Q4 FY 2016

Q4 2016 3

Forward‐Looking StatementsThis presentation may include “forward‐looking statements” as defined by the Private SecuritiesLitigation Reform Act of 1995. Although D.R. Horton believes any such statements are based onreasonable 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 expressedby the forward‐looking statements include, but are not limited to: the cyclical nature of thehomebuilding industry and changes in economic, real estate and other conditions; constriction of thecredit markets, which could limit our ability to access capital and increase our costs of capital;reductions in the availability of mortgage financing provided by government agencies, changes ingovernment financing programs, a decrease in our ability to sell mortgage loans on attractive terms oran increase in mortgage interest rates; the risks associated with our land and lot inventory; homewarranty 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 skilledlabor; the impact of an inflationary, deflationary or higher interest rate environment; reductions in theavailability of performance bonds; increases in the costs of owning a home; the effects ofgovernmental regulations and environmental matters on our homebuilding operations; the effects ofgovernmental regulations on our financial services operations; our significant debt and our ability tocomply with related debt covenants, restrictions and limitations; competitive conditions within thehomebuilding and financial services industries; our ability to effect our growth strategies, acquisitionsor investments successfully; the effects of the loss of key personnel; and information technologyfailures and data security breaches. Additional information about issues that could lead to materialchanges in performance is contained in D.R. Horton’s annual report on Form 10‐K and our most recentquarterly report on Form 10‐Q, both of which are filed with the Securities and Exchange Commission.

Q4 2016 4

As of or for the fiscal year ended September 30, 2016 unless otherwise noted1By closings volume for fiscal years 2002 to 2016

• Traded on NYSE as DHI

• #1 builder for 15 years in a row1

• Revenues of $12.2 billion 

• Closed 40,309 homes

• Pre‐tax income of $1.4 billion

• Total assets of $11.6 billion

• Shareholders’ equity of $6.8 billion

• Book value per share of $18.21

D.R. Horton, Inc.

Q4 2016 5

Geographic DiversificationHB Revenue1

Region States

East Delaware, Maryland, New Jersey, North Carolina, Pennsylvania, South Carolina, Virginia

Midwest Colorado, Illinois, Minnesota

Southeast Alabama, Florida, Georgia, Mississippi, Tennessee

South Central Louisiana, Oklahoma, Texas

Southwest Arizona, New Mexico

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

Inventory2

South Central

25%

Southwest3%

West25% Midwest

6%

Southeast29%

Midwest5%

South Central

26%Southeast

25%

East11%

West28%

Southwest5%

78 Markets | 26 States

1Fiscal year ended September 30, 20162As of September 30, 2016

East12%

Q4 2016 6

Broad Range of Product Offerings

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

$200k to $250k

$250k to $300k

$300k to $500k

26%

24% 18%

25%

Represents homes closed in fiscal 2016

< $200k

$500k+

7%

Q4 2016 7

Substantial Growth in New Brands

67%

29%

4%

New Brand Growth ‐ TTM

5,648

10,4611,059

1,593

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

TTM 9/30/15 TTM 9/30/16

Overall Brand Mix – Q4

Represents homes closed

# of Homes

Q4 2016 8

Newest Brand – Freedom Homes

Targeted at the active adult buyer

8 MARKETS7 STATES

• Introduced in July 2016

• Carefree affordable living for active adults

• Low‐maintenance lifestyle

• Age‐restricted and age‐targeted communities

• Currently available in 8 markets 

• Expect to have available in approximately 1/3 of our 78 markets by end of FY 2017

Q4 2016 9

Management Tenure & Experience

Average employee tenure:

• Executive Team and Region Presidents – over 20 years

• Division Presidents and City Managers – over 13 years

Q4 2016 10

D.R. Horton Market Share Rankings

7

23

29

36

13

3035

41

05

101520253035404550

#1 Top 5 Top 10 Operations In

2009 2015Source: Builder magazine ‐ 2016 Local Leaders issueMarket share rankings based on homes closed in respective years

# MarketsTop 50 U.S. Housing Markets

Q4 2016 11

FY 2016 Highlights

• Consolidated pre‐tax income increased 20% to $1.4 billion

• Consolidated pre‐tax profit margin improved 70 basis points to 11.1%

• Net income increased 18% to $886.3 million

• The value of net homes sold, homes closed and homes in backlog increased by 12%, 13% and 9%, respectively

• 40,814 net homes sold and 40,309 homes closed

• 11,475 homes in backlog at 9/30/16

• Homebuilding return on inventory (ROI) improved 260 basis points to 15.4%*

• Cash flow provided by operations of $618.0 millionComparisons to FY 2015*see slide 14 for ROI calculation defined

Q4 2016 12

Sales, Closings & Backlog – FY 2016

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Sales Closings Backlog

FY14 FY15 FY16

Net Sales Orders, Homes Closed and Homes in Backlog increased 9%, 10% and 8%, respectively, in FY 2016 compared to FY 2015

# of Homes

Q4 2016 13

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

Q4 2016 14

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

Emphasis on Return on Inventory (ROI)

11.1% 12.8%

15.4%

0.0%

5.0%

10.0%

15.0%

20.0%

FY 2014 FY 2015 FY 2016

Steady improvement in Homebuilding ROI

Q4 2016 15$ in millions

Cash Flow from Operations

$700.4

$618.0

$300.0

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

$0

$200

$400

$600

$800

FY 2015 FY 2016 FY 2017eCash Flow from Operations Homes Closed

Generating positive cash flow from operations while growing

$500.0

Homes Closed

Q4 2016 16

Cash Flow Priorities

• Be opportunistic, while remaining disciplined• Invest in homebuilding business where opportunities to generate acceptable returns exist

• Business acquisitions to further consolidate market share• Pay off debt at maturity

• Paid $543 million of senior notes at maturity during FY 2016

• $350 million of senior notes due in May 2017• Consistent dividends to shareholders

• Increased quarterly dividend by 25% compared to most recent dividend paid – approximately $150 million annually

Q4 2016 17

Wilson Parker Acquisition

• Acquired the homebuilding operations of Wilson Parker Homes (WPH) in September 2016 for $91.9 million in cash ($82.2 million paid in FY16)

• WPH operates in Atlanta and Augusta, GA; Raleigh, NC; Columbia, SC and Phoenix, AZ

• Assets included approximately 490 lots, 380 homes in inventory and 308 homes in sales order backlog

• Also acquired control of approximately 1,850 optioned lots

• WPH closed 906 homes ($201 million in revenue) for the twelve months ended June 30, 2016 and was ranked the third largest builder in Atlanta by Builder magazine in calendar 2015

• WPH’s average home size is approximately 2,700 square feet at an average sales price of $222,000

Q4 2016 18

FY 2017 Expectations*Fiscal Year:• Consolidated pre‐tax profit margin of 11.2% to 11.5%• Consolidated revenues between $13.4 billion and $13.8 billion• Homes closed between 43,500 homes and 45,500 homes• Home sales gross margin around 20%, with potential quarterly fluctuations from 19% to 21%

• Homebuilding SG&A expense of approximately 9.0% of homebuilding revenues• Financial Services operating margin around 30%• Income tax rate of approximately 35.0%• Diluted share count of approximately 380 million shares • Cash flow from operations in the range of $300 to $500 million

First Quarter:• Backlog conversion rate in the range of 76% to 80%• Home sales gross margin around 20%• Homebuilding SG&A expense in the range of 10.0% to 10.2% of homebuilding revenues

*Based on housing market conditions as noted on the Company’s conference call on 11/8/16

Q4 2016 19

Fourth Quarter Data

Q4 2016 20

Q4 FY 2016 Highlights

• Consolidated pre‐tax income increased 28% to $433.0 million

• Consolidated pre‐tax income margin improved 90 basis points to 11.6%

• Net income increased 19% to $283.6 million

• The value of net homes sold, homes closed and homes in backlog increased by 7%, 19% and 9%, respectively

• 8,744 net homes sold and 12,247 homes closed

• 11,475 homes in backlog at 9/30/16

• Cash flow provided by operations of $529.4 millionComparisons to Q4 FY 2015

Q4 2016 21

Family of Brands

• The heart of our business

• Offered across all 78 markets and 26 states we operate in

• 67% of homes closed and 70% of home sales revenue

• Average selling price of $309,000

• Introduced in July 2016 as carefree affordable living for active adults

• Currently in 8 markets and 7 states

• Low‐maintenance lifestyle

• Age‐restricted and age‐targeted communities

• Gated where possible

• Introduced in 2014, targeted at the true entry‐level buyer

• Currently in 53 markets and 17 states

• 29% of homes closed and 20% of home sales revenue

• Average selling price of $209,000

• Introduced in 2013, focused on the higher‐end move up and luxury buyer

• Currently in 44 markets and 18 states

• 4% of homes closed and 10% of home sales revenue

• Average selling price of $719,000

Based on Q4 FY 2016 results

Q4 2016 22

Sales, Closings & Backlog – Q4 FY 2016

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Sales Closings Backlog

4Q FY14 4Q FY15 4Q FY16

Net Sales Orders, Homes Closed and Homes in Backlog increased 3%, 16% and 8%, respectively, in Q4 of FY 2016 compared to Q4 of FY 2015

# of Homes

Q4 2016 23

Income Statement

$ in millions

9/30/2016 9/30/2015 9/30/2016 9/30/2015Homes closed 12,247 10,576 40,309 36,648 Revenues: Home sales 3,637.5$ 3,052.1$ 11,783.1$ 10,469.4$ Land/lot sales and other 13.5 39.0 78.7 89.6

3,651.0 3,091.1 11,861.8 10,559.0 Gross profit: Home sales 746.6 607.3 2,380.1 2,075.8 Land/lot sales and other 1.4 1.3 10.5 7.8 Inventory and land option charges (15.4) (26.3) (31.4) (60.3)

732.6 582.3 2,359.2 2,023.3 SG&A 321.9 272.8 1,100.3 1,003.0 Goodwill impairment 7.2 9.8 7.2 9.8 Interest and other (income) (1.5) (2.3) (12.7) (7.8) Homebuilding pre-tax income 405.0 302.0 1,264.4 1,018.3 Financial services and other pre-tax income 28.0 36.8 89.1 105.1 Pre-tax income 433.0 338.8 1,353.5 1,123.4 Income tax expense 149.4 99.9 467.2 372.7 Net income 283.6$ 238.9$ 886.3$ 750.7$

Fiscal Year Ended3 Months Ended

Q4 2016 24

Home Sales Gross Margin

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

22%

          FY13        FY14    FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16

20.8%21.3% 19.8% 19.9% 19.9% 20.3% 20.5%

Home sales gross margin of around 20%

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

Q4 2016 25

Homebuilding SG&A

Shown as a % of homebuilding revenues$ in millions

$0

$200

$400

$600

$800

$1,000

$1,200

2015 2016

$1,003.0$1,100.3

9.5%9.3%

$0

$200

$400

$600

$800

$1,000

$1,200

Q4 FY15 Q4 FY16

$272.8 $321.9

8.8%

SG&A $SG&A $

8.8%

Fourth Fiscal Quarter

SG&A as a percentage of homebuilding revenues improved 20 basis points in FY 2016

Fiscal Year

Q4 2016 26

Consolidated Pre‐tax Income

Consolidated pre‐tax profit margin improved 70 basis points to 11.1% and 90 basis points to 11.6% in FY 2016 and Q4 FY 2016, respectively

Shown as a % of consolidated revenues$ in millions

PTI $ PTI $

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2015 2016

$1,123.4$1,353.5

10.4%

11.1%

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

Q4 FY15 Q4 FY16

$338.8 $433.0

10.7%11.6%

Fourth Fiscal QuarterFiscal Year

Q4 2016 27

Balance Sheet

In millions, excluding per share metricsHB = homebuilding

9/30/16 9/30/15

Cash and cash equivalents ‐ HB 1,271.8$               1,354.8$              Restricted cash 9.5                        9.7                       Inventories 8,340.9                 7,807.0                Deferred income taxes, net  476.3                    558.1                   Other assets 1,460.4                 1,421.4                Total assets 11,558.9$            11,151.0$           

Notes payable ‐ HB 2,798.3$               3,333.6$              Other liabilities 1,967.6                 1,922.0                Stockholders' equity 6,792.5                 5,894.3                Total equity 6,793.0                 5,895.4                Total liabilities and equity 11,558.9$            11,151.0$           

Homebuilding debt to total capital 29.2% 36.1%

Common shares outstanding 372.92                  368.65                 

Book value per common share $18.21 $15.99

Q4 2016 28

Homes in Inventory

0

5,000

10,000

15,000

20,000

25,000

30,000

9/30/13 9/30/14 9/30/15 12/31/15 3/31/16 6/30/16 9/30/16

Models Sold Specs

17,000

21,50019,80020,600

24,600 25,300

23,100

# of Homes

Positioned to start FY 2017 off strong

Q4 2016 29

Land and Lot Position

Supports annual double‐digit growth in both revenues and pre‐tax profits

126,600 124,600 118,400 116,600 111,900 112,100 112,900

54,300 58,900 55,500 61,100 76,600 89,900 91,600

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

225,000

9/30/13 9/30/14 9/30/15 12/31/15 3/31/16 6/30/16 9/30/16

Optioned Owned

180,900 183,500173,900 177,700

188,500202,000 204,500

# of Lots

Q4 2016 30

Inactive Land Held for Development

“Mothballed” lot count down 48% from 9/30/14

$450.2

$332.8

$202.3

$155.5$137.8

21,700

14,000

11,100

9,1007,300

0

5000

10000

15000

20000

25000

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

9/30/13 9/30/14 9/30/15 6/30/16 9/30/16

Balance

Lots Held

$ in millionsLand held for development is shown as separate line item on face of balance sheet

Q4 2016 31

Public Debt Maturities by Year

$0

$100

$200

$300

$400

$500

$600

$700

$800

FY 17 FY 18 FY 19 FY 20 FY 22 FY 23

4.750%

$350

$500 $500

$400

4.750% 3.625% 3.750% 4.000% 4.375%

5.750%

$700

$350

$ in millions

$350 million in maturities in FY 2017