I N V E S T O R P R E S E N T A T I O N Q 1 2 0 2 0 2 F O R W A - PowerPoint PPT Presentation

I N V E S T O R P R E S E N T A T I O N Q 1 2 0 2 0

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F O R W A R D - L O O K I N G S T A T E M E N T S This presentation may include “forward ‐ looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Although D.R. Horton believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Factors that may cause the actual results to be materially different from the future results expressed by the forward ‐ looking statements include, but are not limited to: the cyclical nature of the homebuilding and lot development industries and changes in economic, real estate and other conditions; constriction of the credit and public capital markets, which could limit our ability to access capital and increase our costs of capital; reductions in the availability of mortgage financing provided by government agencies, changes in government financing programs, a decrease in our ability to sell mortgage loans on attractive terms or an increase in mortgage interest rates; the risks associated with our land and lot inventory; our ability to effect our growth strategies, acquisitions or investments successfully; the impact of an inflationary, deflationary or higher interest rate environment; home warranty and construction defect claims; the effects of health and safety incidents; the effects of negative publicity; supply shortages and other risks of acquiring land, building materials and skilled labor; reductions in the availability of performance bonds; increases in the costs of owning a home; the effects of governmental regulations and environmental matters on our homebuilding and land development operations; the effects of governmental regulations on our financial services operations; our ability to manage and service our debt and comply with related debt covenants, restrictions and limitations; competitive conditions within the homebuilding and financial services industries; the effects of the loss of key personnel; and information technology failures and data security breaches. Additional information about issues that could lead to material changes in performance is contained in D.R. Horton’s annual report on Form 10 ‐ K and subsequent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission. 3

D . R . H O R T O N , I N C . T R A D E D O N N Y S E A S D H I 58,434 $18.1 billion $2.3 billion Annual homes closed Annual consolidated revenues Annual pre ‐ tax income 18.7% & 18.2% $10.2 billion $27.92 ROI (HB) & ROE, respectively* Stockholders’ equity Book value per common share As of or for the twelve-month period ended December 31, 2019 *See slides 12 and 13 for definition of ROI [Return on Inventory (Homebuilding)] and ROE (Return on Equity) 4

G E O G R A P H I C D I V E R S I F I C A T I O N 9 0 M A R K E T S | 2 9 S T A T E S 6% 9% 27% EAST 12% MIDWEST Delaware, Maryland, Colorado, Illinois, Inventory New Jersey, North Indiana, Iowa, 21% and South Carolina, 25% Minnesota, Ohio Pennsylvania, Virginia SOUTH CENTRAL SOUTHEAST Louisiana Alabama, Florida, Oklahoma Georgia, Mississippi, Texas Tennessee 5% 7% WEST 29% SOUTHWEST 13% California, Hawaii, Arizona Homebuilding Nevada, Oregon, New Mexico Utah, Washington Revenue 21% 25% As of or for the twelve-month period ended December 31, 2019 Savannah, Georgia is included in the East Region; Atlanta and Augusta, Georgia are included in the Southeast Region 5

D I V E R S E P R O D U C T O F F E R I N G S A N D P R I C E P O I N T S Homes for entry-level, move-up, active adult and luxury buyers 67% of homes closed <$300k $300k - $500k >$500k $0 - $200k $200k - $250k $250k - $300k 9% 33% 28% 25% 5% Represents homes closed & price points for the twelve months ended 12/31/19 6

F A M I L Y O F B R A N D S Homes Homes Home Average # of # of Sold Closed Sales Selling Markets States Revenue Price 61% 61% 64% $316k 90 29 34% 34% 28% $245k 58 19 3% 3% 3% $285k 27 13 2% 2% 5% $593k 26 14 As of or for the twelve months ended December 31, 2019 7

M A N A G E M E N T T E N U R E A N D E X P E R I E N C E Executive Team & Region Presidents 25 years Division Presidents ~ 15 years City Managers >10 years Average employee tenure 8

D H I G R O W T H , C O N S O L I D A T I O N A N D M A R K E T S H A R E Total New U.S. Single-Family Houses Sold ('000s) 1,400 10% DHI Homes Closed as a Percentage of U.S. Single-Family New Home Sales 9% 1,200 8% 1,000 7% 6% 800 5% 600 4% 3% 400 2% 200 1% 0 0% 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Source: Company filings, Census Note: Periods represent full calendar year 9

M A R K E T S H A R E D O M I N A N C E D.R. Horton Share and Rankings in Largest U.S. Housing Markets Top 5 Markets Top 50 Markets 50 18% 16% 43 40 14% 38 12% 30 31 10% 8% 20 6% 13 4% 10 2% 0 0% #1 Top 5 Top 10 Operate In DFW Houston Atlanta Phoenix Austin DHI Market Share Next Ranking Competitor Market Share Source: Builder magazine ‐ 2019 Local Leaders issue, rankings based on homes closed in calendar 2018 and proforma for D.R. Horton’s acquisition of Westport Homes, a top 5 builder in Indianapolis, IN and Columbus, OH, which closed in November 2018 10

H O M E B U I L D I N G O P E R A T I O N A L F O C U S • Maximize returns by managing inventories, sales pace and pricing in each community • Consolidate market share while generating strong profits and operating cash flow • Maintain sufficient inventories of land, lots and homes to support growth plans • Underwriting expectations for each community: • Minimum 20% annual pre tax return on inventory (ROI) • Initial cash investment returned within 24 months or less • Increase lots controlled by expanding relationships with developers • Continue to grow Forestar’s lot manufacturing platform • Control SG&A while ensuring infrastructure supports targeted growth 11

E M P H A S I S O N R E T U R N O N I N V E N T O R Y ( R O I ) Homebuilding ROI expected to remain strong in the 18% to 20% range 20% 20.2% 19.3% 18.7% 18.1% 16.6% 15% 10% 5% 0% FY 2017 FY 2018 TTM 12/31/18 FY 2019 TTM 12/31/19 Homebuilding ROI is calculated as homebuilding pre ‐ tax income for the year divided by average homebuilding inventory. Average homebuilding inventory in the ROI calculation is the sum of ending homebuilding inventory balances for the trailing five quarters divided by five. 12

R E T U R N O N E Q U I T Y ( R O E ) ROE has improved to the high-teens while leverage has decreased HB leverage ROE 20% 40% 18.2% 18.2% 17.6% 17.2% 15% 30% 14.4% 10% 20% 5% 10% 0% 0% FY 2017 FY 2018 TTM 12/31/18 FY 2019 TTM 12/31/19 ROE Leverage ROE is calculated as net income divided by average stockholders’ equity. Average stockholders’ equity in the ROE calculation is the sum of ending stockholders’ equity balances for the trailing five quarters divided by five. Leverage is calculated as homebuilding notes payable divided by stockholders’ equity plus homebuilding notes payable. 13

B O O K V A L U E P E R S H A R E Consistent annual double-digit percentage growth in book value per share $27.92 $27.20 $25.00 $24.45 $23.88 $20.00 $20.66 $15.00 $10.00 $5.00 $0.00 9/30/2017 9/30/2018 12/31/2018 9/30/2019 12/31/2019 14

C A P I T A L A N D C A S H F L O W P R I O R I T I E S • Balanced, disciplined, flexible and opportunistic; focused on enhancing long-term value • Invest in homebuilding business, including acquisitions • Invest in DHI Communities, our multi-family rental company • Maintain conservative homebuilding leverage • $500 million senior note maturity in Q2 FY 2020 • Consistent dividends to shareholders • Increased cash dividend per share by 17% in Q1 FY 2020 • Approximately $250 million annually • Repurchases of common stock to reduce outstanding shares • Repurchased 3.0 million shares during Q1 2020 for $163.1 million • $732.6 million remaining share repurchase authorization with no expiration date 15

C A S H F L O W A T W O R K Utilization of $4 billion of cash generated by homebuilding operations 1,800 5 Year Cumulative Capital $1,438 1,600 1,400 Cash Flow from $4.0B Homebuilding Operations 1,200 $1,002 Acquisitions $1.0B 1,000 $581 800 Homebuilding Senior $1.4B $600 $304 Notes Paydown 600 Shareholder Return $1.4B 400 through Dividends and Share Repurchases 200 0 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 Acquisitions Debt Paydown Dividends Share Repurchases HB Cash Flow from Ops 16