I N V E S T O R P R E S E N T A T I O N Q 2 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 2 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 effects of public health issues such as a major epidemic or pandemic, including the impact of COVID-19 on the economy and our businesses; 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 reports on Form 10-Q, all of which are or will be filed with the Securities and Exchange Commission. 3

C O V I D - 1 9 P A N D E M I C ( “ C - 1 9 ” ) • Economic fundamentals remained solid in the housing market throughout most of Q2 FY20; however, during the latter part of March and into April, the impacts of C-19 and the related widespread reductions in economic activity began to negatively affect the Company’s business operations and the demand for its homes across all of its operating markets • The Company has experienced increases in sales cancellations and decreases in sales orders in late March and April as compared to the same period in the prior year • In almost all municipalities across the U.S. where the Company operates, residential construction and financial services have been designated as essential businesses as part of critical infrastructure, and D.R. Horton has continued its homebuilding, lot development and financial services operations in those markets where allowed while implementing operational protocols to comply with social distancing and other health and safety standards • The Company’s mortgage subsidiary has experienced lower pricing and gains on sales of mortgage loans and servicing rights in late March and April due to disruption in the secondary mortgage market, and many purchasers and servicers of mortgages have limited their purchases and tightened their credit standards due to liquidity and operational challenges caused by C-19 and the uncertainty of the impact of the borrower forbearance provisions of the federal CARES Act enacted in late March 2020 • The extent to which C-19 impacts the Company’s operational and financial performance will depend on future developments, including the duration and spread of C-19 and the impact on D.R. Horton’s customers, trade partners and employees, all of which are highly uncertain and cannot be predicted • The Company believes it is well positioned to operate in this uncertain environment, with experienced operating teams, low leverage and a strong liquidity position, and the Company intends to maintain its flexible operational and financial position by generating strong cash flows from its homebuilding operations, limiting land acquisition and land development spending and adjusting its product offerings, incentives, home pricing, sales pace and inventory levels to optimize the return on its inventory investments in each of its communities based on local housing market conditions 4

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 $18.5 billion $2.4 billion 20.2% & 19.1% Consolidated revenues Consolidated pre-tax income ROI (HB) & ROE, respectively* $10.5 billion $28.77 19.2% Stockholders’ equity Book value per common share Homebuilding leverage* As of or for the twelve-month period ended March 31, 2020 *See slides 16 and 17 for definitions of ROI [Return on Inventory (Homebuilding)], ROE (Return on Equity) and homebuilding leverage 5

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 59,493 Homes Closed during TTM ended 3/31/2020 1,400 10% 2019 Closings: 9% 58,434 1,200 8% 1,000 7% 6% 2006 Closings: 800 53,410 2011 Closings: 5% 17,176 600 4% 3% 400 2% 200 1992 Closings: 1% 1,231 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 Total New U.S. Single-Family Houses Sold ('000s) DHI Homes Closed as a Percentage of U.S. Single-Family New Home Sales Source: Company filings, Census Note: Periods represent full calendar year 6

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 7

S A L E S A N D C L O S I N G S – Q 2 A N D M O N T H O F M A R C H Net Sales Orders and Homes Closed increased 20% and 8%, respectively, in Q2 FY 2020 compared to Q2 FY 2019 # of Homes # of Homes 10,000 20,000 17,500 7,500 15,000 12,500 5,000 10,000 7,500 2,500 5,000 2,500 0 0 Sales Closings Sales Closings 2Q FY 2019 2Q FY 2020 March 2019 March 2020 8

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 ~27 years Division Presidents ~15 years City Managers >10 years Average employee tenure 9

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 • Strong balance sheet, ample liquidity and low leverage provide significant financial flexibility to withstand difficult economic conditions • Invest in homebuilding business • Currently, due to uncertain market conditions, cautiously managing inventory of homes under construction, temporarily stopped purchases of raw land in late March and closely managing all finished lot purchases and development spending • Invest in DHI Communities, our multi-family rental company • Continuing lease-up and construction of four active projects • Delaying new acquisitions and deferring starting construction on other projects until clearer visibility into market conditions • Maintain conservative homebuilding leverage • $400 million of senior note maturities in next twelve months • Dividends to shareholders • Repurchases of common stock • Plan to cautiously manage level of share repurchases in the near-term until there is better visibility to future market conditions and the company’s expected operating results 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 • The Company’s strategy remains consistent, while making operational adjustments and limiting capital investments as a result of C-19 • 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 • Expanding relationships with land developers to increase lots controlled • Continue to grow Forestar’s lot manufacturing platform • Control SG&A while ensuring infrastructure supports the business 11