1Investor PresentationQ1 FY 2018

2

D . R . H O R T O N , I N C .

By closings volume for calendar years 2002 to 2017

3

F O R W A R D - L O O K I N G S TAT E M E N T S

This presentation may include “forward‐looking statements” as defined by the Private Securities LitigationReform Act of 1995. Although D.R. Horton believes any such statements are based on reasonableassumptions, there is no assurance that actual outcomes will not be materially different. Factors that maycause the actual results to be materially different from the future results expressed by the forward‐lookingstatements include, but are not limited to: the cyclical nature of the homebuilding industry and changes ineconomic, real estate and other conditions; constriction of the credit markets, which could limit our ability toaccess capital and increase our costs of capital; reductions in the availability of mortgage financing providedby government agencies, changes in government financing programs, a decrease in our ability to sellmortgage loans on attractive terms or an increase in mortgage interest rates; the risks associated with ourland and lot inventory; our ability to effect our growth strategies, acquisitions or investments successfully;home warranty and construction defect claims; the effects of a health and safety incident; the effects ofnegative publicity; supply shortages and other risks of acquiring land, building materials and skilled labor; theimpact of an inflationary, deflationary or higher interest rate environment; reductions in the availability ofperformance bonds; increases in the costs of owning a home; the effects of governmental regulations andenvironmental matters on our homebuilding operations; the effects of governmental regulations on ourfinancial services operations; our significant debt and our ability to comply with related debt covenants,restrictions and limitations; competitive conditions within the homebuilding and financial services industries;the effects of the loss of key personnel; 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 which is filed, and Form 10‐Q when filed, with the Securities andExchange Commission.

4

D . R . H O R T O N , I N C . T R A D E D O N N Y S E A S D H I

47,135Annual homes closed

$13.0 billionTotal assets

$20.98Book value per common share

$14.5 billionAnnual consolidated revenues

$1.7 billionAnnual pre‐tax income

$7.9 billionStockholders’ equity

As of or for the twelve‐month period ended December 31, 2017

5

B R O A D N AT I O N A L F O O T P R I N T 7 9 M A R K E T S | 2 6 S T A T E S

6

26%

24%26%

12%

6%6%

B R O A D N AT I O N A L F O O T P R I N T 7 9 M A R K E T S | 2 6 S T A T E S

HB Revenue

30%

24%

24%

12%

5% 5%

Inventory

As of or for the twelve‐month period ended December 31, 2017Savannah, Georgia is included in the East Region; Atlanta and Augusta, Georgia are included in the Southeast Region

EASTDelaware, Maryland, New Jersey, North and South Carolina, 

Pennsylvania,Virginia

MIDWESTColoradoIllinois

Minnesota

SOUTH CENTRALLouisianaOklahomaTexas

SOUTHEASTAlabama, Florida, 

Georgia, Mississippi, Tennessee

WESTCalifornia, Hawaii, Nevada, Oregon, Utah, Washington

SOUTHWESTArizona

New Mexico

7

D I V E R S E P R O D U C T O F F E R I N G S A N D P R I C E P O I N T S

20%

27%

20%

26%

7%

$0$500k

Represents homes closed for the twelve months ended 12/31/17

Homes for entry‐level, move‐up, active adult and luxury buyers

$200k

$250k

$300k

8

FA M I LY O F B R A N D S

FIRST TIME / MOVE UP ENTRY LEVEL LUXURY ACTIVE ADULT

58%

37%

3% 2%

HomesSold

59%

36%

3% 2%

HomesClosed

64%

29%

6% 1%

Home SalesRevenue

79 markets | 26 states ASP $318k

58 markets | 21 states ASP $233k

39 markets | 16 states ASP $610k

22 markets | 12 statesASP $262k

Based on Q1 FY 2018 results

9

M A N A G E M E N T T E N U R E A N D E X P E R I E N C E

City managersover 10 years

Executive team andregion presidents

approx. 25 years

Division presidentsover 13 years

Average employee tenure

10

M A R K E T S H A R E D O M I N A N C E

Top 5 Markets Top 50 Markets

0

10

20

30

40

50

#1 Top 5 Top 10 Operate In

Source: Builder magazine ‐ 2017 Local Leaders issue, rankings based on homes closed in calendar 2016

13

28

3640

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

DFW Houston Atlanta Phoenix Austin

DHI market shareMarket share of highest ranking competitor

D.R. Horton Share and Rankings in Largest U.S. Housing Markets

11

O P E R AT I O N A L F O C U S

• Maximize returns by managing inventory levels and balancing sales pace and pricing in each community

• Generate consistent positive annual cash flow from operations

• Maintain inventories of land, lots and homes that support double‐digit annual growth in both revenues and profits

• Underwriting expectations for each community:

• Minimum 20% annual pre‐tax return on inventory (ROI)

• Initial cash investment returned within 24 months or less

• Increase optioned land and lots by expanding relationships with land developers

• Grow Forestar’s land development platform

• Control SG&A while ensuring infrastructure supports growth

12

E M P H A S I S O N R E T U R N O N I N V E N T O R Y ( R O I )

11.1%12.8%

15.4% 15.9% 16.6% 17.0%

0%

5%

10%

15%

20%

FY 2014 FY 2015 FY 2016 TTM 12/31/16 FY 2017 TTM 12/31/17

Steady improvement in Homebuilding ROI

Homebuilding ROI is calculated as homebuilding pre‐tax income for the year divided by average homebuilding inventory.  Average homebuilding inventory in the ROI calculation is the sum of ending homebuilding inventory balances for the trailing five quarters divided by five. 

13

B A L A N C E D A P P R O A C H

Consolidated Revenues

$10.8 $12.2 

$14.1 

$0

$4

$8

$12

$16

FY 2015 FY 2016 FY 2017 FY 2018e

Land Investment

$2.2$2.7

$3.5

~$4.0

$0

$1

$2

$3

$4

$5

FY 2015 FY 2016 FY 2017 FY 2018e

$ in billionsExpect to generate positive cash flow from operations for the fourth consecutive year excluding Forestar

Expect to generate positive cash flow from operations for the fourth consecutive year while growing revenues and replenishing land investments

$15.5 – $16.3

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F Y 2 0 1 8 C A P I TA L A N D C A S H F L O W P R I O R I T I E S

• Balanced, disciplined, flexible and opportunistic• Invest in homebuilding opportunities, including acquisitions, to 

generate acceptable returns and consolidate market share • Acquired 75% of Forestar for $558 million in October 2017• Reduce or maintain debt levels and leverage

• Refinanced $400 million of senior notes in Q1 FY 2018• Consistent dividends to shareholders

• Increased quarterly dividend by 25% in Q1 FY 2018• Approximately $190 million annually

• Share repurchases to partially offset dilution• Repurchased 500,000 shares during Q1 FY 2018 for $25.4 million• Remaining Board authorization of $174.6 million

15

H O M E B U I L D I N G S G & A

Expect SG&A as a percentage of homebuilding revenues to improve approximately 20 basis points in FY 2018 to around 8.7%

$7.9

$10.6$11.9

$13.7

6.0%

7.0%

8.0%

9.0%

10.0%

11.0%

$0.0

$4.0

$8.0

$12.0

$16.0

2014  2015 2016 2017HB Rev $ SGA %

SG&A %HB Rev $  

$ in billionsShown as a % of homebuilding revenues

16

F O R E S TA R A C Q U I S I T I O N

• On October 5, 2017, D.R. Horton (“DHI”) completed the acquisition of 75% of the outstanding shares of Forestar (“FOR”) for $558 million in cash

• FOR is and will continue to be a publicly‐traded residential land development company, with operations currently in 16 markets and 11 states

• The strategic relationship will significantly grow FOR into a large, national residential land development company, selling lots to D.R. Horton and other homebuilders

• Advances DHI’s strategy of increasing its access to optioned land and lots to enhance operational efficiency and returns

• FOR is led by new Executive Chairman Don Tomnitz, DHI’s CEO for over 15 years, and is supported by an experienced management team and board of directors

• Over the longer term, DHI intends to gradually reduce its ownership position and increase the public float of FOR stock

• Effective 1/30/18, FOR’s fiscal year will end on 9/30, which aligns with DHI’s fiscal year

• Expect FOR’s annual deliveries to grow to approximately 10,000 lots by fiscal 2020

17

DHI & FOR working to improve returns on and accelerate cash flows from FOR’s 

existing portfolio

DHI does not expect FOR to have a material impact on its fiscal 2018 results

F O R E S TA R T I M E L I N E

DHI and FOR merger closed

Oct. 5, 2017

FOR evaluating 22 primarily DHI‐sourced 

projects (closed on 6 as of 12/31/17) ‐ representing 

11,000 lots

Expect FOR to have a bank credit facility in place in fiscal 2018

FOR 10‐K filing

March 2018

FOR fiscal year‐end

Dec. 31, 2017

DHI & FOR fiscal year‐end

Sept. 30, 2018

Expect FOR to invest $400 million in land acquisition and development in fiscal 2018

Lot counts and dollar amounts are approximate

DHI Q2 earnings 

release & call

April 2018 

Sept. 30, 2019 Sept. 30, 2020

DHI will update 2018 FOR guidance

Expect FOR to access the public markets for additionalgrowth capital in fiscal 2019 

Expect FOR to grow its annual lot 

deliveries to 10,000 lots by fiscal 2020

18

F Y 2 0 1 8 E X P E C TAT I O N S *

Fiscal Year:• Consolidated pre‐tax profit margin of 11.8% to 12.0%• Consolidated revenues between $15.5 billion and $16.3 billion• Homes closed between 50,500 homes and 52,500 homes• Home sales gross margin in the range of 20% to 21%, with potential quarterly fluctuations that may be outside of this range

• Homebuilding SG&A expense of around 8.7% of homebuilding revenues• Financial Services operating margin of approximately 30%• Income tax rate of approximately 26%**• Outstanding share count increase of less than 1%• Cash flow from operations of at least $700 million (excluding Forestar) 

Second Quarter:• Backlog conversion rate in the range of 97% to 100%• Home sales gross margin of 20% to 21%• Homebuilding SG&A expense in the range of 9.0% to 9.2% of homebuilding revenues

*Based on market conditions as noted on the Company’s conference call on 1/31/18 and excluding Forestar**Excludes Q1 FY 2018 charge of $108.7 million to reduce net deferred tax assets as a result of the Tax Cuts and Jobs Act

19

T H R E E Y E A R O U T L O O K *

FY 18 – FY 20:

• Increase consolidated revenues and pre‐tax profits at a double‐digit annual pace

• Improve return on inventory

• Increase optioned lots to 60% of total homebuilding land and lot position by 2020

• Cash flow from operations growing to over $1.25 billion annually in 2020 

• Maintain or reduce debt and leverage

• Increase dividends

• Repurchase shares to offset dilution with a target to keep our outstanding share count flat by 2020

*Based on market conditions as noted on the Company’s conference call on 1/31/18 and excluding Forestar

20

F I R S T Q U A R T E R D ATA

21

Q 1 F Y 2 0 1 8 H I G H L I G H T S

• Consolidated pre‐tax income increased 23% to $391.2 million

• Consolidated pre‐tax income margin improved 70 basis points to 11.7%

• The value of net homes sold, homes closed and homes in backlog increased by 17%, 14% and 11%, respectively

• 10,753 net homes sold and 10,788 homes closed

• Homes in inventory increased 13% to 27,800 homes

• Completed the acquisition of 75% of the outstanding shares of Forestar for $558 million in cash on October 5, 2017

• Issued $400 million principal amount of 2.55% senior notes due 2020

• Redeemed $400 million principal amount of our 3.625% senior notes due February 2018 at par

22

S A L E S , C L O S I N G S A N D B A C K L O G

Net Sales Orders, Homes Closed and Homes in Backlog increased 16%, 15% and 9%, respectively, in Q1 of FY 2018 compared to Q1 of FY 2017

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Sales Closings Backlog1Q FY 2016 1Q FY 2017 1Q FY 2018

# of Homes

23

I N C O M E S TAT E M E N T

$ in millions except per share dataQ1 FY 2018 income tax expense includes a $108.7 million charge to reduce net deferred tax assets, partially offset by a lower effective tax rate, both as a result of the Tax Cuts and Jobs ActDetailed segment information is available in our Q1 FY 2018 earnings press release and Form 10‐Q (when filed) 

12/31/2017 12/31/2016 9/30/2017 9/30/2016Homes closed 10,788  9,404  45,751  40,309 

HomebuildingRevenues:   Home sales  $  3,184.5   $  2,797.7   $ 13,653.2   $ 11,783.1    Land/lot sales and other 36.4  28.4  88.3  78.7 

3,220.9  2,826.1  13,741.5  11,861.8 Gross profit:   Home sales 663.0  552.9  2,725.4  2,380.1    Land/lot sales and other 5.2  7.6  13.5  10.5    Inventory and other land option charges (3.7) (2.3) (40.2) (31.4)

664.5  558.2  2,698.7  2,359.2 SG&A 304.8  268.4  1,220.4  1,100.3 Interest and other (income) and goodwill impairment (14.1) (4.1) (11.0) (5.5)

Homebuilding pre‐tax income 373.8  293.9  1,489.3  1,264.4 Financial services, Forestar and other pre‐tax income 17.4  24.2  112.8  89.1 Pre‐tax income 391.2  318.1  1,602.1  1,353.5 Income tax expense 202.4  111.2  563.7  467.2 Net income 188.8  206.9  1,038.4  886.3 Net loss attributable to noncontrolling interests (0.5) 0.0  0.0  0.0 Net income attributable to D.R. Horton, Inc.  $     189.3   $     206.9   $   1,038.4   $      886.3 

Diluted earnings per share  $       0.49   $       0.55   $        2.74   $        2.36 

3 MONTHS ENDED FISCAL YEAR ENDED

                        

24

H O M E S A L E S G R O S S M A R G I N

19.8% 20.2% 19.8% 19.8% 19.8% 20.3% 20.8%

0%

3%

6%

9%

12%

15%

18%

21%

FY15 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Q1 FY18

Shown as a % of home sales revenuesIncludes interest amortized to cost of sales

Home sales gross margin of around 20%

25

H O M E B U I L D I N G S G & A

Fiscal Year 2017 First Fiscal Quarter 2018

First quarter SG&A as a percentage of homebuilding revenues of 9.5%

9.3%8.9%

8%

9%

10%

11%

12%

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

 2016 2017

 HB Rev $   SG&A %

9.5% 9.5%

8%

9%

10%

11%

12%

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Q1 FY17 Q1 FY18

 HB Rev $   SG&A %

HB Rev $ SG&A % HB Rev $ SG&A %

$ in millionsShown as a % of homebuilding revenuesQ1 FY 2018 homebuilding SG&A includes approximately $5.3 million of Forestar transaction costs

26

$1,353.5$1,602.1

$0$200$400$600$800

$1,000$1,200$1,400$1,600$1,800

2016 2017

11.1%

11.4%

C O N S O L I D AT E D P R E - TA X I N C O M E

Fiscal Year 2017 First Fiscal Quarter 2018

Consolidated pre‐tax profit margin improved 70 basis points to 11.7% in Q1 FY 2018

$318.1 $391.2

$0$200$400$600$800

$1,000$1,200$1,400$1,600$1,800

Q1 FY17 Q1 FY18

11.0% 11.7%

PTI $ PTI $

$ in millionsShown as a % of consolidated revenues

27

B A L A N C E S H E E T

In millions, excluding per share metricsHomebuilding cash and cash equivalents includes $8.3 million, $9.3 million and $8.8 million of restricted cash for the periods ended 12/31/17, 9/30/17 and 12/31/16, respectivelyDetailed segment information is available in our Q1 FY 2018 earnings press release and Form 10‐Q (when filed) 

12/31/2017 9/30/2017 12/31/2016Homebuilding

Cash and cash equivalents  $           566.3   $           982.3   $        1,124.3 Inventories:   Construction in progress and finished homes 4,907.8 4,606.0 4,285.4   Land inventories            4,767.9             4,631.1             4,457.0 

9,675.7  9,237.1  8,742.4 Other assets 829.6  793.1 678.8 

Deferred income taxes, net 239.1 365.0 467.8Financial services, Forestar and other assets            1,646.6  807.1 698.8Total assets  $      12,957.3   $      12,184.6   $      11,712.1 

HomebuildingNotes payable  $        2,749.6   $        2,451.6   $        2,798.6 Other liabilities 1,564.2 1,508.7 1,473.5

Financial services, Forestar and other liabilities 588.1 476.7 458.2Stockholders’ equity            7,882.0             7,747.1             6,981.3 Noncontrolling interests               173.4                    0.5                    0.5 Total equity            8,055.4             7,747.6             6,981.8 Total liabilities and equity  $      12,957.3   $      12,184.6   $      11,712.1 

Debt to total capital – homebuilding 25.9% 24.0% 28.6%

Common shares outstanding 375.69 374.99 373.3

Book value per common share  $           20.98   $           20.66   $           18.70 

28

H O M E S I N I N V E N T O R Y

0

5,000

10,000

15,000

20,000

25,000

30,000

9/30/14 9/30/15 9/30/16 12/31/16 9/30/17 12/31/17

Models Sold Specs

23,100

19,80020,600

27,800

Homes in inventory increased 13% from a year agoto support expected growth in homes closed

24,50026,200

29

H O M E B U I L D I N G L A N D A N D L O T P O S I T I O N

124,600 118,400 112,900 118,300 125,000 125,900

58,900 55,50091,600 94,300

124,000 133,500

0

50,000

100,000

150,000

200,000

250,000

300,000

9/30/14 9/30/15 9/30/16 12/31/16 9/30/17 12/31/17Optioned Owned

183,500 173,900

212,600

Optioned lot position increased 42% from a year ago

204,500

259,400249,000

*

*Includes 3,100 lots D.R. Horton has under contract with or the right of first refusal to purchase from Forestar

30

H O M E B U I L D I N G P U B L I C D E B T M AT U R I T I E S B Y Y E A R

$0

$100

$200

$300

$400

$500

$600

$700

$800

FY 19 FY 20 FY 21 FY 22 FY 23

4.750%

$350

$500 $500

2.550%3.750% 4.000% 4.375%

5.750%

$700

$ in millions

$400