Forward-Looking Statements This presentation may include forward - PowerPoint PPT Presentation

Forward-Looking Statements 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 industry and changes in economic, real estate and other conditions; constriction of the credit markets, which could limit our ability to access capital and increase our costs of capital; reductions in the availability of mortgage financing and the liquidity provided by government-sponsored enterprises, the effects of government 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; home warranty and construction defect claims; 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 impact of an inflationary, deflationary or higher interest rate environment; the effects of governmental regulations and environmental matters on our homebuilding operations; the effects of governmental regulations on our financial services operations; our substantial debt and our ability to comply with related debt covenants, restrictions and limitations; competitive conditions within the homebuilding and financial services industries; our ability to effect our growth strategies or acquisitions successfully; the effects of the loss of key personnel; the effects of negative publicity; 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 our most recent quarterly report on Form 10-Q, both of which are filed with the Securities and Exchange Commission. 3 Q2 FY2016

D.R. Horton, Inc.  Traded on NYSE as DHI  #1 builder for 14 consecutive years 1  $11.3 billion in annual revenues 2  37,755 in annual homes closed 2  $1.2 billion in annual pre-tax income 2  $11.3 billion of total assets 3  $6.2 billion of stockholders’ equity 3  Book value per share of $16.85 3 1 By closings volume for fiscal years 2002 to 2015 2 Twelve months ended March 31, 2016 3 As of March 31, 2016 4 Q2 FY2016

Geographic Diversification HB Revenue 1 East 79 Markets | 26 States 12% West Midwest 24% 6% Southwest South 3% Central 26% Southeast 29% East Inventory 2 10% Midwest 6% West 28% Region States Covered East Delaware, Georgia, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Virginia Midwest Colorado, Illinois, Minnesota South Southwest Central Southeast Alabama, Florida, Georgia, Mississippi, Tennessee 4% 27% South Central Louisiana, Oklahoma, Texas Southeast Southwest Arizona, New Mexico 25% 1 Twelve months ended March 31, 2016 West California, Hawaii, Nevada, Oregon, Utah, Washington 2 As of March 31, 2016 5 Q2 FY2016

Broad Range of Product Offerings Homes for entry-level, move-up and luxury buyers 7% $500k+ 27% 24% < $200k $300k to $500k $250k to $200k to $300k $250k 24% 18% Represents homes closed for the trailing twelve months ended 3/31/16 6 Q2 FY2016

Substantial Growth in Brands Overall Brand Mix – Q2 New Brand Growth - TTM Homes Closed 10,000 4% 1,326 23% 7,500 5,000 7,693 73% 714 2,500 2,840 0 Represents homes closed TTM 3/31/15 TTM 3/31/16 7 Q2 FY2016

Operational Focus  Current land ownership level is sufficient to support double-digit annual growth in both revenues and profits  Consistently optimize balance of sales absorptions and gross margins to maximize returns in each community  Manage land and home inventory levels efficiently to generate consistent positive cash flow from operations  Underwriting criteria for land and lot purchases and operational expectations for each community:  Minimum 20% annual net return on inventory investment (ROI) for all brands  Net ROI% = Pre-tax Income divided by Average Inventory  Initial cash investment returned within 24 months or less 8 Q2 FY2016

Management Tenure & Experience Average employee tenure:  Executive Team and Region Presidents – over 20 years  Division Presidents – approximately 15 years  City Managers – over 10 years 9 Q2 FY2016

FY 2016 Expectations* Fiscal Year:  Consolidated pre-tax profit margin in the range of 10.7% to 11.2%  Consolidated revenues of $12.0 billion to $12.5 billion  Closings between 39,500 homes and 41,500 homes  Home sales gross margin in the high 19s to 20%  Homebuilding SG&A expense in the range of 9.0% to 9.2% of homebuilding revenues  Financial Services pre-tax profit margin between 30% and 33%  Income tax rate between 35% and 36%  Diluted share count of approximately 375 million shares  Cash flow from operations in the range of $300 to $500 million Third Quarter:  Backlog conversion rate in the range of 76% to 80%  Home sales gross margin in the high 19s to 20%, consistent with the second quarter  Homebuilding SG&A expense in the range of 8.9% to 9.1% of homebuilding revenues *Based on updated guidance and housing market conditions as noted on the Company’s conference call on 4/21/16 10 Q2 FY2016

Cash Flow Priorities  Invest in homebuilding business where opportunities to generate acceptable returns exist, including business acquisitions  Pay off debt at maturity  Paid $170 million of senior notes at maturity in January 2016  Paid $373 million of senior notes at maturity in April 2016  Be opportunistic, while remaining disciplined 11 Q2 FY2016

Second Quarter Data 12 Q2 FY2016

Q2 FY 2016 Highlights  The value of net homes sold, homes closed and homes in backlog increased by 13%, 16% and 14%, respectively  12,292 net homes sold and 9,262 homes closed  13,695 homes in backlog at 3/31/16  Consolidated pre-tax income increased 31% to $300.5 million  Consolidated pre-tax income margin improved 130 basis points to 10.9%  Net income increased 32% to $195.1 million  Cash flow provided by operations for the six months ended March 31, 2016 improved $195.7 million to $26.9 million 13 Q2 FY2016

D.R. Horton The Heart of our Business  In the second quarter, accounted for:  70% of homes sold 79 Markets | 26 States  73% of homes closed  75% of home sales revenue  Q2 Average Closing Price: $299,000 Reported metrics for D.R. Horton include our Crown Communities and Pacific Ridge Homes operations 14 Q2 FY2016

Emerald Homes Higher-end move-up and luxury buyer  Introduced in 2013  In the second quarter, accounted for: 44 Markets | 17 States  3% of homes sold  4% of homes closed  9% of home sales revenue  Q2 Average Closing Price: $631,000 15 Q2 FY2016

Express Homes Targeted at the true entry-level buyer  Introduced in Spring 2014  In the second quarter, accounted for: 51 Markets | 17 States  27% of homes sold  23% of homes closed  16% of home sales revenue  Q2 Average Closing Price: $202,000 Reported metrics for Express include our Regent Homes operations 16 Q2 FY2016

Sales, Closings & Backlog – Q2 FY16 Net Sales Orders, Homes Closed and Homes in Backlog increased 10%, 12% and 12%, respectively, in Q2 of FY2016 compared to Q2 of FY2015 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Sales Closings Backlog 2Q FY14 2Q FY15 2Q FY16 17 Q2 FY2016

Income Statement Fiscal 3 Months Ended 6 Months Ended Year Ended 3/31/2016 3/31/2015 3/31/2016 3/31/2015 9/30/2015 Homes closed 9,262 8,243 17,323 16,216 36,648 Revenues: Home sales $ 2,686.0 $ 2,318.8 $ 5,026.9 $ 4,559.4 $ 10,469.4 Land/lot sales & other 15.0 19.7 35.2 32.1 89.6 2,701.0 2,338.5 5,062.1 4,591.5 10,559.0 Gross Profit: Home sales 534.7 456.9 1,001.3 899.5 2,075.8 Land/lot sales & other 3.0 2.1 7.3 4.1 7.8 Inventory & land option charges (6.0) (12.5) (7.9) (18.6) (60.3) 531.7 446.5 1,000.7 885.0 2,023.3 SG&A 258.2 242.4 501.6 480.4 1,013.6 Interest and other (income) (9.6) (4.5) (13.0) (10.1) (8.6) Homebuilding pre-tax income 283.1 208.6 512.1 414.7 1,018.3 Financial Services pre-tax income 17.4 21.5 29.7 36.1 105.1 Pre-tax income 300.5 230.1 541.8 450.8 1,123.4 Income tax expense 105.4 82.2 189.0 160.4 372.7 Net income $ 195.1 $ 147.9 $ 352.8 $ 290.4 $ 750.7 $ in millions 18 Q2 FY2016

Home Sales Gross Margin Homes sales gross margin of around 20% in a stable housing market 25% 20% 21.3% 20.8% 19.7% 19.9% 19.8% 19.9% 19.9% 19.9% 17.7% 15% 10% 5% 0% FY12 FY13 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Shown as a % of home sales revenues Includes interest amortized to cost of sales 19 Q2 FY2016