Slide 1: Investor Presentation Second Quarter 2022
Investor Presentation Second Quarter 2022
Slide 2: Q2 2022 Highlights
Q2 2022 Highlights Closings Gross Margin Average Order Price • • Home closings revenue increased 15 percent to $1.9 billion. Home closings gross margin improved 750 basis points to +750bps +17% 26.6 percent, a record high, driven by pricing power, to 26.6% to $699,000 operational enhancements and ac
Slide 3: Key Metrics Snapshot
Key Metrics Snapshot Q2 2022 Q2 2021 Change Operating Statistics Net Sales Orders 2,554 3,422 (25%) Net Sales Orders Average Sales Price (in Thousands) $699 $597 17% Cancellation Rate 10.8% 5.2% 560 bps Home Closings 3,032 3,268 (7%) Home Closings Average Sales Price (in Thousands) $621 $503 23% Bac
Slide 4: Management's Outlook for Select Financial Metrics
Management’s Outlook for Select Financial Metrics Third Quarter 2022 Full Year 2022 Ending Active Community Count 315 to 325 Around 350 Home Closings 3,200 to 3,400 Around 13,500 Average Sales Price Not Provided At Least $625,000 GAAP Home Closings Gross Margin Consistent with 2Q 2022 25% to 26% SG&
Slide 5: ROE-Driven Focus on Home Closings Gross Margin
ROE-Driven Focus on Home Closings Gross Margin(1) 26.6% Enhanced Operational 21.2% 21.6% 23.1% 20.3% 25%-26% and Capital Efficiencies 18.6% 19.1% 16.6% • Operational Initiatives 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 2020 2021 2022 Guidance • Floorplan and Option Rationalization • Option Packages versus Desi
Slide 6: Robust Land Pipeline Supports Future Growth
Years of Supply Controlled Lot Percentage(1) Robust Land Pipeline Total Owned 41% Supports Future Growth 6.1 38% 5.5 5.6 31% 31% 5.0 4.9 4.7 26% 23% 3.7 3.8 3.8 3.6 3.5 Q2 2022 Highlights 3.2 • Disciplined land investment strategy focuses on prime land locations in core submarkets 2017 2018 2019 202
Slide 7: Backed by a Well-Capitalized Balance Sheet
Share Repurchases (in Millions) Backed by a Well- $281 Capitalized Balance Sheet $230 $157 $103 Q2 2022 Highlights • $1.1 billion total available liquidity • $378 million unrestricted cash 2019 2020 2021 1H22 • $684 million revolving credit facility capacity Debt Maturity Summary as of Q2 2022 (in M
Slide 8: Guided by a Balanced Capital Allocation Philosophy
Guided by a Balanced Capital Allocation Philosophy Allocate Capital for Long-Term Value Creation We aim to enhance the long-term value of our company by allocating capital with a balanced and disciplined approach to drive profitable growth through a housing cycle Balance Sheet Stewardship Reinvest i
Slide 9: Diverse Product Portfolio Serves All Major Buyer Groups
Diverse Product Portfolio Serves All Major Buyer Groups Net Sales Orders by Consumer Type 55-Plus 25% 24% Active Lifestyle 43% Move Up 47% 32% 29% Entry Level 2Q21 2Q22 Monthly Net Sales Orders per Community 4.3 3.8 3.6 3.4 3.4 3.3 3.3 3.2 3.1 3.1 2.8 2.6 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 1Q22
Slide 10: Local Market Scale Across Coast-to-Coast Footprint
Mix of Home Closings by Region Local Market Scale Across Coast-to-Coast Footprint 25% 36% 39% West 28% 28% 25% Central 8 Markets 13 Markets 47% 36% 37% East Top 5 Builder Top 10 Builder 2019 2020 2021 10
Slide 11: Financial Services
Financial Services Q2 2022 Highlights Borrower Snapshot Unit Product Mix Suite of Services Benefits • 755 Average FICO Score • 80% Conventional • Mortgage Lending • Pre-Qualification of Nearly All Buyers • 77% Average LTV Ratio • 16% Government • Title Insurance • Valuable Backlog Management • $450,
Slide 12: Canvas, our Curated Design Package Approach
Canvas, our Curated Design Package Approach • Canvas packages are thoughtfully curated to offer homebuyers an improved, easier design experience than the traditional design center approach • Package collections—which are available at five budget levels—include features with the highest design appeal
Slide 13: Build-to-Rent Business Addresses Lifestyle Rental Opportunity
Build-to-Rent Business Addresses Lifestyle Rental Opportunity • Focused on leveraging core production homebuilder strengths to deliver innovative, single-family rental communities that fill a void in the market and meet growing demand from renters-by-choice and consumers impacted by affordability •
Slide 14: Taylor Morrison is Committed to Sustainability Progress
Taylor Morrison is Committed to Sustainability Progress People First Building for the Future Transparency and Accountability ~3,000 100 percent 7 years team members homes built with TM LiveWell ® healthy living products America’s Most Trusted® Homebuilder (2016-2022) 40,100+ 5,048 100 percent hours
Slide 15: Appendix
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Slide 16: Who We Are
Who We Are West Bay Area Portland Sacramento Seattle Southern California Central Denver Las Vegas Phoenix Headquartered in Scottsdale, Arizona, Taylor Morrison is one of the Austin nation’s largest homebuilders and developers with operations in Dallas-Fort Worth Houston many of the highest-growth ho
Slide 17: Achieved Scale and Diversification for Long-Term Success
Achieved Scale and Diversification for Long-Term Success Regional M&A and Strategic Refinement Enhanced Public Market Liquidity Large Scale M&A Operational Effectiveness 2013 2014 2015 2016 2017 2018 2019 2020 2021 Became a fully- floated public Acquired William Recognized as company following Lyon
Slide 18: Significant Growth Evident Across Key Metrics
Significant Growth Evident Across Key Metrics Home Closings Total Revenue ($ in Billions) $7.5 13,699 12,524 $6.1 9,964 8,760 $4.8 8,032 $4.2 7,369 $3.9 $3.6 6,311 $3.0 5,642 $2.7 2014 2015 2016 2017 2018 2019 2020 2021 2014 2015 2016 2017 2018 2019 2020 2021 Gross Profit ($ in Millions) Stockholder
Slide 19: Historical Operating Data by Region
Historical Operating Data by Region Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 2021 Q1 2022 Q2 2022 Q2 2022 vs Q2 2021 Net Sales Orders East 1,361 1,176 1,548 1,384 5,469 1,777 1,302 1,279 1,037 5,395 1,027 1,121 (14%) Central 906 1,003 1,133 824 3,866 1,072 850 921 957 3,8
Slide 20: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Net Homebuilding Debt to Capitalization Ratio Reconciliation ($ in thousands) June 30, 2022 June 30, 2021 Total Debt $ 2,950,744 $ 3,082,648 Less amortized debt issuance premiums, net (11,891) 2,344 Less mortgage warehouse borrowings 179,555 215,230 Total homebuil
Slide 21: Forward-Looking Statements
Forward-Looking Statements This earnings summary 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