well and aided the 
overall efficiency of the overall board process
the secretary provides regular briefings to the board on regulatory 
and governance matters which are included as part of his formal 
regular reporting to the board and are supplemented as appropriate 
by briefings from independent advisors the board also receives 
regular briefings and updates on environmental social and 
governance esg matters
the esg briefing allows the board to assess the significant esg  
risks to the company’s short and longterm value and to identify  
any opportunities that may arise to enhance value details of esg 
risks and valueenhancement pursuits appear in the sustainability 
report which is available on our website wwwtaylorwimpeycouk
corporatesustainability
general board governance continued
taylor wimpey plc
annual report and accounts 2014
54 the chairman chief executive and secretary meet sufficiently in 
advance of each board meeting in order to ensure action points  
from previous meetings have been implemented and to prepare the 
agenda and matters to be covered at the next and at future board 
and committee meetings as appropriate the agenda and minutes 
for the audit and remuneration committee meetings are agreed  
by the secretary with the relevant committee chairman 
management 
progress in achieving the group strategy is reviewed at each  
board meeting and is reported on pages 16 to 17 the chief 
executive has responsibility for preparing and reviewing strategic 
plans for the group and the annual budgetary process these  
are subject to formal approval by the board
budgets are reexamined in comparison with business forecasts 
throughout the year to ensure they are sufficiently robust to reflect 
the possible impact of changing economic conditions and 
circumstances the chief executive and the board conduct regular 
reviews of actual results and future projections with comparison 
against budget and prior year together with various treasury reports 
disputes that may give rise to significant litigation or contractual 
claims are monitored at each meeting of the board with specific 
updates on any material developments or new matters
the group has clearly defined policies processes and procedures 
governing all areas of the business which will continue to be reviewed 
and refined in order to meet the requirements of the business and 
changing market circumstances defined authority limits continue  
to be closely monitored in response to prevailing market conditions  
any investment acquisition or significant purchase or disposal of  
land requires detailed appraisal and is subject to approval by the  
board or the chief executive depending on the value and nature  
of the investment or contract 
there is a clearly identifiable organisational structure and a framework  
of delegated authority approved by the board within which individual 
responsibilities of senior executives of group companies are identified 
and can be monitored the operating framework within which 
delegated authorities responsibilities and related processes are 
explained in detail is available for review and guidance online by  
any employee through the company’s intranet these activities are 
reinforced through process compliance and other audits conducted  
by internal audit
the annual employee performance appraisal process is  
objectivebased with individual objectives cascaded down  
from the appropriate business objectives the process also  
identifies training needs to support achievement of objectives
during 2014 a number of enhancements were made to internal 
controls designed to reduce or better manage risk across the 
business these included the embedding of the coins and  
1b1s erp business systems which have improved the accuracy 
timeliness and uniformity of data used to manage and report on 
the group’s businesses and further work towards updating the 
operating framework and commercial and finance manuals which 
guide the businesses in ensuring compliance with group standards
relations with shareholders
the board actively seeks and encourages engagement with  
major institutional shareholders and other stakeholders and  
supports the initiatives set out in both the code and the  
stewardship code which aim to foster a more proactive  
governance role by major shareholders the board has put  
in place arrangements designed to facilitate contact about  
business governance remuneration and other issues this  
provides the opportunity for meetings with the chairman the  
senior independent director as well as the chief executive  
group finance director group legal director and company 
secretary and other executives in order to establish a mutual 
understanding of objectives the company also operates  
a structured programme of investor relations based on formal 
announcements and publications covering the fullyear and  
halfyear results in addition the chairman meets with the  
company’s institutional shareholders from time to time both 
proactively and upon request in order to discuss the company  
and its performance governance and remuneration policies  
as set out in the remuneration report the remuneration  
committee undertakes a consultation exercise each year and  
as part of this exercise the committee chairman also engages 
directly with shareholders 
all directors receive formal reports and briefings during the year  
about the company’s investor relations programme and receive 
detailed feedback through surveys direct contact and other means 
through which they are able to develop an understanding of the  
views of major shareholders about the company
the board encourages all shareholders to participate in the annual 
general meeting which is attended by all directors shareholders’ 
attention is drawn to the notice of meeting on pages 144 to 151 
which sets out details of the rights of shareholders in connection  
with the notice of and participation in general meetings of the 
company this year there are 20 resolutions being submitted  
for shareholder consideration including resolution 19 which is  
a request for approval of a substantial property transaction as  
defined in the companies act 2006 between the company  
and pete redfern
at the 2014 agm shareholders representing 57 of the company’s 
issued share capital voted in the poll there was a vote in favour  
of 12 of the 19 resolutions of in excess of 99 and an average  
vote in favour across all 19 resolutions of over 98 
information about the company including fullyear and halfyear 
results and other major announcements and additional information 
about shareholder facilities is published on the company’s website 
wwwtaylorwimpeycouk
this 2014 annual report and accounts 
your directors have responsibility for preparing this 2014 annual 
report and accounts and for making certain confirmations 
concerning it in accordance with the code provision c11  
the board considers that taken as a whole it is fair balanced  
and understandable and provides the information necessary for 
shareholders to assess the company’s performance business  
model and strategy
the board reached this conclusion after receiving advice from  
the audit committee the processes of review and assessment 
followed by that committee in that respect are set out on page 64
wwwtaylorwimpeycouk
55
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 main objective
 − to ensure there shall be a formal rigorous and transparent  
process for the appointment of new directors to the board  
its committees and to other senior roles and to ensure effective 
diversity improvements and succession planning processes  
across the group
achievements for 2014
 − four senior appointments made during the year that provide  
both an appropriate balance of skills experience and knowledge  
to enable their duties to be discharged effectively and enhance and 
strengthen the management team
 − a diversity and inclusivity committee was established to help drive 
the diversity improvement strategy forward operationally embed 
suitable processes throughout the business and identify and 
undertake a number of initiatives designed to improve awareness  
in recruiting training and promotion processes
 − succession planning remains a key area of focus across all  
levels of the organisation and the company’s succession plans and 
talent pipelines were regularly reviewed at board level with further 
action to support these areas continuing
 − conducted a review of the optimum size of the board which 
resulted in a structure of the chairman three executive directors 
and four independent non executive directors in line with the uk 
corporate governance code representing a reduction of one 
2015 t argets
 − to further progress the diversity and inclusivity agenda including 
partnering initiatives with independent organisations improved  
data capture and interpretation processes and reviewing our 
workplace arrangements 
 − further action to continue to support succession plans and 
talent pipelines
 − to formalise in greater detail the already comprehensive and  
tailored induction process in place for newly appointed directors
nomination committee report
“ the importance of succession 
planning cannot be overstated”
committee members
number of meetings in 2014 1
directors attendance
kevin beeston 1
kate barker 1
margaret ford 1
mike hussey 1
pete redfern
a
1
rob rowley 1
t ony reading
b
1
a stood down from the committee on 1 january 2015
b resigned from the board 17 april 2014
dear shareholder
i am pleased to be able to take this opportunity as chairman  
of the nomination committee to summarise the important ongoing 
objectives and responsibilities of the committee the work that has 
been carried out during 2014 and its plans for the coming year 
the committee’ s key objective is to support the board in fulfilling its 
responsibilities to ensure that there is a formal rigorous and transparent 
process for the appointment of new directors both to the board and to 
senior management positions and to ensure that effective succession 
planning processes are in place across the group 
in meeting its objectives both the committee and the board take  
into account diversity including gender and fully support the various 
government initiatives in this key area for example i and three 
women colleagues from the business were very pleased to attend 
and participate in the women on boards conference held by the 
department for business innovation and skills in february 2015  
as this was aimed at increasing the number of women considered  
for appointment to ftse 350 boards in 2015 
each objective the strategy for delivering them progress made 
towards them during 2014 and targets and plans for 2015 is 
described in more detail in this report
the committee’s achievements during 2014 and its plans for 2015 
are set out opposite key priorities are to
 − drive our diversity and inclusivity agenda at all levels of the  
group and
 − to further progress our succession planning across the group 
linking it to career development and professional development
the committee will continue to focus on ensuring that the present 
and future composition of the board and the group’s executive 
management is appropriate for the delivery of the group’s strategy 
and that all relevant uk corporate governance code code 
requirements continue to be met 
kevin beeston
chairman of the nomination committee
taylor wimpey plc
annual report and accounts 2014
56 nomination committee
the committee is chaired by the chairman of the board and is 
composed of a majority of independent non executive directors as 
required by the code its members are set out in the table opposite 
pete redfern chief executive stood down from the committee with 
effect from 1 january 2015 such that the committee is now comprised 
of the chairman and four independent non executive directors 
the committee has procedures in place with regard to maintaining  
a formal rigorous and transparent process for board appointments 
ensuring that appointments to the board are made on merit and 
assessed against objective criteria the committee guides the  
board in regularly assessing whether there is a correct balance  
of expertise having regard to the 2011 report from lord davies  
of abersoch on women on boards the davies report and wider 
diversity considerations and in arranging the orderly succession for 
appointments to the board and in respect of senior management 
across the group a description of how appointments are typically 
made to the board is set out below
the committee oversees on behalf of the board and advises the 
board on the identification assessment and selection of candidates 
for appointment to the board the committee has a formal rigorous 
and transparent process against objective criteria typically the 
process of appointment prior to the decision of the board will 
include the engagement of recruitment consultants interviews  
by the candidate with all members of the board and the taking  
up of detailed references
the nomination committee also guides the board in assessing from 
time to time whether the board has the correct balance of expertise 
and in arranging orderly succession planning for appointments to  
the board and in respect of senior management across the group
as part of this process management below board level is regularly 
provided with access to the board including the opportunity to  
attend board meetings and further board functions in order to give 
presentations on specialist topics project work and the performance  
of specific business units and divisions 
as the only change to the board in 2014 was tony reading’s planned 
retirement after nine years’ service the committee only formally met 
on one occasion with the principal agenda items consisting of longer 
term succession planning approving the key persons contingency 
plan and considering progress on diversity across the business in 
addition wider succession planning and diversity remained on the board 
agenda regularly throughout the year going forward and with effect 
from 2015 the committee will formally meet at least twice a year
in addition and in line with the code the chairman and the senior 
independent director independent of each other hold meetings at  
least annually with the non executive directors without the executive 
directors present the chairman also liaised closely with each 
director as part of the 2014 board evaluation process
appointments and succession planning
it is the company’s policy in line with the code that proposed 
appointments to the board and succession planning are based  
on merit and judged against objective criteria whilst also having due 
regard to the benefits of diversity and inclusiveness including gender 
age ethnicity experience and thinking the board continues to both 
recognise and support the target set by the davies report which 
originally set an overall target of 25 for ftse 100 boards in 2015 
currently two out of the eight directors are women representing 
25 of the board going forward the board will aspire to at least 
maintain this level of representation whilst also having due regard  
to other aspects of diversity as outlined above 
during the year we have increased our emphasis on succession 
planning and people at all levels of the organisation as part of this 
both the board and the nomination committee has visibility of a  
wide range of employees with leadership potential together with  
their development plan a talent management group comprising  
the chief executive the group hr director and the two divisional 
chairmen of our uk operating business has been established to 
regularly review succession planning and development and training 
requirements further actions to support succession planning have 
been introduced including the development of career paths linked  
to experience exposure and education an assessment and 
development centre and the promotion of the company’s mentoring 
scheme we are also focusing upon recruiting individuals from a wider 
range of backgrounds experience and industries at all levels four 
senior appointments made during the year the group hr director 
customer director group financial controller and head of planning 
each have diverse backgrounds that provide both an appropriate 
balance of skills experience and knowledge to enable their duties  
to be discharged effectively which has enhanced and strengthened 
the strength in depth of the overall management team 
succession planning remains a key area of focus across all levels of 
the organisation the group management team gmt regularly 
reviews the company’s succession plans and talent pipelines with 
further action to support these areas continuing 
the committee considered in detail short and long term succession 
planning for directors and key executives together with appropriate 
development plans there was one change in the composition of  
the board during 2014 – namely the retirement of tony reading  
on 17 april 2014 after nine years of dedicated service in addition 
the planned appointment of margaret ford as chairman of the 
remuneration committee in succession to tony reading took 
place and also the appointment of kate barker as a member  
of that committee so as to ensure that the committee had  
at all times three independent non executive directors 
the composition and performance of the board was considered 
during the year following these changes and it was concluded that no 
further change was necessary at this stage as it continued to function 
effectively with four independent non executive directors following 
tony reading’s departure
the committee believes that the balance of the board consisting 
of a chairman three executive directors and four independent  
non executive directors will continue to provide the right blend of 
experience expertise and challenge in order to take the company 
forward in line with its strategy whilst ensuring and maintaining good 
governance and best practice this will however be kept under 
regular review in line with the requirements of the code
diversity policy
the board remains committed to the belief that embracing diversity 
and inclusion will enable it to succeed through a workforce that is 
creative and innovative the board has adopted a policy on diversity 
which is set out on page 59 and is also available on the company’s 
website at wwwtaylorwimpeycoukcorporateinvestorrelations
corporategovernance
the company continues to actively embrace the business and 
local communities in which it operates and will strive to reflect their 
richness and character so as to include such aspects as gender 
race and religion – and also diversity of thought background 
and experience
wwwtaylorwimpeycouk
57
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 nomination committee report continued
the company is also committed to ensuring that our people are  
free from any direct or indirect discrimination harassment or bullying 
our grievance and harassment policies ensure that any reported 
incidents are investigated in addition our whistleblowing policy 
encourages employees to speak up against any inappropriate 
practices or behaviour
diversity and inclusion remained a clear focus throughout 2014  
which will continue into 2015 and future years a working party  
which includes senior management has been established to create  
a diversity and inclusion strategy the strategy will focus on the 
challenges faced in developing an inclusive and diverse workforce 
this includes working with specialist external bodies to maximise  
all opportunities including
 − developing our policy and raising the expectations from our 
employees
 − enhancing our awareness training programme and 
 − improving how we attract and recruit candidates to enable  
us to succeed through a workforce that is inclusive creative  
and innovative
during 2014 a number of key activities have taken place
 − all members of the gmt have participated in an interactive 
awareness workshop designed to give them an insight into the 
impact that disabilities have on the ability to undertake normal day 
to day activities
 − diversity discussion group meetings have taken place with  
the chief executive group hr director and different sections  
of the workforce
 − the new careers website has been completed including new video 
testimonials promoting our approach to diversity
 − articles have been placed in the diversity group directory  
and living with disability publications raising awareness  
of opportunities within the company
 − we continue to work with our recruitment partners to ensure they 
understand and embrace our diversity and inclusion agenda
 − we recruited 99 2013 43 apprentices including 29 site 
management apprentices 50 management trainees 2013 23 and 
19 graduates 2013 11 we remain on target with the recruitment 
of our site management apprentices
 − an increase in the number of employees with disabilities recruited 
working with key partners we hope to increase more permanent 
and secondment opportunities for people with disabilities
 − undertaken reward roadshows across the business to  
ensure that all employees are aware and understand all of the 
company’s remuneration benefits including holiday purchase  
and childcare vouchers
 − the company hosted a “skills summit” attended by two 
government ministers where a commitment to increasing the 
apprentice and other career opportunities for young people within 
the industry was established
 − the strategy for further developing diversity and inclusion includes 
plans to
 − partner with a number of specific diversity partners in 2015 with 
an objective to drive the attraction and development of a more 
diverse and representative workforce
 − continue the diversity discussion group meetings with the  
chief executive group hr director and different sections  
of the workforce to further embed diversity and inclusiveness  
at all levels of the company and
 − introduce a new hr information system in q4 of 2015 which 
we believe will better capture data relating to all aspects of 
diversity and inclusion
the board believes that by embracing diversity and inclusiveness 
the company will better understand how people’s differences and 
similarities can be utilised for the benefit of not only the company but 
most importantly also for individuals and society as a whole  
it is the board’s view that having a diverse workforce will improve  
the company’s ability to deliver its strategy the homes that it builds 
and its services 
diversity has continued to be a key item on the overall uk governance 
agenda during 2014 within taylor wimpey diversity has remained  
a key priority for the board’s agenda and this will continue to be the 
case during 2015 although the board will continue to appoint on 
merit we recognise that boards will generally perform better when 
they include top quality people from a range of backgrounds and 
perspectives diversity will continue to be a key consideration when 
contemplating the composition and refreshing of the board and 
indeed our senior and wider management
the company has put in place systems to measure and monitor 
diversity around the group more effectively with regard to gender  
as at 31 december 2014
 − the board consisted of eight directors two of whom are  
women 25
 − the gmt which is effectively the executive board of taylor wimpey 
uk limited our main operating company consisted of eight 
executives two of whom are women 25
 − there is one woman out of 24 regional managing directors 4 
 − women across the group account for 32 2013 31  
of the workforce 
 − 29 2013 27 of new starters with the company during 2014 
were women
while we are making progress we of course recognise that we still 
have more work to do in order to fulfil our overall diversity ambitions 
and as stated on page 56 it is a priority for 2015 to achieve further 
progress in this area
taylor wimpey plc
annual report and accounts 2014
58 diversity policy
the company’s plans and progress in implementing its diversity policy benchmarked against appropriate targets are set out below  
progress is measured and monitored by the nomination committee and the board
diversity policy strategy progress
taylor wimpey operates in 
diverse communities we believe 
that embracing this diversity will 
enable us to succeed through  
a workforce that is inclusive 
creative and innovative diversity 
covers many aspects we have 
defined diversity to mean that  
we actively embrace the 
business and local communities 
in which we operate and will 
strive to reflect their richness  
and character to include  
such aspects as gender race 
disability and religion but also 
diversity of thought background 
and experience
we will examine our culture and 
practices to determine what further 
actions can be taken to improve 
diversity and inclusion within  
taylor wimpey
in 2014 a working party has been established of senior executives to drive further  
improvement in our diversity and inclusion strategy the working party will embed suitable 
processes throughout the business assess a number of initiatives designed to improve 
awareness in recruiting training and promotion processes oversee the implementation  
of improvements and monitor the results and feedback from participants
in 2014 all members of the gmt participated in an interactive awareness workshop  
to gain insight into the impact of disabilities on the ability to undertake day to day activities  
this will be reflected in appropriate business processes and arrangements designed to 
facilitate the employment of disabled people
diversity discussions have continued with different sections of the workforce with the active 
participation of the ceo and the group hr director these discussions help us to frame 
policies and wider diversity strategy in the light of employees’ own experience and practical 
conditions at all levels of the business
the new careers website went live during 2014 and includes video testimonials promoting  
the diverse nature of our workforce
managing diversity is about 
valuing everyone as an  
individual – valuing people  
as our employees customers 
and clients people have different 
needs values and beliefs our 
people management practice 
demands that employment 
propositions are both consistently 
fair but also flexible and inclusive 
in ways that assist our people 
while supporting our business 
needs and objectives
we will identify people  
management practices that  
assist a diverse workforce  
to achieve their full potential 
we will use our community 
engagement programme  
to heighten awareness of personal 
interaction and valuing individuals
we will increase the opportunities  
for young people to join the 
company and will promote 
continuous personal development
articles to raise awareness of opportunities within the company are now being placed  
in appropriate publications such as the diversity group directory and the living with  
disability publication
we plan to partner with a number of specific diversity partners during 2015 with the intention 
of driving the attraction and development of a more diverse workforce 
our flexible holiday purchase scheme was subscribed to by 691 employees 2013 525 and  
the majority of these were female
the number of employees with disabilities who were recruited during 2014 increased 
compared to the previous year
our intention is to further increase the number of suitable opportunities for both permanent  
and secondment employment during 2015 for people with disabilities 
in 2014 we recruited 99 apprentices 2013 43 50 management trainees 2013 23  
and 19 graduates 2013 11
we remain on target with the recruitment program for site management apprentices
we believe that everyone  
should have the right to equal 
access to employment and 
when in our employ to equal  
pay and access to training  
and career development
we will ensure that all managers 
involved in recruitment and  
selection receive training that 
incorporates the areas of diversity 
and promoting equality
we will extend our recruitment 
sources in order to attract a more 
diverse range of applicants
during 2014 the company hosted a ‘skills summit’ attended by two government ministers 
where a commitment to increasing apprentice and other career opportunities for young  
people within the industry was established
we continue to work with our recruitment partners to ensure they embrace our diversity  
and inclusion agenda
the planned introduction during 2015 of an improved hr information system should enable 
improved data capture to more closely monitor the effects of the improvement strategy on  
all aspects of diversity and inclusion and allow our future plans to be amended accordingly 
we are committed to ensuring 
that our people are free from any 
direct or indirect discrimination 
harassment or bullying we will 
not tolerate any behaviour that 
detracts from this
we will encourage our people to 
speak out and report any direct or 
indirect discrimination harassment  
or bullying we will act promptly  
in addressing any inappropriate 
behaviour or practice
the company’s whistleblowing campaign specifically focused on diversity encouraging 
employees to speak up against any inappropriate practices or behaviour remains in place
our grievance policy ensures that any reports of harassment or bullying are investigated  
and acted upon
we acknowledge that we must 
continue to promote diversity in 
order to create an organisation 
that attracts supports and 
promotes the broadest range  
of talent establishing an 
organisational culture with  
diversity as a core value will  
enable individuals to reach their  
full potential and to provide the 
best service to our customers
diversity will be promoted from  
the highest level and we will ensure 
that our people understand the 
benefits of having a diverse and 
inclusive workforce
diversity is a core message within our strategy a main item at our executive and  
regional management meetings and is a standing agenda item at gmt meetings
our employee survey in 2014 sought further feedback on diversity and inclusiveness  
and the outcome demonstrated that there is an extremely high level of recognition  
of this issue amongst employees
wwwtaylorwimpeycouk
59
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 audit committee report
dear shareholder
i am pleased to be able to take this opportunity as chairman  
of the audit committee to summarise the ongoing objectives and 
responsibilities of the committee the work that has been carried  
out during 2014 and the priorities established for 2015
the committee supports the board in fulfilling its corporate 
governance responsibilities relating to the group’s external audit 
process internal audit process risk management and internal control 
framework whistleblowing procedures financial reporting practices 
and the preparation and compliance of the company’s annual report 
and accounts
the terms of reference of the audit committee which are summarised 
on page 61 reflect its responsibilities under the uk corporate 
governance code code and related regulations
a key requirement of the audit committee is that it should evaluate  
its performance against its key objectives on an annual basis 
the 2014 performance against objectives was formally assessed  
by the committee at its february 2015 meeting
during 2014 the audit committee
 − reviewed processes designed to meet new governance 
requirements namely
 − defined and implemented processes to enable the committee  
to advise the board that the annual report and accounts  
meets the requirements of code provision c1 to provide a fair 
balanced and understandable assessment of the company’s 
position and prospects
 − reviewed significant issues to be considered in preparing  
the annual report and accounts and
 − undertook an assessment of the effectiveness of the external 
audit process
 − ensured that the one business one solution enterprise resource 
planning 1b1s erp system is delivering maximum benefit 
together with a process of continuous improvement supported  
by a targeted internal audit approach to auditing in the new 
environment
 − oversaw the embedding of the new 1b1s erp processes across 
the uk business
 − reviewed the new governance structures over all key business 
systems including the new 1b1s erp system
“ the highest standards of 
governance and risk management 
are our top overall priorities”
committee members
number of meetings in 2014 3
directors attendance
rob rowley 3
kate barker 3
mike hussey 3
t ony reading
a
1
a resigned from the board 17 april 2014
 − ensured those systems and processes that impact the data  
to facilitate timely decision making were effective
 − reviewed the alternative bases of accounting open to the company 
upon the announcement by the financial reporting council frc 
of the ending of united kingdom generally accepted accounting 
practice ukgaap
 − reviewed the guidance on risk management internal control  
and related financial and business reporting issued by the  
frc in september 2014
key priorities for 2015 are
 − to fully implement and ultimately ensure compliance with the 
additional requirements introduced in the september 2014 update 
of the code and to continue to support the board in ensuring that 
the requirements of the code especially provision c1 relating to 
ensuring that the company’s annual report and accounts present 
a fair balanced and reasonable assessment of the group’s position 
and prospects are met
 − to oversee the periodic external evaluation of the internal audit 
function to ensure effectiveness and ability to support strong 
controls and governance across the group
 − to consider the process and controls within our key corporate 
functions
 − to consider the group fraud risk assessment and ensure 
appropriate measures are in place
 − to maintain focus on the processes that support the group’s 
execution of strategy 
 − to ensure the risk management framework remains robust  
to any changes to the operating environment
the committee will continue to focus on ensuring that all the relevant 
codes and regulations are complied with to ensure that the business 
is operating in a controlled and managed environment
yours sincerely
rob rowley
chairman of the audit committee
taylor wimpey plc
annual report and accounts 2014
60 main objective
 − to assist the board in fulfilling its corporate governance 
responsibilities relating to the group’s internal control framework 
internal audit process risk management financial reporting 
practices and external audit process
achievements for 2014
 − reviewed processes designed to meet new governance 
requirements namely
 − defined and implemented processes to enable the committee  
to advise the board that the annual report and accounts  
meets the requirements of code provision c1 to provide a fair 
balanced and understandable assessment of the company’s 
position and prospects
 − reviewed significant issues to be considered in preparing the 
annual report and accounts and
 − undertook an assessment of the effectiveness of the external 
audit process
 − ensured that the one business one solution enterprise  
resource planning 1b1s erp system is delivering maximum 
benefit together with a process of continuous improvement 
supported by a targeted internal audit approach to auditing  
in the new environment
 − oversaw the embedding of the new 1b1s erp processes across 
the uk business
 − reviewed the new governance structures over all key business 
systems including the new 1b1s erp system
 − ensured those systems and processes that impact the data to 
facilitate timely decision making were effective
 − reviewed the alternative bases of accounting open to the 
company upon the announcement by the financial reporting 
council of the ending of ukgaap
 − reviewed the guidance on risk management internal control and 
related financial and business reporting issued by the financial 
reporting council frc in september 2014
2015 t argets
 − to fully implement and ultimately ensure compliance with the 
additional requirements introduced in the september 2014 update 
of the code and to continue to support the board in ensuring that 
the requirements of the code especially provision c1 are met
 − to oversee the periodic external evaluation of the internal audit 
function to ensure effectiveness and ability to support strong 
controls and governance across the group
 − to consider the process and controls within our key  
corporate functions
 − to consider the group fraud risk assessment and ensure 
appropriate measures are in place 
 − to maintain focus on the processes that support the group’s 
execution of strategy and
 − to ensure the risk management framework remains robust  
to any changes to the operating environment
audit committee
the members of the audit committee during 2014 and their 
attendance at meetings of the committee during that year  
are as set out on page 60
details of the committee’s activities during 2014 and priorities for 
2015 are contained in the letter from the chairman of the audit 
committee on the preceding page
the audit committee is chaired by rob rowley all members of the 
committee are independent non executive directors as required by  
the code during the year tony reading stood down from the board 
leaving three independent non executive directors on the committee 
which is in line with the requirements of the code the board has 
determined that rob rowley who currently chairs the audit 
committee at moneysupermarketcom group plc has recent and 
relevant financial experience as required by the code the chairman 
of the company and other non executive directors the executive 
directors head of internal audit and other senior executives attend 
committee meetings by invitation deloitte llp deloitte the external 
auditor is also invited to attend committee meetings the committee 
also regularly meets privately with representatives from deloitte during 
at least two committee meetings per annum which normally take 
place around the time of the full and halfyear financial statements in 
order to discuss any matters which the auditors may wish to raise in 
confidence without any executive directors other than the secretary 
being present 
the audit committee met on three occasions during the year  
the meetings around the full and halfyear results are typically also 
attended by the non executive directors who are not members  
of the committee
at these meetings the committee carried out its remit which  
primarily includes
 − at its february 2014 meeting reviewing the final draft 2013 annual 
report and accounts together with details of risk management 
process and any significant accounting and audit issues thereon 
considering issues of materiality and the external auditor’s report  
on the progress of the audit conducting a formal compliance 
check and reviewing the draft preliminary announcement of the 
group’s 2013 results
 − at its july 2014 meeting reviewing the final draft halfyear 
statement for 2014 together with details of the risk management 
process and any significant accounting issues thereon considering 
issues of materiality and the external auditor’s report on its review  
of that statement and
 − at its december 2014 meeting a review of its performance  
against its objectives during 2014 consideration of the 
committee’s priorities for 2015 approval of updates to the  
audit committee framework deloitte’s audit plan and report  
on the progress of the audit to date monitoring the processes 
whereby the committee ensures that the 2014 annual report  
and accounts meets the requirements of code provision c1  
and the performance of deloitte including their recommendation  
for reappointment at the 2015 agm the committee was also 
briefed on key accounting judgements with regard to the 
company’s 2014 accounts
in addition at each meeting the committee also reviewed its other 
areas of responsibility including
 − the internal audit process
 − the risk management and internal control framework
 − the company’s whistleblowing procedures and the adequacy  
of any investigations
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61
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243  − progress on embedding systems and processes necessary  
to maximise the benefits of the new 1b1s erp system
 − checking for any incidences of fraud actual alleged or 
precautionary and ensuring proper controls and a response  
plan are in place and
 − financial reporting practices
in carrying out these activities the committee places reliance on  
regular reports from executive management internal audit and from 
the company’s external auditors in monitoring the financial reporting 
practices the audit committee reviewed accounting policies areas  
of judgement the going concern assumptions and compliance with 
accounting standards and the requirements of the code during  
the year the committee reviewed prior to publication other 
statements affecting the group concerning price sensitive  
information as necessary
as reported last year the audit committee concluded in early 2014 
its constructive dialogue with the financial reporting council frc 
following its review of the company’s 2011 annual report and 
accounts the outcome was enhanced reporting in certain areas 
which were addressed in the company’s previous years’ annual 
reports and accounts consequently the frc has concluded  
its review 
external auditor
reappointment
as noted earlier deloitte llp is the company’s external auditor  
their performance is kept under regular review by the board and  
the audit committee and the committee undertook a formal 
assessment of the external audit process during the external audit  
of the company’s 2014 results and deloitte’s suitability going forward
this review took the form of a checklist and questionnaire issued  
to directors executives involved in the detailed stages of the audit 
process and a representative sample of employees in regional 
business units which were subject to audit the responses were 
augmented by external feedback on the relative performance  
of auditors generally and from regulatory sources a summary  
of the findings was prepared by internal audit and considered  
by the audit committee at its february 2015 meeting
the outcome of the review was that the committee recommended  
to the board which in turn is recommending to shareholders in 
resolution 12 on page 144 that deloitte be reappointed as the 
company’s auditors at the 2015 agm
tender
a formal competitive audit tender process was carried out by the 
company with regard to the 2008 audit following which deloitte was 
selected to continue as external auditor to the company the current 
lead engagement partner is edward hanson who assumed 
responsibility for the 2014 audit under deloitte’s partner rotation 
scheme having been involved in the 2013 external audit in order to 
familiarise himself with its scope and detail as part of the handover 
process the code requires ftse 350 companies to put the external 
audit contract out to tender at least once in every ten years the 
company also notes the guidance issued by the frc by way of 
transitional arrangements therefore and having due regard to the 
foregoing having conducted a tender process in 20072008 the 
company presently intends to defer tendering againuntil completion 
of edward hanson’s rotation in 2019 but will of course keep the 
matter under regular review taking into account the annual 
performance review to be conducted by the committee as well as 
other relevant factors there are no contractual restrictions on the 
company’s selection of its external auditor
appointment of the auditor for nonaudit services
the audit committee has a formal policy on whether the company’s 
external auditor should be employed to provide services other than 
audit services in line with the code the committee has regard to the 
relevant ethical guidance regarding the provision of nonaudit services 
by deloitte this policy requires that there should be a competitive 
tender process – except in narrowly defined circumstances where it is 
considered that based on confidentiality past knowledge and other 
commercial reasons there is an advantage in using a single tender 
procurement procedure
the committee has determined that the following assignments 
should not be undertaken by the auditors
 − bookkeeping or other services related to the accounting records  
or financial statements 
 − internal audit outsourcing services 
 − the provision of advice on large information technology  
systems and 
 − services connected with valuation litigation support legal 
recruitment or remuneration 
the board is satisfied that this policy is conducive to the maintenance  
of good governance best practice and auditor independence  
and objectivity 
nonaudit services in 2014 predominantly related to work undertaken 
as a result of deloitte’s role as auditors in particular tax work which 
included some advisory services to the company and its subsidiaries 
deloitte also performed certain real estate advisory work for which 
they were selected as they were considered to be the best supplier 
for that service all independence considerations were fully satisfied 
by both the company and deloitte for this work
the audit committee fully recognises and supports the importance of 
the independence of auditors its review of the auditor’s performance 
during 2014 included nonaudit services the committee is satisfied 
that the carrying out of the above work did not and will not going 
forward impair the independence of the external auditor it also 
recognises that from time to time there is a clear commercial 
advantage based on cost and timetable requirements in using  
the company’s auditors as a result the value of nonaudit services 
work was £02m in 2014 2013 £02m as set out in note 6 to the 
accounts on page 110
audit committee report continued
taylor wimpey plc
annual report and accounts 2014
62 internal audit
the internal audit function reviews the effectiveness and efficiency  
of the systems of internal control in place to safeguard the assets  
to quantify price transfer avoid or mitigate risks and to monitor  
the activities of the group in accomplishing established objectives 
following each review an internal audit report is provided to both  
the management responsible for the area reviewed and the group 
management team gmt these reports outline internal audit’s 
opinion of the management control framework in place together with 
actions indicating improvements proposed or made as appropriate 
the chief executive the gmt and senior management consider 
the reports on a regular basis and are responsible for ensuring 
that improvements are made as agreed a database of audit 
recommendations and improvement initiatives is maintained  
followup and escalation processes ensure that such improvements 
are implemented and fully embedded in a timely manner
we belong to and participate in industrywide forums and other 
initiatives aimed at combating fraud within the construction industry
summaries of all key internal audit reviews and activity and  
resulting reports are provided to the audit committee for review  
and discussion
the internal audit function also formally reviews proposed related 
party transactions such as purchases by employees from group 
companies to ensure proper procedures are followed and that such 
procedures are undertaken strictly in accordance with the formal 
policy in place and where applicable company law 
the most recent independent formal evaluation of the internal audit 
function was carried out on behalf of the audit committee during 
2011 by pwc and its finding was that internal audit is operating 
effectively the next independent formal evaluation is planned  
to take place during 2015
a number of initiatives were progressed during 2014 to ensure the  
internal audit function continues to meet both current best practice  
and the evolving needs of the group the internal audit charter 
which codifies the aims modus operandi and outputs of internal 
audit was reviewed by the committee for ongoing appropriateness 
during 2014 internal audit completed the series of controls reviews 
at each of the 24 uk regional businesses that review focused  
on assessing the postimplementation success of the groupwide 
1b1s erp system in 2015 internal audit will focus on following  
up the recommendations arising from those reviews as well as 
considering corporate level activities
the head of internal audit has direct access at all times to the 
chairman of the audit committee the chairman of the board  
and also to the chief executive and the other executive directors
risk management and internal control
the group has established an ongoing process of risk management 
and internal control applying principle c2 of the code the board  
is responsible for the effectiveness of the system of internal control 
which has been designed to meet the requirements of the group  
and the risks it encounters including taking account of environmental 
social and governance considerations the systems cannot eliminate 
the risk of failure but rather seek to manage both the likelihood of their 
occurrence and the extent of their impact and can only provide 
reasonable and not absolute assurance against material 
misstatement or loss
the principal risks facing the company as assessed by the board 
are set out on pages 28 to 29 together with information on action 
taken andor planned to mitigate each one
the board makes its assessment of risk halfyearly after overseeing  
a bottomup and topdown review of risk in all areas of the business 
action to mitigate the effect of each one is led by the chief executive 
either directly or indirectly 
the board’s assessments use a standard methodology which takes 
into account environmental social and governance considerations
in compliance with the code the board also regularly reviews the 
effectiveness of the group’s system of internal control in providing  
a responsible assessment and mitigation of risks the board’s 
monitoring covers all controls including financial operational 
compliance and assurance controls which include risk management
the group’s system of internal control is primarily exercised  
through an established operating framework supported by function 
manuals covering the main disciplines adherence to these is required  
and monitored by management and checked independently by 
internal audit
at its halfyear and yearend meetings the board reviews risk in 
relation to the company’s strategic objectives and its current plans  
to deliver them it also reviews progress and performance in action 
taken to mitigate the impact of those risks
the board is supported in this by more regular and detailed reviews 
by the audit committee including the review of progress reports from 
internal audit and by operational reviews led by the gmt
these reviews during 2014 resulted in a number of enhancements  
to internal controls designed to reduce or better manage risk across 
the business these included the embedding of the coins and  
1b1s erp business systems which have improved the accuracy 
timeliness and uniformity of data used to manage and report on  
the group’s businesses and further work towards updating the 
operating framework and commercial and finance manuals which 
guide the businesses in ensuring compliance with group standards
the committee reviewed the new guidance on risk management 
internal control and related financial and business reporting issued 
by the frc in september 2014 this aims to bring together elements 
of best practice for risk management to prompt boards to consider 
how to discharge their responsibilities in relation to principal risks 
faced by the company embed risk management and internal  
control in the company’s business processes and highlights  
related reporting responsibilities
the committee welcomes the new regulations which it believes  
will enhance sound stewardship by the board in these areas the 
guidance applies for the company’s reporting period commencing  
on 1 january 2015
at its meeting in february 2015 the board after conducting its  
own review and after reviewing more detailed assessments from  
the audit committee remained satisfied that the system of internal 
control continued to be effective in identifying assessing and  
ranking the various risks facing the company and in monitoring  
and reporting progress in mitigating their potential impact on the 
company the board also approved the statement of the principal 
risks set out on pages 28 to 29 of this annual report
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directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 whistleblowing 
the group’s whistleblowing policy is supported by a clear process  
that includes an externally facilitated hotline through which any  
person including employees of the company may in confidence  
raise concerns about possible improprieties in financial reporting 
other operational matters or inappropriate personal behaviours in  
the work place all whistleblowing cases are formally investigated  
by the head of internal audit group health and safety director 
where appropriate group human resources director andor  
the group legal director and company secretary depending  
on the nature andor seriousness of the issue the chief executive 
is apprised of all allegations and conclusions of the review
whistleblowing incidents and their outcome are reported to the  
audit committee whistleblowing is a standing item on each audit 
committee agenda which allows the committee to regularly review 
the adequacy of the policy in line with its requirement to do so under 
the code the process is regularly reviewed and the committee is 
satisfied that it remains effective
change of basis of accounting
a technical matter to be brought to shareholders’ attention  
is a proposed change in the company’s basis of accounting  
the company’s current basis of accounting is ukgaap which the  
frc has announced is to change for reporting periods commencing 
on or after 1 january 2015 there were three alternatives open to the 
company and after a detailed review of those alternatives which 
included consultation with external parties including the company’s 
external auditor it is proposed to use frs 101 as the company’s 
basis of accounting for reporting for financial year commencing  
1 january 2015 and thereafter the reason for choosing frs 101  
is that it is based on international financial reporting standards 
ifrs as used generally throughout the european union and 
currently used for the group financial statements it is therefore 
proposed that the company’s basis of accounting be changed  
from ukgaap to frs 101 with effect from 1 january 2015
the audit committee supports this change which is largely a 
technical matter designed to ensure that the company’s accounts 
continue to be prepared in an appropriate way which meets the 
standards generally applied by the accounting and auditing bodies of 
the uk and remains in line with current law regulation and guidance
the group accounts are not impacted by this change the group 
statutory accounts are and will continue to be prepared in 
accordance with ifrs as adopted by the european union
formal notice of this change and details of how shareholders may  
if they wish register their views on it are set out in statutory 
regulatory and other information on page 87
annual report and accounts 2014
code provision c1
the board has responsibility under code provision c1 for preparing 
the company’s annual report and accounts for ensuring that it 
presents a fair balanced and understandable assessment of the 
company’s position and prospects and that it provides the 
information necessary for shareholders to assess the company’s 
performance business model and strategy
process
the review of the company’s annual report and accounts took  
the form of a detailed assessment of the collaborative process  
of drafting them which involves the company’s investor relations 
finance company secretariat and internal audit departments with 
guidance and input from external advisers it ensured that there is a 
clear and unified link between this annual report and accounts and  
the company’s other external reporting and between the three main 
sections of the annual report and accounts – the strategic report 
the governance reports and the accounts
in particular the committee
 − reviewed all material matters as reported elsewhere in this 
annual report
 − ensured that it correctly reflected the company’s performance  
in the reporting year as described on pages 10 to 39
 − ensured that it correctly reflected the company’s business model 
as described on pages 18 to 23 ensured that it correctly described 
the company’s strategy as described on pages 16 to 17
 − ensured that it presented a consistent message throughout and
 − considered whether it presented the information in a clear and 
concise manner illustrated by appropriate kpis to facilitate 
shareholders’ access to relevant information
significant items
as part of the above process the committee considered the  
following significant items in connection with the preparation  
of the 2014 annual report and accounts
 − that the carrying value of inventory is reflective of the lower of  
cost and net realisable value and all relevant disclosures are 
included in the accounts the company carries out a net realisable 
value assessment for inventory every six months the process and  
results of which are discussed by the audit committee
 − that the assumptions used in calculating the net pension liabilities 
are reasonable and supported by appropriate data and external 
advice the company takes external advice including marketwide 
comparisons in valuing pension assets and liabilities these are 
discussed and agreed by the committee
 − the committee also satisfied itself that the underlying business 
processes that dictate the points of recognition for revenue and the 
way in which inventory is costed and allocated remain appropriate
as part of the yearend process the audit committee received 
updates on other judgemental areas including provisions and 
taxation the presentation of exceptional items as well as changes  
to ifrs were also considered when reviewing the 2014 annual 
report and accounts
audit committee report continued
taylor wimpey plc
annual report and accounts 2014
64 conclusion
a summary of the process and of the committee’s findings was 
considered by the board at its meeting on 25 february 2015
the outcome of that review was that the committee confirmed  
to the board that the 2014 annual report and accounts met the 
requirements of code provision c1 and the board’s formal 
statement to that effect to meet the requirements of the code  
is set out on page 55
going concern
the group has prepared forecasts including certain sensitivities 
taking into account the principal risks identified on pages 28 to  
29 having considered these forecasts the directors remain of the  
view that the group’s financing arrangements and capital structure 
provides both the necessary facilities and covenant headroom to 
enable the group to conduct its business for at least the next  
12 months accordingly the consolidated financial statements  
have been prepared on a going concern basis
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65
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 remuneration report
dear shareholder
i am delighted to take this opportunity as the first year of my 
chairmanship of the remuneration committee comes to an end  
to summarise the company’s remuneration strategy and the way  
it has been implemented during 2014 
as always the committee remains very mindful of the interest in 
executive remuneration and has sought to ensure that the remuneration 
policies and practices at taylor wimpey drive behaviour that is in the 
long term interests of the company and its shareholders 
shareholders approved the remuneration policy the policy  
as set out in the 2013 directors’ remuneration report at the 2014 
agm and this policy will apply until replaced by a new or amended 
policy as confirmed last year it is the committee’s intention that it will 
submit its policy to shareholders for approval once every three years 
unless circumstances dictate otherwise the remuneration committee 
is of the view that the policy continues to remain appropriate and 
should therefore continue to operate for 2015 there are no changes 
proposed to the policy other than minor differences in the way in 
which the policy will be implemented in 2015 compared with 2014 
where additional information has been included this has been clearly 
indicated for ease of reference for shareholders namely the pay 
scenario chart on page 72 and the additional information for 2015  
set out on pages 72 and 73 in italicised text 
although no changes are proposed the policy has nevertheless 
been included in this report in full for ease of reference so as to 
assist shareholders in reviewing the company’s implementation  
of the policy during 2014 the annual report on remuneration  
which describes the implementation of the policy during the year  
will again be subject to an advisory vote and this will take place  
at the forthcoming agm in 2015
the committee has continued its much valued practice of engaging 
with key institutional investors and shareholder representative  
bodies with regard to director remuneration as in previous years  
the committee has taken into account the feedback which it has 
received and is as ever very grateful for the constructive engagement 
and feedback
“ remuneration policies and 
practices must drive behaviour that 
is in the long term interests of the 
company and its shareholders”
committee members
number of meetings in 2014 4
directors attendance
baroness ford of cunninghame 4
kate barker
a
2
kevin beeston 4
rob rowley 3
t ony reading
b
2
a  appointed to the committee on 17 april 2014
b  resigned from the board on 17 april 2014
with regard to salaries the general increase throughout the  
company to take effect from 1 april 2015 will be 3 this will  
also apply to pete redfern chief executive and james jordan 
group legal director and company secretary as disclosed to 
shareholders in previous years and in line with our policy of where 
appropriate setting the starting salaries of new promotions to the 
board at a below market level and increasing them to a midmarket 
level as they prove themselves in the role the committee intends  
to carry out a oneoff realignment of ryan mangold’s salary to reflect 
his performance and development accordingly an increase of 124 
will be awarded taking his salary from £355744 to £400000 with 
effect from 1 april 2015
with regard to the 2014 short term incentive cash bonus in place  
for executive directors the company performed strongly against 
certain of the group kpis during the year particularly in respect  
of the earnings before interest and tax roce and operating margin 
targets accordingly the actual bonus outturn was towards the upper 
end of the performance range and as a result bonuses of 90 of the 
maximum bonus potential have been awarded in respect of 2014 
onethird of this incentive will be deferred into shares to be held on 
trust for three years with no matching element 
with regard to the performance share plan the roce and margin 
performance conditions of the 2011 and 2012 awards are measured 
at different times to the relative tsr performance conditions for these 
awards with the consequence that the roce and margin elements 
and relative tsr elements of each award are included in the single 
figures of different financial years we reported last year that the 
roce and margin elements of the 2011 award would vest at levels  
of 744 and 100 respectively and i can now report that 100  
of the relative tsr vs ftse 250 element vested and that 9385 of 
the relative tsr vs sector peers element vested as a result 9109 
of the 2011 psp award vested in april 2014
the level of vesting under these plans reflects the continuing 
improvement in the group’s performance including return on capital 
employed and operating margin from 146 to 206 and 136  
to 179 respectively between 2011 and 2014 achieved as a result 
of management’s focus on these key measures this improvement  
in financial performance has contributed to a c267 increase  
in taylor wimpey’s share price over the same period from 375p  
on 31 december 2011 to 1378p on 31 december 2014 and total 
taylor wimpey plc
annual report and accounts 2014
66 shareholder return of c282 over the same period resulting  
in a significant increase in value for our shareholders and this  
is reflected in the value of the awards that vest 
for the 2012 psp award which vested in 2015 100 of the  
roce and margin performance measures have been achieved  
the outcome of the other two measures namely tsr relative to the 
ftse 250 and tsr relative to the sector peer group are dependent 
on the company’s tsr to 5 march 2015 and the level of vesting will 
be reported next year these are currently forecast to be 100 and 
689 respectively
vested shares are subject to the enhanced shareholding guidelines 
which we put in place for our executive directors in 2013 and details 
of each director’s shareholding are set out on page 84 the 
committee strongly believes in ensuring strong alignment between 
executive directors and senior management with shareholders 
the committee has reviewed both the setting and the achievement  
of targets for both shortterm and longterm incentive plans in respect 
of 2014 taking into account the impact of government support 
schemes such as help to buy upon volumes selling prices cost  
of sales cash flow and carrying value of inventory and is satisfied  
that there has been no significant distortion of incentive target 
performance based on these factors in 2014 
the levels of achievement under both plans therefore reflect the 
company’s excellent underlying performance described elsewhere  
in this annual report including the chairman’s statement on page  
8 and the chief executive’s review on page 10 in setting incentive 
targets for 2015 the committee has also factored in the potential 
impact of such support schemes and the committee will keep this 
under review in 2015 and beyond further details on the vesting  
of the april 2011 psp together with an update on the 2012 psp 
award are set out on page 81
the operation of the incentive arrangements for 2015 will be largely 
unchanged save for some changes to the weighting of metrics  
used in the shortterm incentive where there will be a greater 
weighting on a challenging customer service measure and changes 
to the metrics and their weightings used for the psp awards granted 
in april 2015 the margin metric used in the psp in recent years will 
be replaced by a cash conversion metric which will apply to 25  
of the 2015 awards a greater focus on cash conversion is a key 
element of the strategy that has been previously outlined to 
shareholders margin remains an important kpi for the company  
and margin performance will be taken into consideration as part  
of the committee’s assessment of the financial underpin that applies 
to awards under the psp  in addition in light of the growth in the 
group’s market capitalisation the ftse 250 peer group used for one 
of the tsr components of the psp awards will be replaced by a peer 
group comprised of the 50 companies ranked above and 50 ranked 
below taylor wimpey by market capitalisation
executive directors’ interests continue to be sufficiently aligned  
with those of the company’s shareholders through the shareholding 
requirements described on page 83 and also via the bonus deferral 
into shares requirement described in more detail on page 70 this is 
being further enhanced for psp awards made in 2015 by the 
introduction of a requirement to not sell shares within two years of 
their vesting other than to pay tax on exercise
the committee continues to believe that the remuneration policy set 
out in the remuneration policy report will both support and motivate 
the senior team whilst aligning them both to the company’s strategic 
objectives and to achieving long term growth for our shareholders 
we also believe that the remuneration of executives and the whole 
main objective
 − to establish and maintain formal and transparent procedures for 
developing policy on executive remuneration and for agreeing the 
remuneration packages of individual directors and senior 
executives and to monitor and report on them
in 2014 the committee has
 − supported delivery of the company’s strategy through a 
remuneration policy which links a significant proportion of 
executive reward to the achievement of defined and stretching 
strategic goals
 − obtained shareholder approval for the company’s first binding  
vote on its remuneration policy at the 2014 agm
 − engaged with major shareholders and shareholder bodies and 
took into account their views in assessing the continued 
appropriateness of the current remuneration policy
 − reviewed the 2014 edition of the uk corporate governance 
code code including the requirement for remuneration to be 
designed to promote the longterm success of companies 
 − reviewed and updated the malus and clawback provisions  
to comply with the 2014 edition of the code and following the 
consultation with shareholders referred to above taken steps to 
apply those provisions to the company’s long term performance 
share plan psp
 − continued to support employee participation as either 
shareholders or participants in allemployee share plans in excess 
of 50 with a small increase during the year
priorities and actions for 2015
 − to carefully monitor company performance in relation to the 
achievement of its strategic goals and to ensure executive 
reward is closely linked to those achievements
 − to further align employees’ and shareholders’ interests through
 − extending participation in the psp to members of the company’ s 
regional boards who are a key determinant of the group’ s 
success through performance at business unit level and
 − further increasing participation in allemployee share plans and  
the percentage of employee shareholders
team during 2014 and the incentives for further improving 
performance that have been awarded during the year support the 
company’s strategy to deliver enhanced returns to shareholders  
and that the short term incentive payments and the proportionate 
vesting of awards under the company’s performance share plan 
reflect our success to date in the delivery of that strategy
i do hope that you will feel able to support the level of remuneration 
paid with respect to 2014 at this year’s annual general meeting
baroness ford of cunninghame
chairman of the remuneration committee
kpi  see pages 6885 for more information
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67
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 introduction
this report has been prepared to comply with the provisions of the 
companies act 2006 and other applicable legislation including the 
regulations covering remuneration reporting the bis regulations 
and has also been prepared in line with the recommendations of  
the uk corporate governance code the code and the ukla 
listing rules 
this report has been prepared by the remuneration committee  
on behalf of the board
the 2014 remuneration report includes again disclosures which 
reflect in full the bis regulations on remuneration reporting divided 
into two sections 
 − remuneration policy report setting out the framework within 
which the company remunerates its executive directors and other 
senior executives this was approved by shareholders at the 2014 
agm and is binding on the company from the 2014 agm
 − annual report on remuneration setting out how the company’s 
present remuneration policy was applied during 2014 and how  
the policy will be implemented in 2015 the annual report on 
remuneration will be subject to an advisory resolution at the  
agm on 23 april 2015 details of the resolution and its status  
as an advisory vote are set out in the notes to the notice of 
meeting on page 150 
the bis regulations require that the company’s auditors report  
to shareholders on certain parts of this report and state whether  
in their opinion those parts of it have been properly prepared in 
accordance with the bis regulations the remuneration policy 
report which describes the committee’s remuneration policy for 
executive directors for the year commencing 1 january 2014 and 
future years contains unaudited information elements of the annual 
report on remuneration which describes how the committee has 
implemented its existing policy in 2014 contains audited information
remuneration policy report
unaudited information
this part of the report has been prepared in accordance with part 4 
of the revised schedule 8 set out in the large and mediumsized 
companies and groups accounts and reports amendment 
regulations 2013
the company’s remuneration policy was put to a shareholder 
vote at the 2014 annual general meeting of the company agm 
and was approved by 98 of shareholders who voted there is no 
requirement to vote on the policy in 2015 unless any changes to the 
policy are proposed and the committee does not intend to make any 
changes to the policy at this time the policy is set out below for 
information only the chart showing remuneration scenarios on page 
72 has been updated to reflect proposed 2015 remuneration levels 
and minor changes to the text of the policy have been made to reflect 
the fact that the policy was approved by shareholders in order to 
assist shareholders we have also added additional explanations 
where there are any differences in the way in which the policy will be 
implemented in 2015 compared with 2014 where additional 
information has been included this has been clearly indicated in 
italicised text
policy overview
a key part of the committee’s role is to ensure that the remuneration 
of executive directors and senior management is aligned to the 
company’s strategic objectives it is of course key that the 
company is able to attract and retain leaders who are focused  
and also appropriately incentivised to deliver the company’s strategic 
objectives within a framework which is aligned with the interests of 
the company’s shareholders this alignment is achieved through a 
combination of deferral into shares of a percentage of the short term 
incentive arrangements and also via share ownership guidelines 
which require executives to build up holdings of taylor wimpey 
shares by retaining vested share awards these guidelines were 
increased in 2012 so as to require executive directors to put in place 
a plan to accumulate a holding in the company of twice their basic 
salary within a specified period 
the committee’s remuneration policy ensures that a significant 
percentage of the overall package of executive directors and senior 
management remains at risk with all packages substantially geared 
towards share incentive schemes and performance the committee 
believes that the pay and benefits of its executive directors and 
senior management adequately takes account of reward versus risk 
in line with the investment association’s formerly the abi guidelines 
on responsible investment disclosure the remuneration committee 
ensures that the incentive structure for executive directors and senior 
management will not raise environmental social or governance esg 
risks by inadvertently motivating irresponsible behaviour  
more generally the committee under its terms of reference may 
where it considers appropriate take esg matters into account  
when considering the overall remuneration structure the committee 
considers that no element of the remuneration arrangements which 
are all very carefully considered will encourage inappropriate risk 
taking or behaviour by any executive the table below summarises 
the committee’s policy for the remuneration of executive directors 
which since being approved by shareholders at the 2014 agm 
became effective from the conclusion of the 2014 agm and will be 
binding until the agm in 2017 it also summarises the remuneration 
position of the chairman and non executive directors and the 
company’s allemployee share schemes
remuneration report continued
taylor wimpey plc
annual report and accounts 2014
68 element
purpose and link to 
strategy operation maximum performance targets
salary to recruit and reward 
executives of a suitable 
calibre for the role and 
duties required
salaries are normally reviewed annually to ensure 
that salaries remain competitive with external 
market practices and are competitive when 
measured against ftse peers other non
financial companies of a similar size in terms  
of market capitalisation and other large uk 
housebuildersthere is no automatic  
entitlement to an increase each year 
t akes into account the following
 − the performance role and responsibility of each 
individual director
 − the economic climate general market conditions 
and the performance of the company
 − the level of pay awards across the rest of the 
business and
 − salary levels in comparablysized companies and 
other major housebuilders
the maximum annual salary 
increase will not normally exceed  
the average increase which applies 
across the wider workforce 
however larger increases may be 
awarded in certain circumstances 
including but not limited to
 − increase in scope or responsibilities 
of the role
 − to apply salary progression for a 
newly appointed director and
 − where the director’ s salary has  
fallen significantly below the  
market positioning
company and individual 
performance are factors  
considered when reviewing  
salaries
chairman 
and non 
executive 
director fees
the chairman’ s and 
non executive director fees 
should be in line with 
recognised best practice 
and be sufficient to attract 
and retain high calibre 
non executives
fees consists of a single consolidated fee for the 
chairman plus the payment of a cash amount to 
cover his office expenses
1
 an annual fee for the 
other nonexecutives and additional fees for the 
chairman of the audit committee and the 
remuneration committee an additional fee is 
also paid to the senior independent director in 
recognition of the responsibilities of that role
set by reference to the responsibilities 
undertaken by the nonexecutive taking into 
account that each non executive director is 
expected to be a member of the nomination 
committee andor the audit committee andor 
remuneration committee 
reviewed periodically but generally annually and 
at least every other year takes into account 
levels in comparablysized companies and other 
major housebuilders
fees are paid monthly in cash
non executive directors do not participate in any 
incentive share scheme benefitsinkind or 
pension arrangements the chairman is entitled 
to participate in the company’s private medical 
insurance scheme
aggregate annual limit of £1 million 
imposed by the articles of 
association
na
other 
benefits 
including 
benefitsin
kind
provides a competitive 
package of benefits to 
assist with recruitment and 
retention of staff
the main benefits offered include
 −companyprovided car or a cash allowance  
in lieu
 −provision of a fuel card
 −life assurance
 −private medical insurance and
 −a 5 discount on the price of a new or part 
exchange home acquired from the group  
in the uk or spain
benefitsinkind are not pensionable
life assurance of up to four times 
basic salary and a pension of up  
to twothirds of the member’s 
entitlement for a spouse on death  
in service or in retirement are 
provided together with a children’s 
allowance of up to 100 of the 
dependant’s pension for three or 
more eligible children the cost of 
these benefits is not predetermined
the value of a companyprovided 
car or a cash allowance in lieu is of  
a level appropriate to the individual’s 
role and is subject to review from 
time to time the fuel card covers 
the cost of all fuel for both business 
and personal use
for home purchases the price 
discount is calculated at the plot 
release price less the average 
discount to third party buyers for 
that house type less a further 5
na
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directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 remuneration report continued
element
purpose and link 
to strategy operation maximum performance targets
short term 
incentive 
arrangement 
stia
rewards the achievement 
of stretching objectives that 
support the company’s 
annual and strategic goals
compulsory deferral in 
shares with no matching  
is designed to further align 
the interests of directors 
with shareholders
bonus awards are determined by the committee 
after the year end based on annual performance 
against targets set at the beginning of each year
onethird of any bonus payable is deferred into 
shares for three years no further performance 
conditions apply
dividends or other distributions will accrue in 
favour of participants during the three year 
deferral period and will be received with any 
shares that vest after the applicable deferral 
period 
a clawback mechanism applies to all participants 
in the event of a material misstatement of the 
group’s accounts and also for other defined 
reasons the period of the clawback is three 
years from the date of payment
no element of any stia is pensionable
the maximum stia opportunity  
for executive directors is set at 
150 of base salary target is  
set at 75 of salary and threshold  
at 0
the stia measures are based  
on a scorecard of key annual 
financial operational and 
environmental measures and  
the measures for 2015 are 
described in the annual report 
on remuneration
the committee may vary the 
metrics and weightings from year 
to year according to strategy and 
the market however financial 
measures will normally have the 
most significant weighting
long term 
incentive plan 
ltip
annual grants of share
based long term incentives 
assist with retention and 
help to incentivise senior 
executives to achieve 
returns for shareholders 
through the inclusion of 
relative total shareholder 
return tsr as a measure 
driving further uk operating 
margin progression and 
improving return on net 
operating assets through 
the cycle the use of 
shares and the introduction 
in 2014 of a postvesting 
share holding period helps 
align the interests of senior 
executives with those of the 
company’s shareholders
executive directors and other designated  
senior executives can receive annual awards of 
performance shares or share options
2
 although  
it is the company’s normal policy to grant 
performance shares only
awards of performance shares provide alignment 
with shareholders as they deliver subject to 
meeting performance conditions the full value  
of the shares which can increase and decrease 
over the three year performance period
dividends or other distributions will accrue for 
directors during the performance period and  
will be received with any shares that vest in 
favour of participants after the applicable 
performance period 
for awards made in 2014 there was a 
requirement to hold net after tax shares  
resulting from any vesting for at least one  
year postvesting rising to two years for  
awards made in 2015 and beyond
performance measures are currently measured 
over three financial years
the maximum award currently  
in performance shares is normally 
over shares with a face value of 
200 of base salary in exceptional 
circumstances this can be increased 
up to 300
if share options were to be  
granted in addition to or instead of 
performance shares then the limits 
would be doubled to reflect the 
relative fair value of options to 
performance shares
measures for 2014 are based  
on roce rona relative  
tsr measured against the ftse  
250 tsr measured against an 
unweighted industry peer group 
and margin vesting of awards is 
also subject to the achievement 
of a financial underpin 
the committee may vary the 
measures that are included in  
the plan and the weightings 
between the measures from  
year to year any changes to the 
metrics would be subject to prior 
consultation with the company’s 
major shareholders 
the targets and weightings for 
2015 are described in the annual 
report on remuneration
taylor wimpey plc
annual report and accounts 2014
70 element
purpose and link 
to strategy operation maximum performance targets
pension the company aims to 
provide competitive 
retirement benefits that 
represent an appropriate 
level of cost and risk for the 
group’s shareholders
3

pension benefits for executive directors are 
provided through one or more of the following 
arrangements
personal choice plan
4

taylor wimpey pension scheme
5

or as cash allowances
pete redfern cash allowances of 
20 of salary up to a scheme 
specific cap and 25 of salary 
above the cap
james jordan cash allowances of 
20 of salary up to a scheme 
specific cap and 28 of salary 
above the cap
ryan mangold cash allowance of 
156 of salary 
company contributions to any 
pension scheme in respect of the 
recruitment of a new executive 
director will not exceed 30 of base 
salary per annum
a flexible pension arrangement is 
available allowing the sacrifice of a 
portion of salary to be paid into a 
pension scheme as a company 
contribution
na
allemployee 
share 
schemes
all employees including 
executive directors are 
encouraged to become 
shareholders through the 
operation of allemployee 
share plans such as the 
hmrc approved 
sharesave plan and a 
share incentive plan sip
the sharesave plan and sip have standard terms 
under which all uk employees with at least three 
months’ service can participate
sharesave employees can elect for 
a savings contract of either three or 
five years with a maximum monthly 
saving set by legislation or by 
hmrc options can be exercised 
during the six months following the 
end of the contract
sip employees can elect to 
contribute an amount per month or 
per tax year by one or more lump 
sums
the maximum saving or contribution 
level is set by legislation or 
government from time to time and 
the committee reserves the right to 
increase contribution levels to reflect 
any approved government 
legislative changes
na
shareholding 
guidelines
encourages greater levels 
of shareholding and aligns 
employees’ interests with 
those of shareholders
executive directors and senior executives are 
expected to achieve and maintain a holding of 
the company’s shares at least equal to a 
significant proportion of their respective salary
executive directors 200 of salary 
100 within five years of 
appointment and balance by 
agreement with the chairman
6

na
1 the company makes a contribution to the chairman’s officerelated and other expenses as reported on page 78 
2 taylor wimpey share option plan – awards made under this plan may include income taxapproved awards made up to hmrc’s aggregate limit of £30000 awards normally vest 
after three years from the start of the performance measurement period four years for awards made during 2009 provided that the performance condition has then been achieved  
no awards have been made under this plan since 2009 and no further awards are intended
3 taylor wimpey pension schemes – the group has two principal uk pension schemes taylor wimpey personal choice plan taylor wimpey pension scheme twps the latter  
was created on 7 march 2013 and all members of the george wimpey staff pension scheme and the taylor woodrow group pension  life assurance fund the two legacy defined 
benefit schemes were transferred into the twps on 1 october 2013 two directors are members of the twps which is closed to future accrual
4 taylor wimpey personal choice plan pcp – the pcp was introduced on 1 april 2002 it is a defined contribution stakeholder pension scheme which all new eligible uk  
employees are invited to join all active members of the two legacy defined benefit arrangements were invited to join the pcp when those arrangements closed to future accrual 
5 twps – pete redfern and james jordan are members of the executive section of the twps they have a normal retirement age under the twps of 62 
6 until the 200 target is achieved an executive director will be required to retain in shares at least 50 of the net of taxes gain arising from any shares vesting or acquired pursuant  
to the ltip 
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71
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 additional information for 2015 malus and clawback
as disclosed in the summary of the committee’s activities in 2014 
on pages 66 and 67 the committee has reviewed and updated the 
malus and clawback provisions to ensure compliance with the 2014 
code and has taken the opportunity to extend these provisions so 
that they apply in addition to future stia awards to all long term 
incentive plan psp awards made in 2015 and future years  
where there has been a misstatement of results error in calculating 
the incentive payment or misconduct on the part of the individual  
the committee will have the ability to seek to recover any overpaid 
bonus or psp award this will apply for a period of up to three years 
following the determination of the performance conditions applying to 
the award and can be effected by reducing if necessary to zero the 
payment or vesting of any future stia or psp award or by requiring 
the individual to repay the overpaid amount 
committee discretion
the committee fully recognises that the exercise of discretion must 
be undertaken in a very careful and considered way and that it is an 
area that will quite rightly come under scrutiny from shareholders and 
other stakeholders it is however important for the committee to 
retain some discretion to make payments outside of its remuneration 
policy in exceptional circumstances the committee confirms that 
any exercise of discretion in such circumstances would be within the 
available discretions set out in this report and the maximum levels 
available set out in any plans would not be exceeded
with regard to the stia and ltip  the committee consistent with 
market practice retains discretion over a number of areas relating  
to the operation and administration of these plans but in all cases 
within the rules these include but are not limited to the following 
albeit with the level of award restricted as set out in the policy table 
on pages 69 to 71
 − who participates in the plans
 − the timing of grant of award andor payment
 − the size of an award andor a payment subject to the limits  
of the rules
 − discretion relating to the measurement of performance in the event 
of a change of control or reconstruction
 − determination of a good leaver in addition to any specified 
categories for incentive plan purposes based on the rules of each 
plan and the appropriate treatment chosen
 − discretion to disapply time prorating in the event of a change  
of control or good leaver circumstances
 − adjustments required in certain circumstances eg rights issues 
corporate restructuring acquisition divestment change of control 
special dividend or a change in prevailing market conditions and
 − the ability to adjust existing performance conditions for exceptional 
events so that they can still fulfil their original purpose
remuneration report continued
the chart below illustrates the level and mix of remuneration based on the current policy depending on the achievement of threshold target 
and maximum for the executive directors it has been updated to reflect 2015 salary levels but the assumptions used are the same as in the 
policy report that was approved by shareholders at the 2014 agm 
james jordan
group legal director
and company secretary
below
target
target maximum
ryan mangold
group finance director
below
target
target maximum
4000
3200
2400
1600
800
0
performance criteria pay chart – 2015 
£000’s
below
target
target
pete redfern
chief executive
maximum
100 53
£503
£928
£1796
£501
£961
£1901
£1030
£1946
£3816
fixed pay
bonus
ltip
31
16
31
42
27
100 26 100 28
31
41
54
30
16
32
42
52
31
17
1 salary is £795849 £400000 and £369501 for pete redfern ryan mangold and james jordan respectively with effect from 1 april 2015
2 benefits are £43000 £21000 and £42000 for pete redfern ryan mangold and james jordan respectively
3 pension is £191492 £80000 and £91508 for pete redfern ryan mangold and james jordan respectively
4 for the short term incentive arrangement the target and maximum award is 75 and 150 of salary respectively
5 for performance share awards under the longterm incentive plan psp the target assumed for these purposes to be at threshold performance and maximum is 40 and 200  
of salary respectively
taylor wimpey plc
annual report and accounts 2014
72 how shareholder views are taken into account
the remuneration committee considers very seriously all shareholder 
feedback received in relation to remuneration each year and guidance 
from shareholder representative bodies more generally shareholder 
views are key inputs when shaping the remuneration policy and the 
committee welcomes any comment or feedback on any aspects  
of remuneration and will always consider and respond 
the committee regularly engages with its largest shareholders 
regarding the ongoing remuneration policy and implementation and 
will take into account any feedback when determining any changes 
that might apply the last such consultation took place in early 2015 
and included the performance targets and weightings of the psp  
and stia and salary proposals for 2015
the committee follows the principles of good governance relating to 
directors’ remuneration as set out in the main principles supporting 
principles and code provisions of the code the committee reviews 
and takes into account any governance related developments and 
guidance that arise on an ongoing basis 
how performance measures were chosen
the performance metrics that are used for each of the short and 
longterm incentive plans have been selected to reflect the group’s 
key strategic goals and are designed to align the directors’ interests 
with those of the company’s shareholders 
the stia performance metrics include a mix of financial and personal 
metrics reflecting the key annual priorities of the group the financial 
metrics will generally determine at least 50 of the bonus and include 
profit before interest and tax as this reflects the company’s strategic 
objective to increase profit the other metrics selected on an annual 
basis will be measurable and will ensure that executives are 
motivated to deliver across a scorecard of key objectives
the performance conditions applicable to the ltips were selected  
by the remuneration committee as they are consistent with the 
overall longer term success of the company tsr provides an 
external assessment of the company’s performance against its 
competitors via an unweighted industry peer group and relative tsr 
measured against the ftse 250 it also aligns the rewards received 
by executives with the returns received by shareholders the margin 
and roce targets ensure that returns to shareholders are the result 
of longterm sustainable financial performance
the committee will review the choice of performance measures and 
the appropriateness of the performance targets each year targets  
are set based on a sliding scale that takes account of internal 
planning and external market expectations for the company only 
modest rewards are available for delivering threshold performance 
levels with maximum rewards requiring substantial outperformance 
of our challenging plans approved at the start of each year
additional information for 2015
as referred to in the letter from the chairman of the remuneration 
committee on page 67 the margin metric used in the psp in recent 
years has been replaced by a cash conversion metric which will 
apply to 25 of the 2015 awards a greater focus on cash 
conversion is a key element of the strategy that has been outlined  
to shareholders during 2014 however margin remains an important 
kpi for the company and margin performance will be taken into 
consideration as part of the committee’s assessment of the financial 
underpin that applies to awards under the psp and remains a key 
performance target under the 2015 stia in addition in light of the 
growth in the group’s market capitalisation the ftse 250 peer  
group used for one of the tsr components of the psp awards will 
be replaced by a peer group comprised of the 50 companies ranked 
above and 50 ranked below taylor wimpey by market capitalisation 
this comparator group is felt to be more appropriate given the 
company’s current size than the ftse 250
external non executive director positions
subject to board approval and provided that such appointments fall 
within the general requirements of the code and do not give rise to 
any conflict issues which cannot be managed by the board and the 
executive director executive directors are permitted to take on non 
executive positions with other companies executive directors are 
permitted to retain their fees in respect of such positions in early 
2014 none of the executive directors held an external directorship  
of a disclosable nature any such appointments would be the subject 
of a public announcement to the london stock exchange
additional information for 2015
on 11 november 2014 pete redfern was appointed as an 
independent non executive director of travis perkins plc where  
he also serves on its audit and remuneration committees  
he will receive fees totalling £55000 per annum for this position
remuneration policy for the wider workforce
when setting the policy for executive directors the committee is 
made fully aware of pay structures across the workforce in addition 
the committee will conduct a formal review of remuneration across 
the group and for all levels of employee every three years 
virtually all of the company’s employees participate in incentive 
arrangements and many employees can elect to take their performance 
related payment in shares rather than cash further enhancing the link 
and alignment between shareholder value and employee reward 
throughout the company which both the company and the 
committee remain keen to promote in addition the company has 
operated a longterm incentive arrangement – the land value plan 
lvp for senior divisional and functional roles with payouts in shares 
the lvp is open to designated senior executives below executive 
director level and is designed to reward participants for managing  
the landbank in a way which adds value through a combination of 
managing and adding value to the existing land portfolio and buying 
land and adding value over and above the base case for each 
acquisition performance is measured over a three year period and 
awards to senior participants are in shares which are required to then 
be retained for 12 months at the time this policy was approved the 
committee retained discretion to consider linking part of the long
term incentive awards to the executive directors to similar measures 
subject to a prior and comprehensive shareholder consultation the 
company also offers both sharesave and sip schemes to all eligible 
uk employees with more than three months’ service
additional information for 2015
the committee reviewed the operation of the lvp at the end of 2014 
the lvp was introduced in 2012 and has operated for three years 
with the last awards made in 2014 during the period of its operation 
the land bank has improved significantly it is not intended to make 
any further awards under the lvp and participants will instead 
participate in the psp  executive directors have not participated in 
the lvp  
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directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 remuneration policy on recruitment or promotion
base salary levels will be set in accordance with the current 
remuneration policy taking into account the experience and calibre of 
the individual where appropriate the company may offer a below 
market salary initially with a view to making above market and 
workforce increases over a number of years to reach the desired 
salary positioning subject to individual and company performance 
benefits and pension will be provided in line with those offered to 
other executive directors with relocation expensesarrangements 
provided for if necessary tax equalisation may also be considered if 
an executive is adversely affected by taxation due to their 
employment with the company legal fees and other costs incurred 
by the individual may also be paid by the company if considered 
appropriate and reasonable to do so
the variable pay elements that may be offered will be subject to the 
maximum levels described in the policy table above the company 
may also apply different performance measures if it feels these 
appropriately meet the strategic objectives and aims of the company 
whilst incentivising the new appointment 
the above policy applies to both an internal promotion to the taylor 
wimpey plc board or an external hire
in the case of an external hire the company may choose to buyout 
any incentive pay or benefit arrangements which would be forfeited 
on leaving the previous employer this will only occur where the 
company feels that it is a necessary requirement to aid the 
recruitment the replacement value would be provided for taking into 
account the form cash or shares and timing and expected value ie 
likelihood of meeting any existing performance criteria of the 
remuneration being forfeited replacement share awards if used will 
be granted using taylor wimpey’s existing share plans wherever and 
to the extent possible although in exceptional circumstances awards 
may also be granted outside of these schemes if necessary and as 
permitted under the listing rules 
in the case of an internal hire including a promotion as previously 
reported the company will honour any commitments entered into 
prior to their appointment to the board even where it is not consistent 
with the policy prevailing at the time such commitment is fulfilled
directors’ contracts
it is the company’s policy that executive directors should have 
contracts of employment providing for a maximum of one year’s 
notice either way service contracts for all executive directors and 
letters of appointment for all non executive directors are available  
for inspection as described in the notice of annual general meeting
each of the executive directors’ service contracts provides for
 − the payment of a base salary details of which are set out on  
page 76
 − an expensed companyprovided car or a cash allowance in lieu  
a fuel allowance life assurance and private medical insurance 
details of which are set out on page 78
 − employer’s contribution to a pension scheme details of which  
are set out on page 78
 − a notice period by either side of 12 months and
 − a provision requiring a director to mitigate losses on termination
the service contract for each of pete redfern and james jordan 
additionally provides for a pension allowance
each service contract contains the following performancerelated 
provisions
 − participation in the stia and 
 − participation in one or more ltip  
in respect of pay in lieu of notice pilon it is the company’s policy 
that liquidated damages should not automatically apply on the 
termination of an executive director’s contract such contracts do 
provide for pilon to be paid with the amount determined having 
regard to normal legal practices in accordance with this approach 
payment for early termination of contract without cause by the 
company is to be determined in the case of each executive director 
having regard to normal legal principles which require mitigation of 
liability on a casebycase basis any such payment would typically 
be determined by reference to the main elements of a director’s 
remuneration namely salary stia entitlement subject to committee 
discretion as appropriate benefitsinkind and pension entitlements 
phased payments will be considered by the company where 
appropriate there are no change of control provisions that apply in 
relation to the service contract of any executive director 
other than in certain ‘good leaver’ circumstances including but not 
limited to redundancy illhealth or retirement no stia would usually 
be payable unless the individual remains employed and is not under 
notice at the payment date any stia paid to a ‘good leaver’ would 
be based on an assessment of their and the company’s performance 
over the applicable period and prorated for the proportion of the 
stia year worked
where an executive director is considered by the remuneration 
committee to be a good leaver deferred bonus awards shares 
would vest in other circumstances awards would lapse
with regard to long term incentive awards the ltip rules provide that 
other than in certain ‘good leaver’ circumstances awards lapse on 
cessation of employment where an individual is a ‘good leaver’ the 
committee’s normal policy is for the award to vest on cessation of 
employment following the application of performance targets no later 
than the normal vesting date of the award and a prorata reduction to 
take account of the proportion of the applicable performance period 
outstanding post the cessation the committee has discretion to 
deem an individual to be a ‘good leaver’ in doing so it will take 
account of the reason for the departure and the performance  
of the individual through to the time of departure 
in situations where an executive director is dismissed the committee 
reserves the right to make additional exit payments where such 
payments are made in good faith
 − in discharge of an existing legal obligation or by way of damages 
for breach of such an obligation or
 − by way of settlement or compromise of any claim arising in 
connection with the termination of director’s office or employment 
the terms of engagement of the chairman and the non executive 
directors are regulated by letters of appointment over a term of three 
years which are reviewed annually both the company and the 
aforementioned directors have a notice period of six months and the 
directors are not entitled to compensation on termination other than 
for the normal notice period if not worked out
service contracts and letters of appointment may be inspected  
at the company’s registered office during normal business hours
remuneration report continued
taylor wimpey plc
annual report and accounts 2014
74 legacy arrangements
any commitment made which is consistent with the approved 
remuneration policy in force at the time that commitment was made 
will be honoured even where it is not consistent with the policy 
prevailing at the time such commitment is fulfilled 
annual report on remuneration
unaudited information
this part of the report has been prepared in accordance with  
part 3 of the revised schedule 8 set out in the large and medium
sized companies and groups accounts and reports amendment 
regulations 2013 and 986r988 of the listing rules this annual 
report on remuneration will be put to an advisory shareholder vote 
at the 2015 agm the information in the implementation of the 
remuneration policy during 2014 section on pages 77 to 85  
has been audited
remuneration committee
the role of the remuneration committee the ‘committee’ is to 
recommend to the board a strategy and framework for remuneration 
for executive directors and senior management in order to attract 
and retain leaders who are focused and incentivised to deliver the 
company’s strategic business priorities within a remuneration 
framework which is aligned with the interests of our shareholders and 
thus designed to promote the longterm success of the company
the remuneration committee has clearly defined terms of reference 
which are available on the company’s website wwwtaylorwimpey
coukcorporateinvestorrelationscorporategovernance 
the committee’s main responsibilities are to
 − establish and maintain formal and transparent procedures for 
developing policy on executive remuneration and for fixing the 
remuneration packages of individual directors and to monitor  
and report on them
 − determine the remuneration including pension arrangements  
of the executive directors
 − monitor and make recommendations in respect of remuneration  
for the tier of senior management one level below that of the board
 − approve annual and long term incentive arrangements together 
with their targets and levels of awards
 − determine the level of fees for the chairman of the board and 
 − select and appoint the external advisers to the committee
the committee currently comprises three independent non executive 
directors and the chairman of the board margaret ford is the 
committee chairman having been appointed after tony reading 
stood down from the board in april 2014 after nine years’ service 
the other members of the committee are kevin beeston rob 
rowley and kate barker who became a member with effect from 
17 april 2014 membership of the committee is and was throughout 
2014 in line with the code 
details of attendance at remuneration committee meetings held 
during 2014 are set out below
number of meetings in 2014 4
directors attendance
baroness ford of cunninghame 4
kate barker

2
kevin beeston 4
rob rowley 3
t ony reading

2
 appointed to the committee 17 april 2014
 resigned from the board 17 april 2014
no director or other executive is involved in any decisions about  
hisher own specific remuneration
advice to the committee
the committee keeps itself fully informed on developments and best 
practice in the field of remuneration and it seeks advice from external 
advisers when appropriate
the committee appoints its own independent remuneration advisers 
and during the year it continued to retain the services of new bridge 
street an aon hewitt company which is not connected to taylor 
wimpey new bridge street’s ultimate parent company is aon plc
new bridge street is a signatory to the remuneration consultants’ 
group code of conduct it provides no other services to the 
company although the wider aon plc group of companies provide 
insurance broking and pension administration support services to the 
company the committee is entirely satisfied that the provision of 
such services does not create any conflicts of interest new bridge 
street was appointed in february 2009 following a comprehensive 
tendering process the committee reviews the performance and 
independence of its advisers on an annual basis
the committee also receives legal advice from slaughter and may  
as and when necessary this generally relates to technical advice on 
share schemes and also with regard to any senior appointments and 
termination arrangements
the fees paid to the committee’s advisers in 2014 were new  
 bridge street £80000 2013 £96000 representing a full year’s 
appointment no significant amount of advice was sought from 
slaughter and may during the year
pete redfern the chief executive james jordan the group legal 
director and company secretary and the group human resources 
director each attend committee meetings by invitation only but  
are not present for any discussions that relate directly to their  
own remuneration
wwwtaylorwimpeycouk
75
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 how the remuneration policy will be applied in 2015
base salary
the committee reviewed the executive directors’ salaries in february 
2015 and has decided to award increases of 3 for pete redfern and 
james jordan with effect from 1 april 2015 in line with the equivalent 
general increase made to all employees subject to a very small 
number of exceptions as indicated to shareholders previously ryan 
mangold’s salary was set at a below market level on his appointment 
to the board in 2010 with a view to increasing it to a market level  
over time as he developed in the role ryan mangold’s salary will be 
increased by 124 to reflect his strong performance and development 
this will bring his salary to a broadly midmarket level following this 
realignment of his salary it is anticipated that his future increases will 
be inline with increases awarded to the general workforce
the salaries of the executive directors effective from 1 april 2015 will 
be as follows
name
salary at  
1 april 2014
salary at  
1 april 2015 increase 
pete redfern £772669 £795849 3
ryan mangold £355744 £400000 124
james jordan £358739 £369501 3
short term incentive arrangements stia
the stia performance metrics and their weightings for 2015 are 
shown in the table below the targets themselves as they relate to 
the current financial year are deemed to be commercially sensitive 
however detailed retrospective disclosure of the targets and 
performance against them will be provided in next year’s 
remuneration report 
measure strategic objective weighting
group ebit t o increase profit 35
cash generated delivering sustainable growth 20
margin
driving further uk operating  
margin progression 25
customer service caring about our customers 20
the above metrics and weightings have been reviewed from previous 
years to reflect the company’s move to a new phase of its strategy  
with the removal of the previous roce and energy reduction metrics 
on the basis that the key strategic imperatives lie elsewhere although  
each will of course remain a key priority for the company customer 
service is an area of particular focus by the company and challenging 
targets have been put in place in order to reflect this and the 
additional weighting attached to this measure 
long term incentive plans
taylor wimpey performance share plan twpsp
the annual awards granted to executive directors in 2015 will be 
subject to the following performance conditions
weighting  
 of total 
award
below 
threshold  
0 vesting
threshold 
20 vesting
maximum 
100 
vesting
tsr v direct peer group 
index 30
below 
index
equal to 
index
index  
8 pa
tsr v 50 ftse 
companies ranked above 
taylor wimpey and 50 
ranked below by market 
capitalisation
20 less than 
median
median upper 
quartile
absolute roce in 2017 25 less than 
16
16 24
conversion of operating 
profit into operating cash 
flow averaged over a three 
year performance period 
20152017
25 less than 
65
65 70
awards vest on a straight line basis between these points the  
roce targets are based on the absolute roce in 2017 defined  
as operating profit divided by the average of the opening and closing 
net operating assets which is in turn defined as capital employed 
plus intangibles less tax balances the housebuilders index is an 
unweighted index comprised of barratt developments bellway 
berkeley homes bovis homes group crest nicholson galliford  
try persimmon and redrow 
chairman and non executive directors
the terms of engagement of the chairman and the non executive directors are regulated by letters of appointment as follows
name date of appointment as a director date of initial letter of appointment t erm of appointment
notice period by 
company months
notice period by 
director months
kevin beeston 1 july 2010 13 may 2010 3 years reviewed annually 6 6
kate barker 21 april 2011 7 february 2011 3 years reviewed annually 6 6
margaret ford 25 april 2013 19 march 2013 3 years reviewed annually 6 6
mike hussey 1 july 2011 30 june 2011 3 years reviewed annually 6 6
rob rowley 1 january 2010 1 december 2009 3 years reviewed annually 6 6
remuneration report continued
taylor wimpey plc
annual report and accounts 2014
76 an underlying requirement for any vesting under the current share
based incentive plans is that at the time of approving the vesting  
the committee must be satisfied with the overall financial performance 
of the group this will include inter alia the company’s roce and 
margin performance
the committee also retains the right as part of its overall discretion 
to reduce the vesting of the award if it considers that volumes ie the 
number of homes sold have not been satisfactory during the relevant 
performance period
dividends and other distributions will accrue on all awards during the 
performance period and be released in cash when and to the extent 
that the relevant awards vest
non executive directors’ and chairman’s fees
fees of non executive directors are determined by the board in their 
absence taking into account the research carried out by independent 
remuneration consultants of fees paid to non executive directors 
the fees of the chairman are determined by the remuneration 
committee in his absence a summary of the current fees are set out 
below the fees of the chairman and the non executive directors are 
reviewed every other year with any increases taking place with effect 
from 1 july fees were last reviewed in 2013 and are unchanged 
since then but will be reviewed during 2015
fees at  
1 april 2015
chairman £256250
basic non executive director fee £55000
senior independent director fee £10000
audit committee chairman £15000
remuneration committee chairman £15000
all directors will submit themselves for reelection at the agm in 
accordance with the code
implementation of the remuneration policy during 2014
audited information
performance graph
this graph shows the value by 31 december 2014 of £100 invested 
in taylor wimpey plc on 31 december 2008 compared with the value 
of £100 invested in the average of the housebuilder index introduced 
for the 2012 twpsp awards onwards the other points plotted are 
the values at intervening financial yearends
total shareholder return
31 dec 10 31 dec 11 31 dec 12 31 dec 13 31 dec 09
0
200
400
600
31 dec 08 31 dec 14
800
1000
1200
1400
1600
value £
taylor wimpey plc housebuilders index
source thomson reuters
wwwtaylorwimpeycouk
77
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 the table below shows the total remuneration figure for the chief executive over the same six year period the total remuneration figure 
includes the stia and ltip awards which vested based on performance in those years the stia and ltip percentages show the payout  
for each year as a percentage of the maximum
year ending 31 december
2009 2010 2011 2012 2013 2014
t otal remuneration £’000 £1657 £1542 £1674 £3009 £6724
a
5809
b
stia  100 85 82 95 90 90
ltip vesting  0 0 0 40 85 99
a the 2013 single figure includes the value of the august 2010 psp awards and the roce and margin elements of the 2011 psp awards due to the timing of the grant of the 2009  
and 2010 awards the performance periods for the august 2010 and elements of the 2011 psp awards both ended during 2013 and they are therefore included in the 2013 single 
figure as the 2011 psp awards did not vest until april 2014 the final value of these awards at vesting was not known at the time the 2013 report was prepared and therefore  
an estimated value was used the 2013 single figure in this report has been restated to show the actual value of the shares at the vesting date details of the percentage of each  
award vesting are summarised in the table on page 79
b the 2014 single figure includes the roce and margin elements of the 2012 psp awards due to the timing of the grant of those awards the performance periods for the two tsr 
elements will not conclude until later in march 2015 and will be included in a revised 2014 single figure in next year’s report
director emoluments
£’000 year
fees  
 salary benefits
a
stia ltip
de
pension
f
t otal 
executive
pete redfern 2014 768 43 1043 3770 185 5809
2013 749 30 1018 4747 180 6724
ryan mangold
c
2014 354 21 480 1535 71 2461
2013 340 13 469 1166 88 2076
james jordan 2014 357 42 484 1751 88 2722
2013 348 29 472 1906 86 2841
non executive
kevin beeston
b
2014 256 – – – – 256
2013 253 – – – – 253
kate barker 2014 55 – – – – 55
2013 53 – – – – 53
margaret ford 2014 66 – – – – 66
2013 37 – – – – 37
mike hussey 2014 55 – – – – 55
2013 53 – – – – 53
rob rowley 2014 80 – – – – 80
2013 75 – – – – 75
t ony reading resigned 17 april 2014 2014 21 – – – – 21
2013 65 – – – – 65
brenda dean resigned 25 april 2013 2014 – – – – – –
2013 17 – – – – 17
2014 2012 106 2007 7056 344 11525
 2013 1990 72 1959 7819 354 12194
a benefits include noncash payments such as private medical insurance life insurance company car provision fuel allowances and cash payments such as car allowance taken  
in lieu of a car 
b the company also paid £10000 2013 £25000 as a contribution towards the chairman’s annual office and related administration costs incurred in carrying out his role  
c ryan mangold is a member of the salary exchange scheme operated by the company and the amount exchanged during the year was £9000 2013 £34000 the flexible pension 
arrangement is a voluntary arrangement the effect of which is to allow members and the company to benefit from savings in national insurance contributions through the sacrifice  
of a portion of salary which would then be paid into a pension scheme as a company contribution prior to nic being calculated the scheme therefore reduces the effective salary  
of the individual
d this column shows the vesting during 2014 and 2013 of ltips as set out in the table at the top of page 79 note that the 2013 figures reported last year were based on estimates  
of the value of the shares at vesting these have been restated to reflect the actual value of the shares at the point of vesting
e the 2013 ltip figure includes the value of the august 2010 psp awards and the roce and margin elements of the 2011 psp awards due to the timing of the grant of the 2009  
and 2010 awards the performance periods for the august 2010 and 2011 psp awards both ended during 2013 and they are therefore included in the 2013 single figure  
details of the percentage of each award vesting are summarised in the table at the top of page 79
f these figures represent the cash allowances payable as described in the remuneration policy ‘pension’ section for pete redfern this is 20 of salary up to a scheme specific cap 
and 25 of salary above the cap for ryan mangold this is 156 of salary as reported in nongroup pension arrangements on page 85 and for james jordan this is 20 of salary 
up to a scheme specific cap and 28 of salary above the cap
remuneration report continued
taylor wimpey plc
annual report and accounts 2014
78 ltip awards included in 2013 single figure
ltip award performance t arget weighting
 vesting  
max 100
date of end of 
performance 
period date of vesting
share price  
at vesting
2010 psp tranche 1 tsr ftse 30 100 22032013 22032013 8925
tsr peer group 30 6923 22032013 22032013 8925
2010 psp tranche 2 tsr ftse 30 100 06082013 06082013 1128
tsr peer group 30 100 06082013 06082013 1128
roce 40 5440 30062013 06082013 1128
2011 psp roce 30 7440 31122013 01042014 1194
a
margin 30 100 31122013 01042014 1194
a
a the share price shown is as at 1 april 2014 in the 2013 remuneration report these awards had not yet vested therefore the share price at vesting was calculated as the average  
of the share prices for the dealing days in the last three months october to december 2013
ltip awards included in 2014 single figure
ltip award performance t arget weighting
 vesting  
max 100
date of end of 
performance 
period date of vesting
share price  
at vesting
2011 psp tsr ftse 20 100 01042014 01042014 1194
tsr peer group 20 9385 01042014 01042014 1194
2012 psp
a
roce 30 100 31122014 05032015 1237
b
margin 30 100 31122014 05032015 1237
b
a the remaining performance test for this award relating to tsr will be calculated at the end of the tsr performance period in march 2015 and reported in next year’s  
remuneration report
b the share price shown is the average of the share prices for the dealing days in the last three months october to december 2014
wwwtaylorwimpeycouk
79
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 short term incentive arrangements stia in respect of 2014
for 2014 the committee measured performance against each individual performance target which is directly linked to the achievement  
of the company’s strategy as follows
measure strategic objective weighting
summary  
of targets result
 of 
maximum
 of salary 
paid in cash
 of salary 
deferred in 
shares
pbit t o increase profit 40 entry £380m 481m 40 2667 1333
t arget £400m
stretch £420m
roce rona delivering an average 15  
on net operating assets 
through the cycle
10 entry 14 198 10 667 333
t arget 15
stretch 17
operating margin driving further uk operating 
margin progression
10 entry 15 179 10 667 333
t arget 16
stretch 175
net cashdebt cash generated 25 entry £50m £1625m 25 1666 834
t arget £0m
stretch £100m
customer service delivering customer service 10 entry 89 83 0 0 0
t arget 90
stretch 91
energy reduction seeking to reduce the use of 
energy in building our homes
5 entry 80 954 5 333 167
t arget 85
stretch 90
t otal 100 90 60 30
the amounts paid to pete redfern ryan mangold and james jordan in respect of 2014 are set out in the remuneration table on page 78
vesting of longterm incentive awards in 2014
the bis regulations require the value of longterm incentives vesting by reference to performance period ending in the financial year being 
reported on to be included in the single figure this applies to the tsr elements of the april 2011 twpsp awards and the roce and margin 
elements of the march 2012 twpsp award
the performance period for the tsr elements of the 2011 award ended on 31 march 2014 which was after publication of the 2013 annual 
report and accounts and was independently calculated by new bridge street
the performance period for the roce element of the 2012 award ended on 31 december 2014 and the final measurement was undertaken 
at this date the tsr elements will be tested at the conclusion of their three year performance period on 5 march 2015 and the final 
measurement will be undertaken at this date 
for 2013 ltip awards and onwards testing of all performance targets including tsr will be based on the position as at 31 december  
of the final performance year
remuneration report continued
taylor wimpey plc
annual report and accounts 2014
80 the outcomes were as follows
award measure weighting vesting scale
performance  
achieved
 of this award 
vesting
1 april 2011 tsr ftse 20 no vesting below median 20 vests at median  
100 vests at upper quartile prorata vesting between  
median and upper quartile
7th out of 203 100
tsr peer  
group
20 no vesting below median 20 vests at median  
100 vests at upper quartile prorata vesting between  
median and upper quartile
4th out of 13 9385
5 march 2012 roce
a
30 no vesting below median 20 vests at median  
100 vests at upper quartile prorata vesting between  
median and upper quartile 
225 100
b
margin
a
30 no vesting below median 20 vests at median  
100 vests at upper quartile prorata vesting between  
median and upper quartile 
179 100
c
a as at 31 december 2014
b median target is 10 and upper quartile target is 20 roce for year ended 31 december 2014
c median target is 10 and upper quartile target is 13 margin for year ended 31 december 2014
in deciding whether and to what extent any vesting of awards should take place under any ltip  the committee also considers the overall 
financial performance of the company during the period the committee has determined that the overall financial performance of the 
company has been very strong in respect of the performance periods of the above ltips
change in company performance relative to change in remuneration
2014 2013 change 
profit before tax interest and exceptional items £4807m £3129m 536
dividends paid per ordinary share
 − interim 2014interim 2013 024p022p
 − final 2014final 2013 132p047p
 − special 2014special 2013 154p0p
310p 069p 3493
employee pay in aggregate see note 7 to the financial statements £1736m £1686m 30
employee pay average per employee see note 7 to the financial statements £45009 £45568 12
change in chief executive pay compared to that for taylor wimpey employees
the table below shows the percentage yearonyear change in salary benefits and annual bonus earned between 2013 and 2014 for the  
chief executive compared to the average taylor wimpey employee during the year
salary benefits stia
pete redfern 25 433 25
t ypical t aylor wimpey employee 25 25 25
directors’ sharebased rewards and options
performance awards were made in the year under the twpsp scheme as summarised below
award t ype
number of 
 shares
face value 
  of salary performance conditions performance period
 vesting at 
threshold 
performance
pete redfern twpsp nil cost 
options
1222746 £1507646 
200
25 on roce 25 on group 
operating margin 20 on  
tsr v ftse 250 30 on  
tsr v peer group index 
01012014 – 31122016 
or later preliminary 
announcement of results 
for 2016
20
ryan mangold twpsp nil cost 
options
562963 £694133 
200
as above as above as above
james jordan twpsp nil cost 
options
567703 £699978 
200
as above as above as above
wwwtaylorwimpeycouk
81
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 details of options and conditional awards over shares held by directors who served during the year are as follows 
pete redfern
plan
outstanding 
shares at  
1 january 2014
granted 
awarded in 
2014 number
dividend 
reinvestment 
shares added 
during 2014 
number
exercised
vested number
lapsed 
number
outstanding 
shares as at  
31 december 
2014
exercise 
price  
pence
market price 
on exercise 
pence date of grant
date from 
which 
exercisable
capable of 
vesting expiry date
deferred  
shares stia
g
417884 – 1795 419679 – – – 11173 040411 050414 041014
deferred  
shares stia
g
385102 – 2439 – – 387541 – – 230312 240315 230915
deferred  
shares stia
g
255079 – 1617 – – 256696 – – 250313 260316 250916
deferred  
shares stia
g
– 298346
a
1891 – – 300237 – – 250314 260317 250917
performance 
share plan
h
3484701 – – 3174213 310488 – – 11173 010411 010414
d
300914
performance 
share plan
h
2906623 – – – – 2906623 – – 050312 050315
d
040915
performance 
share plan
h
1784608 – – – – 1784608 – – 060313 311215
e
050916
performance 
share plan
h
– 1222746
b
– – – 1222746 – – 040314
f
311216
e
030917
sharesave 
plan
g
63331 – – – – 63331 2404 – 111011 011216 310517
sharesave 
plan
g
– 10000
c
– – – 10000 9000 – 071014 011217 310518
t otal 9297328 1531092 7742 3593892 310488 6931782
ryan mangold
plan
outstanding 
shares at  
1 january 2014
granted 
awarded in 
2014 number
dividend 
reinvestment 
shares added 
during 2014 
number
exercised
vested number
lapsed 
number
outstanding 
shares as at  
31 december 
2014
exercise 
price  
pence
market price 
on exercise 
pence date of grant
date from 
which 
exercisable
capable of 
vesting expiry date
deferred  
shares stia
g
21266 – 91 21357 – – – 11173 040411 050414 041014
deferred  
shares stia
g
156790 – 994 – – 157784 – – 230312 240315 230915
deferred  
shares stia
g
109933 – 696 – – 110629 – – 250313 260316 250916
deferred  
shares stia
g
– 137361
a
870 – – 138231 – – 250314 260317 250917
performance 
share plan
h
1418771 – – 1292357 126414 – – 11173 010411 010414
d
300914
performance 
share plan
h
1183410 – – – – 1183410 – – 050312 050315
d
040915
performance 
share plan
h
769123 – – – – 769123 – – 060313 311215
e
050916
performance 
share plan
h
– 562963
b
– – – 562963 – – 040314
f
311216
e
030917
sharesave 
plan
g
10623 – – – – 10623 8472 – 081013 011216 310517
sharesave 
plan
g
– 10000
c
– – – 10000 9000 – 071014 011217 310518
t otal 3669916 710324 2651 1313714 126414 2942763
remuneration report continued
taylor wimpey plc
annual report and accounts 2014
82 james jordan
plan
outstanding 
shares at  
1 january 2014
granted 
awarded in 
2014 number
dividend 
reinvestment 
shares added 
during 2014 
number
exercised
vested number
lapsed 
number
outstanding 
shares as at  
31 december 
2014
exercise 
price  
pence
market price 
on exercise 
pence date of grant
date from 
which 
exercisable
capable of 
vesting expiry date
deferred  
shares stia
g
194016 – 833 194849 – – – 11173 040411 050414 041014
deferred  
shares stia
g
178797 – 1133 – – 179930 – – 230312 240315 230915
deferred  
shares stia
g
118430 – 751 – – 119181 – – 250313 260316 250916
deferred  
shares stia
g
– 138518
a
878 – – 139396 – – 250314 260317 250917
performance 
share plan
h
1617897 – – 1473741 144156 – – 11173 010411 010414
d
300914
performance 
share plan
h
1349503 – – – – 1349503 – – 050312 050315
d
040915
performance 
share plan
h
828568 – – – – 828568 – – 060313 311215
e
050916
performance 
share plan
h
– 567703
b
– – – 567703 – – 040314
f
311216
e
030917
sharesave 
plan
g
63331 – – – – 63331 2404 – 111011 011216 310517
sharesave 
plan
g
– 10000
c
– – – 10000 9000 – 071014 011217 310518
t otal 4350542 716221 3595 1668590 144156 3257612
details of options over shares held by directors who served during the year
a market value per share on date of grant 25 march 2014 was 1149 pence
b market value per share on date of grant 4 march 2014 was 12450 pence
c market value per share on date of grant 7 october 2014 was 1143 pence
d or later publication of the preliminary fullyear or halfyear results announcement on which the associated performance condition will be calculated
e at later publication of the preliminary fullyear or halfyear results announcement on which the associated performance condition will be calculated
f vesting will be 20 for the 2014 award 2013 award 20 for threshold performance 50th percentile for tsr 10 roce 14 margin and 100 2013 award 100 for upper 
quartile performance 75th percentile for tsr 20 roce 19 margin with straight line vesting between these two thresholds
g vesting is not dependent on any performance conditions
h vesting is subject to the achievement of performance conditions
there have been no variations to the terms and conditions or performance criteria for outstanding share awards during the financial year  
the market price of the ordinary shares on 31 december 2014 was 1378 pence and the range during the year was 1013 pence to  
1378 pence details of any share awards made to executive directors during 2015 will be included in the 2015 remuneration report
directors’ interests in shares of the company
share ownership guidelines
these guidelines are designed to encourage greater levels of shareholding by executives at various levels within the company for the purpose 
of alignment with the company’s shareholders which the committee strongly believes is very important the guidelines cover the board and  
a number of executives who participate in long term incentive plans namely the twpsp  twsop and the lvp  with all participating executives 
required to build up shareholdings through the retention of shares vesting under the company’s share plans 
the level of shareholding for executive directors to attain under the current guidelines is two times base salary executive directors are 
expected to achieve a holding equivalent to one times base salary within five years of their appointment and although there will be no set time 
limit for achieving a two times salary holding each executive director is required to agree a personal plan with the chairman on the target to 
be achieved within an agreed time frame executive directors are also required to retain at least 50 of their net of taxes gain arising from  
any shares vesting or acquired pursuant to the company’s long term incentive share plans until such time as the guidelines have been met 
only beneficially owned shares count toward the guidelines members of the group management team and other designated executives are 
currently expected to maintain a shareholding of generally equivalent to 50 and 20 of their base salaries respectively and will accordingly 
also be required to retain at least 50 of shares vesting or acquired net of taxes pursuant to the company’s long term incentive plans until 
such guidelines are met
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83
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 the committee will keep the guidelines under regular review as mentioned earlier in this report any shares that vest under the 2014  
award must as a standard requirement be retained by executives for at least 12 months and for at least 24 months under later awards  
the chairman and the non executive directors are also encouraged to hold shares in the company in order to align their interests with  
those of shareholders directors’ interests in 1p ordinary shares held fully paid ordinary shares are as set out in the table below 
beneficially owned outstanding interests in share plans share interests expressed as a percentage of salary
director
at 1114 
 ordinary
shares
ae
at 311214 
ordinary  
shares
e
stia
b
twpsp twsop sharesave
value of shares  
including any sip shares  
as at 311214 salary
as at 311214
c
value of shares  
including any sip shares  
as at 26215
salary as at 1415
d
excluding stia 
shares v the 
shareholding 
guidelines
including stia 
shares for
information only
e
excluding stia 
shares v the 
shareholding 
guidelines
including stia 
shares for
 information only
e
kevin beeston 1155562 1155562 – – – –
pete redfern 2014404 2688789 944474 5913977 – 73331 480 568 488 578
ryan mangold 433770 636792 406644 2515496 – 20623 247 330 230 307
james jordan 945032 1309330 438507 2745774 – 73331 503 592 512 603
kate barker 40000 40000 – – – –
margaret ford 84940 84940 – – – –
mike hussey 125000 150000 – – – –
rob rowley 200000 200000 – – – –
a or date of appointment
b only the net amount of shares has been included in this column
c this is the percentage of shareholding achieved at 31 december 2014 towards the targets described on page 83 calculated on 2014 salary and at 31 december 2014 share price 
salaries as at 31 december 2014 for pete redfern ryan mangold and james jordan were £772669 £355744 and £358739 respectively
d this is the percentage of shareholding achieved at 31 december 2014 towards the targets described on page 83 calculated on 1 april 2015 salary and at 26 february 2015 share 
price salaries as at 1 april 2015 for pete redfern ryan mangold and james jordan will be £795849 £400000 and £369501 respectively
e including partnership and matching shares held under the share purchase plan sip described on page 71
note  the share price on 31 december 2014 and used in the above calculation was 1378 pence per share and on 26 february 2015 was 1444 pence per share note the above table 
does not include the deferral into shares of 33 of the 2014 stia for any executive director
the only changes to the directors’ interests as set out above during the period between 31 december 2014 and 2 march 2015 were the 
regular monthly purchases of shares and 11 matching by the company under the share incentive plan by pete redfern 446 shares and 
james jordan 444 shares
directors’ pension entitlements
defined benefit schemes
the taylor wimpey pension scheme
pete redfern and james jordan are members of the taylor wimpey pension scheme twps the following table sets out the transfer  
value of their accrued benefits under the twps calculated in a manner consistent with ‘the occupational pension schemes transfer values 
regulations 2008’
director
normal 
retirement  
age
accrued  
pension as at 
311213
increase in 
accrued pension 
from 311213 
to 311214
accrued  
pension as at
 311214
a
transfer value 
gross of 
director’ s 
contributions at
 311214
b
transfer value 
gross of 
director’ s 
contributions at
311213
b
increase in 
transfer value 
from 311213 
to 311214  
less director’ s
contributions
c
increase in 
transfer value 
from 311213 
to 311214 less 
inflation
transfer value of 
accrued pension 
increase  
less director’ s 
contributions
pete redfern 62 14020
d
420 14440 241877 178055 63822 – –
james jordan 62 25922 775 26697 559151 437490 121661 – –
a the george wimpey staff pension scheme gwsps closed to future accrual on 31 august 2010 so pension accrual ceased on that date members of the gwsps were transferred 
into the twps on 1 october 2013 and there was no change to members’ benefit entitlement pension accrual shown above is the amount which would be paid annually on retirement 
based on service to 31 august 2010 pension benefits include a two thirds spouse’s pension pensions accrued up to 5 april 2006 are guaranteed to increase in payment in line with 
inflation limited each year to 5 pensions accrued after 5 april 2006 are guaranteed to increase in payment in line with inflation limited each year to 25 pensions accrued up to  
5 april 2009 will revalue in deferment in line with inflation subject to an overall cap of 5 per annum pensions accrued after 5 april 2009 will revalue in deferment in line with inflation 
subject to an overall cap of 25 per annum we have only taken into account defined benefits accrued over the period to 31 august 2010 and have not included any defined 
contribution pension benefits accrued after this date
b transfer values have been calculated in accordance with the occupational pension schemes transfer value regulations 2008
c the increase in the transfer value includes the effect of fluctuations in the transfer value due to factors beyond the control of the company and directors such as financial  
market movements
d the 311213 figure has been adjusted due to a change in the director’s entitlement at the end of 2013
note the gwsps closed to future accrual on 31 august 2010 and so no contributions were made after 31 august 2010
there was no change to benefits during the year and consequently no difference between the changes to any director’s pension benefits  
in comparison with those of other employees
remuneration report continued
taylor wimpey plc
annual report and accounts 2014
84 nongroup pension arrangements
ryan mangold has nongroup pension arrangements to which contributions were paid by the company as set out below
2014  
£
2013  
£
ryan mangold 34000 36000
a ryan mangold also received a pension allowance of £37000 in 2014 2013 £52000 in lieu of company pension contributions over the annual allowance limit introduced  
in april 2011 of £40000 previously £50000
b ryan mangold elected to have £nil 2013 £20000 of the nondeferred portion of his stia cash bonus earned for 2013 performance and paid in 2014 paid as additional  
pension contribution
statement of shareholder voting
at the 2014 annual general meeting the result of shareholders’ vote on the company’s remuneration policy report was for 18 billion  
votes 98 against 327 million votes 2 withheld 438 million votes the result of the shareholders’ vote on the company’ s remuneration 
report for 2013 was for 19 billion votes 99 2013 17 billion 84 against 108 million votes 1 2013 331 million 16 withheld 
86 million votes 2013 102 million as stated earlier the remuneration committee has consulted further with our shareholders on 
remuneration matters during the year we hope that shareholders will again support the remuneration report at the agm on 23 april 2015
approval
this remuneration report was approved by the board of directors on 2 march 2015 and signed on its behalf by the remuneration 
committee chairman
baroness ford of cunninghame
2 march 2015
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directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 statutory regulatory and other information
introduction
this section contains the remaining matters on which the directors  
are required to report each year which do not appear elsewhere  
in this directors’ report certain other matters required to be  
reported on appear elsewhere in the annual report and accounts  
as detailed below
 − an indication of likely future developments in the business  
of the company and its subsidiaries appear in the strategic  
report on pages 2 to 43
 − the remuneration report appears on pages 66 to 85
 − the reporting on the company’s carbon footprint appears  
on page 30
 − a list of the subsidiary and associated undertakings including 
branches outside the uk principally affecting the profits  
or net assets of the group in the year appears on page 142
 − changes in asset values are set out in the consolidated  
balance sheet on page 99 and in the notes to the accounts  
on pages 102 to 135
 − the group’s profit before taxation and the profit after taxation  
and minority interests appear in the consolidated income statement 
on page 97 and in the notes to the accounts on pages 102 to 135
 − a detailed statement of the group’s treasury management  
and funding is set out in note 20 on pages 121 to 123
 − a statement that this annual report and accounts meets the 
requirements of provision c11 of the uk corporate governance 
code the code is set out in the corporate governance report on 
page 55
 − details of the company’s longterm incentive schemes as required 
by lr 943 r are set out in the remuneration report on pages 66 
to 85
 − details of a contract of significance subsisting during the  
period under review to which a subsidiary undertaking of the 
company is a party and in which a director of the company  
is materially interested appears in the notice of meeting on  
pages 144 to 151 and
 − details of an arrangement under which a shareholder has waived or 
agreed to waive any dividends and where a shareholder has 
agreed to waive future dividends details of such waiver together 
with those relating to dividends which are payable during the period 
under review appear later in this report on page 88
directors
the following directors held office throughout the year
kevin beeston chairman
pete redfern chief executive
ryan mangold group finance director
james jordan group legal director and company secretary
kate barker independent non executive director
margaret ford independent non executive director 
mike hussey independent non executive director and
rob rowley independent non executive director and senior 
independent director
tony reading independent non executive director retired  
on 17 april 2014
the directors together with their biographical information are shown  
on pages 44 and 45
retirement and reelection
the company has determined that in accordance with the code  
all directors should seek reelection at this year’s agm as explained  
in the notes to the notice of meeting and on page 54 of the 
corporate governance report
each of the directors proposed for reelection at the agm is being 
unanimously recommended by all of the other members of the 
board this recommendation follows the completion of the annual 
performance evaluation process which included a detailed appraisal  
of the board its committees and in respect of each director further 
information relating to the evaluation is set out below and in the 
corporate governance report on page 50
the articles of association of the company further regulate the 
appointment and removal of directors as does the companies act 
2006 and related legislation the company’s articles of association  
may be amended by special resolution of the shareholders the powers 
of the directors are described in the corporate governance report
qualifying third party indemnity
the company has granted an indemnity in favour of its directors  
and officers and those of its group companies against the financial 
exposure that they may incur in the course of their professional duties 
as directors and officers of the company andor its subsidiaries
affiliates the indemnity has been put in place in accordance with 
section 234 of the companies act 2006 in respect of which the 
company took advice from slaughter and may
taylor wimpey plc
annual report and accounts 2014
86 audit and auditor
each director has at the date of approval of this report formally 
confirmed that
 − to the best of hisher knowledge there is no relevant audit 
information of which the company’s auditor is unaware and
 − heshe has taken all the steps that they ought to have taken  
as a director in order to make themselves aware of any relevant 
audit information and to establish that the company’s auditor  
is aware of that information
this confirmation is given and should be interpreted in accordance  
with the provisions of section 418 of the companies act 2006
deloitte llp deloitte have confirmed their willingness to continue  
in office as auditor of the company following a review by the audit 
committee of their effectiveness details of which are set out on page 
62 a resolution to reappoint deloitte will be proposed at the agm
it is the company’s general policy that its auditors will not carry out 
nonaudit services except where it is appropriate to do so and in 
accordance with the company’s formal policy for the carrying out  
of such work in addition and in line with the code the committee 
takes into account the relevant ethical guidance regarding the 
provision of nonaudit services by the external auditor the company 
notes the consultation currently under way to consider designating 
further areas for which the auditor should not be allowed to provide 
nonaudit services any revision to current regulations or guidelines 
which result will be taken into account in framing the company’s 
policy going forward and reported on in future annual reports 
deloitte provided nonaudit services to the group during the year 
within the policy framework as described in the audit committee 
report details of which are set out in note 6 on page 110
basis of accounting
the company’s current basis of accounting is ukgaap  which the 
financial reporting council has announced is to change for reporting 
periods commencing on or after 1 january 2015 the company has 
chosen frs 101 as its basis of accounting going forward and that 
will be adopted for reporting from 2015 further details may be found 
in the audit committee report on page 64
frs 101 paragraph 5a requires the company to give its shareholders 
notice of the adoption of the new standard and to proceed with the 
proposal provided that a shareholder or shareholders holding in 
aggregate 5 or more of the company’s issued shares do not object 
to the proposal which they may do in writing to the company at its 
registered office by no later than 21 april 2015
annual general meeting
the agm will be held at 1100 am on 23 april 2015 at the british 
medical association bma house tavistock square london  
wc1h 9jp 
formal notice of the agm including details of special business is  
set out in the notice of meeting on pages 144 to 151 and on the 
company’s website wwwtaylorwimpeycouk in line with recent 
practice voting on all resolutions at this year’s agm will again be 
conducted by way of a poll as the board believes this gives as many 
shareholders as possible the opportunity to have their votes counted 
whether their votes are tendered by proxy in advance of or in person 
at the agm
web communication
with shareholders’ consent the company has adopted web 
communication the benefits of web communication are that it
 − enables the company to significantly reduce its printing and 
postage costs
 − enables shareholders to access information faster on the day 
documents are published on the company’s website and
 − reduces the amount of resources consumed such as paper  
and lessens the impact of printing and mailing activities on  
the environment
shareholder communications including the 2014 annual report and 
accounts are available electronically through the company’s website
the company provides hard copy documentation to those  
shareholders who have requested this and is of course happy  
to meet any such requests
registrar
the company’s registrar is capita asset services their details  
together with information on facilities available to shareholders  
are set out in the shareholder facilities section on page 153
capital structure
details of the company’s issued share capital together with details  
of the movements in the company’s issued share capital during  
the year are shown in note 23 on page 129
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87
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 the company has two classes of shares ordinary shares of 1p  
each of which carries the right to one vote at general meetings of  
the company and such other rights and obligations as are set out  
in the company’s articles of association and deferred shares  
which carry no voting rights
as part of the debt restructuring announced on 21 april 2009 the 
company issued warrants to certain of its lenders giving the holders  
the right up to 15 may 2014 to subscribe for up to an aggregate of 
approximately 58 million ordinary shares representing approximately 
5 of the company’s issued share capital at the time the warrants  
were issued the conversion entitlement ceased in full on 15 may 
2014 by which time approximately 57 million ordinary shares of 1p 
each had been issued on aggregate conversions since issue at the 
conversion price of 174473 pence per ordinary share
the authority given by shareholders at the agm held on 17 april 2014 
for the company to purchase a maximum of 325 million of its own 
shares remained valid at 31 december 2014 the authority was not 
exercised during 2014 or prior to the date of this report the company 
has no current intention of exercising the authority but will nevertheless 
be seeking the usual renewal of this authority at the agm and the 
board will keep the position under regular review the company 
currently holds no shares in treasury
there are no specific restrictions on the size of a holding the exercise  
of voting rights nor on the transfer of shares which are governed by  
the articles of association and prevailing legislation the directors are 
not aware of any agreements between holders of the company’s  
shares that may result in restrictions on the transfer of securities  
or on voting rights
details of employee share schemes are set out in the remuneration 
report on page 71 the employee share ownership trusts generally 
abstain from voting in respect of shares held by them
no person has any special rights of control over the company’s share 
capital and all issued shares are fully paid
substantial interests
the persons set out in the table below have notified the company 
pursuant to rule 51 of the disclosure and transparency rules  
of their interests in the ordinary share capital of the company
at 2 march 2015 no change in these holdings had been notified  
nor according to the register of members did any other shareholder 
at that date have a disclosable holding of the company’s issued 
share capital
directors’ interests including interests in the company’s shares  
are shown in the remuneration report
substantial interests in the company’s shares as at  
2 march 2015
name
number of 
shares held 
millions
percentage of 
issued voting 
share capital
jp morgan asset management holdings inc 1596 499
fmr llc 1569 484
schroder plc  schroder investment 
management limited 1531 471
legal  general group plc 1034 320
standard life investments limited 964 302
dividend
information relating to the recommended 2014 final dividend is set 
out in the chairman’s statement on page 8 and in the notes to 
resolution 2 on page 148 in the notes to the notice of annual general 
meeting
information relating to the recommended 2015 special dividend is set 
out in the chairman’s statement on page 8 and in the notes to 
resolution 3 on page 148 in the notes to the notice of annual general 
meeting
the company will be operating a dividend reinvestment plan 
drip further details of which are set out on page 152 of this annual 
report the drip will operate automatically in respect of the 2014 
final dividend for those shareholders who have registered a drip 
mandate unless varied by shareholders beforehand and all future 
dividends including special dividends until such time as you 
withdraw from the drip or the drip is suspended or terminated in 
accordance with the terms and conditions the board will keep the 
availability of the drip under regular review
your attention is drawn to important information which may 
require your action and which is included with regard to the 
operation of the drip on the 2014 final dividend and the  
2015 special dividend please refer to pages 148 to 149
the right to receive any dividend has been waived in part by the 
trustee of the company’s employee share ownership trusts 
esots over those trusts’ combined holding of 13056005 shares 
more details of these esots are contained in note 12 on pages 140 
and 141
research and development
during 2014 the company continued to build its new standard  
house type range in significant numbers this enabled us to validate  
the work that been undertaken in developing them this is delivering  
the customer offering urban design cost and process benefits that  
had been targeted feedback from customers and our regional 
business units will be supported by new projects planned on post
occupancy evaluation during 2015 we will be looking at how our 
homes may change in response to the housing standards review 
particularly in respect of space and accessibility
we continue to work with our supply chain to identify new products  
and techniques available to us and appraise them before they will be 
needed we are beginning more focused research over the coming 
year into how we will meet the anticipated changes to part l of the 
building regulations in 2016 as an adjunct to our research and 
development we continue to contribute to several industry working 
groups looking at energy efficiency changes to building regulations 
and standards and how to close the gap between design and 
performance
statutory regulatory and other information continued
taylor wimpey plc
annual report and accounts 2014
88 taylor wimpey sat on the advisory board of hombre holistic 
management of brownfield regeneration a four year seventh 
framework eu funded research project looking at sustainable 
brownfield reuse the project was completed in 2014
the company commissioned research work on ‘carbon futures’ 
looking into development scale whole life carbon assessment
taylor wimpey also supported newcastle university on their 
success sustainable urban carbon capture engineering soils  
for climate change proposal which has now received funding  
the company will participate in this project to determine how  
carbon capture in engineered soils eg land restoration can  
be adopted from an operational perspective
employee involvement and communication
we are proud of how committed our employees are to taylor wimpey 
and the long term success of our business we strive to listen to and 
engage with staff during 2014 we undertook an employee 
engagement survey and the feedback from our employees is shaping 
our plans and priorities for the future we believe that inviting and 
listening to employee feedback is essential and we will conduct 
employee surveys on an annual basis going forward 
we have active employee consultation committees in our regional 
business units and communicate with employees via our halfyearly 
teamtalk employee magazine and regular teamtalk express email 
newsletter our intranet includes a wide range of employee 
information from human resources policies to advice for employees 
on sustainable living it also includes an ‘open door’ forum that puts 
employees directly in touch with our chief executive during 2015  
we introduced a new customer services forum on our intranet and 
invited employees to voice their thoughts on key customer questions 
employees could post comments within the forum or send an email 
our chief executive or customer director
the company is committed to ensuring open and regular 
communication throughout the group on both businessrelated  
issues and issues of general interest there is a formal employee 
consultative committee structure in place in all operations and  
elected representatives meet with management to consult on 
appropriate issues intranet systems are continually updated which 
provide a valuable communication tool across the group and an 
important facility for providing employees with access to a wide  
range of information information is regularly cascaded throughout  
the group via email – including regular communications from the 
chief executive – and via verbal briefings and by management 
presentations the company’s internal magazine provides further 
communication
the company promotes share ownership as widely as possible  
in addition to the various sharerelated reward plans described in  
the remuneration report on pages 66 to 85 the company also 
offers a scheme whereby employees ie generally those who do not 
participate in the executive incentive scheme cash bonus scheme
are offered the opportunity each year to exchange part of any cash 
bonus for exceptional performance into shares of the company 
offering a 20 enhancement to the value if taken entirely in shares 
with a holding period of 12 months the scheme has operated since 
2012 and in 2014 resulted in 724297 shares 2013 697185 being 
acquired by 326 employees 2013 294
in addition the company maintains allemployee share plans 
including the save as you earn share option plan and the share 
incentive plan sip which are offered as widely as possible across 
the group over half of our eligible employees participate in one or 
both plans or are otherwise already shareholders of the company
equal opportunities
we strive to treat our employees fairly and with respect at all times 
we have policies and processes in place to ensure that we act in 
accordance with our cultural values which encompass equal 
opportunities anticorruption and whistleblowing we encourage our 
employees and subcontractors to speak up about concerns over any 
wrongdoing at work and provide access to an independent reporting 
hotline service
we remain committed to the belief that embracing diversity and 
inclusion will enable taylor wimpey to succeed through a workforce 
that is creative and innovative we continue to actively embrace the 
business and local communities in which we operate and will strive  
to reflect their richness and character to include such aspects as 
gender race and religion but also diversity of thought background 
and experience
as set out in our diversity policy we remain committed to equality  
of opportunity in all of our employment practices policies and 
procedures across the group to this end within the framework  
of applicable law we are committed wherever practicable to 
achieving and maintaining a workforce which broadly reflects that  
of the local catchment area within which we operate
no employee or potential employee will receive less favourable 
treatment due to their race creed colour nationality ethnic  
origin religion political or other opinion affiliation gender sexual 
orientation marital status family connections age membership  
or nonmembership of a trade union or disability unless justifiable  
in exceptional circumstances for example due to health and safety 
considerations particularly on construction sites instruction on equal 
opportunities is part of the induction programme and diversity is also 
promoted through awareness training locally and by its inclusion as  
a business priority at strategy presentations around the business
our diversity policy which can be found on the company’s  
website wwwtaylorwimpeycoukcorporatesustainabilityour
policies
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89
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 employment of people with disabilities
it is our policy that people with disabilities should have fair 
consideration for all vacancies within the group
the company is therefore committed where possible to ensuring  
that people with disabilities are supported and encouraged to apply  
for employment and to achieve progress once employed they  
will be treated so as to ensure that they have an equal opportunity  
to be selected trained and promoted in addition every reasonable 
effort is made for disabled persons to be retained in the employment  
of the group by investigating the possibility of making reasonable 
adjustments to the job workplace or equipment
charitable donations
the company has a charity committee which operates within  
written terms of reference and charitable guidelines approved by the 
board the committee’s aims are to monitor and review charitable 
donations made by regional businesses as against the guidelines and  
to assess and administer larger donations centrally the members of  
the committee are the chief executive chairman group hr 
director group legal director and company secretary uk land and 
planning director group financial controller head of marketing and 
head of investor relations the company and the committee 
encourage nonfinancial contributions also and for employees to 
participate in charitable causes
during the year group companies donated £272790 2013 £255000 
to various charities in the uk in addition many employees at all levels 
around the country gave up their work and free time to participate  
in overnight sleepouts and weekend trekking to generate additional 
sponsorship and fundraising for charitable causes including centrepoint 
motor neurone research and the youth adventure trust
further information on the group’s donations activities and initiatives 
can be found in the sustainability report 2014 which is available on 
the company’s website wwwtaylorwimpeycoukcorporate
sustainability
political donations
the company has a policy of not making donations to political 
partiesand has not made any this year and neither does it intend  
to make any going forward the company does support certain 
industrywide organisations which directly assist the housebuilding 
industry such as the home builders federation and the confederation 
of british industry cbi whilst we do not regard this support as 
political in nature in any way the companies act 2006 definition of 
‘political organisations’ and related terms is very wide and in certain 
circumstances a donation or a subscription to such organisations  
or to charities could retrospectively be categorised as a political 
donation in the eyes of the law accordingly as a matter of prudency 
the company will be seeking the usual annual dispensation from its 
shareholders at the 2015 agm so as to be able to continue with the 
above memberships and make charitable donations without 
inadvertently breaching legislation
agreements
apart from a small number of borrowing agreements pursuant to  
which the company borrows or is able to borrow money which could 
potentially be terminated by the other party upon a change of control 
of the company there are no significant contracts or agreements 
which take effect alter or terminate upon a change of control of  
the company 
important events since the year end
there have been no important events affecting the company or any  
of its subsidiary undertakings since 31 december 2014
directors’ responsibilities statement
the directors are responsible for preparing the annual report and 
accounts in accordance with applicable law and regulations 
company law requires the directors to prepare financial statements 
for each financial year under that law the directors are required to 
prepare the group financial statements in accordance with 
international financial reporting standards ifrss as adopted by the 
european union and article 4 of the ias regulation and have elected 
to prepare the parent company financial statements in accordance 
with united kingdom generally accepted accounting practice united 
kingdom accounting standards and applicable law under company 
law the directors must not approve the accounts unless they are 
satisfied that they give a true and fair view of the state of affairs of the 
company and of the profit or loss of the company for that period
in preparing the parent company financial statements the directors  
are required to
 − select suitable accounting policies and then apply them 
consistently
 − make judgements and accounting estimates that are reasonable 
and prudent
 − state whether applicable uk accounting standards have been 
followed subject to any material departures disclosed and 
explained in the financial statements and
 − prepare the financial statements on the going concern basis  
unless it is inappropriate to presume that the company will 
continue in business
in preparing the group financial statements international accounting 
standard 1 requires that directors
 − properly select and apply accounting policies
 − present information including accounting policies in a manner  
that provides relevant reliable comparable and understandable 
information
 − provide additional disclosures when compliance with the specific 
requirements in ifrss are insufficient to enable users to understand 
the impact of particular transactions other events and conditions 
on the entity’s financial position and financial performance and
 − make an assessment of the company’s ability to continue  
as a going concern
statutory regulatory and other information continued
taylor wimpey plc
annual report and accounts 2014
90 the directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the company’s 
transactions and disclose with reasonable accuracy at any time the 
financial position of the company and enable them to ensure that the 
financial statements comply with the companies act 2006 they are 
also responsible for safeguarding the assets of the company and 
hence for taking reasonable steps for the prevention and detection  
of fraud and other irregularities
the directors are responsible for the maintenance and integrity of  
the corporate and financial information included on the company’s  
website legislation in the united kingdom governing the preparation 
and dissemination of financial statements may differ from legislation  
in other jurisdictions
in accordance with provision c1 of the code the directors are 
required inter alia to ensure that the annual report and accounts 
provides the information necessary for shareholders to assess  
the company’s performance business model and strategy
details of how this was addressed are set out in the audit committee 
report on page 64
responsibility statement
the directors confirm that to the best of their knowledge
 − the financial statements prepared in accordance with the relevant 
financial reporting framework give a true and fair view of the assets 
liabilities financial position and profit or loss of the company and the 
undertakings included in the consolidation taken as a whole
 − the strategic report includes a fair review of the development  
and performance of the business and the position of the company 
and the undertakings included in the consolidation taken as a 
whole together with a description of the principal risks and 
uncertainties that they face and
 − the annual report and accounts taken as a whole are fair balanced 
and understandable and provide the information necessary for 
shareholders to assess the company’s performance business 
model and strategy
this report of the directors was approved by the board of directors  
on 2 march 2015
james jordan
group legal director and company secretary 
taylor wimpey plc 
2 march 2015
wwwtaylorwimpeycouk
91
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 92
inside this section
financial statements
93 independent auditor’ s report
97 consolidated income statement
98  consolidated statement of  
comprehensive income 
99 consolidated balance sheet
100  consolidated statement of changes in equity
101  consolidated cash flow statement
102  notes to the consolidated financial statements
136 company balance sheet
137 notes to the company financial statements
142 particulars of principal subsidiary undertakings
143 five year review
shareholder information
144 notice of annual general meeting
147 notes to the notice of meeting 
152 shareholder facilities
153 principal operating addresses
92 independent auditor’s report  
 93
opinion on financial statements of taylor wimpey plc 
in our opinion 
 the financial statements give a true and fair view of the state of the 
group’s and of the parent company’s affairs as at 31 december 
2014 and of the group’s profit for the year then ended 
 the group financial statements have been properly prepared  
in accordance with international financial reporting standards 
ifrss as adopted by the european union 
 the parent company financial statements have been properly 
prepared in accordance with united kingdom generally accepted 
accounting practices and 
 the financial statements have been prepared in accordance with  
the requirements of the companies act 2006 and as regards 
the group financial statements article 4 of the ias regulation 
the financial statements comprise the consolidated income 
statement the consolidated statement of comprehensive  
income the consolidated and parent company balance sheets  
the consolidated statement of changes in equity the consolidated 
cash flow statement and the related notes 1 to 33 and 1 to 16  
the financial reporting framework that has been applied in the 
preparation of the group financial statements is applicable law 
and ifrss as adopted by the european union the financial 
reporting framework that has been applied in the preparation 
of the parent company financial statements is applicable law and 
united kingdom accounting standards united kingdom generally 
accepted accounting practice 
going concern 
as required by the listing rules we have reviewed the directors’ 
statement on page 65 that the group is a going concern  
we confirm that 
 we have concluded that the directors’ use of the going  
concern basis of accounting in the preparation of the  
financial statements is appropriate and 
 we have not identified any material uncertainties that may 
cast significant doubt on the group’s ability to continue as 
a going concern 
however because not all future events or conditions can be 
predicted this statement is not a guarantee as to the group’s  
ability to continue as a going concern 
our assessment of risks of material misstatement 
the assessed risks of material misstatement described below  
are those that had the greatest effect on our audit strategy  
the allocation of resources in the audit and directing the efforts  
of the engagement team 
as part of our audit of the group in addition to substantive tests 
we also test the design and implementation of internal controls over 
financial reporting in each of the risk areas in addition we also tested 
the operating effectiveness of these controls in relation to the first risk 
presented in the table below inventory costing  
 
risk  how the scope of our audit responded to the risk 
inventory costing 
we consider the appropriate recognition of costs into inventory and the 
allocation of these between different sites phases and plots including 
shared costs such as land and infrastructure to be a significant risk  
these affect the appropriateness of the margin recognised on each legal 
completion which directly impacts the level of profit that is recorded on 
each plot the accounting policy that relates to this risk is on page 103 
 
we tested a sample of sites as part of our visit to business units this
included testing the allocation of costs across sites with multiple phases 
to determine that the transfer of these costs was appropriate we 
also tested that shared costs were allocated across phases and plots 
appropriately by assessing the reasonableness of the methodology 
used and we independently recalculated this  
we tested the operating effectiveness of controls over this area in relation 
to the movement of costs across different phases and sites 
for a sample of individual plots we tested additions to the inventory 
balance to determine whether the costs have been appropriately 
capitalised by tracing these additions to supporting supplier invoices 
we also tested a sample of journals adding to the inventory balance 
to highlight any costs that should have been expensed 
  
93
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153
wwwtaylorwimpeycouk independent auditor’s report continued 
 94 
our assessment of risks of material misstatement continued 
risk  how the scope of our audit responded to the risk 
carrying value of inventory 
the value for inventory as at 31 december 2014 is £34901 million 
2013 £29288 million and as such is the most significant value on 
the balance sheet page 99 
the carrying value of inventory at the lower of cost and net realisable 
value is dependent on key judgements and estimates that are made by 
management during the year the group recorded net exceptional income 
of £187 million 2013 £456m in relation to the writeback of inventory 
which was written down in value in previous years due to the deterioration 
of wider market conditions and other site specific factors  
the judgements relating to inventory include an estimation of future 
expected average sales prices and costs these judgements also 
include consideration of site specific factors and the developments 
that individual locations have seen throughout the year the accounting 
policy in relation to inventory is on page 105 and this is highlighted as 
a critical accounting judgement by management and the audit 
committee on page 106 and 64 respectively 
 
 
management conduct a detailed exercise in the assessment of the carrying 
value of sites we performed testing on the model completed as part of this 
and critically assessed the judgements and estimates that had been made 
within this this work included 
 reviewing the accuracy of the calculations within the model and 
identification of any anomalies in inputs 
 performing a sensitivity analysis on the key judgements relating to 
the future expected sales price and costs 
 assessing the estimated future sales prices used by management 
by testing the historical sales prices that have been achieved and 
independent forecasts of anticipated future movements 
 testing a sample of inputs into the management prepared model by 
reference to internal site specific information such as the costs incurred to 
date and the estimation of costs required to complete the sites 
 as part of the audit we visit units throughout the business and we tested 
the specific movements and accounting entries made in 
relation to these sites  
 obtaining evidence to support the current status of a sample of sites and 
that the site specific developments at each site are reflected in 
the valuation and 
 for sites where the value has been written back we have obtained the 
specific calculation prepared by management corroborated the inputs 
that have led to the writeback and recalculated the value that should 
have been recorded as income 
defined benefit pension scheme accounting 
the total value of the defined benefit pension scheme at the balance 
sheet date is a liability of £1824 million 2013 £1822 million 
page 127 and the liabilities specifically are valued at £21862 million 
2013 £20352 million page 127 
accounting for a defined benefit pension scheme and the value of liabilities 
is dependent on significant assumptions including an assessment of the 
discount rate price inflation and key demographic figures including life 
expectancy and mortality rates 
these accounting judgements are inherently complex and require a high 
level of management judgement and specialist input by an actuary in the 
calculation of the value of the liabilities 
the accounting policy in relation to the accounting for employee benefits 
is on page 106 both management and the audit committee assess this 
to be a critical accounting judgement as detailed on page 106 and 64 
respectively  
we assessed the competence capabilities and objectivity of the qualified 
independent actuary engaged by the group and the use of this expert 
by management to perform the valuation of the scheme’s liabilities 
we engaged our internal actuarial specialists to assess the appropriateness 
of the methodology and assumptions used to account for the defined 
benefit scheme this included comparison of key data with market 
benchmarks and to challenge the methodology used by the scheme 
actuary we considered whether each of the key assumptions was 
reasonable in isolation and collectively in determining the pension 
liability at the balance sheet date  
revenue recognition 
we consider there to be a risk in the revenue recognised in relation to 
social housing different sources of revenue have different accounting 
policies see page 102 and management have highlighted the revenue 
recognised in relation to social housing as an area of increased judgement 
on page 106 the assessment of this risk by the audit committee is on 
page 64this is because elements of the social housing revenue is 
accounted for on the basis of long term contract accounting  
this accounting requires management judgement to determine the 
appropriateness of calculating the revenue and profit to be recognised 
this includes estimating the total expected costs to complete each site 
the future profitability of the site and also the percentage of completion 
at the balance sheet date these judgements directly influence revenue 
that can be recognised in relation to social housing 
 
we conducted testing in relation to the revenue recognised for social 
housing revenue this testing involved both test of details and analytical 
procedures  
for a sample of contracts the following procedures were performed 
 we tested the level of costs that have been recognised in relation 
to the site and obtained the certification for the works that have 
been completed 
 assessed the judgements in relation to the future profitability of 
the site with reference to the site budget and 
 recalculated the value that should be recognised at the balance 
sheet date based on the percentage completion 
in addition we developed an expectation of the income that should be 
recognised in the year from this revenue stream with reference to the 
completion of plots across sites 
 
taylor wimpey plc
annual report and accounts 2014
94 independent auditor’s report continued 
 94 
our assessment of risks of material misstatement continued 
risk  how the scope of our audit responded to the risk 
carrying value of inventory 
the value for inventory as at 31 december 2014 is £34901 million 
2013 £29288 million and as such is the most significant value on 
the balance sheet page 99 
the carrying value of inventory at the lower of cost and net realisable 
value is dependent on key judgements and estimates that are made by 
management during the year the group recorded net exceptional income 
of £187 million 2013 £456m in relation to the writeback of inventory 
which was written down in value in previous years due to the deterioration 
of wider market conditions and other site specific factors  
the judgements relating to inventory include an estimation of future 
expected average sales prices and costs these judgements also 
include consideration of site specific factors and the developments 
that individual locations have seen throughout the year the accounting 
policy in relation to inventory is on page 105 and this is highlighted as 
a critical accounting judgement by management and the audit 
committee on page 106 and 64 respectively 
 
 
management conduct a detailed exercise in the assessment of the carrying 
value of sites we performed testing on the model completed as part of this 
and critically assessed the judgements and estimates that had been made 
within this this work included 
 reviewing the accuracy of the calculations within the model and 
identification of any anomalies in inputs 
 performing a sensitivity analysis on the key judgements relating to 
the future expected sales price and costs 
 assessing the estimated future sales prices used by management 
by testing the historical sales prices that have been achieved and 
independent forecasts of anticipated future movements 
 testing a sample of inputs into the management prepared model by 
reference to internal site specific information such as the costs incurred to 
date and the estimation of costs required to complete the sites 
 as part of the audit we visit units throughout the business and we tested 
the specific movements and accounting entries made in 
relation to these sites  
 obtaining evidence to support the current status of a sample of sites and 
that the site specific developments at each site are reflected in 
the valuation and 
 for sites where the value has been written back we have obtained the 
specific calculation prepared by management corroborated the inputs 
that have led to the writeback and recalculated the value that should 
have been recorded as income 
defined benefit pension scheme accounting 
the total value of the defined benefit pension scheme at the balance 
sheet date is a liability of £1824 million 2013 £1822 million 
page 127 and the liabilities specifically are valued at £21862 million 
2013 £20352 million page 127 
accounting for a defined benefit pension scheme and the value of liabilities 
is dependent on significant assumptions including an assessment of the 
discount rate price inflation and key demographic figures including life 
expectancy and mortality rates 
these accounting judgements are inherently complex and require a high 
level of management judgement and specialist input by an actuary in the 
calculation of the value of the liabilities 
the accounting policy in relation to the accounting for employee benefits 
is on page 106 both management and the audit committee assess this 
to be a critical accounting judgement as detailed on page 106 and 64 
respectively  
we assessed the competence capabilities and objectivity of the qualified 
independent actuary engaged by the group and the use of this expert 
by management to perform the valuation of the scheme’s liabilities 
we engaged our internal actuarial specialists to assess the appropriateness 
of the methodology and assumptions used to account for the defined 
benefit scheme this included comparison of key data with market 
benchmarks and to challenge the methodology used by the scheme 
actuary we considered whether each of the key assumptions was 
reasonable in isolation and collectively in determining the pension 
liability at the balance sheet date  
revenue recognition 
we consider there to be a risk in the revenue recognised in relation to 
social housing different sources of revenue have different accounting 
policies see page 102 and management have highlighted the revenue 
recognised in relation to social housing as an area of increased judgement 
on page 106 the assessment of this risk by the audit committee is on 
page 64this is because elements of the social housing revenue is 
accounted for on the basis of long term contract accounting  
this accounting requires management judgement to determine the 
appropriateness of calculating the revenue and profit to be recognised 
this includes estimating the total expected costs to complete each site 
the future profitability of the site and also the percentage of completion 
at the balance sheet date these judgements directly influence revenue 
that can be recognised in relation to social housing 
 
we conducted testing in relation to the revenue recognised for social 
housing revenue this testing involved both test of details and analytical 
procedures  
for a sample of contracts the following procedures were performed 
 we tested the level of costs that have been recognised in relation 
to the site and obtained the certification for the works that have 
been completed 
 assessed the judgements in relation to the future profitability of 
the site with reference to the site budget and 
 recalculated the value that should be recognised at the balance 
sheet date based on the percentage completion 
in addition we developed an expectation of the income that should be 
recognised in the year from this revenue stream with reference to the 
completion of plots across sites 
 
  
 95
our assessment of risks of material misstatement continued 
these risks remain consistent with the prior period with the exception 
of the implementation of the new business system we no longer 
consider this to have a significant impact on the financial statements 
as the system has been fully implemented across all business units 
the description of the risks above should be read in conjunction with 
the significant issues considered by the audit committee discussed 
on page 64 the accounting policies and critical judgements that form 
part of these risks can be found in note 1 and 2 respectively 
our audit procedures relating to these matters were designed in the 
context of our audit of the financial statements as a whole and not 
to express an opinion on individual accounts or disclosures our 
opinion on the financial statements is not modified with respect to 
any of the risks described above and we do not express an opinion 
on these individual matters 
our application of materiality 
we define materiality as the magnitude of misstatement in the financial 
statements that make it probable that the economic decisions of a 
reasonably knowledgeable person would be changed or influenced 
we use materiality both in planning the scope of our audit work and 
in evaluating the results of our work 
we determined materiality for the group to be £225 million  
2013 £200 million which is calculated based on 5 2013 75 
of pretax profit for the year excluding exceptional items of £4501 
million on page 97 the exceptional income is excluded as this directly 
relates to the writeback of the value of inventory rather than the core 
business of the sale of properties this basis has been chosen as this 
is the measure by which stakeholders and the market assess the 
wider performance of the entity  
we have reduced the percentage basis for the calculation of 
materiality from 75 to 5 the continued improvement in the wider 
economic environment and the impact on the profitability of the group 
means that in our judgement a level of 5 is more appropriate  
we agreed with the audit committee that we would report to the 
committee all audit differences in excess of £045 million 2013 
£04 million as well as differences below that threshold that in our 
view warranted reporting on qualitative grounds we also report 
to the audit committee on disclosure matters that we identified 
when assessing the overall presentation of the financial statements 
an overview of the scope of our audit  
our group audit was scoped by obtaining an understanding of the 
group and its environment including groupwide controls and 
assessing the risks of material misstatements at the group level 
based on that assessment we focused our group audit scope 
primarily on the audit work at the uk housing division excluding 
joint ventures which represents the principal segment within the 
group and accounts for 98 2013 98 of the group’s net 
operating assets 99 2013 99 of the group’s revenue 
and 99 2013 99 of the group’s profit on ordinary activities 
before exceptional income 
we audit all of the group’s uk subsidiaries which are subject  
to audit at statutory materiality level which in most cases is 
substantially lower than group materiality this is performed 
subsequent to the audit of the group accounts 
for the spanish operations component auditors report to us  
on the risk in relation to the carrying value of the inventory located  
in spain this was based on our assessment of the risks of material 
misstatement and of the materiality of the group’s operations  
within spain 
for joint ventures specified audit procedures are conducted by the uk 
team this is based on our assessment of risk within these entities  
at the parent entity level we also tested the consolidation process  
and carried out analytical procedures to confirm our conclusion  
that there were no significant risks of material misstatement of 
the aggregated financial information of the remaining components 
not subject to audit or audit of specified account balances 
the audit is performed centrally and includes all of the regional 
business units within the group’s uk housing division we choose 
to visit a sample of regional business units selected on a rotational 
basis and with reference to size and complexity among other factors 
in addition we also visit other business units throughout the entity 
which are chosen on a random basis 
opinion on other matters prescribed by the companies act 2006 
in our opinion 
 the part of the directors’ remuneration report to be audited 
has been properly prepared in accordance with the companies act 
2006 and 
 the information given in the strategic report and the directors’ 
report for the financial year for which the financial statements 
are prepared is consistent with the financial statements 
matters on which we are required to report by exception  
adequacy of explanations received and accounting records 
under the companies act 2006 we are required to report to you 
if in our opinion 
 we have not received all the information and explanations 
we require for our audit or  
 adequate accounting records have not been kept by the parent 
company or returns adequate for our audit have not been received 
from branches not visited by us or 
 the parent company financial statements are not in agreement with 
the accounting records and returns 
we have nothing to report in respect of these matters 
  
wwwtaylorwimpeycouk
95
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 independent auditor’s report continued 
 
 96 
directors’ remuneration 
under the companies act 2006 we are also required to report if in 
our opinion certain disclosures of directors’ remuneration have not 
been made or the part of the directors’ remuneration report to be 
audited is not in agreement with the accounting records and returns 
we have nothing to report arising from these matters 
corporate governance statement 
under the listing rules we are also required to review the part  
of the corporate governance statement relating to the company’s 
compliance with ten provisions of the uk corporate governance 
code we have nothing to report arising from our review 
our duty to read other information in the annual report 
under international standards on auditing uk and ireland  
we are required to report to you if in our opinion information  
in the annual report is 
 materially inconsistent with the information in the audited  
financial statements or 
 apparently materially incorrect based on or materially 
inconsistent with our knowledge of the group acquired 
in the course of performing our audit or 
 otherwise misleading 
in particular we are required to consider whether we have identified 
any inconsistencies between our knowledge acquired during the 
audit and the directors’ statement that they consider the annual 
report is fair balanced and understandable and whether the 
annual report appropriately discloses those matters that we 
communicated to the audit committee which we consider 
should have been disclosed we confirm that we have not 
identified any such inconsistencies or misleading statements 
respective responsibilities of directors and auditor 
as explained more fully in the directors’ responsibilities statement 
the directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view 
our responsibility is to audit and express an opinion on the financial 
statements in accordance with applicable law and international 
standards on auditing uk and ireland those standards require 
us to comply with the auditing practices board’s ethical standards 
for auditors we also comply with international standard on quality 
control 1 uk and ireland our audit methodology and tools aim to 
ensure that our quality control procedures are effective understood 
and applied our quality controls and systems include our dedicated 
professional standards review team and independent partner reviews 
this report is made solely to the company’s members as a body 
in accordance with chapter 3 of part 16 of the companies act 2006 
our audit work has been undertaken so that we might state to the 
company’s members those matters we are required to state to them 
in an auditor’s report and for no other purpose to the fullest extent 
permitted by law we do not accept or assume responsibility to 
anyone other than the company and the company’s members 
as a body for our audit work for this report or for the opinions 
we have formed 
scope of the audit of the financial statements 
an audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement whether caused by fraud or error this includes  
an assessment of whether the accounting policies are appropriate 
to the group’s and the parent company’s circumstances and 
have been consistently applied and adequately disclosed the 
reasonableness of significant accounting estimates made by the 
directors and the overall presentation of the financial statements 
in addition we read all the financial and nonfinancial information 
in the annual report to identify material inconsistencies with the 
audited financial statements and to identify any information that is 
apparently materially incorrect based on or materially inconsistent 
with the knowledge acquired by us in the course of performing the 
audit if we become aware of any apparent material misstatements 
or inconsistencies we consider the implications for our report 
 
 
 
 
 
 
edward hanson aca senior statutory auditor 
for and on behalf of deloitte llp 
chartered accountants and statutory auditor  
london united kingdom 
2 march 2015 
 
taylor wimpey plc
annual report and accounts 2014
96 independent auditor’s report continued 
 
 96 
directors’ remuneration 
under the companies act 2006 we are also required to report if in 
our opinion certain disclosures of directors’ remuneration have not 
been made or the part of the directors’ remuneration report to be 
audited is not in agreement with the accounting records and returns 
we have nothing to report arising from these matters 
corporate governance statement 
under the listing rules we are also required to review the part  
of the corporate governance statement relating to the company’s 
compliance with ten provisions of the uk corporate governance 
code we have nothing to report arising from our review 
our duty to read other information in the annual report 
under international standards on auditing uk and ireland  
we are required to report to you if in our opinion information  
in the annual report is 
 materially inconsistent with the information in the audited  
financial statements or 
 apparently materially incorrect based on or materially 
inconsistent with our knowledge of the group acquired 
in the course of performing our audit or 
 otherwise misleading 
in particular we are required to consider whether we have identified 
any inconsistencies between our knowledge acquired during the 
audit and the directors’ statement that they consider the annual 
report is fair balanced and understandable and whether the 
annual report appropriately discloses those matters that we 
communicated to the audit committee which we consider 
should have been disclosed we confirm that we have not 
identified any such inconsistencies or misleading statements 
respective responsibilities of directors and auditor 
as explained more fully in the directors’ responsibilities statement 
the directors are responsible for the preparation of the financial 
statements and for being satisfied that they give a true and fair view 
our responsibility is to audit and express an opinion on the financial 
statements in accordance with applicable law and international 
standards on auditing uk and ireland those standards require 
us to comply with the auditing practices board’s ethical standards 
for auditors we also comply with international standard on quality 
control 1 uk and ireland our audit methodology and tools aim to 
ensure that our quality control procedures are effective understood 
and applied our quality controls and systems include our dedicated 
professional standards review team and independent partner reviews 
this report is made solely to the company’s members as a body 
in accordance with chapter 3 of part 16 of the companies act 2006 
our audit work has been undertaken so that we might state to the 
company’s members those matters we are required to state to them 
in an auditor’s report and for no other purpose to the fullest extent 
permitted by law we do not accept or assume responsibility to 
anyone other than the company and the company’s members 
as a body for our audit work for this report or for the opinions 
we have formed 
scope of the audit of the financial statements 
an audit involves obtaining evidence about the amounts and 
disclosures in the financial statements sufficient to give reasonable 
assurance that the financial statements are free from material 
misstatement whether caused by fraud or error this includes  
an assessment of whether the accounting policies are appropriate 
to the group’s and the parent company’s circumstances and 
have been consistently applied and adequately disclosed the 
reasonableness of significant accounting estimates made by the 
directors and the overall presentation of the financial statements 
in addition we read all the financial and nonfinancial information 
in the annual report to identify material inconsistencies with the 
audited financial statements and to identify any information that is 
apparently materially incorrect based on or materially inconsistent 
with the knowledge acquired by us in the course of performing the 
audit if we become aware of any apparent material misstatements 
or inconsistencies we consider the implications for our report 
 
 
 
 
 
 
edward hanson aca senior statutory auditor 
for and on behalf of deloitte llp 
chartered accountants and statutory auditor  
london united kingdom 
2 march 2015 
 
consolidated income statement 
for the year to 31 december 2014  
 
 97
£ million note
before 
exceptional
 items
2014
exceptional
 items
2014
note 6
and 15 
total 
2014 
before 
exceptional
 items
2013
exceptional
 items
2013
note 68
 and 15
total
2013
continuing operations 
revenue  4 26861 – 26861 22955 – 22955
cost of sales  20652 187 20465 18462 456 18006
gross profit before positive contribution 6050 187 6237 4039 456 4495
positive contribution from written down inventory 159 – 159 454 – 454
gross profit 6209 187 6396 4493 456 4949
net operating expenses  6 1428 – 1428 1396 – 1396
profit on ordinary activities before finance costs  4781 187 4968 3097 456 3553
interest receivable  8 06 – 06 09 – 09
finance costs  8 312 – 312 454 78 532
share of results of joint ventures  13 26 – 26 32 – 32
profit on ordinary activities before taxation  4501 187 4688 2684 378 3062
taxation charge 9 904 40 944 537 127 664
profit for the year from continuing operations 3597 147 3744 2147 251 2398
  
discontinued operations   
result for the year  27 – 313
profit for the year  3744 2711
  
attributable to  
equity holders of the parent  3744 2714
noncontrolling interests  – 03
 3744 2711
 
 note 2014 2013
basic earnings per share – total group  10 116p 85p
diluted earnings per share – total group  10 115p 83p
basic earnings per share – continuing operations 10 116p 75p
diluted earnings per share – continuing operations 10 115p 73p
adjusted basic earnings per share  
– continuing operations 10 112p 67p
adjusted diluted earnings per share  
– continuing operations 10 111p 65p
basic earnings per share – discontinued operations 10 – 10p
diluted earnings per share – discontinued operations 10 – 10p
 
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97
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 consolidated statement of comprehensive income 
for the year to 31 december 2014 
 98 
 
£ million note 2014 2013
items that may be reclassified subsequently to profit or loss 
exchange differences on translation of foreign operations  25 18 12
movement in fair value of hedging derivatives and loans 25 18 12
items that will not be reclassified subsequently to profit or loss 
actuarial lossgain on defined benefit pension schemes  21 259 210
tax creditcharge on items taken directly to other comprehensive income 14 52 66
other comprehensive expenseincome for the year net of tax 207 144
profit for the year  3744 2711
total comprehensive income for the year  3537 2855
 
attributable to 
equity holders of the parent  3537 2858
noncontrolling interests  – 03
 3537 2855
 
taylor wimpey plc
annual report and accounts 2014
98 consolidated statement of comprehensive income 
for the year to 31 december 2014 
 98 
 
£ million note 2014 2013
items that may be reclassified subsequently to profit or loss 
exchange differences on translation of foreign operations  25 18 12
movement in fair value of hedging derivatives and loans 25 18 12
items that will not be reclassified subsequently to profit or loss 
actuarial lossgain on defined benefit pension schemes  21 259 210
tax creditcharge on items taken directly to other comprehensive income 14 52 66
other comprehensive expenseincome for the year net of tax 207 144
profit for the year  3744 2711
total comprehensive income for the year  3537 2855
 
attributable to 
equity holders of the parent  3537 2858
noncontrolling interests  – 03
 3537 2855
 
consolidated balance sheet 
at 31 december 2014 
 99
 
£ million note 2014 2013
noncurrent assets 
intangible assets  11 25 42
property plant and equipment  12 168 83
interests in joint ventures  13 386 347
trade and other receivables  16 1111 1108
deferred tax assets  14 1575 2466
 3265 4046
current assets 
inventories  15 34901 29288
trade and other receivables  16 1026 1185
tax receivables  78 78
cash and cash equivalents  16 2128 1054
 38133 31605
total assets  41398 35651
current liabilities 
trade and other payables  19 9100 7939
tax payables  78 76
provisions  22 404 283
 9582 8298
net current assets  28551 23307
noncurrent liabilities 
trade and other payables  19 3615 1937
bank and other loans  17 1000 1000
retirement benefit obligations 21 1838 1838
provisions  22 10 60
 6463 4835
total liabilities  16045 13133
 
net assets  25353 22518
equity 
share capital  23 2883 2881
share premium account  24 7629 7602
own shares  26 108 189
other reserves  25 419 438
retained earnings  25 14519 11775
equity attributable to parent  25342 22507
noncontrolling interests  11 11
total equity  25353 22518
the financial statements of taylor wimpey plc registered number 296805 were approved by the board of directors and authorised for issue on 
2 march 2015 they were signed on its behalf by  
  
p redfern 
director 
r mangold 
director 
wwwtaylorwimpeycouk
99
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 consolidated statement of changes in equity 
for the year to 31 december 2014 
 100 
  
for the year to 31 december 2014 
£ million 
share 
capital
share 
premium
own  
shares 
other 
reserves
retained 
earnings total
balance as at 1 january 2014 2881 7602 189 438 11775 22507
exchange differences on translation of foreign operations – – – 18 – 18
movement in fair value of hedging derivatives and loans – – – 18 – 18
actuarial loss on defined benefit pension schemes  – – – – 259 259
deferred tax credit – – – – 52 52
other comprehensive expense for the year net of tax – – – – 207 207
profit for the year – – – – 3744 3744
total comprehensive income for the year – – – – 3537 3537
new share capital subscribed 02 27 – – – 29
own shares acquired – – 100 – – 100
utilisation of own shares – – 181 – – 181
cash cost of satisfying share options  – – – – 147 147
sharebased payment credit – – – – 62 62
transfer to retained earnings  – – – 19 19 –
dividends approved and paid – – – – 727 727
equity attributable to parent 2883 7629 108 419 14519 25342
noncontrolling interests  11
total equity  25353
 
for the year to 31 december 2013 
£ million 
share 
capital
share 
premium
own  
shares 
other 
reserves
retained 
earnings total
balance as at 1 january 2013 2880 7588 159 446 9126 19881
exchange differences on translation of foreign operations – – – 12 – 12
movement in fair value of hedging derivatives and loans – – – 12 – 12
actuarial gain on defined benefit pension schemes  – – – – 210 210
deferred tax charge – – – – 66 66
other comprehensive income for the year net of tax – – – – 144 144
profit for the year – – – – 2714 2714
total comprehensive income for the year – – – – 2858 2858
new share capital subscribed 01 14 – – – 15
own shares acquired – – 151 – – 151
utilisation of own shares – – 121 – – 121
cash cost of satisfying share options  – – – – 73 73
sharebased payment credit – – – – 64 64
transfer to retained earnings  – – – 08 08 –
dividends approved and paid – – – – 208 208
equity attributable to parent 2881 7602 189 438 11775 22507
noncontrolling interests  11
total equity  22518
taylor wimpey plc
annual report and accounts 2014
100 consolidated statement of changes in equity 
for the year to 31 december 2014 
 100 
  
for the year to 31 december 2014 
£ million 
share 
capital
share 
premium
own  
shares 
other 
reserves
retained 
earnings total
balance as at 1 january 2014 2881 7602 189 438 11775 22507
exchange differences on translation of foreign operations – – – 18 – 18
movement in fair value of hedging derivatives and loans – – – 18 – 18
actuarial loss on defined benefit pension schemes  – – – – 259 259
deferred tax credit – – – – 52 52
other comprehensive expense for the year net of tax – – – – 207 207
profit for the year – – – – 3744 3744
total comprehensive income for the year – – – – 3537 3537
new share capital subscribed 02 27 – – – 29
own shares acquired – – 100 – – 100
utilisation of own shares – – 181 – – 181
cash cost of satisfying share options  – – – – 147 147
sharebased payment credit – – – – 62 62
transfer to retained earnings  – – – 19 19 –
dividends approved and paid – – – – 727 727
equity attributable to parent 2883 7629 108 419 14519 25342
noncontrolling interests  11
total equity  25353
 
for the year to 31 december 2013 
£ million 
share 
capital
share 
premium
own  
shares 
other 
reserves
retained 
earnings total
balance as at 1 january 2013 2880 7588 159 446 9126 19881
exchange differences on translation of foreign operations – – – 12 – 12
movement in fair value of hedging derivatives and loans – – – 12 – 12
actuarial gain on defined benefit pension schemes  – – – – 210 210
deferred tax charge – – – – 66 66
other comprehensive income for the year net of tax – – – – 144 144
profit for the year – – – – 2714 2714
total comprehensive income for the year – – – – 2858 2858
new share capital subscribed 01 14 – – – 15
own shares acquired – – 151 – – 151
utilisation of own shares – – 121 – – 121
cash cost of satisfying share options  – – – – 73 73
sharebased payment credit – – – – 64 64
transfer to retained earnings  – – – 08 08 –
dividends approved and paid – – – – 208 208
equity attributable to parent 2881 7602 189 438 11775 22507
noncontrolling interests  11
total equity  22518
consolidated cash flow statement 
for the year to 31 december 2014 
 101
 
£ million note 2014 2013
net cash from operating activities  28 1927 981
 
investing activities 
interest received  04 06
dividends received from joint ventures  25 15
proceeds on disposal of property plant and equipment  04 01
purchases of property plant and equipment 12 97 25
purchases of software 11 – 06
amounts invested in joint ventures  38 15
net cash used in investing activities  102 24
 
financing activities 
proceeds from sale of own shares  29 15
cash received on exercise of share options  34 48
purchase of own shares 100 151
repayment of debenture loans  – 1494
dividends paid  727 208
net cash used in financing activities  764 1790
 
net increasedecrease in cash and cash equivalents  1061 833
cash and cash equivalents at beginning of year  1054 1904
effect of foreign exchange rate changes  13 17
cash and cash equivalents at end of year  28 2128 1054
 
wwwtaylorwimpeycouk
101
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 notes to the consolidated financial statements  
 
 102 
1 significant accounting policies 
basis of preparation 
the consolidated financial statements have been prepared on 
a going concern basis and under the historical cost convention 
except as otherwise stated below 
the principal accounting policies adopted which have been 
applied consistently except as otherwise stated are set out below 
going concern 
the group has prepared forecasts including certain sensitivities taking 
into account the principal risks identified on pages 28 to 29 having 
considered these forecasts the directors remain of the view that 
the group’s financing arrangements and capital structure provide 
both the necessary facilities and covenant headroom to enable the 
group to conduct its business for at least the next 12 months 
accordingly the consolidated financial statements have been 
prepared on a going concern basis 
basis of accounting 
the consolidated financial statements have been prepared in 
accordance with international financial reporting standards ifrs 
the financial statements have also been prepared in accordance 
with ifrs adopted by the european union and therefore the group 
financial statements comply with article 4 of the eu ias regulation 
basis of consolidation 
the consolidated financial statements incorporate the financial 
statements of the company and entities controlled by the company 
its subsidiaries made up to 31 december each year control is 
achieved where the company has the power to direct the relevant 
activities of an investee entity and obtain variable returns from its 
activities the existence and effect of potential voting rights that are 
currently exercisable or convertible are considered when assessing 
whether the group controls another entity 
on acquisition the assets and liabilities and contingent liabilities  
of a subsidiary are measured at their fair values at the date of 
acquisition any excess of the cost of acquisition over the fair 
values of the identifiable net assets acquired is recognised as 
goodwill any deficiency of the cost of acquisition below the fair 
values of the identifiable net assets acquired ie discount on 
acquisition is credited to the income statement in the period of 
acquisition the interest of noncontrolling shareholders is stated 
at the noncontrolling interest’s proportion of the fair values of the 
assets and liabilities recognised subsequently all comprehensive 
income is attributed to the owners and the noncontrolling interests 
which may result in the noncontrolling interest having a debit balance  
the results of subsidiaries acquired or disposed of during the  
year are included in the consolidated income statement from the 
effective date of acquisition or up to the effective date of disposal 
as appropriate where a subsidiary is disposed of which constituted 
a major line of business it is disclosed as a discontinued operation 
where necessary adjustments are made to the financial statements  
of subsidiaries to bring the accounting policies used into line with 
those used by the group all intragroup transactions balances 
income and expenses are eliminated on consolidation  
joint ventures 
undertakings are deemed to be a joint venture when the group  
has joint control of the rights and assets of the undertaking via either 
voting rights or a formal agreement which includes that unanimous 
consent is required for strategic financial and operating decisions 
joint ventures are consolidated under the equity accounting method 
on transfer of land andor work in progress to joint ventures the 
group recognises only its share of any profits or losses  
joint operations arise where the group has joint control of an 
operation but has rights to only its own assets and obligations related 
to the operation these assets and obligations and the group’s 
share of revenues and costs are included in the group’s results 
segmental reporting 
the group is divided into two operating divisions for management 
reporting and control 
 housing united kingdom 
 housing spain 
revenue 
revenue comprises the fair value of the consideration received  
or receivable net of value added tax rebates and discounts and 
after eliminating sales within the group revenue and profit are 
recognised as follows 
a private housing development properties and land sales 
revenue is recognised in the income statement when the significant 
risks and rewards of ownership have been transferred to the 
purchaser revenue in respect of the sale of residential properties 
is recognised at the fair value of the consideration received or 
receivable on legal completion 
b part exchange 
in certain instances property may be accepted in part consideration  
for a sale of a residential property the fair value is established by 
independent surveyors reduced for cost to sell net proceeds 
generated from the subsequent sale of part exchange properties 
are recorded as a reduction to cost of sales  
the original sale is recorded in the normal way with the fair value 
of the exchanged property replacing cash receipts 
c  cash incentives 
cash incentives are considered to be a discount from the purchase 
price offered to the acquirer and are therefore accounted for as 
a reduction to revenue 
d contracting work and social housing contracts  
where the outcome of a long term contract can be estimated  
reliably revenue and costs are recognised by reference to the stage  
of completion of the contract activity at the balance sheet date  
this is normally measured by surveys of work performed to date 
variations in contract work claims and incentive payments are 
included to the extent that it is probable that they will result in  
revenue and they are capable of being reliably measured 
  
taylor wimpey plc
annual report and accounts 2014
102 notes to the consolidated financial statements  
 
 102 
1 significant accounting policies 
basis of preparation 
the consolidated financial statements have been prepared on 
a going concern basis and under the historical cost convention 
except as otherwise stated below 
the principal accounting policies adopted which have been 
applied consistently except as otherwise stated are set out below 
going concern 
the group has prepared forecasts including certain sensitivities taking 
into account the principal risks identified on pages 28 to 29 having 
considered these forecasts the directors remain of the view that 
the group’s financing arrangements and capital structure provide 
both the necessary facilities and covenant headroom to enable the 
group to conduct its business for at least the next 12 months 
accordingly the consolidated financial statements have been 
prepared on a going concern basis 
basis of accounting 
the consolidated financial statements have been prepared in 
accordance with international financial reporting standards ifrs 
the financial statements have also been prepared in accordance 
with ifrs adopted by the european union and therefore the group 
financial statements comply with article 4 of the eu ias regulation 
basis of consolidation 
the consolidated financial statements incorporate the financial 
statements of the company and entities controlled by the company 
its subsidiaries made up to 31 december each year control is 
achieved where the company has the power to direct the relevant 
activities of an investee entity and obtain variable returns from its 
activities the existence and effect of potential voting rights that are 
currently exercisable or convertible are considered when assessing 
whether the group controls another entity 
on acquisition the assets and liabilities and contingent liabilities  
of a subsidiary are measured at their fair values at the date of 
acquisition any excess of the cost of acquisition over the fair 
values of the identifiable net assets acquired is recognised as 
goodwill any deficiency of the cost of acquisition below the fair 
values of the identifiable net assets acquired ie discount on 
acquisition is credited to the income statement in the period of 
acquisition the interest of noncontrolling shareholders is stated 
at the noncontrolling interest’s proportion of the fair values of the 
assets and liabilities recognised subsequently all comprehensive 
income is attributed to the owners and the noncontrolling interests 
which may result in the noncontrolling interest having a debit balance  
the results of subsidiaries acquired or disposed of during the  
year are included in the consolidated income statement from the 
effective date of acquisition or up to the effective date of disposal 
as appropriate where a subsidiary is disposed of which constituted 
a major line of business it is disclosed as a discontinued operation 
where necessary adjustments are made to the financial statements  
of subsidiaries to bring the accounting policies used into line with 
those used by the group all intragroup transactions balances 
income and expenses are eliminated on consolidation  
joint ventures 
undertakings are deemed to be a joint venture when the group  
has joint control of the rights and assets of the undertaking via either 
voting rights or a formal agreement which includes that unanimous 
consent is required for strategic financial and operating decisions 
joint ventures are consolidated under the equity accounting method 
on transfer of land andor work in progress to joint ventures the 
group recognises only its share of any profits or losses  
joint operations arise where the group has joint control of an 
operation but has rights to only its own assets and obligations related 
to the operation these assets and obligations and the group’s 
share of revenues and costs are included in the group’s results 
segmental reporting 
the group is divided into two operating divisions for management 
reporting and control 
 housing united kingdom 
 housing spain 
revenue 
revenue comprises the fair value of the consideration received  
or receivable net of value added tax rebates and discounts and 
after eliminating sales within the group revenue and profit are 
recognised as follows 
a private housing development properties and land sales 
revenue is recognised in the income statement when the significant 
risks and rewards of ownership have been transferred to the 
purchaser revenue in respect of the sale of residential properties 
is recognised at the fair value of the consideration received or 
receivable on legal completion 
b part exchange 
in certain instances property may be accepted in part consideration  
for a sale of a residential property the fair value is established by 
independent surveyors reduced for cost to sell net proceeds 
generated from the subsequent sale of part exchange properties 
are recorded as a reduction to cost of sales  
the original sale is recorded in the normal way with the fair value 
of the exchanged property replacing cash receipts 
c  cash incentives 
cash incentives are considered to be a discount from the purchase 
price offered to the acquirer and are therefore accounted for as 
a reduction to revenue 
d contracting work and social housing contracts  
where the outcome of a long term contract can be estimated  
reliably revenue and costs are recognised by reference to the stage  
of completion of the contract activity at the balance sheet date  
this is normally measured by surveys of work performed to date 
variations in contract work claims and incentive payments are 
included to the extent that it is probable that they will result in  
revenue and they are capable of being reliably measured 
  
 
 103
1 significant accounting policies continued 
where the outcome of a long term contract cannot be estimated 
reliably contract revenue is recognised to the extent of contract 
costs incurred that it is probable will be recoverable contract costs 
are recognised as expenses in the period in which they are incurred 
when it is probable that total contract costs will exceed total contract 
revenue the expected loss is recognised as an expense immediately  
cost of sales 
the group determines the value of inventory charged to cost of sales 
based on the total budgeted cost of developing a site once the total 
expected costs of development are established they are allocated 
to individual plots to achieve a standard build cost per plot 
to the extent that additional costs or savings are identified as the 
site progresses these are recognised over the remaining plots 
unless they are specific to a particular plot in which case they 
are recognised in the income statement at the point of sale 
positive contribution 
the positive contribution presented on the face of the income 
statement represents the amount of previous writedown allocated 
to inventory on a plot that has resulted in the gross profit achieved 
on completion this is due to the combination of selling prices 
and costs or product mix improvements exceeding our market 
assumptions in the previous net realisable value nrv exercise 
these amounts are stated before the allocation of overheads 
excluded from the group’s net realisable value exercise 
exceptional items 
exceptional items are defined as items of income or expenditure 
which in the opinion of the directors are material and unusual in 
nature or of such significance that they require separate disclosure  
on the face of the income statement in accordance with ias 1 
‘presentation of financial statements’ 
interest receivable 
interest income on bank deposits is recognised on an accruals basis 
also included in interest receivable are interest and interestrelated 
payments the group receives on other receivables  
borrowing costs 
borrowing costs are recognised on an accruals basis and are payable 
on the group’s borrowings also included in borrowing costs is the 
amortisation of fees associated with the arrangement of the financing 
finance charges including premiums payable on settlement or 
redemption and direct issue costs are accounted for on an accruals 
basis to the income statement using the effective interest method 
and are added to the carrying amount of the instrument to the 
extent that they are not settled in the period in which they arise 
capitalised finance costs are held in other debtors and amortised 
over the period of the facility 
foreign currencies 
the individual financial statements of each group company are 
presented in the currency of the primary economic environment 
in which it operates its functional currency transactions in 
currencies other than the functional currency are recorded at 
the rates of exchange prevailing on the dates of the transactions 
at each balance sheet date monetary assets and liabilities that are 
denominated in foreign currencies other than the functional currency 
are retranslated at the rates prevailing on the balance sheet date  
nonmonetary assets and liabilities carried at fair value that are 
denominated in foreign currencies are translated at the rates prevailing 
at the date when the fair value was determined gains and losses 
arising on retranslation are included in net profit or loss for the period 
on consolidation the assets and liabilities of the group’s overseas 
operation are translated at exchange rates prevailing on the 
balance sheet date income and expense items are translated 
at an appropriate average rate for the year exchange differences 
arising are recognised within other comprehensive income and 
transferred to the group’s translation reserve such translation 
differences are recognised as income or as expenses in the 
period in which the operation is disposed of 
goodwill and fair value adjustments arising on the acquisition of  
a foreign entity are treated as assets and liabilities of the foreign  
entity and translated at the closing rate the group enters into forward 
contracts in order to hedge its exposure to certain foreign exchange 
transaction risks relating to the functional currency in accordance with 
group policy it also uses foreign currency borrowings and derivatives 
to hedge its net investment exposure to certain overseas subsidiaries 
see page 105 for details of the group’s accounting policies in respect 
of such derivative financial instruments 
operating leases 
rentals payable under operating leases are charged to income 
on a straightline basis over the term of the relevant lease benefits 
received and receivable and costs paid and payable as an incentive 
to enter into an operating lease are also spread on a straightline 
basis over the lease term 
intangible assets 
brands 
internally generated brands are not capitalised acquired brands are 
capitalised their values are calculated based on the group’s valuation 
methodology which is based on valuations of discounted cash flows 
brands are stated at cost less accumulated amortisation and any 
accumulated impairment losses 
software development costs  
costs that are directly associated with the production of identifiable 
and unique software controlled by the group and that generate 
economic benefits beyond one year are recognised as intangible 
assets computer software development costs recognised as 
assets are amortised on a straightline basis over three to five 
years from the time of implementation and are stated at cost less 
accumulated amortisation and any accumulated impairment losses  
wwwtaylorwimpeycouk
103
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 notes to the consolidated financial statements continued 
 104 
1 significant accounting policies continued 
property plant and equipment 
land and buildings held for use in the production or supply of goods 
or services or for administrative purposes are stated in the balance 
sheet at cost less accumulated depreciation and any accumulated 
impairment losses freehold land is not depreciated buildings are 
depreciated over 50 years 
plant and equipment is stated at cost less depreciation  
depreciation is charged so as to expense the cost or valuation 
of assets over their estimated useful lives other assets are 
depreciated using the straightline method on the following bases 
 plant and equipment 2025 per annum 
 computer equipment 33 per annum and 
 leasehold improvements over the term of the lease 
the gain or loss arising on the disposal or retirement of an asset 
is determined as the difference between the sale proceeds less 
any selling expenses and the carrying amount of the asset this 
difference is recognised in the income statement  
impairment of tangible and intangible assets  
at each balance sheet date the group reviews the carrying amounts 
of its tangible and intangible assets to determine whether there is 
any indication that those assets have suffered an impairment loss 
if any such indication exists the recoverable amount of the asset 
is estimated in order to determine the extent of the impairment 
loss if any where the asset does not generate cash flows that are 
independent from other assets the group estimates the recoverable 
amount of the cashgenerating unit to which the asset belongs 
recoverable amount is the higher of fair value less costs to sell and 
value in use in assessing value in use the estimated future cash flows 
are discounted to their present value using a pretax discount rate 
that reflects current market assessments of the time value of money 
and the risks specific to the asset for which the estimates of future 
cash flows have not been adjusted 
if the recoverable amount of an asset is estimated to be less than  
its carrying amount the carrying amount of the asset is reduced 
to its recoverable amount if the recoverable amount of a cash
generating unit is estimated to be less than its carrying amount 
impairment losses are allocated first to the intangible assets in the 
cashgenerating unit  
if the full impairment of intangible assets is not sufficient to reduce 
the carrying value of the cashgenerating unit to its recoverable 
amount tangible fixed assets must then be impaired if the 
recoverable amount of tangible fixed assets exceeds their carrying 
value no further impairment is required an impairment loss is 
recognised as an expense immediately unless the relevant asset 
is carried at a revalued amount in which case the impairment loss 
is treated as a revaluation decrease to the extent that previous 
revaluations have increased the value of the asset 
where an impairment loss subsequently reverses the carrying  
amount of the asset or cashgenerating unit is increased to the revised 
estimate of its recoverable amount but so that the increased carrying 
amount does not exceed the carrying amount that would have been 
determined had no impairment loss been recognised for the asset or 
cashgenerating unit in prior years a reversal of an impairment loss is 
recognised as income immediately unless the relevant asset is carried 
at a revalued amount in which case the reversal of the impairment 
loss is treated as a revaluation increase 
financial instruments 
financial assets and financial liabilities are recognised on the group’s 
balance sheet when the group becomes a party to the contractual 
provisions of the instrument 
trade receivables and other receivables 
trade receivables on normal terms excluding derivative financial 
instruments do not carry any interest and are stated at their 
nominal value as reduced by appropriate allowances for estimated 
unrecoverable amounts trade receivables on extended terms 
particularly in respect of land are measured at amortised cost using 
the effective interest method less any impairment interest income 
is recognised by applying the effective interest rate derivative 
financial instruments are measured at fair value 
mortgage receivables 
mortgage receivables relate to sales incentives including shared  
equity loans the receivable is recorded at amortised cost  
shared equity loans are separated into a loan receivable and a  
nonclosely related embedded derivative asset for accounting 
purposes as allowed under ias 39 ‘financial instruments’ the 
loan is measured at amortised cost and the embedded derivative 
is measured at fair value through profit or loss with any subsequent 
impairment charged through profit and loss the fair value of the 
derivative is based on a national house price index  
financial liabilities and equity instruments 
financial liabilities and equity instruments are classified according  
to the substance of the contractual arrangements entered into  
an equity instrument is any contract that evidences a residual  
interest in the assets of the group after deducting all of its liabilities 
equity instruments issued by the company are recorded as the 
proceeds are received net of direct issue costs 
borrowings 
interestbearing bank loans and overdrafts are recorded as the 
proceeds are received net of direct issue costs  
trade payables 
trade payables on normal terms are not interestbearing and are 
stated at their nominal value trade payables on extended terms 
particularly in respect of land are recorded at their fair value at the  
date of acquisition of the asset to which they relate the discount  
to nominal value is amortised over the period of the credit term and 
charged to finance costs  
taylor wimpey plc
annual report and accounts 2014
104 notes to the consolidated financial statements continued 
 104 
1 significant accounting policies continued 
property plant and equipment 
land and buildings held for use in the production or supply of goods 
or services or for administrative purposes are stated in the balance 
sheet at cost less accumulated depreciation and any accumulated 
impairment losses freehold land is not depreciated buildings are 
depreciated over 50 years 
plant and equipment is stated at cost less depreciation  
depreciation is charged so as to expense the cost or valuation 
of assets over their estimated useful lives other assets are 
depreciated using the straightline method on the following bases 
 plant and equipment 2025 per annum 
 computer equipment 33 per annum and 
 leasehold improvements over the term of the lease 
the gain or loss arising on the disposal or retirement of an asset 
is determined as the difference between the sale proceeds less 
any selling expenses and the carrying amount of the asset this 
difference is recognised in the income statement  
impairment of tangible and intangible assets  
at each balance sheet date the group reviews the carrying amounts 
of its tangible and intangible assets to determine whether there is 
any indication that those assets have suffered an impairment loss 
if any such indication exists the recoverable amount of the asset 
is estimated in order to determine the extent of the impairment 
loss if any where the asset does not generate cash flows that are 
independent from other assets the group estimates the recoverable 
amount of the cashgenerating unit to which the asset belongs 
recoverable amount is the higher of fair value less costs to sell and 
value in use in assessing value in use the estimated future cash flows 
are discounted to their present value using a pretax discount rate 
that reflects current market assessments of the time value of money 
and the risks specific to the asset for which the estimates of future 
cash flows have not been adjusted 
if the recoverable amount of an asset is estimated to be less than  
its carrying amount the carrying amount of the asset is reduced 
to its recoverable amount if the recoverable amount of a cash
generating unit is estimated to be less than its carrying amount 
impairment losses are allocated first to the intangible assets in the 
cashgenerating unit  
if the full impairment of intangible assets is not sufficient to reduce 
the carrying value of the cashgenerating unit to its recoverable 
amount tangible fixed assets must then be impaired if the 
recoverable amount of tangible fixed assets exceeds their carrying 
value no further impairment is required an impairment loss is 
recognised as an expense immediately unless the relevant asset 
is carried at a revalued amount in which case the impairment loss 
is treated as a revaluation decrease to the extent that previous 
revaluations have increased the value of the asset 
where an impairment loss subsequently reverses the carrying  
amount of the asset or cashgenerating unit is increased to the revised 
estimate of its recoverable amount but so that the increased carrying 
amount does not exceed the carrying amount that would have been 
determined had no impairment loss been recognised for the asset or 
cashgenerating unit in prior years a reversal of an impairment loss is 
recognised as income immediately unless the relevant asset is carried 
at a revalued amount in which case the reversal of the impairment 
loss is treated as a revaluation increase 
financial instruments 
financial assets and financial liabilities are recognised on the group’s 
balance sheet when the group becomes a party to the contractual 
provisions of the instrument 
trade receivables and other receivables 
trade receivables on normal terms excluding derivative financial 
instruments do not carry any interest and are stated at their 
nominal value as reduced by appropriate allowances for estimated 
unrecoverable amounts trade receivables on extended terms 
particularly in respect of land are measured at amortised cost using 
the effective interest method less any impairment interest income 
is recognised by applying the effective interest rate derivative 
financial instruments are measured at fair value 
mortgage receivables 
mortgage receivables relate to sales incentives including shared  
equity loans the receivable is recorded at amortised cost  
shared equity loans are separated into a loan receivable and a  
nonclosely related embedded derivative asset for accounting 
purposes as allowed under ias 39 ‘financial instruments’ the 
loan is measured at amortised cost and the embedded derivative 
is measured at fair value through profit or loss with any subsequent 
impairment charged through profit and loss the fair value of the 
derivative is based on a national house price index  
financial liabilities and equity instruments 
financial liabilities and equity instruments are classified according  
to the substance of the contractual arrangements entered into  
an equity instrument is any contract that evidences a residual  
interest in the assets of the group after deducting all of its liabilities 
equity instruments issued by the company are recorded as the 
proceeds are received net of direct issue costs 
borrowings 
interestbearing bank loans and overdrafts are recorded as the 
proceeds are received net of direct issue costs  
trade payables 
trade payables on normal terms are not interestbearing and are 
stated at their nominal value trade payables on extended terms 
particularly in respect of land are recorded at their fair value at the  
date of acquisition of the asset to which they relate the discount  
to nominal value is amortised over the period of the credit term and 
charged to finance costs  
 
 105
1 significant accounting policies continued  
derivative financial instruments and hedge accounting 
the group uses forward exchange contracts to hedge transactions 
denominated in foreign currencies the group also uses foreign 
currency borrowings and derivatives to hedge its net investment 
exposure to movements in exchange rates on translation of certain 
individual financial statements denominated in foreign currencies other 
than sterling which is the functional currency of the parent company 
interest rate derivatives are used to manage interest rate risk in 
respect of borrowings the group does not use derivative financial 
instruments for speculative purposes 
derivative financial instruments are measured at fair value changes 
in the fair value of derivative financial instruments that are designated 
and effective as hedges of net investments in foreign operations 
are recognised directly in other comprehensive income and the 
ineffective portion if any is recognised immediately in the 
consolidated income statement  
for an effective hedge of an exposure to changes in fair value  
the hedged item is adjusted for changes in fair value attributable 
to the risk being hedged with the corresponding entry in the 
consolidated income statement gains or losses from remeasuring 
the derivative or for nonderivatives the foreign currency component 
of its carrying amount are also recognised in the income statement 
changes in the fair value of derivative financial instruments that 
do not qualify for hedge accounting are recognised in the income 
statement as they arise 
hedge accounting is discontinued when the hedging instrument 
expires or is sold terminated or exercised or no longer qualifies for 
hedge accounting at that time any cumulative gain or loss on the 
hedging instrument recognised in other comprehensive income 
is retained in accumulated other comprehensive income until the 
forecasted transaction occurs if a hedged transaction is no longer 
expected to occur the net cumulative gain or loss recognised in 
accumulated other comprehensive income is transferred to the 
income statement for the period if a derivative financial instrument 
does not meet the specific criteria of ias 39 ‘financial instruments’ for 
hedge accounting it is presented as a held for trading asset or liability 
customer deposits 
customer deposits are recorded as a liability within ‘other payables’  
on receipt and released to the income statement as revenue upon 
legal completion 
provisions 
provisions are recognised when the group has a present obligation  
as a result of a past event and it is probable that the group will be 
required to settle that obligation provisions are measured at the 
directors’ best estimate of the expenditure required to settle the 
obligation at the balance sheet date and are discounted to present 
value where the effect is material 
inventories 
inventories are initially stated at cost or at the fair value at acquisition 
date when acquired as part of a business combination and then 
held at the lower of this initial amount and net realisable value 
costs comprise direct materials and where applicable direct labour 
costs and those overheads that have been incurred in bringing the 
inventories to their present location and condition net realisable 
value represents the estimated selling price less all estimated costs 
of completion and costs to be incurred in marketing selling and 
distribution land is recognised in inventory when the significant 
risks and rewards of ownership have been transferred to the group 
nonrefundable land option payments are initially recognised in 
inventory they are reviewed regularly and written off to the income 
statement when it is probable that they will not be exercised 
taxation 
the tax charge represents the sum of the tax currently payable  
and deferred tax 
current tax  
the tax currently payable is based on taxable profit for the year 
taxable profit differs from profit before tax as reported in the income 
statement because it excludes items of income or expense that are 
taxable or deductible in other years and it further excludes items that 
are never taxable or deductible the group’s liability for current tax 
is calculated using tax rates that have been enacted or substantively 
enacted by the balance sheet date 
deferred tax  
deferred tax is the tax expected to be payable or recoverable on 
differences between the carrying amounts of assets and liabilities in 
the financial statements and the corresponding tax bases used in the 
computation of taxable profit and is accounted for using the balance 
sheet liability method deferred tax liabilities are generally recognised 
for all taxable temporary differences and deferred tax assets are 
recognised to the extent that it is probable that taxable profits 
will be available against which deductible temporary differences 
can be utilised 
such assets and liabilities are not recognised if the temporary 
difference arises from goodwill or from the initial recognition other 
than in a business combination of other assets and liabilities in a 
transaction that affects neither the tax profit nor the accounting profit 
deferred tax liabilities are also recognised for taxable temporary 
differences arising on investments in subsidiaries and interests in joint 
ventures except where the group is able to control the reversal of the 
temporary difference and it is probable that the temporary difference 
will not reverse in the foreseeable future 
deferred tax is measured on a nondiscounted basis using the 
tax rates and laws that have then been enacted or substantively 
enacted by the balance sheet date 
the carrying amount of deferred tax assets is reviewed at each balance 
sheet date and reduced to the extent that it is no longer probable that 
sufficient taxable profits will be available to allow all or part of the asset 
to be recovered deferred tax is charged or credited in the income 
statement except when it relates to items charged or credited directly 
to other comprehensive income or equity in which case the deferred 
tax is also dealt with in other comprehensive income or equity  
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strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 notes to the consolidated financial statements continued 
 106 
1 significant accounting policies continued  
sharebased payments 
the group has applied the requirements of ifrs 2 ‘sharebased 
payments’ the group issues equitysettled sharebased payments  
to certain employees equitysettled sharebased payments 
are measured at fair value at the date of grant the fair value is 
expensed on a straightline basis over the vesting period based 
on the group’s estimate of shares that will eventually vest after 
adjusting for the effect of nonmarket vesting conditions 
employee benefits 
the group accounts for pensions and similar benefits under  
ias 19 ‘employee benefits’ amended 2011 in respect of defined 
benefit plans a finance charge is determined on the net defined 
benefit pension liability the operating and financing costs of  
such plans are recognised separately in the income statement  
service costs are spread systematically over the lives of employees 
and certain liability management costs and financing costs are 
recognised in the periods in which they arise actuarial gains and 
losses are recognised immediately in the statement of 
comprehensive income 
payments to defined contribution schemes are charged as an 
expense as they fall due 
2 key sources of estimation uncertainty and critical  
accounting judgements 
estimation of revenue recognised  
in order to determine the profit that the group is able to recognise  
on the proportion of completions in respect of social housing 
contracts for the period internal site valuations are carried out 
for each development at regular intervals throughout the year 
this is to ensure any funding advances are only recognised 
as revenue when the work has been completed including 
the appropriate allocation of infrastructure 
the valuations include an estimation of the costs to complete 
and remaining revenues which may differ from the actual costs 
incurred and revenues received on completion 
carrying value of inventory 
in order to assess the appropriateness of the carrying value of 
inventory the group is required to make estimations of sales prices 
costs and margins expected on sites in order to determine whether 
any writedowns or reversals are required to ensure inventory is 
stated at the lower of cost and net realisable value  
following previous significant impairments of inventories the group 
has again undertaken a detailed review on a sitebysite basis of 
the net realisable value of its land and work in progress the net 
realisable value exercise is highly sensitive to the assumptions 
used and we therefore also consider when the inventory is likely 
to be realised whether or not there has been a sustained change 
in market conditions that previously caused the inventory to be 
written down and the wider economic environment existing at 
the balance sheet date  
the group has reversed a net £187 million of inventory writedowns 
in the year this consists of a uk reversal of £270 million and further 
writedowns of £83 million see note 15 
employee benefits 
the value of plan assets and liabilities is determined on various long 
term actuarial assumptions including future rates of inflation growth 
yields returns on investments and mortality rates changes in these 
assumptions over time and differences to the actual outcome will be 
reflected in the statement of comprehensive income note 21 details 
the main assumptions in accounting for the group’s defined benefit 
pension schemes 
tax and deferred tax  
aspects of tax accounting require management judgement and 
interpretation of tax legislation across many jurisdictions in some 
cases relating to items which may not be resolved with the relevant  
tax authority for many years 
in determining the carrying amounts of deferred tax assets 
management is required to assess the timing of the utilisation of 
provisions for tax purposes and whether it is probable that sufficient 
taxable profits will be available to enable the asset to be recovered 
adoption of new and revised standards and interpretations  
the following new standards amendments to standards or 
interpretations have been adopted by the european union and  
are mandatory for the first time for the year ending on or after  
1 january 2014 
ifrs 10 ‘consolidated financial statements’ – this standard 
establishes a single controlbased model for assessing control 
and determining the scope of consolidated entities it replaced 
the corresponding requirements of both ias 27 ‘consolidation 
and separate financial statements’ and sic – 12 ‘consolidation – 
special purpose entities’ ifrs 10 does not alter the basic principles 
of consolidation however it does introduce a new concept of how 
control should be assessed focusing on the ability to direct the 
activities that most affect returns ifrs 10 also provides clarity on 
areas which were previously unclear under ias 27 and sic12 
ifrs 11 ‘joint arrangements’ – this standard has replaced ias 
31 ‘interests in joint ventures’ the most significant change to 
accounting for joint arrangements will be as a result of the change 
to the definition of control required by ifrs 10 meaning entities 
may require accounting for in line with ifrs 11 which were 
previously outside the scope 
ifrs 12 ‘disclosure of interests in other entities’ – the objective of 
this standard is to enable users of the financial statements to evaluate 
an entity’s interest in other entities through requiring the disclosure 
of the nature and risks associated with the interests in other entities 
and how those interests affect the entity’s financial position financial 
performance and cash flows 
the group has reviewed all significant joint venture arrangements 
to establish whether the change of the definition of control under 
ifrs 10 has affected how the entity should be accounted for in  
the consolidated financial statements or if the arrangement now  
falls within the scope of ifrs 11 there are no material adjustments 
required to the consolidated financial statements as a result of these 
new standards  
taylor wimpey plc
annual report and accounts 2014
106 notes to the consolidated financial statements continued 
 106 
1 significant accounting policies continued  
sharebased payments 
the group has applied the requirements of ifrs 2 ‘sharebased 
payments’ the group issues equitysettled sharebased payments  
to certain employees equitysettled sharebased payments 
are measured at fair value at the date of grant the fair value is 
expensed on a straightline basis over the vesting period based 
on the group’s estimate of shares that will eventually vest after 
adjusting for the effect of nonmarket vesting conditions 
employee benefits 
the group accounts for pensions and similar benefits under  
ias 19 ‘employee benefits’ amended 2011 in respect of defined 
benefit plans a finance charge is determined on the net defined 
benefit pension liability the operating and financing costs of  
such plans are recognised separately in the income statement  
service costs are spread systematically over the lives of employees 
and certain liability management costs and financing costs are 
recognised in the periods in which they arise actuarial gains and 
losses are recognised immediately in the statement of 
comprehensive income 
payments to defined contribution schemes are charged as an 
expense as they fall due 
2 key sources of estimation uncertainty and critical  
accounting judgements 
estimation of revenue recognised  
in order to determine the profit that the group is able to recognise  
on the proportion of completions in respect of social housing 
contracts for the period internal site valuations are carried out 
for each development at regular intervals throughout the year 
this is to ensure any funding advances are only recognised 
as revenue when the work has been completed including 
the appropriate allocation of infrastructure 
the valuations include an estimation of the costs to complete 
and remaining revenues which may differ from the actual costs 
incurred and revenues received on completion 
carrying value of inventory 
in order to assess the appropriateness of the carrying value of 
inventory the group is required to make estimations of sales prices 
costs and margins expected on sites in order to determine whether 
any writedowns or reversals are required to ensure inventory is 
stated at the lower of cost and net realisable value  
following previous significant impairments of inventories the group 
has again undertaken a detailed review on a sitebysite basis of 
the net realisable value of its land and work in progress the net 
realisable value exercise is highly sensitive to the assumptions 
used and we therefore also consider when the inventory is likely 
to be realised whether or not there has been a sustained change 
in market conditions that previously caused the inventory to be 
written down and the wider economic environment existing at 
the balance sheet date  
the group has reversed a net £187 million of inventory writedowns 
in the year this consists of a uk reversal of £270 million and further 
writedowns of £83 million see note 15 
employee benefits 
the value of plan assets and liabilities is determined on various long 
term actuarial assumptions including future rates of inflation growth 
yields returns on investments and mortality rates changes in these 
assumptions over time and differences to the actual outcome will be 
reflected in the statement of comprehensive income note 21 details 
the main assumptions in accounting for the group’s defined benefit 
pension schemes 
tax and deferred tax  
aspects of tax accounting require management judgement and 
interpretation of tax legislation across many jurisdictions in some 
cases relating to items which may not be resolved with the relevant  
tax authority for many years 
in determining the carrying amounts of deferred tax assets 
management is required to assess the timing of the utilisation of 
provisions for tax purposes and whether it is probable that sufficient 
taxable profits will be available to enable the asset to be recovered 
adoption of new and revised standards and interpretations  
the following new standards amendments to standards or 
interpretations have been adopted by the european union and  
are mandatory for the first time for the year ending on or after  
1 january 2014 
ifrs 10 ‘consolidated financial statements’ – this standard 
establishes a single controlbased model for assessing control 
and determining the scope of consolidated entities it replaced 
the corresponding requirements of both ias 27 ‘consolidation 
and separate financial statements’ and sic – 12 ‘consolidation – 
special purpose entities’ ifrs 10 does not alter the basic principles 
of consolidation however it does introduce a new concept of how 
control should be assessed focusing on the ability to direct the 
activities that most affect returns ifrs 10 also provides clarity on 
areas which were previously unclear under ias 27 and sic12 
ifrs 11 ‘joint arrangements’ – this standard has replaced ias 
31 ‘interests in joint ventures’ the most significant change to 
accounting for joint arrangements will be as a result of the change 
to the definition of control required by ifrs 10 meaning entities 
may require accounting for in line with ifrs 11 which were 
previously outside the scope 
ifrs 12 ‘disclosure of interests in other entities’ – the objective of 
this standard is to enable users of the financial statements to evaluate 
an entity’s interest in other entities through requiring the disclosure 
of the nature and risks associated with the interests in other entities 
and how those interests affect the entity’s financial position financial 
performance and cash flows 
the group has reviewed all significant joint venture arrangements 
to establish whether the change of the definition of control under 
ifrs 10 has affected how the entity should be accounted for in  
the consolidated financial statements or if the arrangement now  
falls within the scope of ifrs 11 there are no material adjustments 
required to the consolidated financial statements as a result of these 
new standards  
 
 107
2 key sources of estimation uncertainty and critical  
accounting judgements continued 
the following new and revised standards and interpretations  
have also been adopted in the current year their adoption has 
not had any significant impact on the amounts reported in these 
financial statements but may affect the accounting for future 
transactions and arrangements 
 amendment to ias 32 ‘financial instruments presentation’  
on offsetting financial assets and financial liabilities 
 amendments to ias 36 ‘impairment of assets’ 
 amendment to ias 39 ‘financial instruments recognition  
and measurement’ on novation of derivatives and hedge 
accounting and 
 ifric 21 ‘levies’ 
standards and interpretations in issue but not yet effective 
or requiring mandatory adoption 
at the date of publishing these financial statements the following 
new and revised standards and interpretations were in issue but 
were not yet effective or requiring mandatory adoption and in 
some cases had not yet been adopted by the eu  
none of these new and revised standards and interpretations 
have been adopted early by the group 
 amendment to ias 19 ‘employee benefits’ regarding defined  
benefit plans 
 annual improvements to ifrs 20102012 cycle 
 annual improvements to ifrs 20112013 cycle 
 annual improvements to ifrs 20122014 cycle 
 amendment to ifrs 11 ‘joint arrangements’ on acquisition 
of an interest in a joint operation 
 amendment to ias 16 ‘property plant and equipment’ and 
ias 38 ‘intangible assets’ on depreciation and amortisation 
 ifrs 14 ‘regulatory deferral accounts’ 
 amendments to ias 27 ‘separate financial statements’  
on the equity method and 
 amendments to ifrs 10 ‘consolidated financial statements’ 
and ias 28 ‘investments in associates and joint ventures’ 
the directors do not expect that the adoption of the standards listed 
above will have a material impact on the financial statements of the 
group in future periods 
ifrs 15 ‘revenue from contracts with customers’ is effective for 
annual periods beginning on or after 1 january 2017 subject to 
eu endorsement ifrs 9 ‘financial instruments’ with associated 
amendments is effective for annual periods beginning on or after  
1 january 2018 subject to eu endorsement the group has begun 
but not yet completed its assessment of the potential impacts of 
these two standards this assessment will be completed well ahead 
of the eu endorsed implementation dates so any impacts can be 
understood prior to adoption  
3 general information 
taylor wimpey plc is a company incorporated in the united kingdom 
under the companies act 2006 the address of the registered office 
is given on page 153 the nature of the group’s operations and its 
principal activities are set out in the strategic report on pages 2 to 43 
these financial statements are presented in pounds sterling because 
that is the currency of the primary economic environment in which 
the group operates foreign operations are included in accordance 
with the policy set out on page 103 
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107
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 notes to the consolidated financial statements continued 
 108 
4 revenue 
an analysis of the group’s continuing revenue is as follows 
£ million  2014 2013
housing 26675 22670
land sales 186 285
revenue for the year 26861 22955
housing revenue includes £961 million 2013 £1500 million in respect of the value of properties accepted in part exchange by the group 
5 operating segments 
ifrs 8 ‘operating segments’ requires information to be presented on the same basis as it is reviewed internally the group’s board of directors 
views the businesses on a geographic basis when making strategic decisions for the group and as such the group is organised into two 
operating divisions – housing united kingdom and housing spain  
segment information about these businesses is presented below  
for the year to 31 december 2014 
£ million  
 housing 
united 
kingdom
housing
spain consolidated
revenue   
external sales  26524 337 26861
  
result  
profit on ordinary activities before joint ventures finance costs and exceptional items   4739 42 4781
share of results of joint ventures  26 – 26
profit on ordinary activities before finance costs exceptional items and after share  
of results of joint ventures 
 
4765 42 4807
exceptional items note 6  187 – 187
profit on ordinary activities before finance costs after share of results  
of joint ventures and exceptional items 
 
4952 42 4994
net finance costs  306
profit on ordinary activities before taxation  4688
taxation including exceptional tax  944
profit from continuing operations  3744
  
discontinued operations  
result from discontinued operations  –
profit for the year – total group  3744
  
assets and liabilities  
at 31 december 2014  
segment operating assets  36371 860 37231
joint ventures  384 02 386
segment operating liabilities  14602 365 14967
group net operating assets  22153 497 22650
net current taxation   –
net deferred taxation   1575
net cash  1128
net assets  25353
  
taylor wimpey plc
annual report and accounts 2014
108 notes to the consolidated financial statements continued 
 108 
4 revenue 
an analysis of the group’s continuing revenue is as follows 
£ million  2014 2013
housing 26675 22670
land sales 186 285
revenue for the year 26861 22955
housing revenue includes £961 million 2013 £1500 million in respect of the value of properties accepted in part exchange by the group 
5 operating segments 
ifrs 8 ‘operating segments’ requires information to be presented on the same basis as it is reviewed internally the group’s board of directors 
views the businesses on a geographic basis when making strategic decisions for the group and as such the group is organised into two 
operating divisions – housing united kingdom and housing spain  
segment information about these businesses is presented below  
for the year to 31 december 2014 
£ million  
 housing 
united 
kingdom
housing
spain consolidated
revenue   
external sales  26524 337 26861
  
result  
profit on ordinary activities before joint ventures finance costs and exceptional items   4739 42 4781
share of results of joint ventures  26 – 26
profit on ordinary activities before finance costs exceptional items and after share  
of results of joint ventures 
 
4765 42 4807
exceptional items note 6  187 – 187
profit on ordinary activities before finance costs after share of results  
of joint ventures and exceptional items 
 
4952 42 4994
net finance costs  306
profit on ordinary activities before taxation  4688
taxation including exceptional tax  944
profit from continuing operations  3744
  
discontinued operations  
result from discontinued operations  –
profit for the year – total group  3744
  
assets and liabilities  
at 31 december 2014  
segment operating assets  36371 860 37231
joint ventures  384 02 386
segment operating liabilities  14602 365 14967
group net operating assets  22153 497 22650
net current taxation   –
net deferred taxation   1575
net cash  1128
net assets  25353
  
 
 109
5 operating segments continued 
for the year to 31 december 2014 
£ million  
 housing 
united 
kingdom
housing
spain consolidated
other information – continuing operations  
property plant and equipment additions  96 01 97
software development costs   –––
depreciation – property plant and equipment   11 01 12
software amortisation  17 – 17
for the year to 31 december 2013 
£ million  
 
housing 
united 
kingdom
housing
spain consolidated
revenue   
external sales  22714 241 22955
  
result  
profit on ordinary activities before joint ventures finance costs and exceptional items   3096 01 3097
share of results of joint ventures  32 – 32
profit on ordinary activities before finance costs exceptional items and after share  
of results of joint ventures 
 
3128 01 3129
exceptional items  623 167 456
profit on ordinary activities before finance costs after share of results  
of joint ventures and exceptional items 
 
3751 166 3585
finance costs net including exceptional finance costs and credits  523
profit on ordinary activities before taxation  3062
taxation including tax on exceptional items  664
profit from continuing operations  2398
  
discontinued operations  
result from discontinued operations  313
profit for the year – total group  2711
  
assets and liabilities  
at 31 december 2013  
segment operating assets  31011 695 31706
joint ventures  345 02 347
segment operating liabilities  11810 247 12057
group net operating assets  19546 450 19996
net current taxation  02
net deferred taxation   2466
net cash  54
net assets  22518
  
for the year to 31 december 2013  
other information – continuing operations  
property plant and equipment additions  25 – 25
software development costs   06 – 06
depreciation – property plant and equipment  12 01 13
software amortisation  16 – 16
  
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strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 notes to the consolidated financial statements continued 
 110 
6 net operating expenses and profit on ordinary activities before finance costs 
profit on ordinary activities before financing costs for continuing operations has been arrived at after chargingcrediting 
£ million  2014 2013
administration expenses 1586 1517
net other income 158 121
exceptional items 187 456
net other income includes profits on the sale of property plant and  equipment revaluation of certain shared equity mortgage receivables  
and ground rents receivable 
exceptional items 
£ million  2014 2013
net reversal of inventory writedowns note 15 187 456
exceptional items credited to cost of sales 187 456
the group has seen a sustained improvement in the uk housing market and improvement in confidence in the wider economy driven by 
continued low interest rates improved mortgage availability and government incentives including the ‘help to buy’ scheme 
following the completion of the june and december net realisable value nrv exercises the group has released a net £187 million of previous 
writedowns in the year 2013 £456 million this consisted of £270 million of releases and £83 million of additional nrv requirements in the 
uk no further writedowns have been booked in spain 2013 £167 million of additional nrv the nrv balance remaining relates to specific 
legacy sites 
profit on ordinary activities before financing costs for continuing operations has been arrived at after chargingcrediting 
£ million 2014 2013
cost of inventories recognised as expense in cost of sales before writedowns of inventories 19850 17658
writedown of inventories  83 615
reversal of writedowns of inventories  270 1071
depreciation – property plant and equipment 12 13 
payments under operating leases 38 57
the remuneration paid to deloitte llp the group’s external auditor is as follows 
£ million  2014 2013
fees payable to the company’s auditor for the audit of the company’s annual accounts  
and consolidated financial statements 01 01
fees payable to the company’s auditor and its associates for other services to the group 
the audit of the company’s subsidiaries pursuant to legislation 03 03
total audit fees 04 04
other services pursuant to legislation 01 01
tax services 01 –
other assurance services – –
other services – 01
total nonaudit fees 02 02
total fees 06 06
nonaudit services in 2014 and 2013 predominantly relate to work undertaken as a result of deloitte llp’s role as auditor or work resulting  
from knowledge and experience gained as part of the role other services relate to advisory services relating to pension liability management 
consultation and real estate advisory work the work was either the subject of a competitive tender or was best performed by the group’s 
auditor because of its knowledge of the group  
tax services include advisory services for taylor wimpey plc and subsidiaries see page 62 for details of the group’s policies in respect 
of nonaudit services and approval by the audit committee  
taylor wimpey plc
annual report and accounts 2014
110 notes to the consolidated financial statements continued 
 110 
6 net operating expenses and profit on ordinary activities before finance costs 
profit on ordinary activities before financing costs for continuing operations has been arrived at after chargingcrediting 
£ million  2014 2013
administration expenses 1586 1517
net other income 158 121
exceptional items 187 456
net other income includes profits on the sale of property plant and  equipment revaluation of certain shared equity mortgage receivables  
and ground rents receivable 
exceptional items 
£ million  2014 2013
net reversal of inventory writedowns note 15 187 456
exceptional items credited to cost of sales 187 456
the group has seen a sustained improvement in the uk housing market and improvement in confidence in the wider economy driven by 
continued low interest rates improved mortgage availability and government incentives including the ‘help to buy’ scheme 
following the completion of the june and december net realisable value nrv exercises the group has released a net £187 million of previous 
writedowns in the year 2013 £456 million this consisted of £270 million of releases and £83 million of additional nrv requirements in the 
uk no further writedowns have been booked in spain 2013 £167 million of additional nrv the nrv balance remaining relates to specific 
legacy sites 
profit on ordinary activities before financing costs for continuing operations has been arrived at after chargingcrediting 
£ million 2014 2013
cost of inventories recognised as expense in cost of sales before writedowns of inventories 19850 17658
writedown of inventories  83 615
reversal of writedowns of inventories  270 1071
depreciation – property plant and equipment 12 13 
payments under operating leases 38 57
the remuneration paid to deloitte llp the group’s external auditor is as follows 
£ million  2014 2013
fees payable to the company’s auditor for the audit of the company’s annual accounts  
and consolidated financial statements 01 01
fees payable to the company’s auditor and its associates for other services to the group 
the audit of the company’s subsidiaries pursuant to legislation 03 03
total audit fees 04 04
other services pursuant to legislation 01 01
tax services 01 –
other assurance services – –
other services – 01
total nonaudit fees 02 02
total fees 06 06
nonaudit services in 2014 and 2013 predominantly relate to work undertaken as a result of deloitte llp’s role as auditor or work resulting  
from knowledge and experience gained as part of the role other services relate to advisory services relating to pension liability management 
consultation and real estate advisory work the work was either the subject of a competitive tender or was best performed by the group’s 
auditor because of its knowledge of the group  
tax services include advisory services for taylor wimpey plc and subsidiaries see page 62 for details of the group’s policies in respect 
of nonaudit services and approval by the audit committee  
 
 111
7 staff costs 
 
2014
number
2013
number
average number employed 
housing united kingdom  3784 3629
housing spain  73 71
 3857 3700
 
united kingdom 3784 3629
overseas 73 71
 3857 3700
  
£ million  2014 2013
remuneration 
wages and salaries 1646 1609
redundancy costs 21 09
social security costs 221 197
other pension costs 90 77
 1978 1892
the information required by the companies act 2006 and the listing rules of the financial conduct authority is contained in note 32 and pages 
66 to 85 in the directors’ remuneration report 
8 finance costs and interest receivable 
£ million  2014 2013
external interest receivable  06 09
 06 09
finance costs are analysed as follows 
£ million  2014 2013
interest on overdrafts bank and other loans  144 124
interest on debenture loans – 155
movement on interest rate derivatives and foreign exchange movements 02 02
 146 277
unwinding of discount on land creditors and other items 91 80
notional net interest on pension liability note 21 75 97
 312 454
exceptional finance items 
senior note 10375 due 2015 prepayment penalty note 18 – 78
 312 532
the exceptional finance cost in 2013 relates to the prepayment penalty on the early redemption of the total outstanding £1494 million  
senior notes 10375 due 2015 
  
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strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 notes to the consolidated financial statements continued 
 112 
9 taxation 
tax chargedcredited in the income statement for continuing operations is analysed as follows 
£ million 2014 2013
current tax  
uk corporation tax current year 10 –
 prior years 01 –
foreign tax current year 02 –
 prior years – –
  11 –
deferred tax  
uk current year 914 698
 prior year 19 34
  933 664
  944 664
corporation tax is calculated at 215 2013 233 of the estimated assessable profit for the year in the uk taxation outside the uk is 
calculated at the rates prevailing in the respective jurisdictions 
the tax charge for the year includes a charge in respect of exceptional items of £40 million in respect of uk tax which is associated with the net 
realisable value of inventory  
the charge for 2013 includes a charge of £218 million relating to the impact on the deferred tax asset of the 3 reduction in uk corporation tax 
from 23 to 20 
the charge for the year can be reconciled to the profit per the income statement as follows 
£ million  2014 2013
profit before tax 4688 3062
 
tax at the uk corporation tax rate of 215 2013 233 1008 712
net underover provision in respect of prior years 18 34
tax effect of expenses that are not deductible in determining taxable profit 40 08
unrecognised temporary differences utilised 10 66
losses not recognised  – 50
recognition of deferred tax asset relating to nontrading losses 33 188
impact of 3 rate reduction on deferred tax  – 218
other rate impacting adjustments 01 20
tax charge for the year 944 664
  
taylor wimpey plc
annual report and accounts 2014
112 notes to the consolidated financial statements continued 
 112 
9 taxation 
tax chargedcredited in the income statement for continuing operations is analysed as follows 
£ million 2014 2013
current tax  
uk corporation tax current year 10 –
 prior years 01 –
foreign tax current year 02 –
 prior years – –
  11 –
deferred tax  
uk current year 914 698
 prior year 19 34
  933 664
  944 664
corporation tax is calculated at 215 2013 233 of the estimated assessable profit for the year in the uk taxation outside the uk is 
calculated at the rates prevailing in the respective jurisdictions 
the tax charge for the year includes a charge in respect of exceptional items of £40 million in respect of uk tax which is associated with the net 
realisable value of inventory  
the charge for 2013 includes a charge of £218 million relating to the impact on the deferred tax asset of the 3 reduction in uk corporation tax 
from 23 to 20 
the charge for the year can be reconciled to the profit per the income statement as follows 
£ million  2014 2013
profit before tax 4688 3062
 
tax at the uk corporation tax rate of 215 2013 233 1008 712
net underover provision in respect of prior years 18 34
tax effect of expenses that are not deductible in determining taxable profit 40 08
unrecognised temporary differences utilised 10 66
losses not recognised  – 50
recognition of deferred tax asset relating to nontrading losses 33 188
impact of 3 rate reduction on deferred tax  – 218
other rate impacting adjustments 01 20
tax charge for the year 944 664
  
 
 113
10 earnings per share 
2014 2013
basic earnings per share  116p 85p
diluted earnings per share  115p 83p
 
basic earnings per share – continuing operations  116p 75p
diluted earnings per share – continuing operations  115p 73p
 
adjusted basic earnings per share – continuing operations 112p 67p
adjusted diluted earnings per share – continuing operations 111p 65p
 
basic earnings per share – discontinued operations  – 10p
diluted earnings per share – discontinued operations  – 10p
 
weighted average number of shares for basicadjusted earnings per share – million 32244 32014
weighted average number of shares for diluted basicadjusted earnings per share – million 32531 32804
adjusted basic and adjusted diluted earnings per share which exclude the impact of exceptional items and any associated net tax charges  
are presented to provide a better measure of the underlying performance of the group a reconciliation of earnings attributable to equity 
shareholders used for basic and diluted earnings per share to that used for adjusted earnings per share is shown below  
£ million 2014 2013
earnings from continuing operations for basic and diluted earnings per share 3744 2398
adjust for exceptional net reversal of inventory writedowns note 15 187 456
adjust for exceptional interest items note 8 – 78
adjust for tax on exceptional items note 9 40 127
earnings from continuing operations for adjusted basic and adjusted diluted earnings per share 3597 2147
  
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 114 
11 intangible assets 
£ million  brands
software 
development 
costs total
cost 
at 1 january 2013 1402 59 1461
additions – 06 06
at 31 december 2013 1402 65 1467
additions  –––
at 31 december 2014 1402 65 1467
amortisationimpairment  
at 1 january 2013 1402 07 1409
charge for the year – 16 16
at 31 december 2013 1402 23 1425
charge for the year  – 17 17
at 31 december 2014 1402 40 1442
carrying amount 
31 december 2014 – 25 25
31 december 2013 – 42 42
the group has assessed its brands and their associated values and has concluded that given the majority of the legacy brands are currently  
not used it would not be appropriate to reverse any of the previously recognised impairment charges 
the amortisation of software development costs is recognised within administrative expenses in the income statement  
12 property plant and equipment 
£ million  
freehold land 
and buildings
plant 
equipment 
and leasehold 
improvements total
cost  
at 1 january 2013 19 175 194
additions 15 10 25
disposals – 44 44
foreign exchange –––
at 31 december 2013 34 141 175
additions 76 21 97
disposals  – 17 17
foreign exchange –––
at 31 december 2014 110 145 255
accumulated depreciation 
at 1 january 2013 01 122 123
disposals – 44 44
charge for the year – 13 13
at 31 december 2013 01 91 92
disposals – 17 17
charge for the year 01 11 12
at 31 december 2014 02 85 87
carrying amount 
at 31 december 2014 108 60 168
at 31 december 2013 33 50 83
  
taylor wimpey plc
annual report and accounts 2014
114 notes to the consolidated financial statements continued 
 114 
11 intangible assets 
£ million  brands
software 
development 
costs total
cost 
at 1 january 2013 1402 59 1461
additions – 06 06
at 31 december 2013 1402 65 1467
additions  –––
at 31 december 2014 1402 65 1467
amortisationimpairment  
at 1 january 2013 1402 07 1409
charge for the year – 16 16
at 31 december 2013 1402 23 1425
charge for the year  – 17 17
at 31 december 2014 1402 40 1442
carrying amount 
31 december 2014 – 25 25
31 december 2013 – 42 42
the group has assessed its brands and their associated values and has concluded that given the majority of the legacy brands are currently  
not used it would not be appropriate to reverse any of the previously recognised impairment charges 
the amortisation of software development costs is recognised within administrative expenses in the income statement  
12 property plant and equipment 
£ million  
freehold land 
and buildings
plant 
equipment 
and leasehold 
improvements total
cost  
at 1 january 2013 19 175 194
additions 15 10 25
disposals – 44 44
foreign exchange –––
at 31 december 2013 34 141 175
additions 76 21 97
disposals  – 17 17
foreign exchange –––
at 31 december 2014 110 145 255
accumulated depreciation 
at 1 january 2013 01 122 123
disposals – 44 44
charge for the year – 13 13
at 31 december 2013 01 91 92
disposals – 17 17
charge for the year 01 11 12
at 31 december 2014 02 85 87
carrying amount 
at 31 december 2014 108 60 168
at 31 december 2013 33 50 83
  
 
 115
13 interests in joint ventures 
£ million  2014 2013
aggregated amounts relating to share of joint ventures 
current assets 681 422
total assets 681 422
 
current liabilities 296 47
noncurrent liabilities 286 277
total liabilities 582 324
 
carrying amount 99 98
loans to joint ventures 287 249
total interests in joint ventures 386 347
 
£ million  2014 2013
share of posttax profits from joint ventures 
revenue 234 245
cost of sales 195 196
gross profit 39 49
net operating expenses 07 14
profit on ordinary activities before finance costs 32 35
finance costs 01 01
profit on ordinary activities before tax 31 34
taxation 05 02
share of joint ventures’ posttax results for the year 26 32
the group has four material 2013 four joint ventures 
each of the group’s material joint ventures’ principal activity is residential house building 
the group considers a joint venture to be material when it is either financially or strategically important to the group 
the particulars of the material joint ventures are as follows 
country of incorporation  
name of joint venture equity accounted 
in the consolidated accounts  
taylor wimpey plc interest in the 
issued ordinary share capital
united kingdom strada developments limited
a
 50
united kingdom greenwich millennium village limited
a
 50
united kingdom chobham manor limited liability partnership
a
 50
united kingdom academy central limited liability partnership
a
 62
a interest held by subsidiary undertakings 
the following two tables show summary financial information for these four material joint ventures unless specifically indicated this information 
represents 100 of the joint venture  
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 116 
13 interests in joint ventures continued 
£ million 
strada
2014
greenwich 
millennium 
village 
2014 
chobham
manor
2014
academy
central
2014
total
2014
percentage ownership interest 50 50 50 62 
current assets including cash and cash equivalents  67 764 159 239 1229
current financial liabilities – 475 23 22 520
current other liabilities 17 36 06 – 59
noncurrent financial liabilities – 208 176 126 510
net assets 100 50 45 46 91 140
group share of net assetsliabilities 25 22 23 56 80
revenue 85 75 12 237 409
interest income 01 – – – 01
income tax expense  05 04 – – 09
profitloss for the year 16 12 25 34 37
group share of profitloss for the year 08 06 12 21 23
dividends received from the joint venture during the year 25 – – – 25
during the year no entity charged depreciation amortisation or interest expense no entity had discontinued operations or items of other 
comprehensive income 
 
 
£ million 
strada
2013
greenwich 
millennium 
village 
2013 
chobham
manor
2013
academy
central
2013
total
2013
percentage ownership interest 50 50 50 62
current assets including cash and cash equivalents  94 104 58 370 626
current financial liabilities 10 05 10 35 60
current other liabilities – 14 – – 14
noncurrent financial liabilities – 53 69 278 400
net assets 100 84 32 21 57 152
group share of net assetsliabilities 42 16 10 35 83
revenue 58 49 – 302 409
interest income 01 – – – 01
income tax expense  02 02 – – 04
profitloss for the year 07 06 21 57 49
group share of profitloss for the year 04 03 10 35 32
dividends received from the joint venture during the year 15 – – – 15
during the year no entity charged depreciation amortisation or interest expense no entity had discontinued operations or items of other 
comprehensive income 
  
taylor wimpey plc
annual report and accounts 2014
116 notes to the consolidated financial statements continued 
 116 
13 interests in joint ventures continued 
£ million 
strada
2014
greenwich 
millennium 
village 
2014 
chobham
manor
2014
academy
central
2014
total
2014
percentage ownership interest 50 50 50 62 
current assets including cash and cash equivalents  67 764 159 239 1229
current financial liabilities – 475 23 22 520
current other liabilities 17 36 06 – 59
noncurrent financial liabilities – 208 176 126 510
net assets 100 50 45 46 91 140
group share of net assetsliabilities 25 22 23 56 80
revenue 85 75 12 237 409
interest income 01 – – – 01
income tax expense  05 04 – – 09
profitloss for the year 16 12 25 34 37
group share of profitloss for the year 08 06 12 21 23
dividends received from the joint venture during the year 25 – – – 25
during the year no entity charged depreciation amortisation or interest expense no entity had discontinued operations or items of other 
comprehensive income 
 
 
£ million 
strada
2013
greenwich 
millennium 
village 
2013 
chobham
manor
2013
academy
central
2013
total
2013
percentage ownership interest 50 50 50 62
current assets including cash and cash equivalents  94 104 58 370 626
current financial liabilities 10 05 10 35 60
current other liabilities – 14 – – 14
noncurrent financial liabilities – 53 69 278 400
net assets 100 84 32 21 57 152
group share of net assetsliabilities 42 16 10 35 83
revenue 58 49 – 302 409
interest income 01 – – – 01
income tax expense  02 02 – – 04
profitloss for the year 07 06 21 57 49
group share of profitloss for the year 04 03 10 35 32
dividends received from the joint venture during the year 15 – – – 15
during the year no entity charged depreciation amortisation or interest expense no entity had discontinued operations or items of other 
comprehensive income 
  
 
 117
13 interests in joint ventures continued 
£ million  2014 2013
aggregated amounts relating to share of individually immaterial joint ventures 
current assets 38 63
total assets 38 63
 
current liabilities 03 06
noncurrent liabilities 16 43
total liabilities 19 49
 
carrying amount 19 14
loans to individually immaterial joint ventures 17 16
total interests in individually immaterial joint ventures 36 30
 
£ million  2014 2013
share of posttax profits from individually immaterial joint ventures 
revenue 07 04
cost of sales 01 02
gross profit 06 02
net operating expenses 01 –
profit on ordinary activities before finance costs 05 02
finance costs 01 02
profit on ordinary activities before tax 04 –
taxation 01 –
share of individually immaterial joint ventures posttax results for the year 03 –
14 deferred tax 
the following are the major deferred tax assets and liabilities recognised by the group and movements thereon during the current and prior 
reporting year 
£ million  
share 
based 
payments
capital 
allowances losses 
retirement 
benefit 
obligations
other
temporary
differences total
at 1 january 2013 49 81 2480 562 24 3196
creditcharge to income 03 23 523 95 26 664
creditcharge to equity 37 – – 103 – 66
at 31 december 2013 89 58 1957 364 02 2466
charge to income 03 13 855 61 01 933
chargecredit to equity 10 – – 52 – 42
at 31 december 2014 76 45 1102 355 03 1575
closing deferred tax on uk temporary differences has been calculated at the tax rates that are expected to apply for the period when  
the asset is realised or the liability is settled accordingly the majority of the temporary differences have been calculated at the rate of 20 
2013 20 the rate effective from 1 april 2015 and substantively enacted by the end of the reporting period the effect of the reduction 
in the uk corporation tax rate from 23 to 20 is nil 2013 £283 million reduction in deferred tax asset 
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 118 
14 deferred tax continued 
the net deferred tax balance is analysed into assets and liabilities as follows 
£ million  2014 2013
deferred tax assets 1594 2476
deferred tax liabilities 19 10
 1575 2466
the group has not recognised temporary differences relating to tax losses carried forward and other temporary differences amounting 
to £10 million 2013 £174 million in the uk and £1042 million 2013 £1039 million in spain the uk losses have not been recognised 
as they are predominantly nontrading in nature and sufficient uncertainty exists as to their future utilisation the losses in spain have not 
been recognised due to uncertainty of sufficient taxable profits in the future against which to utilise the losses  
at the balance sheet date the group has unused uk capital losses of £2554 million 2013 £2553 million all of which are agreed 
as available for offset against future capital profits no deferred tax asset has been recognised in respect of the capital losses at 
31 december 2014 because the group does not believe that it is probable that these capital losses will be utilised in the foreseeable future  
15 inventories 
£ million  2014 2013
raw materials and consumables – 13
finished goods and goods for resale 221 213
residential developments 
 land
a
 25824 21801
 development and construction costs 8827 7247
commercial industrial and mixed development properties 29 14
 34901 29288
a details of land creditors are in note 19 
in 2014 we saw the continued positive benefit of the improved environment in all of our regional markets this is underpinned by solid 
consumer confidence and good mortgage availability  
during 2014 we saw a continued trend to a healthier and more balanced market this has meant that whilst we have seen profitability 
increase on previously impaired sites this has not been as significant as in the prior year the stabilising of house prices along with 
a reduction in the number of actively trading sites which are impaired has resulted in a net reversal of impairment writedowns in the 
year of £187 million 2013 £623 million in the uk  
the net reversal in the uk consists of a reversal of previous writedowns of £270 million 2013 £1071 million and additional writedowns 
to the lower of cost and net realisable value of £83 million 2013 £448 million on previously impaired sites  
in the year 14 2013 32 of the group’s uk completions were from sites that had been previously impaired  
at the balance sheet date the group held inventory in the uk that had been written down to net realisable value of £2696 million 
2013 £4599 million with associated impairments of £1581 million 2013 £2068 million  
the uk net realisable value assessment of inventory is highly sensitive to small changes in judgements and the table below provides 
an indication of the impact to the inventory held on the balance sheet of 1 movements in selling prices and build costs  
£ million 
1 selling 
price 
1 selling
 price
1 build
 cost
1 build
cost
31 december 2014 124 142 129 109
31 december 2013 183 69 66 117
there has been some improvement in the spanish housing market during the year however this improvement has been on newer sites 
which have been acquired in better locations sales rates and prices on sites which have been previously impaired remain low in the year 
50 plots 2013 95 were completed in spain that had previously been impaired in spain there was inventory written down to net realisable 
value of £270 million as at 31 december 2014 2013 £302 million 
  
taylor wimpey plc
annual report and accounts 2014
118 notes to the consolidated financial statements continued 
 118 
14 deferred tax continued 
the net deferred tax balance is analysed into assets and liabilities as follows 
£ million  2014 2013
deferred tax assets 1594 2476
deferred tax liabilities 19 10
 1575 2466
the group has not recognised temporary differences relating to tax losses carried forward and other temporary differences amounting 
to £10 million 2013 £174 million in the uk and £1042 million 2013 £1039 million in spain the uk losses have not been recognised 
as they are predominantly nontrading in nature and sufficient uncertainty exists as to their future utilisation the losses in spain have not 
been recognised due to uncertainty of sufficient taxable profits in the future against which to utilise the losses  
at the balance sheet date the group has unused uk capital losses of £2554 million 2013 £2553 million all of which are agreed 
as available for offset against future capital profits no deferred tax asset has been recognised in respect of the capital losses at 
31 december 2014 because the group does not believe that it is probable that these capital losses will be utilised in the foreseeable future  
15 inventories 
£ million  2014 2013
raw materials and consumables – 13
finished goods and goods for resale 221 213
residential developments 
 land
a
 25824 21801
 development and construction costs 8827 7247
commercial industrial and mixed development properties 29 14
 34901 29288
a details of land creditors are in note 19 
in 2014 we saw the continued positive benefit of the improved environment in all of our regional markets this is underpinned by solid 
consumer confidence and good mortgage availability  
during 2014 we saw a continued trend to a healthier and more balanced market this has meant that whilst we have seen profitability 
increase on previously impaired sites this has not been as significant as in the prior year the stabilising of house prices along with 
a reduction in the number of actively trading sites which are impaired has resulted in a net reversal of impairment writedowns in the 
year of £187 million 2013 £623 million in the uk  
the net reversal in the uk consists of a reversal of previous writedowns of £270 million 2013 £1071 million and additional writedowns 
to the lower of cost and net realisable value of £83 million 2013 £448 million on previously impaired sites  
in the year 14 2013 32 of the group’s uk completions were from sites that had been previously impaired  
at the balance sheet date the group held inventory in the uk that had been written down to net realisable value of £2696 million 
2013 £4599 million with associated impairments of £1581 million 2013 £2068 million  
the uk net realisable value assessment of inventory is highly sensitive to small changes in judgements and the table below provides 
an indication of the impact to the inventory held on the balance sheet of 1 movements in selling prices and build costs  
£ million 
1 selling 
price 
1 selling
 price
1 build
 cost
1 build
cost
31 december 2014 124 142 129 109
31 december 2013 183 69 66 117
there has been some improvement in the spanish housing market during the year however this improvement has been on newer sites 
which have been acquired in better locations sales rates and prices on sites which have been previously impaired remain low in the year 
50 plots 2013 95 were completed in spain that had previously been impaired in spain there was inventory written down to net realisable 
value of £270 million as at 31 december 2014 2013 £302 million 
  
 
 119
15 inventories continued 
the table below details the movements recorded on the writedowns on impaired inventory recorded through the income statement in the year 
inventory writedowns 
£ million 2014 2013
1 january 2651 3961
utilised 360 864
net reversal 187 456
foreign exchange 42 10
31 december 2062 2651
16 other financial assets 
trade and other receivables 
current noncurrent 
£ million  2014 2013 2014 2013
trade receivables 451 799 1099 1095
other receivables 575 386 12 13
 1026 1185 1111 1108
the average credit period taken on sales is eight days 2013 14 days an allowance has been made for estimated irrecoverable amounts 
from trade receivables of £25 million 2013 £32 million this allowance has been determined by reference to past default experience 
included within trade receivables are mortgage receivables of £1048 million 2013 £1075 million including shared equity loans shared 
equity loans are provided to certain customers to facilitate their house purchase they are accounted for as a host contract representing a  
loan receivable and a nonclosely related embedded derivative asset as allowed under ias 39 ‘financial instruments’ the loan is measured  
at amortised cost and the embedded derivative is measured at fair value through profit or loss 
the embedded derivative fair value movement is established by reference to a published national house price index the fair value of the 
derivative is £94 million 2013 £55 million and is included in the amount above  
cash and cash equivalents 
£ million  2014 2013
cash and cash equivalents see note 20 2128 1054
cash and cash equivalents comprise cash held by the group and short term bank deposits with an original maturity of three months or less  
the carrying amount of these assets approximates their fair value in both years 
17 bank and other loans  
£ million 2014 2013
bank overdrafts repayable on demand  – –
bank loans – –
other loans  1000 1000
 1000 1000
other loans were borrowed at variable rates of interest from 28 to 58 2013 28 to 58 during the year and comprise a £1000 million 
2013 £1000 million variable rate term loan with an investment fund 
£ million 2014 2013
amount due for settlement after one year 1000 1000
total borrowings 1000 1000
 
£ million  
bank 
overdraft
bank and 
other loans
analysis of borrowings by currency 
31 december 2014 and 31 december 2013 
sterling – 1000
 – 1000
  
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 120 
18 debenture loans 
the £250 million senior notes 10375 due 2015 were redeemed in full on 31 december 2013 with a prepayment penalty of £78 million 
being recorded as an exceptional item note 8 
19 trade and other payables 
current noncurrent 
£ million  2014 2013 2014 2013
trade payables 5057 4126 2610 1406
other payables 4043 3813 1005 531
 9100 7939 3615 1937
other payables include customer deposits for reserving plots of £658 million 2013 £494 million £1478 million 2013 £1412 million 
relating to certain accruals associated with completed sites and £867 million 2013 £56 million repayable grant creditors 
land creditors  
included within trade payables are due as follows 
£ million  2014 2013
due within one year 2284 2093
due in more than one year  2593 1397
 4877 3490
 
land creditors are denominated as follows 
£ million  2014 2013
sterling 4808 3474
euros 69 16
 4877 3490
land creditors of £3040 million 2013 £2648 million are secured against land acquired for development or supported by bond or guarantee  
20 financial instruments and fair value disclosures 
capital management  
the group’s objective is to obtain a strong credit rating for the business and to have an appropriate funding structure shareholders’ equity and 
long term debt are used to finance fixed assets and the medium to long term land bank revolving credit facilities are used to fund net current 
assets including development and construction costs the group has externally imposed interest cover and gearing ratios related to its financing 
facilities the group met these requirements throughout the year 
financial assets and financial liabilities 
categories of financial assets and financial liabilities are as follows 
 carrying value fair value 
financial assets 
£ million 
fair value 
hierarchy
31 december 
2014 
31 december
2013
31 december
2014
31 december
2013
cash and cash equivalents  b 2128 1054 2128 1054
land receivables b 133 293 133 293
trade and other receivables b 449 486 449 486
mortgage receivables a 1048 1075 1048 1075
 3758 2908 3758 2908
a mortgage receivables relate to sales incentives including shared equity loans which are separated into a loan receivable and a nonclosely related embedded derivative asset  
the embedded derivative is measured at fair value through profit and loss the fair value of the derivative is established based on a publicly available national house  
price index being significant other observable inputs level 2 
b the directors consider the carrying amounts of financial assets and financial liabilities recognised in the consolidated financial statements approximate their fair values 
land receivables and trade and other receivables are included in the balance sheet as trade and other receivables for current and 
noncurrent amounts 
current and noncurrent trade and other receivables as disclosed in note 16 include £507 million 2013 £439 million of nonfinancial assets 
taylor wimpey plc
annual report and accounts 2014
120 notes to the consolidated financial statements continued 
 120 
18 debenture loans 
the £250 million senior notes 10375 due 2015 were redeemed in full on 31 december 2013 with a prepayment penalty of £78 million 
being recorded as an exceptional item note 8 
19 trade and other payables 
current noncurrent 
£ million  2014 2013 2014 2013
trade payables 5057 4126 2610 1406
other payables 4043 3813 1005 531
 9100 7939 3615 1937
other payables include customer deposits for reserving plots of £658 million 2013 £494 million £1478 million 2013 £1412 million 
relating to certain accruals associated with completed sites and £867 million 2013 £56 million repayable grant creditors 
land creditors  
included within trade payables are due as follows 
£ million  2014 2013
due within one year 2284 2093
due in more than one year  2593 1397
 4877 3490
 
land creditors are denominated as follows 
£ million  2014 2013
sterling 4808 3474
euros 69 16
 4877 3490
land creditors of £3040 million 2013 £2648 million are secured against land acquired for development or supported by bond or guarantee  
20 financial instruments and fair value disclosures 
capital management  
the group’s objective is to obtain a strong credit rating for the business and to have an appropriate funding structure shareholders’ equity and 
long term debt are used to finance fixed assets and the medium to long term land bank revolving credit facilities are used to fund net current 
assets including development and construction costs the group has externally imposed interest cover and gearing ratios related to its financing 
facilities the group met these requirements throughout the year 
financial assets and financial liabilities 
categories of financial assets and financial liabilities are as follows 
 carrying value fair value 
financial assets 
£ million 
fair value 
hierarchy
31 december 
2014 
31 december
2013
31 december
2014
31 december
2013
cash and cash equivalents  b 2128 1054 2128 1054
land receivables b 133 293 133 293
trade and other receivables b 449 486 449 486
mortgage receivables a 1048 1075 1048 1075
 3758 2908 3758 2908
a mortgage receivables relate to sales incentives including shared equity loans which are separated into a loan receivable and a nonclosely related embedded derivative asset  
the embedded derivative is measured at fair value through profit and loss the fair value of the derivative is established based on a publicly available national house  
price index being significant other observable inputs level 2 
b the directors consider the carrying amounts of financial assets and financial liabilities recognised in the consolidated financial statements approximate their fair values 
land receivables and trade and other receivables are included in the balance sheet as trade and other receivables for current and 
noncurrent amounts 
current and noncurrent trade and other receivables as disclosed in note 16 include £507 million 2013 £439 million of nonfinancial assets 
 
 121
20 financial instruments and fair value disclosures continued 
carrying value fair value 
financial liabilities 
£ million 
fair value 
hierarchy
31 december 
2014 
31 december
2013
31 december
2014
31 december
2013
overdrafts bank and other loans b 1000 1000 1000 1000
land creditors b 4877 3490 4877 3490
trade and other payables b 6709 5535 6709 5535
 12586 10025 12586 10025
land creditors are included in the balance sheet as trade and other payables for current and noncurrent amounts current and noncurrent 
trade and other payables as disclosed in note 19 include £1129 million 2013 £851 million of nonfinancial liabilities  
the group has designated the carrying value of €340 million 2013 €340 million foreign currency forward contracts as a net investment  
hedge the fair value of the forward contract is based on observable forward exchange rates at the end of the period taking into account 
any adjustment required for credit risk level 2 at the year end the carrying value is considered to approximate its fair value as the value 
of the derivative is neglible 
the group has no financial instruments with fair values that are determined by reference to significant unobservable inputs level 3 nor have 
there been any transfers of assets or liabilities between levels of the fair value hierarchy there are no nonrecurring fair value measurements 
the group has the following types of derivatives 
2014 
notional 
amount 
2014
weighted 
average fixed
2013
notional 
amount
2013
weighted 
average fixed
designated as hedging instruments  
currency forward contract to sell € against £ €340m na €340m na
in addition forward contracts have been entered into to hedge transaction risks on intragroup loans to buysell against sterling 
€260 million and c06 million 2013 €220 million and c07 million the fair values of the forward contracts are not materially 
different to their book values as they were entered into on or near 31 december in each year and mature not more than one month 
later hence the value of the derivative is neglible 
market risk 
the group’s activities expose it to the financial risks of changes in both foreign currency exchange rates and interest rates the group  
aims to manage the exposure to these risks by the use of fixed or variable rate borrowings foreign currency borrowings and derivative  
financial instruments 
a interest rate risk management  
the group is exposed to interest rate risk as the group borrows funds at variable interest rates the exposure to variable rate borrowings 
fluctuates during the year due to the seasonal nature of cash flows relating to housing sales and the less certain timing of land payments 
group policy is to manage the volatility risk by a combination of fixed rate borrowings and interest rate swaps such that the sensitivity to 
potential changes in variable rates is within acceptable levels group policy does not allow the use of derivatives to speculate against changes 
to future interest rates and they are only used to manage exposure to volatility this policy has not changed during the year 
in order to measure the risk variable rate borrowings and the expected interest cost for the year are forecast on a monthly basis and compared 
to budget using management’s expectations of a reasonably possible change in interest rates interest expense volatility remained within 
acceptable limits throughout the year the group does not currently have any outstanding fixed rate borrowings or interest rate swaps  
  
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 122 
20 financial instruments and fair value disclosures continued 
interest rate sensitivity 
the effect on both income and equity based on exposure to nonderivative floating rate instruments at the balance sheet date is shown 
in the table below the group does not have any outstanding interest rate derivatives  
the table assumes all other variables remain constant in accordance with ifrs 7 
1 increase in interest rates 
£ million  
sensitivity 
income  
2014 
sensitivity 
equity 
2014
sensitivity 
income 
2013
sensitivity 
equity 
2013
derivatives – – ––
nonderivatives  11 11 ––
 11 11 ––
 
1 decrease in interest rates 
£ million  
sensitivity 
income 
2014 
sensitivity
equity
2014
sensitivity
income
2013
sensitivity
equity
2013
derivatives – – ––
nonderivatives  11 11 ––
 11 11 ––
b foreign currency risk management 
the group’s overseas activities expose it to the financial risks of changes in foreign currency exchange rates spain is the only foreign 
operation of the group 
the group is not materially exposed to transaction risks as all group companies conduct their business in their respective functional 
currencies group policy requires that transaction risks are hedged to the functional currency of the subsidiary using foreign currency 
borrowings or derivatives where appropriate  
the group is also exposed to the translation risk of accounting for both the income and the net investment held in a functional currency  
other than sterling the net investment risk is hedged using foreign currency borrowings and derivatives assets and liabilities denominated  
in nonfunctional currencies are retranslated each month using the latest exchange rates income is also measured monthly using the latest 
exchange rates and compared to a budget held at historical exchange rates other than the natural hedge provided by foreign currency 
borrowings the translation risk of income is not hedged using derivatives the policy is kept under periodic review 
the group’s exposure to and the way in which it manages exchange rate risk has not changed from the previous year 
hedge accounting 
hedging activities are evaluated periodically to ensure that they are in line with group policy forward contracts are currently being used 
to hedge the net investment risk in the spanish operations  
the group has designated the carrying value of €340 million 2013 €340 million foreign currency forward contracts held at the balance  
sheet date as a net investment hedge of part of the group’s investment in euro denominated assets 
the change in the carrying amount of the derivatives which were effective hedging instruments and the change in the carrying value 
of the borrowings offset the exchange movement on the foreign currency net investments and are presented in the translation reserve  
foreign currency sensitivity 
the group is only exposed to the euro due to its spanish operations the following table details how the group’s income and equity would 
increasedecrease on a before tax basis to a 5 change in the currency’s value against sterling and in accordance with ifrs 7 all other 
variables remaining constant  
the 5 change represents a reasonably possible change in the specified euro exchange rates in relation to sterling 
£ million  
income 
sensitivity 
2014 
equity
sensitivity
2014
income
sensitivity
2013
equity
sensitivity
2013
euro weakens against sterling 03 11 03 11
euro strengthens against sterling 03 11 03 11
  
taylor wimpey plc
annual report and accounts 2014
122 notes to the consolidated financial statements continued 
 122 
20 financial instruments and fair value disclosures continued 
interest rate sensitivity 
the effect on both income and equity based on exposure to nonderivative floating rate instruments at the balance sheet date is shown 
in the table below the group does not have any outstanding interest rate derivatives  
the table assumes all other variables remain constant in accordance with ifrs 7 
1 increase in interest rates 
£ million  
sensitivity 
income  
2014 
sensitivity 
equity 
2014
sensitivity 
income 
2013
sensitivity 
equity 
2013
derivatives – – ––
nonderivatives  11 11 ––
 11 11 ––
 
1 decrease in interest rates 
£ million  
sensitivity 
income 
2014 
sensitivity
equity
2014
sensitivity
income
2013
sensitivity
equity
2013
derivatives – – ––
nonderivatives  11 11 ––
 11 11 ––
b foreign currency risk management 
the group’s overseas activities expose it to the financial risks of changes in foreign currency exchange rates spain is the only foreign 
operation of the group 
the group is not materially exposed to transaction risks as all group companies conduct their business in their respective functional 
currencies group policy requires that transaction risks are hedged to the functional currency of the subsidiary using foreign currency 
borrowings or derivatives where appropriate  
the group is also exposed to the translation risk of accounting for both the income and the net investment held in a functional currency  
other than sterling the net investment risk is hedged using foreign currency borrowings and derivatives assets and liabilities denominated  
in nonfunctional currencies are retranslated each month using the latest exchange rates income is also measured monthly using the latest 
exchange rates and compared to a budget held at historical exchange rates other than the natural hedge provided by foreign currency 
borrowings the translation risk of income is not hedged using derivatives the policy is kept under periodic review 
the group’s exposure to and the way in which it manages exchange rate risk has not changed from the previous year 
hedge accounting 
hedging activities are evaluated periodically to ensure that they are in line with group policy forward contracts are currently being used 
to hedge the net investment risk in the spanish operations  
the group has designated the carrying value of €340 million 2013 €340 million foreign currency forward contracts held at the balance  
sheet date as a net investment hedge of part of the group’s investment in euro denominated assets 
the change in the carrying amount of the derivatives which were effective hedging instruments and the change in the carrying value 
of the borrowings offset the exchange movement on the foreign currency net investments and are presented in the translation reserve  
foreign currency sensitivity 
the group is only exposed to the euro due to its spanish operations the following table details how the group’s income and equity would 
increasedecrease on a before tax basis to a 5 change in the currency’s value against sterling and in accordance with ifrs 7 all other 
variables remaining constant  
the 5 change represents a reasonably possible change in the specified euro exchange rates in relation to sterling 
£ million  
income 
sensitivity 
2014 
equity
sensitivity
2014
income
sensitivity
2013
equity
sensitivity
2013
euro weakens against sterling 03 11 03 11
euro strengthens against sterling 03 11 03 11
  
 
 123
20 financial instruments and fair value disclosures continued 
credit risk 
credit risk is the risk of financial loss where counterparties are not able to meet their obligations  
group policy is that surplus cash when not used to repay borrowings is placed on deposit with the group’s main relationship banks 
and with other banks or money market funds based on a minimum credit rating and maximum exposure  
land receivables arise from sales of surplus land on deferred terms a policy is in place such that if the credit risk is not acceptable then the 
deferred payment must have adequate security either by the use of an appropriate guarantee or a charge over the land the fair value of any 
land held as security is considered by management to be sufficient in relation to the carrying amount of the receivable to which it relates 
trade and other receivables comprise mainly amounts receivable from various housing associations and other housebuilders management 
considers that the credit quality of the various receivables is good in respect of the amounts outstanding and therefore credit risk is considered 
to be low there is no significant concentration of risk  
mortgage receivables including shared equity loans are in connection with the various promotion schemes to support sales on a selective 
basis the mortgages are mostly secured by a second charge over the property and are held at amortised cost the embedded derivative 
related to shared equity is held at fair value 
the carrying amount of financial assets as detailed above represents the group’s maximum exposure to credit risk at the reporting date 
assuming that any security held has no value details of guarantees and bonds are given in note 29 
liquidity risk 
liquidity risk is the risk that the group does not have sufficient financial resources available to meet its obligations as they fall due the group 
manages liquidity risk by continuously monitoring forecast and actual cash flows matching the expected cash flow timings of financial assets 
and liabilities with the use of cash and cash equivalents borrowings overdrafts and committed revolving credit facilities with a minimum of 12 
months to maturity future borrowing requirements are forecast on a monthly basis and funding headroom is maintained above forecast peak 
requirements to meet unforeseen events the group has a range of maturities with an average life of 37 years 2013 47 years on 12 february 
2015 the term of the revolving credit facility was extended to february 2020 and as such the average life of maturity extended to 50 years from 
31 december 2014 
in addition to fixed term borrowings the group has access to committed revolving credit facilities and cash balances at the balance sheet  
date the total unused committed amount was £5500 million 2013 £5500 million and cash and cash equivalents were £2128 million  
2013 £1054 million 
the £1000 million term loan matures in november 2020 with repayments commencing in november 2017 
the maturity profile of the anticipated future cash flows including interest using the latest applicable relevant rate based on the earliest date 
on which the group can be required to pay financial liabilities on an undiscounted basis is as follows  
financial liabilities 
£ million  
overdrafts 
bank and 
other loans
land  
creditors 
trade and
 other
 payables
currency 
forward 
contracts total
on demand –– –––
within one year 49 2375 6003 465 8892
more than one year and less than two years 49 1629 377 – 2055
more than two years and less than five years 857 900 303 – 2060
in more than five years 261 237 26 – 524
31 december 2014 1216 5141 6709 465 13531
 excludes land creditors 
financial liabilities  
£ million  
overdrafts 
bank and 
other loans
land  
creditors 
trade and 
other 
 payables
currency 
forward 
contracts total
on demand – – – – –
within one year 51 2147 5120 464 7782
more than one year and less than two years 51 783 308 – 1142
more than two years and less than five years 637 595 96 – 1328
in more than five years 535 148 11 – 694
31 december 2013 1274 3673 5535 464 10946
 excludes land creditors 
lease commitments are disclosed in note 30  
wwwtaylorwimpeycouk
123
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 notes to the consolidated financial statements continued 
 124 
21 retirement benefit obligations 
retirement benefit obligations comprise a defined benefit pension liability of £1824 million 2013 £1822 million and a postretirement  
healthcare liability of £14 million 2013 £16 million 
the group operates the taylor wimpey pension scheme twps a defined benefit pension scheme which is closed to new members  
and future accrual the group also operates defined contribution pension arrangements in the uk which are available to new and existing  
uk employees 
defined contribution pension plan 
a defined contribution plan is a pension plan under which the group pays contributions to an independently administered fund – such 
contributions are based upon a fixed percentage of employees’ pay the group has no legal or constructive obligations to pay further 
contributions to the fund once the contributions have been paid members’ benefits are determined by the amount of contributions paid by  
the group and the member together with investment returns earned on the contributions arising from the performance of each individual’s 
chosen investments and the type of pension the member chooses to buy at retirement as a result actuarial risk that benefits will be lower  
than expected and investment risk that assets invested in will not perform in line with expectations fall on the employee  
the contributions are recognised as an employee benefit expense when they are due prepaid contributions are recognised as an asset 
to the extent that a cash refund or a reduction in the future payments is available 
the group’s defined contribution plan the taylor wimpey personal choice plan twpcp is offered to all new and existing monthly paid 
employees the people’s pension is used for auto enrolment purposes for weekly and monthly employees not participating in the twpcp the 
people’s pension is provided by bce one of the uks largest providers of financial benefits to construction industry employers and individuals 
the group made contributions to its defined contribution arrangements of £90 million in 2014 2013 £77 million which is included 
in the income statement charge the group expects to make contributions of around £93 million in 2015 
defined benefit pension schemes 
the group’s defined benefit pension scheme in the uk is the twps which replaced the taylor woodrow group pension and life assurance 
fund twgplaf and the george wimpey staff pension scheme gwsps in 2013 the twps is a funded defined benefit pension scheme 
which provides benefits to beneficiaries in the form of a guaranteed level of pension payable for life the level of benefits provided depends 
on members’ length of service and their salary in the final years leading up to retirement or date of ceasing active accrual if earlier pensions 
payments are generally increased in line with inflation  
the group operates the twps under the uk regulatory framework benefits are paid to members from a trusteeadministered fund and 
the trustees are responsible for ensuring that the scheme is sufficiently funded to meet current and future benefit payments scheme assets 
are held in trust  
the twps trustees’ other duties include managing the investment of scheme assets administration of scheme benefits and exercising 
of discretionary powers the group works closely with the trustees to manage the twps the trustees of the twps are required to 
act in the best interests of the twps’ beneficiaries the appointment of the trustees is determined by the twps trust documentation  
the trustees must agree a funding plan with the group such that any funding shortfall is expected to be met by additional contributions and 
investment outperformance in order to assess the level of contributions required triennial valuations are carried out using prudent assumptions 
the first funding valuation of the twps was performed during 2014 with a reference date of 31 december 2013 subsequently the group 
agreed to make contributions of £180 million in 2015 this includes £20 million in respect of administrative costs of the scheme 
in 2013 the group introduced a £1000 million pension funding partnership utilising show homes as well as four offices which are owned  
in a sale and leaseback structure this will provide an additional £51 million of annual funding for the twps the assets held within this scheme 
do not affect the ias 19 figures as they remain assets of the group and are not assets of the twps as at 31 december 2014 there was 
£938 million of property and £172 million of cash held within the structure 2013 £929 million of property and £181 million of cash 
on 8 december 2014 the trustee completed a medically underwritten buyin covering around 10 of the liability exposure for £2062 million 
this medically underwritten buyin significantly derisks the pension scheme and hence further volatility 
furthermore in conjunction with the trustee the group completed a flexible retirement offer for deferred members approximately £250 million 
of future liability has been transferred from the scheme 
the group continues to work closely with the trustee in managing the pension exposure 
  
taylor wimpey plc
annual report and accounts 2014
124 notes to the consolidated financial statements continued 
 124 
21 retirement benefit obligations 
retirement benefit obligations comprise a defined benefit pension liability of £1824 million 2013 £1822 million and a postretirement  
healthcare liability of £14 million 2013 £16 million 
the group operates the taylor wimpey pension scheme twps a defined benefit pension scheme which is closed to new members  
and future accrual the group also operates defined contribution pension arrangements in the uk which are available to new and existing  
uk employees 
defined contribution pension plan 
a defined contribution plan is a pension plan under which the group pays contributions to an independently administered fund – such 
contributions are based upon a fixed percentage of employees’ pay the group has no legal or constructive obligations to pay further 
contributions to the fund once the contributions have been paid members’ benefits are determined by the amount of contributions paid by  
the group and the member together with investment returns earned on the contributions arising from the performance of each individual’s 
chosen investments and the type of pension the member chooses to buy at retirement as a result actuarial risk that benefits will be lower  
than expected and investment risk that assets invested in will not perform in line with expectations fall on the employee  
the contributions are recognised as an employee benefit expense when they are due prepaid contributions are recognised as an asset 
to the extent that a cash refund or a reduction in the future payments is available 
the group’s defined contribution plan the taylor wimpey personal choice plan twpcp is offered to all new and existing monthly paid 
employees the people’s pension is used for auto enrolment purposes for weekly and monthly employees not participating in the twpcp the 
people’s pension is provided by bce one of the uks largest providers of financial benefits to construction industry employers and individuals 
the group made contributions to its defined contribution arrangements of £90 million in 2014 2013 £77 million which is included 
in the income statement charge the group expects to make contributions of around £93 million in 2015 
defined benefit pension schemes 
the group’s defined benefit pension scheme in the uk is the twps which replaced the taylor woodrow group pension and life assurance 
fund twgplaf and the george wimpey staff pension scheme gwsps in 2013 the twps is a funded defined benefit pension scheme 
which provides benefits to beneficiaries in the form of a guaranteed level of pension payable for life the level of benefits provided depends 
on members’ length of service and their salary in the final years leading up to retirement or date of ceasing active accrual if earlier pensions 
payments are generally increased in line with inflation  
the group operates the twps under the uk regulatory framework benefits are paid to members from a trusteeadministered fund and 
the trustees are responsible for ensuring that the scheme is sufficiently funded to meet current and future benefit payments scheme assets 
are held in trust  
the twps trustees’ other duties include managing the investment of scheme assets administration of scheme benefits and exercising 
of discretionary powers the group works closely with the trustees to manage the twps the trustees of the twps are required to 
act in the best interests of the twps’ beneficiaries the appointment of the trustees is determined by the twps trust documentation  
the trustees must agree a funding plan with the group such that any funding shortfall is expected to be met by additional contributions and 
investment outperformance in order to assess the level of contributions required triennial valuations are carried out using prudent assumptions 
the first funding valuation of the twps was performed during 2014 with a reference date of 31 december 2013 subsequently the group 
agreed to make contributions of £180 million in 2015 this includes £20 million in respect of administrative costs of the scheme 
in 2013 the group introduced a £1000 million pension funding partnership utilising show homes as well as four offices which are owned  
in a sale and leaseback structure this will provide an additional £51 million of annual funding for the twps the assets held within this scheme 
do not affect the ias 19 figures as they remain assets of the group and are not assets of the twps as at 31 december 2014 there was 
£938 million of property and £172 million of cash held within the structure 2013 £929 million of property and £181 million of cash 
on 8 december 2014 the trustee completed a medically underwritten buyin covering around 10 of the liability exposure for £2062 million 
this medically underwritten buyin significantly derisks the pension scheme and hence further volatility 
furthermore in conjunction with the trustee the group completed a flexible retirement offer for deferred members approximately £250 million 
of future liability has been transferred from the scheme 
the group continues to work closely with the trustee in managing the pension exposure 
  
 
 125
21 retirement benefit obligations continued 
the table below sets out the details of the funding valuations for the twps carried out in september 2014 with reference to the position 
at 31 december 2013  
assumptions  twps
rpi inflation 340
discount rate – prepostretirement 605405
general pay inflation na
real pension increases 000
 
valuation results twps
market value of assets £1921m
past service liabilities £2112m
scheme funding levels 91
deficit repair contributions per annum £160m
period of payment until november 2018
the defined benefit obligation is measured using the projected unit actuarial cost method 
the duration or average term to payment for the benefits due weighted by liability is approximately 15 years for the twps 
accounting assumptions 
the assumptions used in calculating the accounting costs and obligations of the twps as detailed below are set by the directors after 
consultation with independent professionally qualified actuaries the basis for these assumptions is prescribed by ias 19 and they do not 
reflect the assumptions that may be used in future funding valuations of the twps  
the discount rate used to determine the present value of the obligations is set by reference to market yields on highquality corporate bonds 
with regard for the duration of the twps the assumption for rpi inflation is set by reference to the bank of england’s implied inflation spot 
curve with regard for the duration of the twps with appropriate adjustments to reflect distortions due to supply and demand for inflationlinked 
securities cpi inflation is set by reference to rpi inflation as no cpilinked bonds exist to render implied cpi inflation directly observable 
the life expectancies have been derived using mortality assumptions that were based on the results of a recent investigation into the mortality 
experience of the scheme the base tables used are the s2nxa tables with cmi2013 improvements and 125 trend rate  
 twps 
accounting valuation assumptions 2014 2013
as at 31 december 
discount rate for scheme liabilities 350 460
general pay inflation na na
deferred pension increases 170 230
pension increases 205355 215370
  
wwwtaylorwimpeycouk
125
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 notes to the consolidated financial statements continued 
 126 
21 retirement benefit obligations continued  
the current life expectancies in years underlying the value of the accrued liabilities for the twps are 
 2014 2013 
life expectancy  male female male female
member currently aged 65 88 90 87 90
member currently aged 45 89 92 89 92
the pension liability is the difference between the scheme assets and liabilities the liability is sensitive to the assumptions used the table 
below shows the impact to the liability of movement in key assumptions measured using the same method as the defined benefit scheme 
assumption change in assumption
impact on defined benefit
 obligation 
impact on defined benefit 
obligation 
discount rate decrease by 01 pa increase by £35m 16
rate of inflation increase by 01 pa increase by £22m 10
life expectancy members live 1 year longer increase by £66m 30
 assumed to affect deferred revaluation and pensioner increases in payment 
the sensitivity of increasing life expectancy has been reduced by the medically underwritten buyin see the section on additional areas 
of risk management at the end of this note  
the fair value of the assets of the twps is set out below 
 £ million
percentage of 
total scheme
assets held
at 31 december 2014  
assets  
equities  7936 396
corporate bonds  4846 241
fixedindex government bonds  2619 131
indexlinked government bonds  5471 273
hedge funds  1074 54
property  232 12
other assets
a 
 5444 272
cash  880 44
insurance policies in respect of certain members  2424 121
  20038 1000
  
at 31 december 2013  
assets  
equities  8447 456
corporate bonds  5846 315
fixedindex government bonds  2424 131
indexlinked government bonds  5129 277
property  145 08
other assets
a
  5337 288
cash  1101 59
insurance policies in respect of certain members  775 42
  18530 1000
a consists of repurchase agreements and other financial derivatives swaps futures and forwards on equities and bonds 
there are no investments in respect of the group’s own securities 
  
taylor wimpey plc
annual report and accounts 2014
126 notes to the consolidated financial statements continued 
 126 
21 retirement benefit obligations continued  
the current life expectancies in years underlying the value of the accrued liabilities for the twps are 
 2014 2013 
life expectancy  male female male female
member currently aged 65 88 90 87 90
member currently aged 45 89 92 89 92
the pension liability is the difference between the scheme assets and liabilities the liability is sensitive to the assumptions used the table 
below shows the impact to the liability of movement in key assumptions measured using the same method as the defined benefit scheme 
assumption change in assumption
impact on defined benefit
 obligation 
impact on defined benefit 
obligation 
discount rate decrease by 01 pa increase by £35m 16
rate of inflation increase by 01 pa increase by £22m 10
life expectancy members live 1 year longer increase by £66m 30
 assumed to affect deferred revaluation and pensioner increases in payment 
the sensitivity of increasing life expectancy has been reduced by the medically underwritten buyin see the section on additional areas 
of risk management at the end of this note  
the fair value of the assets of the twps is set out below 
 £ million
percentage of 
total scheme
assets held
at 31 december 2014  
assets  
equities  7936 396
corporate bonds  4846 241
fixedindex government bonds  2619 131
indexlinked government bonds  5471 273
hedge funds  1074 54
property  232 12
other assets
a 
 5444 272
cash  880 44
insurance policies in respect of certain members  2424 121
  20038 1000
  
at 31 december 2013  
assets  
equities  8447 456
corporate bonds  5846 315
fixedindex government bonds  2424 131
indexlinked government bonds  5129 277
property  145 08
other assets
a
  5337 288
cash  1101 59
insurance policies in respect of certain members  775 42
  18530 1000
a consists of repurchase agreements and other financial derivatives swaps futures and forwards on equities and bonds 
there are no investments in respect of the group’s own securities 
  
 
 127
21 retirement benefit obligations continued  
the table below details the movements in the pension liability and assets recorded through the income statement and other  
comprehensive income 
£ million  
present value  
of obligation 
fair value 
of scheme assets
assetliability 
recognised on 
balance sheet
at 1 january 2014 20352 18530 1822
current service cost – – –
administration expenses – 31 31
past service costsettlements – – –
interest expenseincome 911 836 75
total amount recognised in income statement 911 805 106
return on scheme assets not included in income statement – 1444 1444
change in demographic assumptions 757 – 757
change in financial assumptions 2512 – 2512
experience gains  52 – 52
total remeasurements in other comprehensive income 1703 1444 259
  
employer contributions – 363 363
employee contributions – – –
benefit payments 1104 1104 –
at 31 december 2014 21862 20038 1824
 
£ million  
present value  
of obligation 
fair value 
of scheme assets
assetliability 
recognised on 
balance sheet
at 1 january 2013 20130 17705 2425
current service cost – – –
administration expenses – 32 32
past service costsettlements 216 175 41
interest expenseincome 846 749 97
total amount recognised in income statement 630 542 88
return on scheme assets not included in income statement – 709 709
change in demographic assumptions – – –
change in financial assumptions 499 – 499
experience gainslosses – – –
total remeasurements in other comprehensive income 499 709 210
  
employer contributions – 481 481
employee contributions – ––
benefit payments 907 907 –
at 31 december 2013 20352 18530 1822
risks and risk management 
the twps in common with the majority of such defined benefit pension schemes in the uk has a number of areas of risk these areas 
of risk and the ways in which the group has sought to manage them are set out in the table on page 128 
the risks are considered from both a funding perspective which drives the cash commitments of the group and from an accounting 
perspective ie the extent to which such risks affect the amounts recorded in the group’s financial statements 
although investment decisions in the uk are the responsibility of the trustees the group takes an active interest to ensure that pension 
scheme risks are managed efficiently the group has regular meetings with the trustees to discuss investment performance regulatory 
changes and proposals to manage the deficit actively 
  
wwwtaylorwimpeycouk
127
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 notes to the consolidated financial statements continued 
 128 
21 retirement benefit obligations continued  
the key risks of the defined benefit pension scheme are detailed below along with the group’s approach to them 
risk description 
asset volatility the funding liabilities are calculated using a discount rate set with reference to government bond yields 
with allowance for additional return to be generated from the investment portfolio the defined benefit 
obligation is calculated using a discount rate set with reference to corporate bond yields 
the twps holds a large proportion of its assets in equities and other returnseeking assets the returns 
on such assets tend to be volatile and are not correlated to government bonds or corporate bonds this 
means that the funding level is likely to be volatile in the shortterm potentially resulting in shortterm cash 
requirements and an increase in the net defined benefit liability recorded on the balance sheet 
however the group believes that equities offer the best returns over the long term with an acceptable level of risk 
the twps’ assets are welldiversified by investing in a range of asset classes including property government 
bonds and corporate bonds there are a number of hedging strategies in place these are mentioned below 
a summary of the target asset allocations of the twps excluding hedging and insurance policies is shown below 
 twps
liability matching assets 370
equity 284
alternative returnseeking assets  346
these target allocations were revised in december 2014 
changes in  
bond yields 
falling bond yields tend to increase the funding and accounting liabilities however the investment in corporate 
and government bonds offers a degree of matching ie the movement in assets arising from changes in bond 
yields partially matches the movement in the funding or accounting liabilities in this way the exposure to 
movements in bond yields is reduced 
investing in 
foreign currency 
in order to maintain appropriate diversification of investments within the twps’ assets and to take advantage of 
overseas investment returns a proportion of the underlying investment portfolio is invested overseas to balance  
the risk of investing in foreign currencies while having an obligation to settle benefits in sterling a currency hedging 
programme using forward foreign exchange contracts has been put in place to reduce the currency exposure 
of these overseas investments to the targeted level 
assetliability 
mismatch 
in order to maintain and increase the twps’ economic exposure to interest rates and inflation rates a liability 
hedging programme has been put in place repurchase agreements are being used to achieve the twps’ agreed 
target level of liability hedging in an unfunded way and hence to reduce the investment risk of the twps’ assets 
relative to the liabilities  
illiquidity insurance policies and real estate make up £2656 million 13 of the asset portfolio of twps excluding these 
amounts approximately 73 of assets are managed either in segregated accounts or dailyweekly dealt pooled 
funds and can therefore be realised within a few business days under normal market conditions of the remaining 
investments a further 20 are in pooled funds with monthly redemption dates the remainder could be redeemed 
within approximately three months of notification in normal market conditions 
life expectancy the majority of the twps’ obligations are to provide a pension for the life of the member so increases in life 
expectancy will result in an increase in the twps’ liabilities the inflationlinked nature of the benefit payments 
from the twps result increases the sensitivity of the liabilities to changes in life expectancy  
additional areas of risk management 
in general the creation of the twps from the two legacy schemes will simplify scheme management reduce administration costs 
by approximately £08 million per annum and improve the management of future deficit repair contributions 
during the last quarter of 2014 the group reached agreement with partnership life assurance company limited to insure the benefits 
of certain members through a medically underwritten buyin these members represent the 10 of members with the greatest anticipated 
liability of the scheme by insuring these members the group has removed more than 10 of risk from the scheme by significantly reducing 
the longevity of a large proportion of the liabilities the group remains ultimately liable for the payments and as such the obligation is unchanged 
however the medically underwritten insurance policy has been recognised as a scheme insured asset the price paid for the policy was 
£94 million below the technical provision which it covers 
during 2014 scheme deferred members were offered flexible retirement options under the scheme rules which allowed participants to realise 
part of their pension at an earlier date than previously anticipated by discharging some liabilities at an earlier date the actuarial risks attached  
to the scheme reduce  
 
 
taylor wimpey plc
annual report and accounts 2014
128 notes to the consolidated financial statements continued 
 128 
21 retirement benefit obligations continued  
the key risks of the defined benefit pension scheme are detailed below along with the group’s approach to them 
risk description 
asset volatility the funding liabilities are calculated using a discount rate set with reference to government bond yields 
with allowance for additional return to be generated from the investment portfolio the defined benefit 
obligation is calculated using a discount rate set with reference to corporate bond yields 
the twps holds a large proportion of its assets in equities and other returnseeking assets the returns 
on such assets tend to be volatile and are not correlated to government bonds or corporate bonds this 
means that the funding level is likely to be volatile in the shortterm potentially resulting in shortterm cash 
requirements and an increase in the net defined benefit liability recorded on the balance sheet 
however the group believes that equities offer the best returns over the long term with an acceptable level of risk 
the twps’ assets are welldiversified by investing in a range of asset classes including property government 
bonds and corporate bonds there are a number of hedging strategies in place these are mentioned below 
a summary of the target asset allocations of the twps excluding hedging and insurance policies is shown below 
 twps
liability matching assets 370
equity 284
alternative returnseeking assets  346
these target allocations were revised in december 2014 
changes in  
bond yields 
falling bond yields tend to increase the funding and accounting liabilities however the investment in corporate 
and government bonds offers a degree of matching ie the movement in assets arising from changes in bond 
yields partially matches the movement in the funding or accounting liabilities in this way the exposure to 
movements in bond yields is reduced 
investing in 
foreign currency 
in order to maintain appropriate diversification of investments within the twps’ assets and to take advantage of 
overseas investment returns a proportion of the underlying investment portfolio is invested overseas to balance  
the risk of investing in foreign currencies while having an obligation to settle benefits in sterling a currency hedging 
programme using forward foreign exchange contracts has been put in place to reduce the currency exposure 
of these overseas investments to the targeted level 
assetliability 
mismatch 
in order to maintain and increase the twps’ economic exposure to interest rates and inflation rates a liability 
hedging programme has been put in place repurchase agreements are being used to achieve the twps’ agreed 
target level of liability hedging in an unfunded way and hence to reduce the investment risk of the twps’ assets 
relative to the liabilities  
illiquidity insurance policies and real estate make up £2656 million 13 of the asset portfolio of twps excluding these 
amounts approximately 73 of assets are managed either in segregated accounts or dailyweekly dealt pooled 
funds and can therefore be realised within a few business days under normal market conditions of the remaining 
investments a further 20 are in pooled funds with monthly redemption dates the remainder could be redeemed 
within approximately three months of notification in normal market conditions 
life expectancy the majority of the twps’ obligations are to provide a pension for the life of the member so increases in life 
expectancy will result in an increase in the twps’ liabilities the inflationlinked nature of the benefit payments 
from the twps result increases the sensitivity of the liabilities to changes in life expectancy  
additional areas of risk management 
in general the creation of the twps from the two legacy schemes will simplify scheme management reduce administration costs 
by approximately £08 million per annum and improve the management of future deficit repair contributions 
during the last quarter of 2014 the group reached agreement with partnership life assurance company limited to insure the benefits 
of certain members through a medically underwritten buyin these members represent the 10 of members with the greatest anticipated 
liability of the scheme by insuring these members the group has removed more than 10 of risk from the scheme by significantly reducing 
the longevity of a large proportion of the liabilities the group remains ultimately liable for the payments and as such the obligation is unchanged 
however the medically underwritten insurance policy has been recognised as a scheme insured asset the price paid for the policy was 
£94 million below the technical provision which it covers 
during 2014 scheme deferred members were offered flexible retirement options under the scheme rules which allowed participants to realise 
part of their pension at an earlier date than previously anticipated by discharging some liabilities at an earlier date the actuarial risks attached  
to the scheme reduce  
 
 
 
 129
21 retirement benefit obligations continued  
during the last quarter of 2013 in conjunction with the transfer of assets and obligations into the newly formed twps the group conducted 
a trivialcommutation exercise offering lump sums to deferred and pensioner members with total benefits small enough for this to be permitted 
by pensions legislation this resulted in an income statement settlement gain in 2013 of £41 million 
22 provisions 
£ million  
housing 
maintenance restructuring 
north america 
disposal other total
at 1 january 2013 05 09 584 353 951
additional provision in the year 02 30 – 01 33
utilisation of provision 01 02 153 104 260
released  – 02 313 66 381
at 31 december 2013 06 35 118 184 343
additional provision in the year 03 01 – 124 128
utilisation of provision 01 25 – 28 54
released  – 01 – 02 03
at 31 december 2014 08 10 118 278 414
 
£ million  2014 2013
current  404 283
noncurrent 10 60
31 december  414 343
other provisions consist of a remedial work provision provisions for legal claims onerous leases and other contractrelated costs 
the remedial work provision covers various obligations including aftercare at springfield environmental limited and our oxley woods 
development also included in other provisions are amounts for legal claims and contractrelated costs associated with various matters 
arising across the group the majority of which are anticipated to be settled within a three year period onerous leases and empty property 
costs included in this provision are expected to be utilised within approximately five years  
23 share capital 
£ million  2014 2013
authorised 
22200819176 2013 22200819176 ordinary shares of 1p each  2220 2220
1158299201 2013 1158299201 deferred ordinary shares of 24p each  2780 2780
 5000 5000
 number of shares £ million
issued and fully paid 
31 december 2013 3237020303 2881
share warrants exercised in the year  16441228 02
31 december 2014 3253461531 2883
during the year options were exercised over 24463017 ordinary shares 2013 23392655 all of which were met from our holding of shares 
in our esots at varying prices from nil pence to 8472 pence per share under the group’s executive share option plans employees held 
options at 31 december 2014 to purchase up to 455865 shares subject to achievement of performance tests 2013 573981 at a price 
of 3934 pence per share nominally exercisable up to 7 august 2022 under the group’s performance share plan employees held conditional 
awards at 31 december 2014 in respect of up to 16706261 shares subject to achievement of performance tests 2013 24609301 at 
nil pence per share nominally exercisable up to 3 september 2017 
under the group’s savingsrelated share option schemes employees held options at 31 december 2014 to purchase 27313874 shares 
2013 34004667 at prices between 2288 pence and 9000 pence per share exercisable up to 31 may 2020 under the group’s share 
purchase plan employees held conditional awards at 31 december 2014 in respect of 6356595 shares 2013 6979841 at nil pence  
per share 
under a financing agreement signed in april 2009 the company agreed to issue 579 million warrants giving the holders the right to subscribe 
to an equivalent number of ordinary shares in taylor wimpey plc the warrants were priced at 174473p per share as at 31 december 2013 
40321481 warrants had been exercised a further 16441228 were exercised in the year whilst 1152191 lapsed unexercised these 
warrants have now expired   
wwwtaylorwimpeycouk
129
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 notes to the consolidated financial statements continued 
 130 
24 share premium account 
£ million  2014 2013
at 1 january  7602 7588
share warrants exercised  27 14
at 31 december  7629 7602
25 reserves 
£ million  
retained 
earnings
capital 
redemption 
reserve 
translation 
reserve other
total other 
reserves
balance at 1 january 2013 9126 315 55 76 446
sharebased payment credit  64 – – – –
cash cost of satisfying share options 73 – – – –
actuarial gain on defined benefit pension schemes  210 – – – –
deferred tax charge on defined benefit gain  66 – – – –
exchange differences on translation of foreign operations – – 12 – 12
movement in fair value of hedging derivatives and loans – – 12 – 12
transfer to retained earnings  08 – – 08 08
dividends approved and paid 208 – – – –
profit for the year 2714 – – – –
balance at 31 december 2013 11775 315 55 68 438
sharebased payment credit  62 – – – –
cash cost of satisfying share options  147 – – – –
actuarial loss on defined benefit pension schemes  259 – – – –
deferred tax credit on defined benefit gain 52 – – – –
exchange differences on translation of foreign operations – – 18 – 18
movement in fair value of hedging derivatives and loans – – 18 – 18
transfer to retained earnings 19 – – 19 19
dividends approved and paid 727 – – – –
profit for the year  3744 – – – –
balance at 31 december 2014 14519 315 55 49 419
other reserves 
capital redemption reserve 
the capital redemption reserve arose on the historical redemption of parent company shares and is not distributable 
translation reserve 
the translation reserve consists of exchange differences arising on the translation of overseas operations it also includes changes in 
fair values of hedging derivatives where such instruments are designated and effective as hedges of investment in overseas operations  
other reserve 
the group issued 579 million of warrants with a fair value of £55 million in 2009 as part of its debt refinancing agreement the full cost 
of the warrants was recognised in the other reserve on their issuance 
  
taylor wimpey plc
annual report and accounts 2014
130 notes to the consolidated financial statements continued 
 130 
24 share premium account 
£ million  2014 2013
at 1 january  7602 7588
share warrants exercised  27 14
at 31 december  7629 7602
25 reserves 
£ million  
retained 
earnings
capital 
redemption 
reserve 
translation 
reserve other
total other 
reserves
balance at 1 january 2013 9126 315 55 76 446
sharebased payment credit  64 – – – –
cash cost of satisfying share options 73 – – – –
actuarial gain on defined benefit pension schemes  210 – – – –
deferred tax charge on defined benefit gain  66 – – – –
exchange differences on translation of foreign operations – – 12 – 12
movement in fair value of hedging derivatives and loans – – 12 – 12
transfer to retained earnings  08 – – 08 08
dividends approved and paid 208 – – – –
profit for the year 2714 – – – –
balance at 31 december 2013 11775 315 55 68 438
sharebased payment credit  62 – – – –
cash cost of satisfying share options  147 – – – –
actuarial loss on defined benefit pension schemes  259 – – – –
deferred tax credit on defined benefit gain 52 – – – –
exchange differences on translation of foreign operations – – 18 – 18
movement in fair value of hedging derivatives and loans – – 18 – 18
transfer to retained earnings 19 – – 19 19
dividends approved and paid 727 – – – –
profit for the year  3744 – – – –
balance at 31 december 2014 14519 315 55 49 419
other reserves 
capital redemption reserve 
the capital redemption reserve arose on the historical redemption of parent company shares and is not distributable 
translation reserve 
the translation reserve consists of exchange differences arising on the translation of overseas operations it also includes changes in 
fair values of hedging derivatives where such instruments are designated and effective as hedges of investment in overseas operations  
other reserve 
the group issued 579 million of warrants with a fair value of £55 million in 2009 as part of its debt refinancing agreement the full cost 
of the warrants was recognised in the other reserve on their issuance 
  
 
 131
26 own shares 
£ million   
balance at 1 january 2013 159
shares acquired  151
disposed of on exercise of options 121
balance at 31 december 2013 189
shares acquired  100
disposed of on exercise of options 181
balance at 31 december 2014 108
the own shares reserve represents the cost of shares in taylor wimpey plc purchased in the market those held as treasury shares and those 
held by the taylor wimpey employee share ownership trusts to satisfy options and conditional share awards under the group’s share plans  
2014
number
2013
number
ordinary shares held in trust for bonus option and performance award plans 143m 281m
 143m 281m
employee share ownership trusts esots are used to hold the company’s shares which have been acquired on the market these shares are 
used to meet the valid exercise of options andor vesting of conditional awards andor award of shares under the executive incentive scheme 
bonus deferral plan performance share plan executive share option scheme savingsrelated share option scheme and the matching 
award of shares under the share purchase plan  
during the year taylor wimpey plc purchased £100 million of its own shares which are held in the esots 2013 £151 million 
the esots’ entire holding of shares at 31 december 2014 aggregating 143 million shares 2013 281 million was covered by outstanding 
options and conditional awards over shares at that date 
27 discontinued operations  
in 2011 the group sold the north american division as part of the disposal the group provided certain indemnities to the buyers 
no provision was released during the year as the outstanding indemnities remained valid 2013 £313 million released 
  
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131
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 notes to the consolidated financial statements continued 
 132 
28 notes to the cash flow statement 
£ million  2014 2013
profit on ordinary activities before finance costs  
continuing operations  4968 3553
discontinued operations  – 313
adjustments for 
depreciation of buildings plant and equipment 12 13
net reversal of inventory writedowns 187 456
amortisation of software development 17 16
pensions settlement gain  – 41
pension overhead expenses 31 32
pension contributions in excess of charge 363 481
sharebased payment charge 62 64
profit on disposal of property and plant 04 01
increasedecrease in provisions 71 607
operating cash flows before movements in working capital 4607 2405
increase in inventories 4091 928
decreaseincrease in receivables 206 273
increase in payables 1350 120
cash generated by operations 2072 1324
income taxes received 01 09
interest paid 146 352
net cash from operating activities 1927 981
pension contributions in excess of charge in the table above has been represented to be before movements in working capital in respect of 2013 ‘cash received on exercise 
of share options’ and ‘purchase of own shares’ as presented on the consolidated cash flow statement have been represented to aid comparison to the current year figures 
cash and cash equivalents which are presented as a single class of assets on the face of the balance sheet comprise cash at bank and 
other short term highly liquid investments with an original maturity of three months or less 
movement in net cashdebt 
£ million  
cash and cash  
equivalents 
overdrafts 
banks and
 other loans
debenture 
loans
total net 
debtcash
balance 1 january 2013 1904 1000 1494 590
cash flow 833 – 1494 661
foreign exchange 17 – – 17
balance 31 december 2013 1054 1000 – 54
cash flow 1061 – – 1061
foreign exchange 13 – – 13
balance 31 december 2014 2128 1000 – 1128
29 contingent liabilities and capital commitments  
general 
the group in the normal course of business has given guarantees and entered into counterindemnities in respect of bonds relating 
to the group’s own contracts and given guarantees in respect of the group’s share of certain contractual obligations of joint ventures  
the group has entered into counterindemnities in the normal course of business in respect of performance bonds 
provision is made for the directors’ best estimate of all known legal claims and all legal actions in progress the group takes legal advice 
as to the likelihood of success of claims and actions and no provision is made where the directors consider based on that advice 
that the action is unlikely to succeed or a sufficiently reliable estimate of the potential obligation cannot be made  
the group has no material capital commitments as at 31 december 2014 2013 none 
  
taylor wimpey plc
annual report and accounts 2014
132 notes to the consolidated financial statements continued 
 132 
28 notes to the cash flow statement 
£ million  2014 2013
profit on ordinary activities before finance costs  
continuing operations  4968 3553
discontinued operations  – 313
adjustments for 
depreciation of buildings plant and equipment 12 13
net reversal of inventory writedowns 187 456
amortisation of software development 17 16
pensions settlement gain  – 41
pension overhead expenses 31 32
pension contributions in excess of charge 363 481
sharebased payment charge 62 64
profit on disposal of property and plant 04 01
increasedecrease in provisions 71 607
operating cash flows before movements in working capital 4607 2405
increase in inventories 4091 928
decreaseincrease in receivables 206 273
increase in payables 1350 120
cash generated by operations 2072 1324
income taxes received 01 09
interest paid 146 352
net cash from operating activities 1927 981
pension contributions in excess of charge in the table above has been represented to be before movements in working capital in respect of 2013 ‘cash received on exercise 
of share options’ and ‘purchase of own shares’ as presented on the consolidated cash flow statement have been represented to aid comparison to the current year figures 
cash and cash equivalents which are presented as a single class of assets on the face of the balance sheet comprise cash at bank and 
other short term highly liquid investments with an original maturity of three months or less 
movement in net cashdebt 
£ million  
cash and cash  
equivalents 
overdrafts 
banks and
 other loans
debenture 
loans
total net 
debtcash
balance 1 january 2013 1904 1000 1494 590
cash flow 833 – 1494 661
foreign exchange 17 – – 17
balance 31 december 2013 1054 1000 – 54
cash flow 1061 – – 1061
foreign exchange 13 – – 13
balance 31 december 2014 2128 1000 – 1128
29 contingent liabilities and capital commitments  
general 
the group in the normal course of business has given guarantees and entered into counterindemnities in respect of bonds relating 
to the group’s own contracts and given guarantees in respect of the group’s share of certain contractual obligations of joint ventures  
the group has entered into counterindemnities in the normal course of business in respect of performance bonds 
provision is made for the directors’ best estimate of all known legal claims and all legal actions in progress the group takes legal advice 
as to the likelihood of success of claims and actions and no provision is made where the directors consider based on that advice 
that the action is unlikely to succeed or a sufficiently reliable estimate of the potential obligation cannot be made  
the group has no material capital commitments as at 31 december 2014 2013 none 
  
 
 133
30 operating lease arrangements 
the group as lessee 
at the balance sheet date the group had outstanding commitments for future minimum lease payments under noncancellable operating 
leases which fall due as follows 
£ million  2014 2013
within one year 76 84
in more than one year but not more than five years 126 144
after five years 13 05
 215 233
31sharebased payments 
equitysettled share option plan 
details of all equitysettled sharebased payment arrangements in existence during the year are set out in the remuneration report 
on pages 66 to 85 
 2014 2013 
schemes requiring consideration from participants options 
weighted 
average 
exercise 
price 
in £ options
weighted 
average 
exercise price 
in £
outstanding at beginning of year 40984508 038 46105165 030
granted during the year 8106951 080 6421141 085
lapsed during the year 1539724 053 1481268 049
exercised during the year 13425401 023 10060530 030
cancellations during the year  – – ––
outstanding at the end of the year 34126334 046 40984508 038
exercisable at the end of the year 6308736 012 13625551 032
the table above includes shares which are granted to employees on a matching basis when the employee joins the scheme purchased  
shares are matched on a 11 basis 6356595 of these awards which do not expire were in issue at 31 december 2014 2013 6979841 
the remaining options outstanding at 31 december 2014 had a range of exercise prices from £023 to £090 2013 £023 to £085 and 
a weighted average remaining contractual life of 13 years 2013 09 years  
 2014 2013 
schemes not requiring consideration from participants options 
weighted 
average 
exercise 
price
in £ options
weighted 
average 
exercise price
in £
outstanding at beginning of year 25183282 –47967069 –
granted during the year 4329016 – 4677791 –
lapsed during the year 1768421 – 14129453 –
exercised during the year 11037616 – 13332125 –
cancellations during the year  – – ––
outstanding at the end of the year 16706261 – 25183282 –
exercisable at the end of the year – – 12961419 –
these conditional awards outstanding at 31 december 2014 had a weighted average remaining contractual life of 15 years  
2013 11 years 
the weighted average share price at the date of exercise across all options exercised during the period was £120 2013 £099 
  
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133
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 notes to the consolidated financial statements continued 
 134 
31sharebased payments continued 
for share plans with nonmarket conditions granted during the current and preceding year the fair value of the awards at grant date 
was determined using the binomial model the inputs into that model were as follows 
2014 2013
weighted average share price £117 £094
weighted average exercise price £067 £058
expected volatility 34 39
expected life 35 years 35 years
risk free rate 15 11
expected dividend yield 57 08
the weighted average fair value of share awards granted during the year is £052 2013 £049 
expected volatility was determined by calculating the historical volatility of the group’s share price over the expected term 
for share awards with market conditions granted during the current year the fair value of the awards was determined using the 
monte carlo simulation model the inputs into that model were as follows 
2014 2013
weighted average share price £125 £083
weighted average exercise price nil nil
expected volatility 34 40
expected life 3 years 3 years
risk free rate 08 05
expected dividend yield 00 09
the weighted average fair value of share options granted during the year is £079 2013 £054 
expected volatility was determined by calculating the historical volatility of the group’s share price over the expected term the expected 
life used in the model is based on historical exercise patterns 
the group recognised total expenses of £62 million related to equitysettled sharebased payment transactions in 2014 2013 £64 million 
32 related party transactions 
transactions between the company and its subsidiaries which are related parties have been eliminated on consolidation and are not  
disclosed in this note the pension schemes of the group are related parties arrangements between the group and its pension schemes 
are disclosed in note 21transactions between the group and its joint ventures are disclosed below the group has loans with joint ventures 
that are detailed in note 13  
on 1 november 2014 the chief executive was appointed as a non executive director of travis perkins plc during the year the group  
directly purchased from travis perkins plc goods to the value of £147 million in addition indirect purchases through subcontractors  
amounted to £104 million any residual purchases made at a local level are not material to either party all transactions were completed 
on an armslength basis 
trading transactions 
during the year group companies’ purchases from joint ventures totalled £nil 2013 £nil and sales to joint ventures totalled £122 million 
2013 £148 million  
taylor wimpey plc
annual report and accounts 2014
134 notes to the consolidated financial statements continued 
 134 
31sharebased payments continued 
for share plans with nonmarket conditions granted during the current and preceding year the fair value of the awards at grant date 
was determined using the binomial model the inputs into that model were as follows 
2014 2013
weighted average share price £117 £094
weighted average exercise price £067 £058
expected volatility 34 39
expected life 35 years 35 years
risk free rate 15 11
expected dividend yield 57 08
the weighted average fair value of share awards granted during the year is £052 2013 £049 
expected volatility was determined by calculating the historical volatility of the group’s share price over the expected term 
for share awards with market conditions granted during the current year the fair value of the awards was determined using the 
monte carlo simulation model the inputs into that model were as follows 
2014 2013
weighted average share price £125 £083
weighted average exercise price nil nil
expected volatility 34 40
expected life 3 years 3 years
risk free rate 08 05
expected dividend yield 00 09
the weighted average fair value of share options granted during the year is £079 2013 £054 
expected volatility was determined by calculating the historical volatility of the group’s share price over the expected term the expected 
life used in the model is based on historical exercise patterns 
the group recognised total expenses of £62 million related to equitysettled sharebased payment transactions in 2014 2013 £64 million 
32 related party transactions 
transactions between the company and its subsidiaries which are related parties have been eliminated on consolidation and are not  
disclosed in this note the pension schemes of the group are related parties arrangements between the group and its pension schemes 
are disclosed in note 21transactions between the group and its joint ventures are disclosed below the group has loans with joint ventures 
that are detailed in note 13  
on 1 november 2014 the chief executive was appointed as a non executive director of travis perkins plc during the year the group  
directly purchased from travis perkins plc goods to the value of £147 million in addition indirect purchases through subcontractors  
amounted to £104 million any residual purchases made at a local level are not material to either party all transactions were completed 
on an armslength basis 
trading transactions 
during the year group companies’ purchases from joint ventures totalled £nil 2013 £nil and sales to joint ventures totalled £122 million 
2013 £148 million  
 
 135
remuneration of key management personnel 
the key management personnel of the group are the members of the group management team gmt as presented on page 11 the 
remuneration information for the three executive directors is set out in the remuneration report on page 78 the aggregate compensation  
for the other five 2013 five members of the gmt is as follows  
£000 2014 2013
short term employee benefits 2697 2287
postemployment benefits 249 206
other long term benefits – –
termination benefits 153 –
total excluding share based payments charge 3099 2493
anne billsonross replaced maria pilfold as group hr director during the year there was no other change in the composition of the gmt 
in addition to the amounts above a sharebased payments charge of £349000 2013 £501000 related to share options held by members 
of the gmt 
33 dividends 
£ million 2014 2013
proposed 
interim dividend 2014 024p 2013 022p per ordinary share of 1p each 78 69
final dividend 2014 132p 2013 047p per ordinary share of 1p each 429 152
 507 221
amounts recognised as distributions to equity holders 
paid 
final dividend 2013 047p 2012 043p per ordinary share of 1p each 152 139
interim dividend 2014 024p 2013 022p per ordinary share of 1p each 78 69
special dividend 2014 154p 2013 nil per ordinary share of 1p each 497 –
 727 208
the directors recommend a final dividend for the year ended 31 december 2014 of 132 pence per share subject to shareholder approval  
at the annual general meeting with an equivalent final dividend charge of £429 million 2013 £152 million the final dividend will be paid  
on 20 may 2015 to all shareholders registered at the close of business on 10 april 2015 
the directors additionally recommend a special dividend of £2500 million subject to shareholder approval at the annual general meeting  
the special dividend will be paid on 3 july 2015 to all shareholders registered at the close of business on 22 may 2015 
in accordance with ias 10 ‘events after the balance sheet date’ the proposed final or special dividends have not been accrued as a liability 
as at 31 december 2014  
 
wwwtaylorwimpeycouk
135
strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 company balance sheet 
at 31 december 2014 
 136 
 
£ million note 2014 2013
fixed assets 
investments in group undertakings 4 24401 16235
 24401 16235
current assets 
debtors 
due in less than one year 5 25959 24326
due in more than one year 5 70 150
cash at bank and in hand 1926 842
 27955 25318
current liabilities  
creditors amounts falling due within one year 6 16768 16530
 16768 16530
net current assets 11187 8788
total assets less current liabilities 35588 25023
creditors amounts falling due after one year  7 1000 1000
provisions 13 07
net assets 34575 24016
 
capital and reserves  
share capital 8 2883 2881
share premium account 9 7629 7602
capital redemption reserve 10 315 315
profit and loss account 11 23856 13407
own shares 12 108 189
shareholders’ funds 15 34575 24016
the company has elected to take the exemption under section 408 of the companies act 2006 to not present the parent company 
profit and loss account  
the financial statements were approved by the board of directors and authorised for issue on 2 march 2015 they were signed on its behalf by 
  
p redfern 
director 
r mangold 
director 
 
taylor wimpey plc
annual report and accounts 2014
136 company balance sheet 
at 31 december 2014 
 136 
 
£ million note 2014 2013
fixed assets 
investments in group undertakings 4 24401 16235
 24401 16235
current assets 
debtors 
due in less than one year 5 25959 24326
due in more than one year 5 70 150
cash at bank and in hand 1926 842
 27955 25318
current liabilities  
creditors amounts falling due within one year 6 16768 16530
 16768 16530
net current assets 11187 8788
total assets less current liabilities 35588 25023
creditors amounts falling due after one year  7 1000 1000
provisions 13 07
net assets 34575 24016
 
capital and reserves  
share capital 8 2883 2881
share premium account 9 7629 7602
capital redemption reserve 10 315 315
profit and loss account 11 23856 13407
own shares 12 108 189
shareholders’ funds 15 34575 24016
the company has elected to take the exemption under section 408 of the companies act 2006 to not present the parent company 
profit and loss account  
the financial statements were approved by the board of directors and authorised for issue on 2 march 2015 they were signed on its behalf by 
  
p redfern 
director 
r mangold 
director 
 
notes to the company financial statements 
for the year to 31 december 2014 
 
 137
1 significant accounting policies 
the following accounting policies have been used consistently unless 
otherwise stated in dealing with items which are considered material 
basis of preparation 
the financial statements have been prepared in accordance with 
applicable united kingdom law and accounting standards uk gaap 
under the historical cost convention as permitted by section 408 of the 
companies act 2006 the company has not presented its own profit 
and loss account 
under financial reporting standard frs 1 the company is  
exempt from the requirement to prepare a cash flow statement  
on the grounds that consolidated financial statements which include 
the company are publicly available  
the company has taken advantage of the exemption contained  
in frs 8 ‘related party disclosures’ and has not reported transactions 
with wholly owned subsidiaries the company has also taken advantage of 
the exemption contained within frs 29 ‘financial instrument disclosures’ 
and has not presented any disclosures required by that standard as 
disclosures that comply with frs 29 are included within the taylor wimpey 
plc consolidated financial statements in note 20 on pages 120 to 123 
the principal accounting policies adopted are set out below 
going concern 
the group has prepared forecasts including certain sensitivities taking 
into account the principal risks identified on pages 28 to 29 having 
considered these forecasts the directors remain of the view that the 
group’s financing arrangements and capital structure provide both 
the necessary facilities and covenant headroom to enable the group 
to conduct its business for at least the next 12 months 
accordingly the company financial statements have been prepared 
on a going concern basis 
investments in group undertakings 
investments are included in the balance sheet at cost less any provision 
for impairment the company assesses investments for impairment 
whenever events or changes in circumstances indicate that the carrying 
value of an investment may not be recoverable if any such indication of 
impairment exists the company makes an estimate of the recoverable 
amount of the investment if the recoverable amount is less than the value 
of the investment the investment is considered to be impaired and is 
written down to its recoverable amount an impairment loss is recognised 
immediately in the profit and loss account if the impairment is not 
considered to be a permanent diminution in value it may reverse in 
a future period to the extent it is no longer considered necessary  
the company values its investments in subsidiary holding companies 
based on a comparison between the net assets recoverable by the 
subsidiary company and the investment held where the net assets 
are lower than the investment an impairment is recorded for trading 
subsidiaries the investment carrying value in the company is assessed 
against the net present value of the discounted cash flows from the 
subsidiary in accordance with frs 11 
borrowing costs 
capitalised finance costs are held in other debtors and amortised  
over the period of the facility 
taxation 
the tax charge represents the sum of the tax currently payable  
and deferred tax 
current tax 
the tax currently payable is based on taxable profit for the year taxable 
profit differs from profit before tax because it excludes items of income 
or expense that are taxable or deductible in other years and it further 
excludes items that are never taxable or deductible  
the company’s liability for current tax is calculated using tax rates  
that have been enacted or substantively enacted by the balance  
sheet date 
any liability or credit in respect of group relief in lieu of current tax  
is also calculated using corporation tax rates that have been enacted 
or substantively enacted by the balance sheet date unless a different 
rate including a nil rate has been agreed within the group 
deferred tax 
deferred tax is provided in full on timing differences that result in  
an obligation at the balance sheet date to pay more tax or a right 
to pay less tax at a future date at rates expected to apply when 
they crystallise based on current tax rates and law  
deferred tax assets are recognised to the extent that it is regarded  
as more likely than not that they will be recovered  
overseas currencies 
transactions denominated in foreign currencies are recorded in sterling 
at actual rates as of the date of the transaction monetary assets and 
liabilities denominated in foreign currencies at the year end are reported 
at the rates of exchange prevailing at the year end  
any gain or loss arising from a change in exchange rates subsequent to 
the date of the transaction is included as an exchange gain or loss in the 
profit and loss account unrealised exchange differences on intercompany 
long term loans and foreign currency borrowings to the extent that they 
hedge the company’s investment in overseas investments are taken to 
the translation reserve 
derivative financial instruments and hedge accounting 
the company uses foreign currency borrowings and currency  
swaps to hedge its investment in overseas operations changes in  
the fair value of derivative financial instruments that are designated  
and effective as hedges of investment in overseas operations are 
recognised directly in reserves and the ineffective portion if any is 
recognised immediately in the profit and loss account the hedged 
items are adjusted for changes in exchange rates with gains or  
losses from remeasuring the carrying amount being recognised directly 
in reserves  
sharebased payments 
the company issues equitysettled sharebased payments to certain 
employees equitysettled sharebased payments are measured at fair 
value at the date of grant the fair value is expensed on a straightline 
basis over the vesting period based on the estimate of shares that 
will eventually vest the cost of equitysettled sharebased payments 
granted to employees of subsidiary companies is borne by the employing 
company without recharge as such the company’s investment in the 
subsidiary is increased by an equivalent amount 
 
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 138 
1 significant accounting policies continued 
provisions 
provisions are recognised at the directors’ best estimate when the company has a present obligation as a result of a past event and it is probable 
that the company will have to settle the obligation 
own shares 
the cost of the company’s investment in its own shares which comprise shares held in treasury by the company and shares held by employee 
benefit trusts for the purpose of funding certain of the company’s share option plans is shown as a reduction in shareholders’ funds 
dividends paid 
dividends are charged to the company’s profit and loss reserve in the period of payment in respect of an interim dividend and in the period 
in which shareholders’ approval is obtained in respect of the company’s final dividend 
2 particulars of employees 
2014
number
2013
number
directors 3 3
the executive directors received all of their remuneration as disclosed in the remuneration report on pages 66 to 85 from taylor wimpey 
uk limited this remuneration is reflective of the directors’ service to the company and all its subsidiaries 
3 auditor’s remuneration 
£ million 2014 2013
total audit fees 01 01
 
other services – –
tax services – –
total nonaudit fees – –
 01 01
a description of other services is included in note 6 on page 110 to the group financial statements 
4 investments in group undertakings 
£ million shares loans total
cost  
1 january 2014 52452 – 52452
capital contribution relating to share based payments 62 – 62
31 december 2014 52514 – 52514
provision for impairment 
1 january 2014 36217 – 36217
release for the year 8104 – 8104
31 december 2014 28113 – 28113
carrying amount  
31 december 2014 24401 – 24401
31 december 2013 16235 – 16235
all of the above investments are unlisted and particulars of principal subsidiary undertakings are listed on page 142 which forms part of these 
financial statements 
  
taylor wimpey plc
annual report and accounts 2014
138 notes to the company financial statements continued 
 138 
1 significant accounting policies continued 
provisions 
provisions are recognised at the directors’ best estimate when the company has a present obligation as a result of a past event and it is probable 
that the company will have to settle the obligation 
own shares 
the cost of the company’s investment in its own shares which comprise shares held in treasury by the company and shares held by employee 
benefit trusts for the purpose of funding certain of the company’s share option plans is shown as a reduction in shareholders’ funds 
dividends paid 
dividends are charged to the company’s profit and loss reserve in the period of payment in respect of an interim dividend and in the period 
in which shareholders’ approval is obtained in respect of the company’s final dividend 
2 particulars of employees 
2014
number
2013
number
directors 3 3
the executive directors received all of their remuneration as disclosed in the remuneration report on pages 66 to 85 from taylor wimpey 
uk limited this remuneration is reflective of the directors’ service to the company and all its subsidiaries 
3 auditor’s remuneration 
£ million 2014 2013
total audit fees 01 01
 
other services – –
tax services – –
total nonaudit fees – –
 01 01
a description of other services is included in note 6 on page 110 to the group financial statements 
4 investments in group undertakings 
£ million shares loans total
cost  
1 january 2014 52452 – 52452
capital contribution relating to share based payments 62 – 62
31 december 2014 52514 – 52514
provision for impairment 
1 january 2014 36217 – 36217
release for the year 8104 – 8104
31 december 2014 28113 – 28113
carrying amount  
31 december 2014 24401 – 24401
31 december 2013 16235 – 16235
all of the above investments are unlisted and particulars of principal subsidiary undertakings are listed on page 142 which forms part of these 
financial statements 
  
 
 139
5 debtors 
£ million 2014 2013
amounts falling due within one year 
due from group undertakings 25942 24310
other debtors 17 16
 25959 24326
 
£ million 2014 2013
amounts falling due in over one year 
other debtors 43 60
deferred tax 27 90
 70 150
6 creditors amounts falling due within one year 
£ million 2014 2013
due to group undertakings 16749 16508
other creditors 15 18
corporation tax creditor 04 04
 16768 16530
7 creditors amounts falling due after one year 
£ million 2014 2013
other loans 1000 1000
 1000 1000
other loans are repayable as follows 
in more than two years but less than five years 1000 1000
 1000 1000
other loans comprise a £1000 million 2013 £1000 million variable rate term loan with an investment fund  
8 share capital 
£ million 2014 2013
authorised 
22200819176 2013 22200819176 ordinary shares of 1p each  2220 2220
1158299201 2013 1158299201 deferred ordinary shares of 24p each  2780 2780
 5000 5000
 
 number of shares £ million
issued and fully paid 
31 december 2013 3237020303 2881
share warrants exercised in the year 16441228 02
31 december 2014 3253461531 2883
  
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 140 
8 share capital continued 
during the year options were exercised over 24463017 ordinary shares 2013 23392655 all of which were met from our holding of shares 
in our esots at varying prices from nil pence to 8472 pence per share under the group’s executive share option plans employees held 
options at 31 december 2014 to purchase up to 455865 shares subject to achievement of performance tests 2013 573981 at a price 
of 3934 pence per share nominally exercisable up to 7 august 2022 under the group’s performance share plan employees held conditional 
awards at 31 december 2014 in respect of up to 16706261 shares subject to achievement of performance tests 2013 24609301 at 
nil pence per share nominally exercisable up to 3 september 2017 
under the group’s savingsrelated share option schemes employees held options at 31 december 2014 to purchase 27313874 shares 2013 
34004667 at prices between 2288 pence and 9000 pence per share exercisable up to 31 may 2020 under the group’s share purchase plan 
employees held conditional awards at 31 december 2014 in respect of 6356595 shares 2013 6979841 at nil pence per share 
under a financing agreement signed in april 2009 the company agreed to issue 579 million warrants giving the holders the right to subscribe 
to an equivalent number of ordinary shares in taylor wimpey plc the warrants were priced at 174473p per share as at 31 december 2013 
40321481 warrants had been exercised a further 16441228 were exercised in the year whilst 1152191 lapsed unexercised these 
warrants have now expired 
9 share premium account 
£ million 2014 2013
at 1 january 7602 7588
share warrants exercised  27 14
at 31 december  7629 7602
10 capital redemption reserve 
£ million 2014 2013
at 31 december  315 315
the capital redemption reserve is nondistributable 
11 profit and loss account 
£ million 2014 2013
at 1 january  13407 13138
profit for the financial year 649 544
reversal of impairment of investment in group undertakings 8104 –
dividends received from subsidiary undertakings 2500 –
dividends paid 727 208
cash cost of satisfying share options 77 67
at 31 december 23856 13407
as permitted by section 408 of the companies act 2006 taylor wimpey plc has not presented its own profit and loss account the profit of the 
company for the financial year was £649 million 2013 profit of £544 million 
included in the company profit and loss account is £4996 million 2013 £4365 million which is not distributable  
12 own shares 
£ million 2014 2013
own shares 108 189
 
these comprise ordinary shares of the company number number
shares held in trust for bonus options and performance award plans 143m 281m
the market value of the shares at 31 december 2014 was £197 million 2013 £313 million and their nominal value was £014 million  
2013 £028 million  
dividends on these shares have been waived except for 001p per share in respect of the shares held in trust  
employee share ownership trusts esots are used to hold the company’s shares which have been acquired on the market these shares  
are used to meet the valid exercise of options andor vesting of conditional awards andor award of shares under the executive incentive 
scheme bonus deferral plan performance share plan executive share option scheme savingsrelated share option scheme and the 
matching award of shares under the share purchase plan  
taylor wimpey plc
annual report and accounts 2014
140 notes to the company financial statements continued 
 140 
8 share capital continued 
during the year options were exercised over 24463017 ordinary shares 2013 23392655 all of which were met from our holding of shares 
in our esots at varying prices from nil pence to 8472 pence per share under the group’s executive share option plans employees held 
options at 31 december 2014 to purchase up to 455865 shares subject to achievement of performance tests 2013 573981 at a price 
of 3934 pence per share nominally exercisable up to 7 august 2022 under the group’s performance share plan employees held conditional 
awards at 31 december 2014 in respect of up to 16706261 shares subject to achievement of performance tests 2013 24609301 at 
nil pence per share nominally exercisable up to 3 september 2017 
under the group’s savingsrelated share option schemes employees held options at 31 december 2014 to purchase 27313874 shares 2013 
34004667 at prices between 2288 pence and 9000 pence per share exercisable up to 31 may 2020 under the group’s share purchase plan 
employees held conditional awards at 31 december 2014 in respect of 6356595 shares 2013 6979841 at nil pence per share 
under a financing agreement signed in april 2009 the company agreed to issue 579 million warrants giving the holders the right to subscribe 
to an equivalent number of ordinary shares in taylor wimpey plc the warrants were priced at 174473p per share as at 31 december 2013 
40321481 warrants had been exercised a further 16441228 were exercised in the year whilst 1152191 lapsed unexercised these 
warrants have now expired 
9 share premium account 
£ million 2014 2013
at 1 january 7602 7588
share warrants exercised  27 14
at 31 december  7629 7602
10 capital redemption reserve 
£ million 2014 2013
at 31 december  315 315
the capital redemption reserve is nondistributable 
11 profit and loss account 
£ million 2014 2013
at 1 january  13407 13138
profit for the financial year 649 544
reversal of impairment of investment in group undertakings 8104 –
dividends received from subsidiary undertakings 2500 –
dividends paid 727 208
cash cost of satisfying share options 77 67
at 31 december 23856 13407
as permitted by section 408 of the companies act 2006 taylor wimpey plc has not presented its own profit and loss account the profit of the 
company for the financial year was £649 million 2013 profit of £544 million 
included in the company profit and loss account is £4996 million 2013 £4365 million which is not distributable  
12 own shares 
£ million 2014 2013
own shares 108 189
 
these comprise ordinary shares of the company number number
shares held in trust for bonus options and performance award plans 143m 281m
the market value of the shares at 31 december 2014 was £197 million 2013 £313 million and their nominal value was £014 million  
2013 £028 million  
dividends on these shares have been waived except for 001p per share in respect of the shares held in trust  
employee share ownership trusts esots are used to hold the company’s shares which have been acquired on the market these shares  
are used to meet the valid exercise of options andor vesting of conditional awards andor award of shares under the executive incentive 
scheme bonus deferral plan performance share plan executive share option scheme savingsrelated share option scheme and the 
matching award of shares under the share purchase plan  
 
 141
12 own shares continued 
during the year taylor wimpey plc purchased £100 million of its own shares which are held in the esots 2013 £151 million 
the esots’ entire holding of shares at 31 december 2014 aggregating 143 million shares 2013 281 million was covered by outstanding 
options and conditional awards over shares at that date 
13 sharebased payments 
details of share awards granted by the company to employees of subsidiaries and that remain outstanding at the yearend over the company’s 
shares are set out in note 31 to the group financial statements the company did not recognise any expense related to equitysettled share
based payment transactions in the current or preceding year  
14 contingent liabilities 
the company has in the normal course of business given guarantees and entered into counterindemnities in respect of bonds relating 
to the group’s own contracts 
provision is made for the directors’ best estimate of known legal claims and legal actions in progress the group takes legal advice as 
to the likelihood of success of claims and actions and no provision is made where the directors consider based on that advice the action 
is unlikely to succeed or a sufficiently reliable estimate of the potential obligation cannot be made  
the company issued a guarantee in respect of the twps which had a deficit under ias 19 of £1824 million at 31 december 2014  
the guarantee commits the company to ensure that the participating subsidiaries make deficit repair contributions in accordance with 
a schedule agreed with the trustees during the year of £160 million per annum  
15 reconciliation of movement in shareholders’ funds 
£ million 2014 2013
opening shareholders’ funds  24016 23762
profit for the financial year 649 544
reversal of impairment of investment in group undertakings 8104 –
dividends received from subsidiary undertakings 2500 –
dividends paid 727 208
new share capital subscribed 29 15
purchase of own shares  100 151
utilisation of own shares  181 121
cash cost of satisfying share options 77 67
closing shareholders’ funds 34575 24016
16 dividend 
£ million 2014 2013
proposed 
interim dividend 2014 024p 2013 022p per ordinary share of 1p each 78 69
final dividend 2014 132p 2013 047p per ordinary share of 1p each 429 152
 507 221
amounts recognised as distributions to equity holders 
paid 
final dividend 2013 047p 2012 043p per ordinary share of 1p each 152 139
interim dividend 2014 024p 2013 022p per ordinary share of 1p each 78 69
special dividend 2014 154p 2013 nil per ordinary share of 1p each 497 –
 727 208
the directors recommend a final dividend for the year ended 31 december 2014 of 132 pence per share subject to shareholder approval  
at the annual general meeting with an equivalent final dividend charge of £429 million 2013 £152 million the final dividend will be paid  
on 20 may 2015 to all shareholders registered at the close of business on 10 april 2015 
the directors additionally recommend a special dividend of £2500 million subject to shareholder approval at the annual general meeting  
the special dividend will be paid on 3 july 2015 to all shareholders registered at the close of business on 22 may 2015 
in accordance with frs 21 ‘events after the balance sheet date’ the proposed final or special dividends have not been accrued as a liability 
as at 31 december 2014  
 
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strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 particulars of principal subsidiary undertakings 
 142 
 
country of incorporation 
and principal operations 
taylor wimpey plc interest is 100 in the issued ordinary share 
capital of these undertakings included in the consolidated accounts activity 
united kingdom taylor wimpey holdings limited  holding company 
united kingdom george wimpey limited holding company 
united kingdom taylor wimpey uk limited
a
 united kingdom housebuilder 
united kingdom taylor wimpey developments limited
a
 holding company 
spain taylor wimpey de españa sau
ab
 spanish housebuilder 
a interests held by subsidiary undertakings 
b 9 cumulative redeemable preference shares are additionally held 
taylor wimpey plc
annual report and accounts 2014
142 particulars of principal subsidiary undertakings 
 142 
 
country of incorporation 
and principal operations 
taylor wimpey plc interest is 100 in the issued ordinary share 
capital of these undertakings included in the consolidated accounts activity 
united kingdom taylor wimpey holdings limited  holding company 
united kingdom george wimpey limited holding company 
united kingdom taylor wimpey uk limited
a
 united kingdom housebuilder 
united kingdom taylor wimpey developments limited
a
 holding company 
spain taylor wimpey de españa sau
ab
 spanish housebuilder 
a interests held by subsidiary undertakings 
b 9 cumulative redeemable preference shares are additionally held 
five year review 
 143
£ million 2014 2013 2012
c
2011 2010
d
revenue – continuing operations 26861 22955 20190 18080 17677
profit on ordinary activities before exceptional items finance costs and tax 4781 3097 2237 1583 1006
share of results of joint ventures 26 32 24 12 03
exceptional items 187 456 – 58 555
net finance costs including exceptional finance costs 306 523 219 751 1996
profitloss for the financial year before taxation 4688 3062 2042 786 1548
taxation chargecredit  944 664 244 227 3295
profit for the year from discontinued operations – 313 – 431 846
profit for the financial year 3744 2711 2286 990 2593
profitloss for the financial year before taxation and exceptional items  4501 2684 1818 899 159
balance sheet  
intangible assets 25 42 52 51 10
property plant and equipment  168 83 71 50 54
interests in joint ventures 386 347 315 319 339
noncurrent trade and other receivables 1111 1108 1020 703 507
noncurrent assets excluding tax 1690 1580 1458 1123 910
inventories  34901 29288 27888 26866 26806
other current assets excluding tax and cash 1026 1185 960 725 747
trade and other payables 9100 7939 7726 6978 7051
provisions 404 283 844 766 –
netcurrent assets excluding tax and cash 26423 22251 20278 19847 20502
trade and other payables 3615 1937 1908 1997 2159
retirement benefit obligations  1838 1838 2442 2102 2460
provisions  10 60 107 185 1033
noncurrent liabilities excluding debt 5463 3835 4457 4284 5652
net assets held for sale – – – – 6995
net cashdebt 1128 54 590 1169 7513
tax balances 1575 2468 3206 2833 2989
net assets 25353 22518 19895 18350 18231
capital employed excluding assets held for sale 24200 22422 20433 19468 18739
add back intangibles  25 42 52 51 10
less tax balances 1575 2468 3206 2833 2989
net operating assets excluding assets held for sale 22650 19996 17279 16686 15760
statistics  
adjusted earningsloss per share – continuing group 112p 67p 46p 21p 15p
tangible net assets per share 779p 696p 615p 573p 569p
number of shares in issue at year end millions 32535 32370 32283 32014 31972
return on capital employed
a
 206 146 113 83 49
operating margin  179 136 112 88 57
return on net operating assets 225 168 133 98 53
growth in net assets 126 132 84 07 215
uk short term landbank plots
b
 75136 70628 65409 65264 63566
uk asp £000 213 191 181 171 171
uk completions homes 12454 11696 10886 10180 9962
a return on capital employed is calculated as profit on ordinary activities before amortisation 
of brands exceptional items finance costs and tax but including share of results of joint 
ventures divided by the average of opening and closing capital employed  
b the total number of plots that we either own or control with some form of planning consent 
including joint ventures from 2013 
c  the results for 2012 have been restated to reflect the adoption of ias 19 
‘employee benefits’ amended 2011 
d the results of the north american business have been restated for 2010 
the 2010 balance sheet has the north american assets separated as assets 
held for sale and £578 million tax liabilities have been reclassified to provisions 
 
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strategic report p243 financial statements p92143 directors’ report governance p4491 shareholder information p144153 shareholder information
notice of annual general meeting
this notice of meeting is important and requires your immediate 
attention if you are in any doubt as to the action you should take  
you are recommended to seek your own financial advice immediately 
from a stockbroker solicitor bank manager accountant or other 
independent financial adviser authorised under the financial services 
and markets act 2000
if you have sold or otherwise transferred all of your shares in taylor 
wimpey plc the ‘company’ please pass this document together  
with the accompanying documents to the purchaser or transferee  
or to the person who arranged the sale or transfer so they can pass 
these documents to the person who now holds the shares if you 
have sold or transferred part only of your holding of shares in the 
company please consult the person who arranged the sale 
or transfer
notice is hereby given of the eightieth annual general meeting  
of the company to be held on 23 april 2015 at 1100 am at 
the british medical association bma house tavistock square 
london wc1h 9jp for the following purposes
ordinary business
ordinary resolutions
1   to receive the directors’ report directors’ remuneration report 
strategic report the auditor’s report and the financial 
statements for the year ended 31 december 2014
2   to declare due and payable on 20 may 2015 a final dividend  
of 132 pence per ordinary share of the company for the year  
ended 31 december 2014 to shareholders on the register at  
close of business on 10 april 2015
3   to declare due and payable on 3 july 2015 a special dividend of 
768 pence per ordinary share of the company to shareholders 
on the register at close of business on 22 may 2015 
4  to reelect as a director kevin beeston
5  to reelect as a director pete redfern
6  to reelect as a director ryan mangold
7  to reelect as a director james jordan
8  to reelect as a director kate barker dbe
9  to reelect as a director baroness ford of cunninghame
10  to reelect as a director mike hussey
11 to reelect as a director robert rowley
12   to reappoint deloitte llp as auditors of the company to hold 
office until the conclusion of the next general meeting at which 
accounts are laid before the company 
13   subject to the passing of resolution 12 to authorise the audit 
committee to determine the remuneration of the auditors on  
behalf of the board 
14   that the board be generally and unconditionally authorised  
to allot shares in the company and to grant rights to subscribe 
for or convert any security into shares in the company 
 a  up to a nominal amount of £10844871 such amount to  
be reduced by the nominal amount of any equity securities 
as defined in the companies act 2006 allotted under 
paragraph b below in excess of £10844871 and
 b  comprising equity securities as defined in the companies 
act 2006 up to a nominal amount of £21689743 such 
amount to be reduced by any shares and rights to subscribe 
for or convert any security into shares allotted under 
paragraph a above in connection with an offer by way  
of a rights issue
 i  to ordinary shareholders in proportion as nearly as may  
be practicable to their existing holdings and
 ii  to holders of other equity securities as required by the  
rights of those securities or as the board otherwise 
considers necessary 
  and so that the board may impose any limits or restrictions  
and make any arrangements which it considers necessary or 
appropriate to deal with treasury shares fractional entitlements 
record dates legal regulatory or practical problems in or under 
the laws of any territory or any other matter such authorities  
to apply until the end of the annual general meeting of the 
company in 2016 or if earlier until the close of business on  
22 july 2016 but in each case so that the company may make 
offers and enter into agreements during this period which would 
or might require shares to be allotted or rights to subscribe for  
or convert securities into shares to be granted after the authority 
ends and the board may allot shares or grant rights to subscribe 
for or convert securities into shares under any such offer or 
agreement as if the authority had not ended
special resolutions
15  that if resolution 14 is passed the board be given the power  
to allot equity securities as defined in the companies act 2006 
for cash under the authority given by that resolution andor to  
sell ordinary shares held by the company as treasury shares for 
cash free of the restriction in section 561 of the companies act 
2006 such power to be limited
 a  to the allotment of equity securities and sale of treasury 
shares for cash in connection with an offer of or invitation  
to apply for equity securities but in the case of the authority 
granted under paragraph b of resolution 14 by way of a 
rights issue only
 i  to ordinary shareholders in proportion as nearly as may  
be practicable to their existing holdings and
 ii   to holders of other equity securities as required by the  
rights of those securities or as the board otherwise  
considers necessary
  and so that the board may impose any limits or restrictions  
and make any arrangements which it considers necessary or 
appropriate to deal with treasury shares fractional entitlements 
record dates legal regulatory or practical problems in or under  
the laws of any territory or any other matter and
 b  in the case of the authority granted under paragraph a  
of resolution 14 andor in the case of any sale of treasury 
shares for cash to the allotment otherwise than under 
paragraph a above of equity securities up to a nominal 
amount of £1626730 such power to apply until the 
conclusion of the annual general meeting of the company 
in 2016 or if earlier until the close of business on 22 july 
2016 but during this period the company may make offers 
and enter into agreements which would or might require 
equity securities to be allotted and treasury shares to be 
sold after the power ends and the board may allot equity 
taylor wimpey plc
annual report and accounts 2014
144 securities and sell treasury shares under any such offer or 
agreement as if the power had not ended
16   that the company be authorised for the purposes of section 701 
of the companies act 2006 to make market purchases within  
the meaning of section 6934 of the companies act 2006 of  
the ordinary shares of 1p each of the company ‘ordinary 
shares’ provided that
 a  the maximum number of ordinary shares hereby authorised  
to be purchased shall be 325346100
 b  the minimum price which may be paid for ordinary shares  
is 1p per ordinary share
 c  the maximum price exclusive of expenses which may  
be paid for an ordinary share is the highest of 
   i  an amount equal to 105 of the average of the middle  
market quotations for an ordinary share as derived from  
the london stock exchange daily official list for the five 
business days immediately preceding the date on which  
such ordinary share is purchased and 
   ii  the higher of the price of the last independent trade and 
the highest independent bid on the trading venues where 
the purchase is carried out
 d  the authority hereby conferred shall expire at the earlier  
of the conclusion of the annual general meeting of the 
company in 2016 and 22 october 2016 unless such  
authority is renewed prior to such time and
 e  the company may make contracts to purchase ordinary  
shares under the authority hereby conferred prior to the  
expiry of such authority which will or may be executed 
wholly or partly after the expiry of such authority and  
may purchase ordinary shares in pursuance of any such 
contracts as if the authority conferred by this resolution  
had not expired 
special business
ordinary resolutions
17  to approve the directors’ remuneration report on pages 66  
to 85 for the financial year ended 31 december 2014 
 18   that in accordance with sections 366 and 367 of the companies 
act 2006 the company and all companies which are its 
subsidiaries when this resolution is passed are authorised to
 a  make political donations to political parties andor 
independent election candidates not exceeding £250000  
in aggregate
 b  make political donations to political organisations other than 
political parties not exceeding £250000 in aggregate and
 c  incur political expenditure not exceeding £250000 in 
aggregate during the period beginning with the date  
of passing this resolution and the conclusion of the  
annual general meeting of the company in 2016  
for the purposes of this resolution the terms ‘political 
donations’ ‘political parties’ ‘independent election 
candidates’ ‘political organisation’ and ‘political expenditure’ 
have the meanings given by sections 363 to 365 of the 
companies act 2006
19  that the sale of vivienda 55 parcela a urbanización 38  
servera deya es port vell 07559 son servera mallorca  
by taylor wimpey de españa sau for the sum of €484500  
to mr pete redfern a director of the company be  
hereby approved 
special resolutions
20  that a general meeting other than an annual general meeting  
of the company may continue to be called on not less than  
14 clear days’ notice
explanatory notes relating to each of the above resolutions are set  
out on pages 148 to 151
action to be taken
if you wish to attend and vote at the annual general meeting in  
person please bring with you the attendance card accompanying  
this document it will help to authenticate your right to attend speak 
and vote and will help us to register your attendance without delay 
registration will be available from 930 am on the day of the meeting 
for the safety and comfort of those attending the meeting large 
bags cameras recording equipment and similar items will not be 
allowed into the building and in the interests of security by attending 
the meeting upon request you hereby agree to be searched together 
with any bags and other possessions the meeting will commence at 
1100 am and light refreshments will be available from 930 am and 
also after the conclusion of the meeting there is wheelchair access 
to the venue for shareholders who require it or those with reduced 
mobility however where required attendees are strongly advised to 
bring their own carers to assist with their general mobility around the 
venue an induction loop system operates in the meeting room 
directions to the venue can be found on the reverse of your 
attendance card
if you would like to vote on the resolutions but cannot come to the 
annual general meeting please complete the proxy form sent to  
you with this notice and return it to our registrar as soon as possible 
in order for it to count the registrar must receive it by no later than 
1100 am on 21 april 2015 if you prefer you can submit your proxy 
electronically either via the internet at wwwcapitashareportalcom  
or if you are a crest member through the crest system by 
completing and transmitting a crest proxy instruction as described 
in the procedural notes below
recommendation
your directors are of the opinion that the resolutions to be proposed  
at the annual general meeting are in the best interests of the 
company and its shareholders as a whole and recommend you to 
vote in favour of them each director will be doing so in respect of all 
of his or her own beneficial shareholding
wwwtaylorwimpeycouk
145
shareholder information p144153 directors’ report governance p4491 financial statements p92143 strategic report p243 inspection of documents
the following documents will be available for inspection at the 
company’s registered office gate house turnpike road high 
wycombe buckinghamshire hp12 3nr during normal business  
hours from the date of this notice of meeting until the date of the  
annual general meeting and at the british medical association  
bma house tavistock square london wc1h 9jp from  
15 minutes before the annual general meeting until it ends
 − copies of the executive directors’ service contracts
 − copies of the letters of appointment of the chairman and  
the independent non executive directors and
 − a copy of the full annual report and financial statements of the 
company for the year ended 31 december 2014 including the  
directors’ remuneration report referred to in resolution 17 is 
also available on our website wwwtaylorwimpeycoukcorporate
by order of the board
james jordan
group legal director and company secretary
t aylor wimpey plc  
registered office  
gate house  
turnpike road  
high wycombe  
buckinghamshire hp12 3nr
registered in england and wales under number 296805
2 march 2015
shareholder information
notice of annual general meeting continued
taylor wimpey plc
annual report and accounts 2014
146 notes to the notice of meeting
procedural notes
1  to be entitled to attend and vote at the annual general meeting 
and for the purpose of the determination by the company of  
the votes which shareholders may cast shareholders must be 
registered in the register of members of the company at 600 pm 
on 21 april 2015 or in the event of any adjournment on the date 
which is two days before the time of the adjourned meeting 
shareholders then on the register of members shall be entitled 
to attend and vote at the annual general meeting in respect of 
the number of shares registered in their name at that time 
changes to entries on the relevant register of members after  
that deadline shall be disregarded in determining the rights of  
any person to attend and vote at the annual general meeting
2  as at 4 march 2015 being the latest practicable date prior  
to the publication of this notice the company’s issued share  
capital consisted of 3253461531 ordinary shares carrying one 
vote each therefore the total voting rights in the company as 
at 4 march 2015 were 3253461531
3   if you are a shareholder of the company at the time and date  
set out in note 1 above you are entitled to appoint a proxy to 
exercise all or any of your rights to attend and to speak and vote 
on your behalf at the meeting shareholders may appoint more 
than one proxy in relation to the annual general meeting provided 
that each proxy is appointed to exercise the rights attached to  
a different share or shares held by that shareholder a proxy  
need not be a shareholder of the company but must attend  
the annual general meeting to represent you a proxy form  
which may be used to make such appointment and give proxy 
instructions accompanies this notice if you do not have a proxy 
form and believe that you should have one or if you require 
additional forms please contact capita asset services as soon 
as possible on 0871 664 0300 calls cost 10p per minute plus 
network extras lines are open 830 am to 530 pm monday to 
friday in the case of joint holders where more than one of the 
joint holders purports to appoint a proxy only the appointment 
submitted by the most senior holder will be accepted seniority  
is determined by the order in which the names of the joint holders 
appear in the company’s register of members in respect of the 
joint holdings the firstnamed being the most senior
4   to be valid any proxy form or other instrument appointing a  
proxy must be received by capita asset services at pxs 1 34 
beckenham road beckenham kent br3 4zf  or if you want  
to use an envelope the address to use is simply freepost 
capita pxs or if you prefer electronically via the internet at 
wwwcapitashareportalcom or if you are a member of crest 
via the service provided by euroclear uk and ireland limited at 
the electronic address provided in note 9 in each case no later 
than 1100 am on 21 april 2015 please note that all forms of 
proxy received after this time will be void a form of proxy sent 
electronically at any time that is found to contain any virus will  
not be accepted
5  the return of a completed proxy form other such instrument  
or any crest proxy instruction as further described in notes 8 
and 9 below will not prevent a shareholder attending the annual 
general meeting and voting in person if heshe wishes to do so
6   any person to whom this notice is sent who is a person 
nominated under section 146 of the companies act 2006 to 
enjoy information rights a ‘nominated person’ may under an 
agreement between himher and the shareholder by whom he
she was nominated have a right to be appointed or to have 
someone else appointed as a proxy for the annual general 
meeting if a nominated person has no such proxy appointment 
right or does not wish to exercise it heshe may under any such 
agreement have a right to give instructions to the shareholder as 
to the exercise of voting rights such persons should direct any 
communications and enquiries to the registered holder of the 
shares by whom they were nominated and not to the company 
or its registrar
7   the statement of the rights of shareholders in relation to the 
appointment of proxies in notes 3 and 4 above does not apply  
to nominated persons the rights described in these notes can 
only be exercised by shareholders of the company
8   crest members who wish to appoint a proxy or proxies through 
the crest electronic proxy appointment service may do so by 
using the procedures described in the crest manual crest 
personal members or other crest sponsored members and 
those crest members who have appointed a service providers 
should refer to their crest sponsor or voting service providers 
who will be able to take the appropriate action on their behalf
9  in order for a proxy appointment or instruction made using the 
crest service to be valid it must be properly authenticated  
in accordance with euroclear uk and ireland limited’s 
specifications and must contain the information required  
for such instruction as described in the crest manual  
available via wwweuroclearcomcrest the message 
regardless of whether it constitutes the appointment of a  
proxy or is an amendment to the instruction given to a previously 
appointed proxy must in order to be valid be transmitted so as 
to be received by the issuer’s agent id ra10 by 1100 am on  
21 april 2015 for this purpose the time of receipt will be taken 
to be the time as determined by the time stamp applied to the 
message by the crest application host from which the issuer’s 
agent is able to retrieve the message by enquiry to crest in  
the manner prescribed by crest after this time any change  
of instructions to proxies appointed through crest should  
be communicated to the appointee through other means
10   crest members and where applicable their crest sponsors  
or voting service providers should note that euroclear uk and 
ireland limited does not make available special procedures  
in crest for any particular message normal system timings  
and limitations will therefore apply in relation to the input of 
crest proxy instructions it is the responsibility of the crest 
member concerned to take or if the crest member is a 
crest personal member or sponsored member or has 
appointed a voting service provider to procure that his crest 
sponsor or voting service providers takes such action as shall 
be necessary to ensure that a message is transmitted by means 
of the crest system by any particular time in this connection 
crest members and where applicable their crest sponsors 
or voting system providers are referred in particular to those 
sections of the crest manual concerning practical limitations  
of the crest system and timings
wwwtaylorwimpeycouk
147
shareholder information p144153 directors’ report governance p4491 financial statements p92143 strategic report p243 11   the company may treat as invalid a crest proxy instruction  
in the circumstances set out in regulation 355a of the 
uncertificated securities regulations 2001
12   any corporation which is a member can appoint one or more 
corporate representatives who may exercise on its behalf all  
of its powers as a member provided that they do not do so  
in relation to the same shares
13   under section 527 of the companies act 2006 members 
meeting the threshold requirements set out in that section  
have the right to require the company to publish on a website  
a statement setting out any matter relating to
 i  the audit of the company’s accounts including the auditor’s 
report and the conduct of the audit that are to be laid 
before the annual general meeting or
 ii  any circumstance connected with an auditor of the 
company ceasing to hold office since the previous meeting 
at which annual accounts and reports were laid in 
accordance with section 437 of the companies act 2006 
  the company may not require the shareholders requesting any 
such website publication to pay its expenses in complying with 
sections 527 or 528 of the companies act 2006 where the 
company is required to place a statement on a website under 
section 527 of the companies act 2006 it must forward the 
statement to the company’s auditor not later than the time when  
it makes the statement available on the website the business 
which may be dealt with at the annual general meeting includes 
any statement that the company has been required under 
section 527 of the companies act 2006 to publish on a website
14   any member attending the meeting has the right to ask questions 
and participate in the meeting the company must cause to be 
answered any such question relating to the business being dealt 
with at the meeting but no such answer need be given if i to do  
so would interfere unduly with the preparation for the meeting or 
involve the disclosure of confidential information ii the answer  
has already been given on a website in the form of an answer to  
a question or iii it is undesirable in the interests of the company  
or the good order of the meeting that the question be answered
15   a copy of this notice and other information required by  
section 311a of the companies act 2006 can be found  
at wwwtaylorwimpeycoukcorporate 
16   voting on all resolutions at this year’s annual general meeting  
will be conducted by way of a poll rather than on a show of  
hands the board believes that a poll is more representative  
of shareholders’ voting intentions because it gives as many 
shareholders as possible the opportunity to have their votes 
counted whether their votes are tendered by proxy in advance  
of or in person at the annual general meeting the results of  
the poll will be announced via a regulatory information service  
and made available at wwwtaylorwimpeycoukcorporate as 
soon as practicable after the annual general meeting
explanatory notes to the resolutions
ordinary business
ordinary resolutions
ordinary resolutions require more than half of the votes cast  
to be in favour
resolution 1 to receive the annual report and financial statements
english company law requires the directors to lay the financial 
statements of the company for the year ended 31 december  
2014 and the reports of the directors namely the strategic  
report directors’ report and the directors’ remuneration  
report and auditors before a general meeting of the company  
the annual report 
resolution 2 to declare a final dividend
the directors recommend the payment of a final dividend of 132 
pence per share in respect of the year ended 31 december 2014  
if approved at the annual general meeting the dividend will be paid 
on 20 may 2015 to shareholders who are on the register of 
members at the close of business on 10 april 2015
resolution 3 to declare a special dividend
taylor wimpey has announced its intention to return cash to its 
shareholders through the payment of annual special dividends 
always subject to market and performance fluctuations the first  
such dividend was paid in 2014 at the rate of 154 pence per share
the company now proposes a much larger special dividend for 
2015 at the rate of 768 pence per share and believes it is 
appropriate to seek prior shareholder approval for its payment
further details on the rationale for paying special dividends and  
the link to the company’s current strategy can be found on pages  
12 and 16
the aggregate cost of the special dividend for 2015 will be around 
£250 million and will be met from profits and surplus cash generated 
during 2015 if approved it will be paid on 3 july 2015 to shareholders 
on the register at the close of business on 22 may 2015
dividend reinvestment plan
subject to shareholders approving either or both of the dividends  
as set out in resolutions 2 and 3 at the annual general meeting 
scheduled for 23 april 2015 the company will be offering a dividend 
reinvestment plan drip on each one the drip is provided and 
administered by the drip plan administrator capita irg trustees 
limited which is authorised and regulated by the financial conduct 
authority fca the drip offers shareholders the opportunity to  
elect to invest cash dividends received on their ordinary shares in 
purchasing further ordinary shares of the company these shares 
would be bought in the market on competitive dealing terms
the drip will operate automatically in respect of the final dividend  
for 2014 unless varied beforehand by shareholders and all future 
dividends including special dividends until such time as you 
withdraw from the drip or the drip is suspended or terminated  
in accordance with the terms and conditions
important please read action may be required
please note that if you have already elected to participate in the  
drip  unless you take positive action to cancel your participation  
the drip will operate automatically in respect of this and future 
special dividends as it does already for interim and final dividends
shareholder information
notes to the notice of meeting continued
taylor wimpey plc
annual report and accounts 2014
148 it is therefore very important to note that a drip election or the 
revocation of a drip election received or already in place 25 days 
before a dividend payment date will apply to all future dividends 
whether interim final or special dividends until such time as a valid 
new election or revocation of an election is received 
to assist please note the following important dates
final dividend 
record date – friday 10 april 2015
last day for drip elections to apply or to revoke an election  
to the 2014 final dividend – saturday 25 april 2015
pay date – wednesday 20 may 2015
special dividend 
record date – friday 22 may 2015
last day for drip elections to apply or revoke an election  
to the 2015 special dividend – monday 8 june 2015
pay date – friday 3 july 2015
please note than an election or revocation of an election applies  
to all dividends thereafter until such time as further instructions 
are received
crest
for shares held in uncertificated form crest please note that 
elections continue to apply only to one dividend and a fresh election 
must be made via crest for each dividend 
full details of the terms and conditions of the drip and the actions 
required to make or revoke an election both in respect of 
maintenance dividends ie in this case the 2014 final dividend and 
any special dividends are available at wwwcapitashareportalcom  
or on request from the registrar capita asset services the registry 
34 beckenham road beckenham kent br3 4tu email shares
capitacouk tel 0871 664 0381 uk or 44 20 8639 3402 overseas 
resolutions 4 to 11 election of directors
in accordance with the uk corporate governance code which states 
that all directors of ftse 350 companies should be subject to annual 
election by shareholders the board has resolved that all directors  
of the company will retire and being eligible offer themselves  
for reelection by shareholders at the annual general meeting
details of the directors’ service contracts remuneration and interests  
in the company’s shares and other securities are given in the 
directors’ remuneration report to shareholders on pages 66 to 85  
of the report and accounts full biographical information concerning 
each director is on pages 44 and 45 of the report and accounts
the following summary information is given in support of the board’s 
proposal for the reelection of the directors of the company
kevin beeston – offers himself for reelection
kevin has been chairman of the board since july 2010 the board  
is satisfied that he continues to carry out his duties to a very high 
standard including at meetings of the board and of the nomination 
committee which he chairs and the remuneration committee and 
that his other commitments do not detract from the extent or quality 
of time which he is able to devote to the company his biography 
appears on page 44 and there is additional information on page 53
pete redfern – offers himself for reelection
pete has been chief executive since july 2007 and was previously 
group chief executive of george wimpey plc his biography  
appears on page 44 and there is additional information on page 53
ryan mangold – offers himself for reelection
ryan has been group finance director since november 2010  
his biography appears on page 44 and there is additional  
information on page 53
james jordan – offers himself for reelection
james has been group legal director since july 2011 and is  
also the group company secretary a position he has held since  
2007 his biography appears on page 44 and there is additional 
information on page 53 
kate barker dbe – offers herself for reelection
kate has been an independent non executive director since april  
2011 the board is satisfied that she continues to be independent in 
character and judgement in applying her expertise at meetings of the 
board and of the audit nomination and remuneration committees 
and that her other commitments do not detract from the extent or 
quality of time which she is able to devote to the company her 
biography appears on page 44 and there is additional information  
on page 53
baroness ford of cunninghame – offers herself for reelection
margaret has been an independent non executive director since  
april 2013 the board is satisfied that she continues to be 
independent in character and judgement in applying her expertise  
at meetings of the board and of the remuneration committee  
which she chairs and nomination committee and that her other 
commitments do not detract from the extent or quality of time which  
she is able to devote to the company her biography appears on  
page 44 and there is additional information on page 54
mike hussey – offers himself for reelection
mike has been an independent non executive director since july 
2011 the board is satisfied that he is independent in character  
and judgement in applying his expertise at meetings of the board  
and of the audit and nomination committees and that his other 
commitments do not detract from the extent or quality of time which 
he is able to devote to the company his biography appears on page 
44 and there is additional information on page 54
robert rowley – offers himself for reelection
rob has been an independent non executive director since  
january 2010 and the senior independent director since april  
2010 the board is satisfied that he continues to be independent  
in character and judgement in applying his expertise at meetings  
of the board and of the audit committee which he chairs and  
the nomination and remuneration committees and that his other 
commitments do not detract from the extent or quality of time which 
he is able to devote to the company his biography appears on page 
45 and there is additional information on page 54
the board confirms that each of the above directors has recently  
been subject to formal performance evaluation details of which are  
set out in the corporate governance report in the annual report  
on pages 46 to 55 and that each continues to demonstrate 
commitment and to be an effective member of the board in 
compliance with provision b72 of the code the chairman hereby 
confirms that following the formal performance evaluation referred  
to above the performance of each of the non executive directors 
continues to be effective and that each continues to demonstrate 
commitment to the role
wwwtaylorwimpeycouk
149
shareholder information p144153 directors’ report governance p4491 financial statements p92143 strategic report p243 resolution 12 reappointment of deloitte llp deloitte  
as auditors of the company 
the company is required to appoint auditors at each general meeting  
at which accounts are laid before the shareholders it is therefore 
proposed that the auditors are appointed from the conclusion of the 
2015 annual general meeting until the conclusion of the next general 
meeting at which accounts are laid before shareholders following an 
annual review of deloitte’s performance details of which are set out  
on page 62 the board recommends the reappointment of deloitte  
as the company’s auditors
resolution 13 authorisation of the audit committee to agree  
on behalf of the board the remuneration of deloitte as auditors
the board seeks shareholders’ authority for the audit committee  
to determine on behalf of the board the remuneration of deloitte  
for their services the board has adopted a procedure governing  
the appointment of deloitte to carry out nonaudit services details  
of which are given in the audit committee report details of non
audit services performed by deloitte in 2014 are given in note 6  
on page 110 of the report and accounts
resolution 14 authority to allot shares
the directors wish to renew the existing authority to allot unissued 
shares in the company which was granted at the company’s last 
annual general meeting held on 17 april 2014 and is due to expire  
at the conclusion of this annual general meeting accordingly 
paragraph a of resolution 14 would give the directors the authority 
to allot ordinary shares or grant rights to subscribe for or convert any 
securities into ordinary shares up to an aggregate nominal amount 
equal to £10844871 representing 1084487100 ordinary shares 
this amount represents approximately onethird of the issued 
ordinary share capital of the company as at 4 march 2015 the  
latest practicable date prior to publication of this notice of meeting 
in line with guidance issued by the investment association formerly 
the association of british insurers tia paragraph b of resolution 
14 would give the directors authority to allot ordinary shares or grant 
rights to subscribe for or convert any securities into ordinary shares  
in connection with a rights issue in favour of ordinary shareholders  
up to an aggregate nominal amount equal to £21689743 
representing 2168974300 ordinary shares as reduced by the 
nominal amount of any shares issued under paragraph a of 
resolution 14 this amount before any reduction represents 
approximately twothirds of the issued ordinary share capital of the 
company as at 4 march 2015 the latest practicable date prior to 
publication of this notice of meeting
the company does not hold any shares in treasury
the authorities sought under paragraphs a and b of resolution 14  
will expire at the earlier of 22 july 2016 and the conclusion of the  
annual general meeting of the company to be held in 2016
the directors have no present intention to exercise either of the 
authorities sought under this resolution however if they do exercise  
the authorities the directors intend to follow tia recommendations 
concerning their use including as regards the directors standing  
for reelection in certain cases
special resolutions
special resolutions require at least a 75 majority of votes cast  
to be cast in favour 
resolution 15 authority to disapply preemption rights
the board wishes to renew the existing authority from shareholders 
to allot shares or sell any shares held in treasury for cash otherwise 
than to existing shareholders pro rata to their holdings resolution 15 
which will be proposed as a special resolution and therefore requires 
a 75 majority of votes to be cast in favour would give the directors 
the authority to allot ordinary shares or sell any ordinary shares which 
the company elects to hold in treasury for cash without first 
offering them to existing shareholders in proportion to their 
existing shareholdings
this authority would be similar to previous years limited to  
allotments or sales in connection with preemptive offers and offers  
to holders of other equity securities if required by the rights of those 
shares or as the board otherwise considers necessary or otherwise 
up to an aggregate nominal amount of £1626730 representing 
162673000 ordinary shares this aggregate nominal amount 
represents approximately 5 of the issued ordinary share capital  
of the company as at 4 march 2015 the latest practicable date  
prior to publication of this notice in respect of this aggregate nominal 
amount the directors confirm their intention to follow the provisions 
of the preemption group’s statement of principles regarding 
cumulative usage of authorities within a rolling threeyear period 
where the principles provide that usage in excess of 75 should  
not take place without prior consultation with shareholders
the authority will expire at the earlier of 22 july 2016 and the 
conclusion of the annual general meeting of the company  
held in 2016
resolution 16 authority to make market purchases of shares 
any purchases under this authority would be made in one or more 
tranches and would be limited in aggregate to 10 of the ordinary 
shares of the company in issue at the close of business on  
4 march 2015
the maximum price to be paid on any exercise of the authority  
would not exceed the highest of i 105 of the average of the  
middle market quotations for the company’s ordinary shares for the 
five business days immediately preceding the date of the purchase 
and ii the higher of the price of the last independent trade and the 
highest current independent bid on the trading venues where the 
purchase is carried out shares purchased pursuant to these 
authorities could be held as treasury shares which the company can 
reissue quickly and costeffectively and provides the company with 
additional flexibility in the management of its capital base the total 
number of shares held as treasury shall not at any one time exceed 
10 of the company’s issued share capital accordingly any shares 
bought back over the 10 limit will be cancelled the company 
currently holds no shares in treasury
this is a standard resolution sought by the majority of public listed 
companies at annual general meetings the board’s current intention  
of utilising this authority is generally limited to acquiring shares for the 
various share scheme arrangements the board would only consider  
a more formal share purchase programme if it would result in an 
increase in earnings per share and was in the best interests of 
shareholders generally having regard to all relevant circumstances
the total number of options and conditional share awards to 
subscribe for ordinary shares outstanding as at the close of business 
on 4 march 2015 was 42999919 representing approximately  
13 of the issued ordinary share capital of the company as at  
that date and approximately 15 of the company’s issued ordinary 
share capital following any exercise in full of this authority to make 
market purchases
this authority will last until the earlier of 22 october 2016 and the 
conclusion of the company’s annual general meeting in 2016
special business
ordinary resolutions
resolution 17 approval of the directors’ remuneration report  
for the year ended 31 december 2014 
the directors are required to prepare an annual report detailing the 
remuneration of the directors and a statement by the chairman of  
the remuneration committee together the “directors’ remuneration 
shareholder information
notes to the notice of meeting continued
taylor wimpey plc
annual report and accounts 2014
150 report” the company is required to seek shareholders’ approval in 
respect of the contents of this report on an annual basis the vote is 
an advisory one
the company’s remuneration policy was approved by shareholders 
at last year’s agm and remains unchanged in such circumstances 
the policy need not be resubmitted to shareholders for three years 
unless amendments are proposed to it and accordingly there is  
no equivalent resolution at this year’s agm
the directors’ remuneration report is set out on pages 66 to 85 of 
the annual report and accounts
the company’s current remuneration policy is available on the 
company’s web site at wwwtaylorwimpeycoukcorporateinvestor
relationscorporategovernance
resolution 18 authority to make political donations
in order to comply with its obligations under the companies act 2006 
and to avoid any inadvertent infringement of that act the board 
wishes to renew its existing authority for a general level of political 
donation andor expenditure resolution 18 seeks to renew the 
existing authority for the company to make political donations and 
incur political expenditure the companies act 2006 requires this 
authority to be divided into three heads as set out in resolution 18 
with a separate amount specified as permitted for each an amount 
not exceeding £250000 for each head of the authority has been 
proposed in accordance with the companies act 2006 resolution 
18 extends approval to all of the company’s subsidiaries
this authority will expire at the conclusion of the annual general 
meeting of the company in 2016 unless renewal is sought at  
that meeting
the company and the group do not make any donations to political 
parties or organisations and do not intend to going forward but do 
support certain industrywide bodies such as the home builders 
federation in the uk whilst the board does not regard this as 
political in nature in certain circumstances such support together  
with donations made for charitable or similar purposes could possibly 
be treated as a donation to a political organisation under the relevant 
provisions of the companies act 2006 for example a donation to  
a humanitarian charity which may also operate as a political lobby 
sponsorship subscriptions paid leave to employees fulfilling public 
duties and payments to industry representative bodies could 
constitute a donation to a political organisation within the current 
definitions in the companies act 2006 
details of the company’s and the group’s charitable donations 
appear on page 90 of the report and accounts
resolution 19 substantial property transaction
mr pete redfern a director of the company intends to enter into  
a contract to purchase vivienda 55 parcela a urbanización 38 
servera deya es port vell 07559 son servera mallorca at taylor 
wimpey de españa sau’s development at costa beach port vell 
mallorca for the sum of €484500 subject to approval having been 
obtained for the transaction from the company’s shareholders at  
the annual general meeting from taylor wimpey de españa sau  
a wholly owned subsidiary of the company
as the transaction is in excess of £100000 it constitutes a 
substantial property transaction with a director of the company  
under sections 190 and 191 of the companies act 2006 and 
therefore requires the prior approval of shareholders which is being 
sought at this annual general meeting
the costa beach development comprises a residential scheme built 
by taylor wimpey de españa sau the purchase price being paid 
by pete redfern is €484500 representing £353650 at the exchange 
rate of £1  €137 on 4 march 2015 being the latest practicable date 
prior to the completion of this notice of meeting for the purchase of a 
single storey terraced house in addition the purchase includes the 
supply of standard optional fitted extras available routinely to 
independent purchasers on similar commercial terms comprising 
domestic electrical appliances for the kitchen and fixtures for the 
bathroom the purchase price was agreed following a rigorous review 
of the prices already obtained in the open market for similar 
properties less a discount of 5 per cent pursuant to the company’s 
employee discount scheme other than the standard employee 
discount the price being paid by pete redfern assumes that the 
transaction is an arm’s length sale
the calculation of the price payable by mr redfern excluding vat  
is as follows
price upon reservation january 2015 €510000
standard employee discount 5 available  
to all t aylor wimpey employees €25500
price payable by pete redfern excluding extras €484500
extras at full price €5816
t otal price payable by pete redfern €490316
standard reservation fee paid €6000
balance to be paid by pete redfern  
if shareholder approval is given €484316
the agreement between taylor wimpey de españa sau and pete 
redfern will be a standard form sale and purchase agreement used 
by taylor wimpey de españa sau for the costa beach 
development pete redfern has paid a standard reservation fee to 
taylor wimpey de españa sau prior to the annual general meeting 
but the transaction shall be subject to obtaining shareholder approval
the terms of the proposed purchase have been subjected to the 
usual level of scrutiny and review applied to proposed purchases  
by other employees has included a review by internal audit and  
also by the group legal director and company secretary 
the board believes the terms of the proposed agreement are fair  
and reasonable and that the price being paid by pete redfern will  
be the market value of the costa beach property less the standard 
discount of 5 per cent as described above as at the date of 
exchange of contracts
special resolution
resolution 20 notice of general meetings
special resolutions require at least a 75 majority of votes cast  
to be cast in favour 
this resolution will be proposed as a special resolution and therefore 
requires a 75 majority of votes to be cast in favour the companies 
shareholders’ rights regulations 2009 have increased the notice 
period required for general meetings of the company to 21 clear days 
unless shareholders agree to a shorter notice period which cannot  
be less than 14 clear days at the 2014 annual general meeting a 
resolution was passed approving the company’s ability to call general 
meetings other than annual general meetings which will continue to  
be held on at least 21 clear days’ notice on not less than 14 clear 
days’ notice as this approval will expire at the conclusion of this 
annual general meeting resolution 20 proposes its renewal the 
shorter notice period of 14 clear days would not be used as a matter 
of routine for any general meeting but only where the flexibility is 
merited by the business of a particular meeting and is thought to be 
to the advantage of shareholders as a whole the renewed approval 
will be effective until the company’s annual general meeting in 2016 
when it is intended that a similar resolution will be proposed
note that in order to be able to call a general meeting on less than  
21 clear days’ notice the company must in respect of that meeting 
make available electronic voting to all shareholders
wwwtaylorwimpeycouk
151
shareholder information p144153 directors’ report governance p4491 financial statements p92143 strategic report p243 shareholders’ services
web communications
shareholders have previously passed a resolution enabling the company 
to make documents and information available to shareholders by 
electronic means and via a website rather than by sending hard  
copies this way of communicating is enabled in accordance with  
the companies act 2006 rule 6 of the disclosure and transparency 
rules and the company’ s articles of association
making documents and information available electronically
 − enables the company to reduce printing and postage costs
 − allows faster access to information and enables shareholders  
to access documents on the day they are published on the 
company’s website and 
 − reduces the amount of resources consumed such as paper  
and lessens the impact of printing and mailing activities on  
the environment
the company provides hard copy documentation to those 
shareholders who have requested this and is of course happy  
to provide hard copies to any shareholders upon request
the company’s website url is wwwtaylorwimpeycouk and 
shareholder documentation made available electronically is  
generally accessible at wwwtaylorwimpeycoukcorporate
shareholderinformation
electronic communications 
the company also encourages shareholders to elect to receive 
notification of the availability of company documentation by means  
of an email shareholders can sign up for this facility by logging  
onto our website at wwwtaylorwimpeycoukcorporateshareholder
informationelectroniccommunications
online facilities for shareholders
you can access our annual and interim reports and  
copies of recent shareholder communications online at  
wwwtaylorwimpeycoukcorporateinvestorrelationsreportingcentre
to register for online access go to wwwtaylorwimpeycouk
corporateshareholderinformation and click on the service you 
require to access some of these services you will first be required  
to apply online
once you have registered for access you can make online enquiries 
about your shareholding and advise the company of changes in 
personal details
dividend reinvestment plan
you can choose to invest your cash dividends including any special 
dividend in purchasing taylor wimpey shares on the market under 
the terms of the dividend reinvestment plan for further information 
on the plan and how to join contact capita asset services
important please read action may be required
the drip will operate automatically in respect of the final dividend  
or 2014 unless varied beforehand by shareholders and all future 
dividends including special dividends until such time as you 
withdraw from the drip or the drip is suspended or terminated  
in accordance with the terms and conditions
please note that if you have already elected to participate in the  
drip  unless you take positive action to cancel your participation  
the drip will operate automatically in respect of this and future 
special dividends as it does already for interim and final dividends
it is therefore very important to note that a drip election or the 
revocation of a drip election received or already in place 25 days 
before a dividend payment date will apply to all future dividends 
whether interim final or special dividends until such time as a valid 
new election or revocation of an election is received 
to assist please note the following important dates
final dividend 
record date – friday 10 april 2015
last day for drip elections to apply or to revoke an election  
to the 2014 final dividend – saturday 25 april 2015
pay date – wednesday 20 may 2015
special dividend 
record date – friday 22 may 2015
last day for drip elections to apply or revoke an election  
to the 2015 special dividend – monday 8 june 2015
pay date – friday 3 july 2015
please note than an election or revocation of an election applies 
to all dividends thereafter until such time as further instructions 
are received
crest
the company offers shareholders who hold their taylor wimpey 
shares in crest a facility for the receipt of dividends through the 
crest system 
for shares held in uncertificated form crest please note that 
elections continue to apply only to one dividend and a fresh election 
must be made via crest for each dividend 
full details of the terms and conditions of the drip and the actions 
required to make or revoke an election both in respect of 
maintenance dividends ie in this case the 2014 final dividend and 
any special dividends are available at wwwcapitashareportalcom  
or on request from the registrar capita asset services the registry 
34 beckenham road beckenham kent br3 4tu email shares
capitacouk tel 0871 664 0381 uk or 44 20 8639 3402 
overseas
dividend mandates
we strongly encourage all shareholders to receive their cash 
dividends by direct transfer to a bank or building society account 
this ensures that dividends are credited promptly to shareholders 
without the cost and inconvenience of having to pay in dividend 
cheques at a bank if you wish to use this costeffective and simple 
facility complete and return the dividend mandate form attached to 
your dividend cheque additional mandate forms may be obtained 
from capita asset services 
duplicate share register accounts
if you are receiving more than one copy of our annual report it may  
be that your shares are registered in two or more accounts on our 
register of members you might wish to consider merging them into 
one single entry please contact capita asset services who will be 
pleased to carry out your instructions in this regard
lowcost share dealing services
we have arranged both telephone and online share dealing services  
for uk resident taylor wimpey shareholders to buy or sell up to 
£25000 worth of taylor wimpey plc shares the services are 
operated by capita asset services to use the services either visit 
wwwcapitadealcom or telephone 44 0871 664 0446 calls cost 
10p per minute plus network extras lines open 800 am to 430 pm 
monfri to deal you will need to provide your surname postcode 
date of birth and investor code which can be found on your share 
certificate or any form of proxy you have been sent shareholders are 
not in any way obliged to use this service when dealing in the 
company’s shares 
shareholder facilities
taylor wimpey plc
annual report and accounts 2014
152 principal operating addresses
uk
t aylor wimpey plc 
gate house turnpike road 
high wycombe buckinghamshire 
hp12 3nr
t el 44 01494 558323 
fax 44 01494 885663
email twplctaylorwimpeycom 
website wwwtaylorwimpeycouk
registered in england  
and wales number 296805
details of all our operating 
locations are available on our 
website wwwtaylorwimpeycouk
t aylor wimpey uk limited 
gate house turnpike road 
high wycombe buckinghamshire 
hp12 3nr
t el 44 01494 558323 
fax 44 01494 885663
spain
t aylor wimpey de españa sau 
caragon 223223a 
07008 palma de mallorca 
mallorca 
spain
t el  34 971 706570 
fax  34 971 706565
taylor wimpey and ‘crest’
taylor wimpey shares can be held in ‘crest’ accounts which do  
not require share certificates this may make it quicker and easier for 
some shareholders to settle stock market transactions shareholders 
who deal infrequently may however prefer to continue to hold their 
shares in certificated form and this facility will remain available for the 
time being pending the likely general introduction of dematerialised 
shareholdings in due course
taylor wimpey share price
our share price is printed in many of the uk daily newspapers and  
is also available on our website wwwtaylorwimpeycoukcorporate
sharepricecentre it appears on bbc text and other digital television 
interactive services it may also be obtained by telephoning the  
ft cityline service on telephone 44 09058 171690 and ask for  
‘taylor wimpey’ on the voice activated response calls cost 75p  
per minute from a bt landline other networks may vary
gifting shares to charity
if you have a small holding of t aylor wimpey plc shares you may wish  
to consider gifting them to charity  y ou can do so through ‘sharegift’ 
which is administered by a registered charity  orr mackintosh foundation 
limited shares gifted are reregistered in the name of the charity  
combined with other donated shares and then sold through stockbrokers 
who charge no commission the proceeds are distributed to a wide 
range of recognised charities for further details please contact capita 
asset services or approach sharegift directly on wwwsharegiftorg or 
telephone them on 44 020 7930 3737
unsolicited approaches to shareholders  
and “boiler room” scams
we receive reports from time to time from t aylor wimpey shareholders 
who have each received what appear to be fraudulent approaches from 
third parties with respect to their shareholding in the company in some 
cases these are ‘cold calls’ and in others correspondence they 
generally purport to be from a firm of solicitors or an investment 
company and offer or hold out the prospect of large gains on t aylor 
wimpey shares or other investments you may hold
the approaches normally include the seeking of an advance payment 
from the shareholder the disclosure of the shareholder’ s bank details  
or the sale of an unrelated investment shareholders are advised to  
be extremely wary of such approaches and advised to only deal with 
firms authorised by the uk financial conduct authority fca you  
can check whether an enquirer is properly authorised and report scam 
approaches by contacting the fca on wwwfcaorgukconsumers or 
by calling 0845 606 1234
annual general meeting
1100 am on 23 april 2015 at
the british medical association bma house tavistock square 
london wc1h 9jp  
latest date for receipt of proxy instructions for the 2015  
annual general meeting 1100 am on 21 april 2015
group legal director and company secretary  
and registered office
james jordan 
gate house 
turnpike road 
high wycombe 
buckinghamshire hp12 3nr 
tel 44 01494 558323 
fax 44 01494 885663 
email jamesjordantaylorwimpeycom
registrar
for any enquiries concerning your shareholding or details  
of shareholder services please contact
capita asset services 
the registry 
34 beckenham road 
beckenham 
kent 
br3 4tu 
email shareholderenquiriescapitacouk 
tel 0871 664 0300 uk
calls cost 10p per minute plus network extras lines are open  
830 am to 530 pm monfri
tel 44 20 8639 3399 from overseas
auditors
deloitte llp
solicitors
slaughter and may
stockbrokers
jp  morgan cazenove 
jefferies hoare govett
kpi
  shareholders can sign up for this facility namely electronic communications  by logging  
onto our website at wwwtaylorwimpeycoukcorporateshareholderinformation
electroniccommunications
more information online
shareholder information p144153
wwwtaylorwimpeycouk
153
directors’ report governance p4491 financial statements p92143 strategic report p243 wwwtaylorwimpeycouk
annual report and accounts 2014 wwwtaylorwimpeycouk
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Summary:
 we are well positioned for the future 
chief executive’s review
2014 summary
in 2014 we saw the positive benefit of the improved 
environment in all of our regional markets and we were 
pleased to see greater balance across the regional 
markets coming into effect in the second half of 2014 
with slower and more sustainable price growth after  
a very strong first half
customer demand remained high across all regions  
and was helped by a more affordable and accessible 
mortgage market due both to help to buy and a more 
competitive lending environment 
against this backdrop and in line with our strategy  
we have continued to grow steadily and sustainably 
delivering increased completions and creating additional 
value increasing operating profit by 536 to £4807 
million 2013 £3129 million
2014 was an important year for the group as we met  
or exceeded all previous financial targets and committed 
to delivering more by setting new stretching targets for 
the medium term which i will detail later we are pleased 
that in 2014 we have made significant progress towards 
all of these medium term targets more information on  
our financial performance can be found in the group 
financial review section on pages 40 to 43 alongside  
this there were many operational highlights including 
achieving a record contribution per completion of £496k 
2013 £388k significantly increasing our intake of 
trainee and apprentice programmes and contributing 
£300 million to local communities across the uk via 
planning obligations providing infrastructure affordable 
homes public transport and education 
health and safety is our nonnegotiable top priority and 
we were particularly pleased to see that this was reflected 
in our 2014 employee survey which found that 99  
of our staff believe that taylor wimpey is committed  
to health and safety and keeping people safe we have 
continued to keep our uk annual injury incidence rate 
aiir low at 209 per 100000 employees and contractors 
in 2014 2013 207 we reduced our aiir for major 
injuries from 60 in 2013 to 26 in 2014
proactively managing the cycle 
our views about managing the cycle have not changed 
housebuilding is a cyclical industry and whilst sensible 
measures from government interest rate setters and 
regulators can help to reduce the scale of that cyclicality 
we do not believe it can be removed completely 
therefore whilst we remain focused on delivering strong 
returns and growth we are also mindful of mid and long 
term risk this means that we need to take a more active 
approach to managing the cycle than has been historically 
undertaken in the business or the sector we are 
2014 group highlights
 − 672 increase in adjusted basic earnings per share
††
 to 112 pence  
from 67 pence
 − 536 increase in operating profit to £4807 million 2013 £3129 million 
 − continued to keep our uk annual injury incidence rate low at 209 per  
100000 employees and contractors in 2014 2013 207
 − £497 million cash returned to shareholders in 2014 and c£250 million  
announced for 2015 subject to shareholder approval 
 − doubled our maintenance dividend payout to 2 of net assets subject  
to shareholder approval 
“ we have delivered an excellent 2014 
performance growing steadily and  
sustainably and creating additional value”
pete redfern
chief executive
taylor wimpey plc
annual report and accounts 2014
10 pete redfern
chief executive
responsibilities 
as head of the gmt my responsibilities include key strategic  
and operational decisions corporate responsibility and health  
and safety
ryan mangold
group finance director
responsibilities 
ryan’s role covers all areas of finance including tax treasury 
and managing the group’s defined benefit pension scheme 
as well as information technology ryan also plays an active part 
in our investor relations programme
james jordan
group legal director and company secretary
responsibilities 
james is responsible for our company secretariat department  
as well as overseeing all legal matters from plot conveyancing  
to land buying
anne billsonross
group human resources director
responsibilities 
anne has responsibility for all areas of human resources including 
recruitment benefits talent and performance management
fergus mcconnell
divisional chairman north
responsibilities 
fergus oversees the 10 regional businesses within our  
north division he is also the project sponsor for our new  
it system
peter truscott
divisional chairman south
responsibilities 
peter heads our south division which contains 14 regional businesses 
and also has responsibility for our business in spain
peter andrew
uk land and planning director
responsibilities 
peter oversees our strategic land team and is leading our response  
to the evolving uk planning system
ingrid skinner
managing director central london
responsibilities 
ingrid oversees the central london regional business and 
also has responsibility for the integrated london strategy 
lee bishop
major developments director
responsibilities 
lee is managing our new major developments business which  
has been specifically created to secure and project manage large  
scale land opportunities lee joined the gmt on 1 january 2015
currently operating in a housing market underpinned  
by a significant structural demand and supply imbalance 
housing remains high on the political agenda with 
recognition of the importance of housebuilding to the 
economy and the need for more quality homes in the  
uk by all of the main political parties whilst there remains 
uncertainty around the outcome of the general election in 
may consumer confidence remains solid and is supported 
by healthy underlying demand low interest rates and high 
levels of employment we therefore consider that the uk 
near term market risk is low 
we believe that we are currently operating at the early 
stages of the housing cycle the charts on pages  
14 to 15 show some of the key external measures  
we follow closely and these will change depending  
on the stage of the cycle however the housing cycle  
is influenced by many factors and these should not 
be viewed in isolation
our strategy 
taylor wimpey’s vision is to become the uk’s leading 
residential developer for creating value and delivering 
quality across the housing cycle since we set out our 
strategy in 2011 we have seen the transformation of 
taylor wimpey to a value driven business with a long 
term focus on generating the best quality sustainable 
returns we are confident that we can achieve this as  
a result of three key differentiating factors
1  we have invested in new land in a disciplined way  
at the right time and in the right locations this has 
been supported by record conversions in the last few 
years from our strategic pipeline adding to the scale 
quality and future profitability of the landbank
2  we have a clear view on the right size of our 
business and our focus is on delivering sustainable 
growth and value generation in a balanced 
consistent way through the housing cycle
3  we believe that the underlying quality of the  
business is very important and is worth investing  
in this includes our nonnegotiable approach to 
health and safety and our focus on people and 
customer service
following a period of strong investment we are  
now at our optimum size of landbank at c75k plots 
equating to csix years of supply at current completion 
levels we have therefore moved to a land replacement 
position in the short term land market and together 
with the increasing profitability of the business are 
becoming increasingly cash generative this has 
enabled us to move to a phase focused on delivery 
maximising the returns from our investments and 
the group management t eam
the group management team gmt which is responsible for the day to day 
running of the company comprises
kpi view full biographies online at wwwtaylorwimpeycoukaboutuswhoweare
wwwtaylorwimpeycouk
11
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 our focus is on maximising the returns  
from our investments and ensuring that  
the business is optimally positioned to  
deliver sustainable returns
continuing to ensure that the business is optimally 
positioned to deliver those returns on a sustainable 
basis in may 2014 we announced a set of stretching 
financial targets for the period 2015 to 2017 to 
challenge the business to deliver even more over  
the medium term
these targets each of which is applicable for the 
period 2015 to 2017 are to achieve 
 − an average operating profit margin of 20 over  
the three year period 
 − a return on net operating assets of at least  
20 per annum 
 − an average increase in net assets including returns 
to shareholders of 15 per annum over the three 
year period 
 − an average conversion of at least 65 of operating 
profit into operating cash flow
†††
 over the three 
year period
whilst we clearly do not expect to deliver all of these 
three year targets in 2015 we do expect to show 
significant progress towards all of them 
more information on these targets and how they fit into 
our long term strategy through the cycle can be found  
on pages 16 to 17
our strategy is underpinned by our strategic principles 
set out on page 18 
we want to earn returns but how we do this is equally 
important to us our cultural principles underpin 
everything we do these are set out on page 19
our business model is based on a value cycle and  
each component of the value cycle is important in order 
to achieve our strategic objectives each element of  
our business model is detailed in full on pages 18 to 25  
we believe that sustainability is fundamental to each 
aspect of the value cycle and therefore to the long  
term success of the company further information on 
sustainability can be found on pages 30 to 33 and within 
our dedicated sustainability report 2014 
dividend and cash return policy 
in 2014 we set out the principles and policy of returning 
surplus cash to shareholders at the appropriate times in 
the cycle in addition to our regular maintenance dividend 
reflecting both our confidence in our performance and 
the underlying resilience of the market we have 
announced the doubling of the maintenance dividend 
payout to 2 of net assets which is at the top end  
of previous guidance subject to shareholder approval 
this will give a proposed 2014 final maintenance dividend 
of 132 pence per share to be paid on 20 may 2015 to 
shareholders on the register at the close of business on 
10 april 2015 2013 final dividend 047 pence per share 
in combination with the interim dividend of 024 pence 
per share 2013 interim dividend 022 pence per share 
this gives a total maintenance dividend for the year of 
156 pence per share 2013 total maintenance 069 
pence per share
on 3 july 2014 we commenced the return of surplus 
cash to shareholders with a £497 million special  
cash payment equating to 154 pence per share  
as we previously announced on 30 july 2014 we will 
return approximately £250 million to shareholders on  
3 july 2015 equating to 768 pence per ordinary share 
to shareholders on the register at close of business on  
22 may 2015 subject to shareholder approval at the 
2015 agm going forward surplus cash returns will 
continue to form a significant proportion of our annual 
total return to shareholders these cash returns will be 
set on an annual basis in line with the cash generation  
of the business they will be announced at our half year 
results and paid the following year a key part of the 
rationale of our approach to running the business in  
a sustainable way is to give investors a significant 
consistent and reliable dividend stream 
chief executive’s review continued
total order  
book value
£1397m
in 2014
short term owned and 
controlled landbank
c75k 
plots in 2014
operating profit

 margin 
179
in 2014
taylor wimpey plc
annual report and accounts 2014
12 our customers
in 2014 we achieved a customer satisfaction rate of 87 
2013 90 with the decrease reflecting the challenge  
to deliver our homes on time as the labour market 
adapted to the better sales market whilst this remains 
high in comparison to historic trends we are very 
disappointed that this has decreased during 2014 we 
began an indepth review of every aspect and stage of 
our customer journey to identify areas of improvement 
and to deliver a better homebuying experience for our 
customers this is a very important area for us and will 
continue to be a key focus in 2015 and on an ongoing 
basis as we work to realise improvements to our service 
and to our customers’ experience more information can 
be found on pages 22 and 38
our people 
i would like to take this opportunity to reiterate kevin’s 
words of thanks to the teams and the individuals across 
our business i believe we have the best people in  
the industry and we want to make taylor wimpey  
the employer of choice and establish a culture 
where individuals from all backgrounds can reach 
their full potential 
whilst we have done a lot over the last few years in 
developing our people we recognise there is still more  
to do we will be focusing on the areas of learning and 
development and building on our success in our training 
programmes in 2015
our new group human resources director anne billson
ross is working with our gmt and the wider business to 
update the human resources strategy for t aylor wimpey 
and drive further improvement in 2015 
i am also extremely proud of the efforts of our employees 
around the country supporting our chosen charities  
in total during 2014 we raised over £539k 2013 £415k 
for registered charities through donations and fundraising 
more information on this can be found on page 31 just 
one example of this was in march 2014 where nearly 200 
of our staff from across 80 of the regional businesses 
completed taylor wimpey’s inaugural teambuilding event 
in the brecon beacons with an aim to climb the welsh 
national park’s 10 highest mountains in 10 hours for the 
youth adventure trust a charity which provides 
adventure camps and day activities for disadvantaged 
children aged between 11 and 14 to enable them to 
experience success learn to go beyond their own 
expectations and grow in confidence our 45 teams 
raised over £141k this was the highest amount raised  
in a single event in the charity’s history we are also 
looking forward to building on this with our next all
employee challenge in may 2015 
diversity 
during 2014 we continued to focus on diversity and 
inclusion we remain committed to the belief that 
embracing diversity and inclusion will enable taylor 
wimpey to succeed through a workforce that is creative 
and innovative we continue to actively embrace the 
business and local communities in which we operate  
and will strive to reflect their richness and character by 
including such aspects as gender race and religion but 
also diversity of thought background and experience  
in 2014 we undertook a range of activities including 
establishing a senior management working party to 
create a diversity and inclusion strategy for further  
detail please see pages 57 to 59
outlook 
looking forward and as i mentioned previously we  
are currently operating in a housing market underpinned  
by a significant structural demand and supply imbalance 
housing remains high on the political agenda with 
recognition of the importance of housebuilding to the 
economy and the need for more quality homes in the  
uk by all of the main political parties whilst there remains 
uncertainty around the outcome of the general election  
in may consumer confidence remains solid and is 
supported by healthy underlying demand low interest 
rates and high levels of employment we therefore 
consider that the uk near term market risk is low
the beginning of the spring selling season has seen  
both demand and trading at the better end of our 
expectations net private sales rates for the year to date 
we 1 march 2015 of 070 are at healthy levels 2014 
equivalent period 072 and within the range we see as 
sustainable with slower market growth we anticipate 
reducing build cost pressure in 2015 
as at 1 march 2015 we are 51 forward sold for private 
completions for 2015 with a strong total order book of 
£1657 million 2014 equivalent period £1529 million
this together with our strong landbank with over 50  
of plots sourced from the strategic pipeline positions us 
well for 2015 and beyond we remain confident that our 
long term strategy enhanced by the stretching medium 
term targets we announced in may 2014 will enable us 
to maximise the best quality returns from our investments 
on a sustainable basis across the housing cycle
for more information
2014 market conditions pages 1415
an overview of the industry and market in 2014
our strategy pages 1617
a more detailed look at how our medium term  
targets fit in with our long term strategy through  
the cycle and our investment proposition
group financial review pages 4043
our 2014 financial performance
wwwtaylorwimpeycouk
13
directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243 total
private
housing associations 
council
2014 market conditions
industry and market overview
we are currently operating in a housing market underpinned by a significant structural demand and supply imbalance housing remains high 
on the political agenda with recognition of the importance of housebuilding to the economy and the need for more quality homes in the uk  
by all of the main political parties whilst there remains uncertainty around the outcome of the general election in may consumer confidence 
remains solid and is supported by healthy underlying demand low interest rates and high levels of employment we therefore consider that  
the uk near term market risk is low
increase in 
planning approvals
21
year on year  
q1q3 2014
planning
the changes to the planning system in the last few years including the localism act and national planning policy framework are having a 
positive impact on the planning system we continue to monitor this along with the recently introduced community infrastructure levy cil 
and the time taken to achieve implementable planning permission to start on site
planning policy and regulation
planning remains the fundamental constraint in the uk  
in recent years there have been a number of changes  
to the planning system with the implementation of the 
national planning policy framework localism act the 
community infrastructure levy cil and the national 
planning policy guidance 
planning approvals
according to the home builders federation hbf 
planning approvals increased by 21 year on year  
to 161283 in the year to september 2014 
c141k 
uk housing  
completions  
in 2013  2014
completions 
the new build market in the uk accounts for c10 of all transactions taylor wimpey is one of the largest homebuilders in the uk  
building 12454 homes in 2014 in addition we build affordable housing across the uk representing 175 of our 2014 completions
housing completions
in 2014 we completed 12454 homes up 65  
2013 11696 at an average selling price of £213k 
115 higher than in 2013
according to the department for communities and  
local government dclg during the financial year 
ended 2013  2014 total completions in the uk increased 
4 to c141k with private developers accounting for 
c79 of the total completions this is still well below  
the recent peak of 2006  2007 of 219k and significantly 
below the current estimate of new homes needed in the 
uk per annum of 250k
 
 
 
source dclg
source hbf
1970 1980 1991 2002 2014
uk housing completions by sector
number of completions
financial year ending
0 400000
residential units approved – 
 change year on year   
xx
north 
of england midlands
southern 
england england wales scotland
great 
britain
● 2014 q1q3
● 2013
● 2012
● 2011
0
10
20
20
30
10
30
40
50
60
70
80
taylor wimpey plc
annual report and accounts 2014
14 value of  
mortgage approvals 
105
in 2014
london
uk
mortgage availability and affordability 
we build a wide range of homes from onebedroom apartments to fivebedroom houses with prices ranging from below £100000 to  
over £3 million the majority of the homes that we build are sold to individual purchasers who take on significant mortgages to finance  
their purchases mortgage availability and affordability therefore are key factors
during 2014 we have continued to see an improvement 
in customer sentiment and an increase in sales rates  
as customers already feeling more confident were able 
to gain access to a healthier mortgage market helped 
through help to buy and a more willing and competitive 
banking system
in 2014 mortgage availability including for higher loan  
to value mortgages continued to improve with the total 
value of mortgage approvals for home purchases up 
105 at £124894 million 2013 £112985 million 
according to the bank of england data with property 
transactions 136 higher at 1219710 2013 1073560 
05 
bank of england  
base rate  
in 2014
affordability in 2014
with the bank of england base rate remaining low  
at 05 throughout 2014 mortgage affordability has 
improved with interest rates for new build properties 
approximately 065 lower than in 2013 
average mortgage payments as a  of takehome pay 
also rose slightly to 340 for the first three quarters  
of 2014 from 326 in 2013 according to nationwide 
this remains below the recent peak in 2007
 
 
 
source bank of england
source nationwide  bank of england
mortage payments as  of 
takehome pay  interest rates
xx
interest rate 
16
14
12
10
8
6
4
2
1983 1987 2014 1992 1996 2001 2005 2010
0
10
 of takehome pay
20
30
40
50
60
70
80
90
100
value of approvals for mortgages
jan 2013 dec 2013 dec 2014
xx
£m
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directors’ report governance p4491 financial statements p92143 shareholder information p144153 strategic report p243