2. Forward-looking Statements
This presentation contains forward-looking statements which may be identified by the context of the statement, and generally
arise when Centex is discussing its beliefs, estimates or expectations. Such statements include projections, forecasts, and plans
and objectives of management for future operations and operating and financial performance, as well as any related
assumptions. These statements are not historical facts or guarantees of future performance but instead represent only Centex's
belief at the time the statements were made regarding future events, which are subject to significant risks, uncertainties and
other factors, many of which are outside of Centex's control. Actual results and outcomes may differ materially from what is
expressed or forecast in such statements. These risks and uncertainties are described in greater detail in Centex's most recent
Annual Report on Form 10-K for the fiscal year ended March 31, 2008 (including under the captions quot;Risk Factorsquot; and
quot;Management's Discussion and Analysis of Financial Condition and Results of Operationsquot;), as well as recent reports on Form
10-Q and Form 8-K, which are on file with the SEC and may be obtained free of charge through the web site maintained by the
SEC at http://www.sec.gov. The factors discussed in these reports include, but are not limited to, the effects of the current
downturn in the homebuilding industry, including reductions in the value of our land portfolio and revisions to our business plans
to address changing market conditions; changes in national or regional economic or business conditions, including employment
levels and interest rates; competition; customer cancellations; shortages or price changes in raw materials or labor; the effects of
recent disruptions in the mortgage financing industry, including tightening of credit and reduction in liquidity; the availability of
adequate sources of financing to continue to implement our business strategy, particularly in view of recent downgrades in our
credit rating, write downs in asset values and tightening of credit available to the home building industry; our ability to generate
cash from sales of assets and other sources that supplement our existing capital resources; and other factors that could affect
demand for our homes or mortgage loans, or the profitability of our operations, or our access to financing. All forward-looking
statements made in this presentation are made as of the date hereof, and the risk that actual results will differ materially from the
expectations expressed in this presentation will increase with the passage of time. Centex makes no commitment, and disclaims
any duty, to update or revise any forward-looking statement to reflect future events or changes in Centex's expectations. All
forward-looking statements involving financial or operating projections or estimates contained herein were initially
provided on May 1, 2008 and have not been updated for this presentation. The risk that actual results will differ materially
from expectations expressed in this presentation will increase with the passage of time.
2
3. Fiscal year 2008 commitments
Reduce land position
Sell homes
Reduce unsold inventory
Generate cash
Structure for profitability
3
4. 0
50
100
150
200
250
300
350
Ju
n-
0
Se 3
p-
0
D3
ec
-0
M3
ar
-0
Ju 4
n-
04
S
ep
-0
D4
ec
-0
M4
Lots Owned
ar
-0
Ju 5
n-
05
S
Reduce land position
ep
-0
D5
ec
-0
M5
ar
-0
Ju 6
n-
06
S
ep
-0
D6
ec
-0
M6
Total Lots Owned and Controlled
ar
-0
Ju 7
Lots Controlled
n-
0
Se 7
p-
0
D7
ec
-0
M7
ar
-0
8
4
5. Ju
0K
2K
4K
6K
8K
10K
12K
14K
16K
n-
Se 03
p-
D 03
ec
-0
M3
ar
-0
Ju 4
n-
Sell homes
Se 04
p-
D 04
ec
-0
M4
ar
-0
Cancellation Ratio
Ju 5
n-
Se 05
p-
0
D5
ec
-0
M5
ar
-0
Ju 6
n-
Se 06
p-
D 06
ec
Gross Sales
-0
M6
Sales and Cancellation rates
ar
-0
Ju 7
n-
Se 07
p-
D 07
ec
-0
M7
ar
-0
8
Net Sales
0%
10%
20%
30%
40%
5
7. 0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Ju
n -0
3 2,506
Se
p -0
3,206
De 3
c -0
3 4,170
Ma
r -0
2,862
Ju 4
n -0
2,907
Se 4
p -0
3,655
De 4
c -0
Started Not Sold Units
4,803
Ma 4
r -0
3,376
Minimize inventory
Ju 5
n -0
3,062
Se 5
p -0
4,174
De 5
c -0
6,191
Ma 5
r -0
5,823
Ju 6
n -0
5,798
Started Not Sold $ as % of Housing Inventory $
Se 6
p -0
6,575
De 6
c -0
6 6,386
Ma
r -0
4,909
Ju 7
n -0
4,815
Se 7
p -0
4,708
De 7
c -0
7 4,259
Ma
r -0
8 1,754
0%
5%
10%
15%
20%
25%
30%
7
8. Strong cash flow and debt reduction
Lowered homebuilding debt by almost $800 mil in FY2008
• Includes approximately $200 mil of joint venture debt
Repaid $1.35 billion of financial services debt
Generated more than $775 mil of operating cash flow in
4Q
Expect cash balance to exceed $1 billion by June 30,
2008
Total land spend this year expected to be less than half of
last year
8
9. Restoring profitability is a top priority
Quickly returning to “building to a sold backlog” model
• Higher gross margin experienced over selling standing
inventory
• Unsold inventory down to 2.9 per neighborhood
Improving core Centex business processes
• Expect to see more meaningful gross margin impact in
FY2009
Remain highly focused on overhead
• Homebuilding overhead per closing down 12% in
FY2008
Concentrating focus into core markets
9
10. Signs of a typical housing market bottom
Foreclosures rise
Economy slows, recession is likely
Housing starts fall precipitously
New home market corrects much faster than existing
Land prices begin to soften more widely
Homebuilders with liquidity begin to reinvest
Source: Experience in previous cycles
10
12. ARM Reset Schedule
Today
J F MAM J J A S ON D J F MAM J J A S ON D J F MAM J J A S ON D J F MAM J J A S ON D J F MAM J J A S ON D J F MAM J J A S ON D
2007 2008 2009 2010 2011 2012
Source: The Norris Group; Credit Suisse
12
14. New and Existing Home Inventories
Millions of Homes
New Homes Existing Homes
(Left Axis) (Right Axis)
0.7 4.5
4.0
0.6
3.5
0.5
3.0
0.4 2.5
2.0
0.3
1.5
0.2
1.0
0.1
0.5
0.0 0.0
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: Census Bureau; National Assocation of Realtors
14
15. Affordability
Percent of Median House Price that a Median Income Family can Afford
150
140
130 20-Year
Average
120
110
100
90 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: National Association of Realtors
15
16. Priced significantly below existing homes
350
OFHEO HPI for Riverside-San Bernardino-Ontario, CA MSA*
300 Centex Inland Empire Division
250 25%
Indexed Average Selling Price
200
150
100
50
0
10
12
98
98
99
99
00
00
01
01
02
02
03
03
04
04
05
05
06
06
07
07
08
08
09
09
1Q
3Q
1Q
3Q
1Q
3Q
1Q
3Q
1Q
3Q
1Q
3Q
1Q
3Q
1Q
3Q
1Q
3Q
1Q
3Q
1Q
3Q
1Q
3Q
20
20
FY
FY
Centex Fiscal Periods
Actual Results Projected
* Data from historic & projected OFHEO housing price index. The HPI is a weighted, repeat sales index that measures average price changes in
repeat sales
16
17. Aggressively building a better Centex now
Restoring profitability is a top priority
Sales incentives and discounts should diminish
Concentrating focus into core markets
• Neighborhood reduction will continue
Expect strong cash flow generation to continue this year
• Estimate cash balance, including tax refund, in excess
of $1 billion by end of June quarter
17
18. Capital allocation is key
Concentrate investment in markets with greatest long-
term profit potential that reward high relative market
share
Consolidate divisions where resources can be shared
Exit those markets without strong long-term economic
fundamentals or where scale is not meaningful
The resulting re-investment strategy will produce
improved margins and returns
18
19. Rationale for strategic reinvestment
Relationship between relative local market share
and performance among Centex divisions
Operating Margin ROANA
20% 40%
30%
20%
10%
10%
0%
0%
0.4 0.6 0.8 1 1.2
0.4 0.6 0.8 1 1.2
Relative Local Market Share Relative Local Market Share
Regression analysis based on CY02-04 Centex averages
19
20. Aggressively building a better Centex for the
long term
Focused on asset efficiency and a more flexible land
position
Improving core Centex business processes
Increasing relative share strength in markets that will
provide best returns
Expect sustainable cost reductions and higher, more
consistent future returns
Continue to exceed customer expectations
20
