The B UILDER 100: Ripped from the Headlines

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

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

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

B UILDER 100 companie s grossed more than $1 billion in revenue B UILDER 100 companies are counted among the top 500 companies in the United States, according to Fortune magazine The Biggest Home Builders Shrink in Size 21 8

B UILDER 100 companie s grossed more than $1 billion in revenue

B UILDER 100 companies are counted among the top 500 companies in the United States, according to Fortune magazine

B UILDER 100 Closings Plummet B UILDER 100 CLOSINGS (in thousands)

B UILDER 100 CLOSINGS (in thousands)

B UILDER 100 Market Share: Takes a Step Back B UILDER 100 SINGLE-FAMILY HOME CLOSINGS

B UILDER 100 SINGLE-FAMILY HOME CLOSINGS

The Top 10 Builders: Share Holds Steady TOP 10 BUILDERS’ SHARE OF U.S. CLOSINGS

TOP 10 BUILDERS’ SHARE OF U.S. CLOSINGS

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

Acquisitions Take a Break ACQUISITIONS

ACQUISITIONS

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

Their 255,819 closings accounted for 29.28% of the housing market

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

Biggest For-Profit Private Builders 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 RANK / BUILDER U.S. CLOSINGS

Biggest Closings Gainers 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% RANK / BUILDER Percent Gain

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

Some Amazing Facts from the B UILDER 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 B UILDER 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)

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 B UILDER 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)

More Amazing Facts from the B UILDER 100 Lennar grossed more revenue – $10.187 billion – than any other B UILDER 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

Lennar grossed more revenue – $10.187 billion – than any other B UILDER 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

Big Builders Focus on Operations Ignore this TOP 10 CONCERNS OF THE B UILDER 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

Ignore this

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

Average Gross Profit Margins Decline

Average Net Margins Cut in Half