Builder 100 2008

Slide 1: The BUILDER 100: Ripped from the Headlines

Slide 2: Ripped from the Headlines  High-profile builders declare bankruptcy  Housing recession enters third year  Cancellations reach all- time high  Public companies actually lose money  Builder confidence falls to all-time low

Slide 3: What Does the Typical BUILDER 100 Company Look Like? 3,597 Closed homes, compared to 5,007 in 2006 19.23, Closings decreased by compared to growth of 0.25% in 2006 $1.189 billion in Recorded revenue; $1.7 billion in 2006 21.86% Decreased revenue by compared to 9.25% in 2006

Slide 4: The Biggest Home Builders Shrink in Size BUILDER 100 companies 21 grossed more than $1 billion in revenue BUILDER 100 companies are 8 counted among the top 500 companies in the United States, according to Fortune magazine

Slide 5: BUILDER 100 Closings Plummet BUILDER 100 CLOSINGS (in thousands) 504.6 500.7 448.8 393.1 359.7 344.5 320.8 2001 2002 2003 2004 2005 2006 2007

Slide 6: BUILDER 100 Market Share: Takes a Step Back BUILDER 100 SINGLE-FAMILY HOME CLOSINGS 43.58% 41.17% 35.74% 36.57% 34.43% 32.64% 33.26% 2001 2002 2003 2004 2005 2006 2007

Slide 7: The Top 10 Builders: Share Holds Steady TOP 10 BUILDERS’ SHARE OF U.S. CLOSINGS 25.71% 24.18 20.97% 19.34% 19.70% 18.52% 16.75% 2001 2002 2003 2004 2005 2006 2007

Slide 8: Change on the Leader Board 2007 CLOSED 2006 CLOSED 37,717 53,410 1. D.R. Horton 1. D.R. Horton 49,568 33,283 2. Lennar 2. Lennar 41,487 30,684 3. Pulte Homes 3. Centex 37,539 27,540 4. Centex 4. Pulte Homes 32,124 23.743 5. KB Home 5. KB Home 20,201 14,928 6. Hovnanian Enterprises 6. Hovnanian Enterprises 17,500 13,513 7. Beazer Homes 7. NVR 15,392 11,366 8. The Ryland Group 8. Beazer Homes USA 15,123 10,319 9. NVR 9. The Ryland Group 13,123 10. M.D.C. Holdings 8,195 10. M.D.C. Holdings

Slide 9: Acquisitions Take a Break ACQUISITIONS 25 20 15 10 5 0 2001 2002 2003 2004 2005 2006 2007

Slide 10: How Much Influence Do the Public Builders Wield? 255,819 closings accounted for Their 29.28% of the housing market

Slide 11: Fastest-Growing Public Company (Based on Three-Year Compound Rate) Comstock Homebuilding Cos. Reston, Va.

Slide 12: Biggest For-Profit Private Builders RANK / BUILDER U.S. CLOSINGS 1. David Weekley 4,587 2. Shea Homes 4,325 3. Kimball Hill 3,246 4. Pasquinelli 2,974 5. Perry Homes 2,825 6. MHI (McGuyer) 2,708 7. Woodside Homes 2,703 8. C.P. Morgan 2,677 9. The Drees Co. 2,536 10. Villages of Lake-Sumter 2,403

Slide 13: Biggest Closings Gainers Percent RANK / BUILDER Gain 1. Taylor Morrison Homes 84% 2. MCZ Development 44% 3. Trammel Crow Residential 28% 4. Trend Homes 18% 5. Wood Partners 16% 6. The Mungo Companies 13% 7. The Olson Co. 9% 8. Centrum Properties 8% 9. Rausch Coleman Homes 4% 9. McBride & Son 4%

Slide 14: Fastest-Growing Private Company (Based on Three-Year Compound Rate) Highland Homes Plano, Texas

Slide 15: Some Amazing Facts from the BUILDER 100  D.R. Horton, with 37,717 closings, out-performed the entire Next 100, which closed 30,213 units in 2007  Horton almost topped the combined closings for BUILDER 100 companies ranked 51 through 100, which closed a total of 38,114 units  Horton is the only builder to have ever closed more than 50,000 units in one year (2006)

Slide 16: More Amazing Facts from the BUILDER 100  Lennar grossed more revenue – $10.187 billion – than any other BUILDER 100 company  Lennar sold more condos than anyone on the list last year, 3136  It also sold 11,000 lots to Morgan Stanley for $525 million and retained development rights

Slide 17: Big Builders Focus on Operations TOP 10 CONCERNS OF THE BUILDER 100 OVER NEXT 10 YEARS Reduce cycle time  Increase share in top 50 markets  Reach new demographic segments  Achieve greater efficiencies in purchasing  Even flow in sales and production  Value engineering  Developing subcontractor base  Integrating computer systems  Use of modular and panelized construction  Develop expertise in  mid- and high-rise

Slide 18: Average Gross Profit Margins Decline 24.71% 25.23% 23.24% 21.89% 22.30% 17.76% 2002 2003 2004 2005 2006 2007

Slide 19: Average Net Margins Cut in Half 13.21% 12.06% 10.75% 10.18% 9.97% 5.36% 2002 2003 2004 2005 2006 2007