Pultegroup, Inc. · NYSE:PHM
Pultegroup — Barclays Industrials Select Conference 2021
20 slides from Pultegroup's conference presentation, Feb 16, 2021
Slide 1: Investor Presentation
Investor Presentation Barclays Industrials Select Conference February 16, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation includes "forward-looking statements." These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to s
Slide 3: Agenda
AGENDA Favorable Demand Dynamics A Proven Record of Success Summary 3
Slide 4: Favorable Demand Dynamics
Favorable Demand Dynamics
Slide 5: Significant Market Opportunity After Years of Underbuilding
Significant Market Opportunity After Years of Underbuilding •Housing Starts (000) • Estimate housing need at 1.5 million starts annually Single Family Multi-Family 2,200 • Cumulative deficit since Great 2,000 Recession approaching 7.0 million 1,800 homes 1,600 1,400 • Impact of pandemic is increased
Slide 6: Limited Inventory of New Homes
Limited Inventory of New Homes •New Houses For Sale (000) • Strong demand continues to For Sale Months Supply quickly absorb new home 500 8.0 supply 450 400 7.0 • Construction volumes continue 350 6.0 to grow at a measured pace 5.0 300 – Industry being impacted by 250 4.0 availability of entitled lo
Slide 7: Limited Inventory of Existing Homes
Limited Inventory of Existing Homes •Total House Inventory • December inventory of 1.07 million 2,000,000 homes was an all-time low of 1.9- 1,800,000 month supply 1,600,000 • Strong demand combined with 1,400,000 reluctance among buyers to list 1,200,000 during COVID 1,000,000 800,000 • Limited inve
Slide 8: A Proven Record of Success
A Proven Record of Success
Slide 9: Industry Leading Brand Names
Industry Leading Brand Names ©2020 PulteGroup 9
Slide 10: Serving a Variety of Price Points
Serving a Variety of Price Points $500K Under $275K and Above 17% 26% Percentage of 2020 Closings by Price Point 21% 36% $400K–$499K $275K–$399K ©2020 PulteGroup 10
Slide 11: With a Broad and Balanced Geographic Footprint
With a Broad and Balanced Geographic Footprint % for FY 2020 % of Company SEATTLE Closings 15% BOSTON Revenue 14% Lots 11% MINNEAPOLIS DETROIT PHILADELPHIA % of Company CLEVELAND CHICAGO Closings 6% New in 2021 COLUMBUS SAN FRANCISCO WASHINGTON D.C. Revenue 8% INDIANAPOLIS SAN JOSE Denver LOUISVILLE
Slide 12: Driving Growth and Improved Financial Results
Driving Growth and Improved Financial Results • Closings • Homes Sale Revenues ($B) $9.9 $10.6 23,107 23,232 24,624 $9.8 19,951 21,052 $8.3 $7.5 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 • Gross Margin Percentage of Home Sale Revenues • EPS (diluted) 25.0% $5.18 24.3% $3.66 23.2% $3.55 23.1%
Slide 13: Allowing Investment in the Business While Returning Funds to Shareholders
Allowing Investment in the Business While Returning Funds to Shareholders • Net Income ($M) • Land Acquisition & Development Spend ($M) $1,407 $2,977 $1,022 $1,017 $2,830 $2,856 $603 $2,633 $447 $2,553 2016 2017 2018 2019 2020 2016* 2017 2018 2019* 2020 • Cash Flow from Operating Activities ($M) • S
Slide 14: And Building Balance Sheet Strength and Flexibility
And Building Balance Sheet Strength and Flexibility • Ended 2020 with $2.6 billion of •Debt-to-Total Capitalization Ratio cash and a debt-to-total 42.0% capitalization of 29.5% 40.2% 38.6% 33.6% 29.5% • Announced plans to pay down $726 million of senior notes in 2016 2017 2018 2019 2020 Q1 2021 – Ex
Slide 15: Allocating Capital Consistent with Our Stated Priorities
Allocating Capital Consistent with Our Stated Priorities 1. Invest in the business – Expect to invest $3.7 billion in land acquisition and development in 2021, an increase of $800 million over 2020 2. Continue to fund our dividend – Dividend was increased by 17% effective with the January 2021 payme
Slide 16: Building a Bigger and More Efficient Land Pipeline
Building a Bigger and More Efficient Land Pipeline •Lots Under Control • Since 2016, owned lot supply lowered by 8%, while optioned Owned Optioned 200,000 lots have more than doubled 175,000 • Company has effectively achieved its initial 50/50 target for owned 150,000 88,989 and optioned lots 125,00
Slide 17: Continuing to Expand Investment in Affordable/First-time Segment
Continuing to Expand Investment in Affordable/First-time Segment • Have strategically increased •Lots Under Control by Buyer Group our investment in the First Time Move Up Active Adult affordable/first-time part of 36% 38% the market 32% 32% 35% 35% 35% 33% 32% 31% 31% – Positioning our Centex brand
Slide 18: Refining Our Offering
Refining Our Offering • Evolving the brand to meet the needs of the affordable, entry-level buyer • Offering Great Value, Great Quality, Easy Process • Product offering, specifications and designs focused on simplicity and value • Minimal to no options – No structural options • Even flow production
Slide 19: Summary
Summary Working to Deliver High Returns Over the Housing Cycle
Slide 20: Working to Create Long-term Value for our Shareholders
Working to Create Long-term Value for our Shareholders FOCUS on the customer: deliver superior build quality and home buying experience INVEST in high-returning, shorter duration land positions MAINTAIN disciplined business practices IMPROVE asset efficiency to increase inventory turns and enhance c
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