Q4 FY2014

Q4 FY2014

Forward-Looking Statements

3

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:

potential deterioration in homebuilding industry conditions or general economic conditions; 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 regulation 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; our ability to realize the full

amount of our deferred income tax assets; 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.

Q4 FY2014

D.R. Horton, Inc.

Traded on NYSE as DHI

#1 builder for 12 consecutive years1

$8.0 billion in annual revenues2

28,670 in annual homes closed2

$10.2 billion of total assets3

$5.1 billion of stockholders’ equity3

1 As reported by Builder Magazine2 Fiscal year ended September 30, 20143 As of September 30, 2014

4

Q4 FY2014

Geographic Diversification

79 Markets | 27 States

Region States Covered

East Delaware, Georgia, Maryland, New Jersey, North Carolina,

Pennsylvania, South Carolina, Virginia

Midwest Colorado, Illinois, Indiana, Minnesota

Southeast Alabama, Florida, Georgia, Mississippi, Tennessee

South Central Louisiana, Oklahoma, Texas

Southwest Arizona, New Mexico

West California, Hawaii, Nevada, Oregon, Utah, Washington

South

Central

25%

Southwest

4%

West

25%

HB Revenue(TTM Ended 9/30/14)

Midwest

7%

South

Central

23%Southeast

26%

Inventory (as of 9/30/14)

East

12%

Midwest

6%

Southeast

28%

West

29%

Southwest

4%

East

11%

5

Q4 FY2014

Broad Range of Product Offerings

Homes for entry-level, move-up and luxury buyers

54% of closings < $250,000 in Q4 FY14, down from 59% in Q4 FY13

Revenues from homes > $500,000 increased to 17% of home sales revenues in

Q4 FY14 compared to 13% in Q4 FY13

Under $150k

$200k to $250k

$250k to $300k

$300k to $400k

$400k to $500k

$500k+

$151k to $200k

6

Q4 FY2014

D.R. Horton

The Heart of our Business

$500k+

$151k to $200k

79 markets and 27 states

In the fourth quarter, accounted for:

88% of homes sold

92% of homes closed

92% of home sales revenue

Q4 Average Closing Price: $281,000

FY14 Average Closing Price: $273,000

Reported metrics for D.R. Horton include our Breland Homes

and Crown Communities operations

7

Q4 FY2014

Emerald Homes

Higher-end move-up and luxury buyer

$151k to $200k

Introduced in 2013

34 markets and 14 states

In the fourth quarter, accounted for:

2% of homes sold

2% of homes closed

4% of home sales revenue

FY14 Average Closing Price: $566,000

Higher margin, slower absorption

8

Q4 FY2014

Express Homes

Targeted at the true entry-level buyer

$500k+

$151k to $200k

Introduced in Spring 2014

24 markets and 8 states

In the fourth quarter, accounted for:

10% of homes sold

6% of homes closed

4% of home sales revenue

Q4 Average Closing Price: $169,000

Higher absorption, lower margin

Reported metrics for Express include our Regent Homes operations

9

Q4 FY2014

Operational Focus

Current land ownership level is sufficient to support

double-digit revenue growth

Underwriting criteria for land and lot purchases and

operational expectations for each community:

Minimum 20% annual net return on inventory investment

(ROI) for all three brands

Net ROI% = Pre-tax Income divided by Average Inventory

Consistently optimize balance of sales absorptions and

gross margins to maximize returns in each community

Manage land and home inventory levels efficiently

Improve cash flow generation

10

Q4 FY2014

Q4 FY 2014 Highlights

The value of net homes sold, homes closed and homes in

backlog increased by 41%, 33% and 29%, respectively

7,135 net homes sold and 8,612 homes closed

9,888 homes in backlog at 9/30/14

Consolidated pre-tax income increased 24% to $250.8

million

Consolidated pre-tax income margin was 10.1%

Net income increased 19% to $166.3 million

11

Q4 FY2014

FY 2014 Highlights

The value of net homes sold, homes closed and homes in

backlog increased by 27%, 30% and 29%, respectively

29,709 net homes sold and 28,670 homes closed

9,888 homes in backlog at 9/30/14

Consolidated pre-tax income increased 24% to $814.2

million

Consolidated pre-tax income margin was 10.1%

Net income increased 15% to $533.5 million

12

Q4 FY2014

Sales, Closings & Backlog – Q4 FY14

Net Sales Orders, Homes Closed and Homes in Backlog increased 38%, 25%

and 21%, respectively, in Q4 of FY2014 compared to Q4 of FY2013

0

2,000

4,000

6,000

8,000

10,000

12,000

Sales Closings Backlog

4Q FY12 4Q FY13 4Q FY14

13

Q4 FY2014

Income Statement

9/30/2014 9/30/2013 9/30/2014 9/30/2013

Homes closed 8,612 6,866 28,670 24,155

Revenues:

Home sales 2,403.6$ 1,802.0$ 7,804.7$ 6,024.8$

Land/lot sales & other 19.7 15.8 53.8 61.1

2,423.3 1,817.8 7,858.5 6,085.9

Gross Profit:

Home sales 492.0 394.8 1,665.6 1,253.3

Land/lot sales & other 3.0 3.7 9.5 10.2

Inventory & land option charges (21.3) (27.1) (85.2) (31.1)

473.7 371.4 1,589.9 1,232.4

SG&A 241.0 186.6 834.2 649.9

Interest and other (income) (3.9) (4.6) (13.1) (9.8)

Homebuilding pre-tax income 236.6 189.4 768.8 592.3

Financial Services pre-tax income 14.2 13.4 45.4 65.5

Pre-tax income 250.8 202.8 814.2 657.8

Income tax expense 84.5 63.3 280.7 195.1

Net income 166.3$ 139.5$ 533.5$ 462.7$

$ in millions

3 Months Ended Fiscal Year Ended

14

Q4 FY2014

Home Sales Gross Margin

Shown as a % of home sales revenues

Includes interest amortized to cost of sales

0%

5%

10%

15%

20%

25%

FY11 FY12 1QFY13

2QFY13

3QFY13

4QFY13

Q1FY14

Q2FY14

Q3FY14

Q4FY14

16.1%17.7%

18.8%

20.4%

21.4% 21.9% 22.3%22.5% 20.7% 20.5%

15

Homes sales gross margin of around 20% in a stable housing market

Q4 FY2014

Homebuilding SG&A

Long-term annual SG&A goal = 10% of homebuilding revenues

Fiscal Year 2014 Fourth Fiscal Quarter 2014

$0

$200

$400

$600

$800

$1,000

2013 2014

$649.9

$834.2

10.7%

10.6%

$0

$50

$100

$150

$200

$250

Q4 FY13 Q4 FY14

$186.6

$241.0

9.9%

SG&A $ SG&A $

10.3%

Shown as a % of homebuilding revenues

$ in millions

16

Q4 FY2014

Homebuilding Pre-tax Income

Homebuilding pre-tax income margin in Q4 2014 was 9.8%

Fiscal Year 2014 Fourth Fiscal Quarter 2014

$0

$200

$400

$600

$800

2013 2014

$592.3

$768.8

9.7%

9.8%

PTI $

$0

$50

$100

$150

$200

$250

Q4 FY13 Q4 FY14

$189.3

$236.6

10.4%

9.8%

PTI $

Shown as a % of homebuilding revenues

$ in millions

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Q4 FY2014

Balance Sheet

9/30/14 9/30/13

HB cash and cash equivalents 632.5$ 954.2$

Restricted cash 10.0 77.8

Inventories 7,700.5 6,197.4

Deferred income taxes, net 565.0 586.6

Other assets 1,294.5 1,040.4

Total 10,202.5$ 8,856.4$

Notes payable - HB 3,323.6$ 3,270.4$

Other liabilities 1,759.2 1,524.6

Equity 5,119.7 4,061.4

Total 10,202.5$ 8,856.4$

Homebuilding Leverage

Gross 39.4% 44.6%

Net of cash 34.5% 36.3%

Book Value/Share $14.04 $12.58

$ in millions

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Q4 FY2014

Homes in Inventory

Growing housing inventory to meet increasing sales pace

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

9/30/11 9/30/12 9/30/13 12/31/13 3/31/14 6/30/14 9/30/14

Models Sold Specs

10,500

13,000

17,000 16,80017,600

20,500 20,600

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Q4 FY2014

Robust Lot Position

69,000 of our total lots are finished at 9/30/14

85,800 94,600

126,600 125,800 124,700 124,900 124,600

26,900

58,100

54,300 49,000 46,900 53,60058,900

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

9/30/11 9/30/12 9/30/13 12/31/13 3/31/14 6/30/14 9/30/14

Optioned Owned

112,700

152,700

180,900174,800 171,600

178,500183,500

20

Q4 FY2014

Inactive Land Held for Development

“Mothballed” lot count down 33% from a year ago

$699.2

$628.3

$450.2

$383.3

$332.8

43,100

39,400

20,800

16,80014,000

0

5000

10000

15000

20000

25000

30000

35000

40000

45000

50000

$0

$100

$200

$300

$400

$500

$600

$700

$800

9/30/11 9/30/12 9/30/13 6/30/14 9/30/14

Balance Lots HeldLand held for development is shown as separate line item on face of balance sheet

$ in millions

21

Q4 FY2014

Public Debt Maturities by Year

Balance of public notes outstanding as of 9/30/14 was $3.0 billion.

$ in millions

$0

$100

$200

$300

$400

$500

$600

$700

$800

FY 15 FY 16 FY 17 FY 18 FY 19 FY 22 FY 23

4.750%

$350

$500

$400

$350

$543

$158

5.250% 5.625%

6.500%

4.750% 3.625% 3.750% 4.375%

$700

5.750%

22

Q4 FY2014

FY 2015 Expectations*

Fiscal Year:

Closings between 34,500 and 37,500 and consolidated revenues between $9.5 billion and $10.5 billion

Home sales gross margin of 19.5% to 20.5% with potential quarterly fluctuations outside of this range

Homebuilding SG&A expense of 10.0% to 10.3% of homebuilding revenues for full year

Financial Services operating margin of 25% to 30%

2015 income tax rate between 35% and 36%

Diluted share count of approximately 370 million shares

First Quarter:

Backlog conversion rate of around 75%

Home sales gross margin around 19.5% to 20.0%

Homebuilding SG&A expense around 11% of homebuilding revenues

*Based on the relatively stable market conditions noted on the Company’s conference call on 11/11/14.

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