Tri Pointe Homes, Inc. · NYSE:TPH
Tri Pointe Homes — Investor Day (May 2022)
102 slides from Tri Pointe Homes's investor day presentation, May 27, 2022
Slide 1: 2022 Investor Day
2022 Investor May 26, 2022 Life-changing by Design
Slide 2: Forward-Looking Statements
Forward-Looking Statements Various statements contained inthis presentation including those that express a belie expactation or intention, a wall as thoes that arent statements of historical fact, are forward-looking statements. These forward-looking statements may include, but are not limited to, s
Slide 3: Presentation Agenda
> Welcome » Current Market Dynamics - Mortgage & Backlog Management > The Tri Pointe Difference - Land Acquisition + - To-Be-Built & Spec Strate; Presentation Agenda “Vins Sdlectook - Design Studios and Options » Land Position and Delivery Growth Projections » Division Spotlight and Case Studies » D
Slide 4: Current Market Dynamics
> Current Market, Dynamics
Slide 5: Housing: Strong Fundamentals for Long-Term Success
Current Market . Dynamics Housing-Strong Fundamentals for Long-Term Success ‘Avs HIGHER ITEREST RATES, LATION AND SUPPLY CHAIN CHALLENGES > Strong job growth, low unemployment, rising incomes, homeowner equity, rising rents Demographics: Pid etfs te. o/+ 72 Million’ 67 Million’ = $61 Trillion? = 57%
Slide 6: Housing: Strong Fundamentals for Long-Term Success
Current Market Dynamics Housing-Strong Fundamentals for Long-Term Success AMIDST HIGHER INTEREST RATES, INFLATION AND SUPPLY CHAIN CHALLENGES » Current low resale supply has increased new home market share » Limited new home supply. Tri Pointe’s focus is on core markets, typically land constrained w
Slide 7: Mortgage & Backlog Management
Current Market Mortgage & Backlog Management
Slide 8: Mortgage Market Update
Current Market Dynamics Mortgage & Backlog lanagement Mortgage Market Update > How do rising rates impact Tri Pointe Homes? - Well-qualified backlog ~ Successful rate lock programs ~ 55% of Tri Pointe Connect (affiliated mortgage company) H2 2022 deliveries are locked as of April 30, 2022 - Fixed vs
Slide 9: Tri Pointe Homes Homebuyer Buying Power
Current Market Dynamics Mortgage & Backlog lanagement Tri Pointe Homes Homebuyer Buying Power > Average homebuyer financing with Tri Pointe Connect (77% of total backlog) as of April 30, 2022: ~ Average annual household income of $174,000 - Average debt-to-income ratio of 40% - Average FICO score of
Slide 10: Tri Pointe Homes Pre-qualification Process
tri Tri Pointe Homes Pre-qualification Process Through Tri Pointe Connect Tri Pointe Current Market Dynamics Mortgage & Backlog lanagement
Slide 11: Tri Pointe Homes Pre-qualification Process
tripointe Current Market Dynamics Mortgage & backlog lanagement Tri Pointe Homes Pre-qualification Process Through Tri Pointe Connect 6. Homes are sold to pre- qualified homebuyers ~ income type = source of down payment loan type redit or DTI risk terest rate sensitivity analysis inancing contingenc
Slide 12: Backlog Management Process
tripointe Current Market Dynamics Mortgage & Backlog lanagement Backlog Management Process D> ARisk Rating is assigned and updated in our CRM system for each homebuyer - High, Medium, Low Risk D> High Risk (13% of current backlog) - Factors include home-to-sell contingency, down-payment gift or over
Slide 13: Long-term Rate Locks Through Tri Pointe Connect
Current Market Dynamics Mortgage & Backlog lanagement Long-term Rate Locks Through Tri Pointe Connect D> Rate lock terms up to 270 days on most loan programs > The mechanics of a long-term lock - Interest rates offered are based on current 60-day lock with a rate add-on to establish the ceiling inte
Slide 14: The Tri Pointe Difference: Land Acquisition
> The Tri Pointe Difference Land Acquisition
Slide 15: Disciplined Underwriting
Disciplined Underwriting
Slide 16: Excellent Diversified Pipeline
Excellent Diversified Pipeline Land Owned vs. Land Controlled Current 53% vs. 47% v Future Target 40% vs. 60% Withstanding Market Uncertainty 65% lots controlled prior to December 31, 2020 Anticipated 22%-30% gross margin on such lots The Tri Pointe Difference Land Acqui Own and Control 100% of Land
Slide 17: Submarket Assessment Example
The Tri Pointe Difference Land Acqui Submarket Assessment Example Tri Pointe Homes Arizona - Internal Submarket Assessment ubmarket Employment Income Supply/Demand Lifeseyle A Ae A A A A A Northwest Valley 8 A A a Be Central & South A © G a & ‘West Vally (Neat) 8 G A 8 East Valley (Fat) a & © a & We
Slide 18: Homebuyer Segmentation
Homebuyer Segmentation > Leverage largest consumer information database in the U.S., 120M households updated quarterly > Tl homebuyer segments reflect 90% of Tri Pointe’s homebuyers in the last twelve months > Top 4 homebuyer segments in the last 12 months represent 62% of homebuyers: PS Sed
Slide 19: To-Be-Built & Spec Strategy
The Tri Pointe To-Be-Built & Spec Strategy
Slide 20: To-Be-Built & Spec Strategy
The Tri Pointe Difference To-Be-Built & To-Be-Built & Spec Strategy Spee Strategy > Balanced approach to spec and to-be-built homes - Currently achieving 50-50 overall goal - Mix may be higher or lower by community or month > To-Be-Built home personalization - Community options program designed for
Slide 21: Virtual Sales Tools
> The Tri Pointe Difference Virtual Sales Tools
Slide 22: Virtual Sales Tools
The Tri Pointe Difference Virtual Sales Tools Virtual Sales Tools Self-service and guided virtual sales tools are used throughout the life of a community > Virtual street scene renderings and fly-overs » Virtual reality home tours » Interactive floorplans with structural options pricing > Home inter
Slide 23: Virtual Sales Tools
The Tri Pointe Difference Virtual Sales Tools ES . . * + tmpointe —_tripointe
Slide 24: Virtual Sales Tools Benefits and Results
Virtual Sales Tools Benefits > Reduction in physical model homes > Ability to start sales ahead of model completion > Lower broker attachment rate > Superior customer experience “Ae otHey82022 Coes ofoophboroode that nly pend orto or fe anny, 2022 The Tri Pointe Difference Virtual Sales Tools New Ne
Slide 25: Sales and Marketing Expense
The Tri Pointe Difference irtual Sales Tools Sales and Marketing Expense Broker Expense and Broker Attachment Rate Sales and Marketing Expense (For the three-year-period ended April30, 2022) (% of Homebuilding Revenue) Carin drwy pd eA 3,202) — oo oe ae = nox - 2 ox coe ia a pee “A cs 40% m Seebeee
Slide 26: Design Studios and Options
> The Tri Pointe Difference Design Studios and Options
Slide 27: Best-in-Class Design Studios
The Tri Pointe Difference Design Studios and Options Best-in-Class Design Studios
Slide 28: inereeen ste F |
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Slide 29: Online Design Studio
Online Design Studio The digital design journey > Online Design Studio (Envision) - Pricing transparency > Creating a wish list - Prepared homebuyers - Able to research warranty and product awareness within the Online Design Studio oe The Tri Pointe Difference Design Studios and Options
Slide 30: Finishes
The Tri Pointe Difference Design Studios and Options Finishes
Slide 31: Collections Strategy
The Tri Pointe Difference Design Studios Collections Strategy STRSGHEID > Entry-Level and select Move-Up communities » Visualizer to visualize whole scene changes and compare » One appointment to finalize reduces cycle time SS Timeless Il
Slide 32: Historical and Forward-Looking Option Results
Historical and Forward-Looking Option Results Deliveries and Option Gross Margins Total and Per Homesite Option Revenue th thousands p00 tox pa 286650 apo sE5% nS gion 390% oo Ste sak 200% 400 a2 3,000 22 oo 365% 1000 oe 0 25% ne ne) mmo) me fm Detvenes Option ‘ms Toul OptonRvense Option Revenue Per
Slide 33: Land Position and Delivery Growth Projections
> Land Position and Delivery Growth Projections
Slide 34: Strong Land Position to Fuel Growth
Land Position and Delivery Growth Projections Strong Land Position to Fuel Growth » Owned or controlled nearly 42,000 lots as of March 31, 2022, of which 47% are controlled » We own or control 100% of the land needed to meet our planned deliveries through 2024 » Expect to open a total of approximate
Slide 35: Lot Summary
Land Position and Delivery Growth Project Lot Summary , Owned Controlled Total Lots fel) =» Total lots have increased by 57% over Arizona 1,536 2,742 4,278 64% the past three years with an emphasis California 10,841 3,385 14,226 24% on growing our Central and East ‘Nevada 2,010 417 2,427 7% segments
Slide 36: Increased Geographic Diversity and Controlled Lot Percentage
Land Position and Delivery Growth Co, jectons Increased Geographic Diversity and Controlled Lot Percentage % of Total Lots % Owned vs Controlled % of Total Lots % Owned vs Controlled De wot Cencal Sim East Owned St Contrelld Cental Sm East Owned St Conzoted
Slide 37: Active Selling Communities
Land Position and Delivery Growth Active Selling Communities ie 2021 Actual 2022 Plan 2023 Plan 2024 Plan Arizona 2 9 6% 20 10% 15 California 4 59 38% 58 30% 50 Nevada 9 7 5% 1 6% 9 5 5 3% 6 3% rl West Total 67 80 52% 95 49% 83 Colorado 8 a Th 1 6% 15 Texas 2 40 26% 65 33% 70 Central Total Carolinas
Slide 38: New Home Deliveries
Land Position and Delivery Growth New Home Deliveries Byer 2021 Actual 2022 Plan 2023 Plan 2024 Plan Arizona California 2,608 Nevada 527 2,475 37% 2,950 37% 2,625 32% 530 8% 600 8% 615 Th Colorado Texas 7,081 Central Total 4,312 Carolinas 114 657 1% ‘Company Total 6,188 100% Adar ef Decanbr 31 ofhep
Slide 39: Average Sales Price
Land Position and Delivery Growth Average Sales Price es 2021 Actual 2022 Plan 2023 Plan 2024 Plan Arizona $677 $750 $675 $645 California $664 $750. $725 $700 Nevada $637 $735 $635 $610 ton $985 $800 $825 West Total $686 $760 $710 $685 Colorado $606 $675 $615 $590 Texas $491 $530 $475 $475 Central T
Slide 40: Sean Ricks
r=) Cc () 2 (7p) {cD) i. fae Cc ne) 2 2 a) Sean Ricks
Slide 41: Dallas Fort-Worth Market Overview
Dallas Fort-Worth Market Overview Annualized existing home closings srreeee srreeee sererey 112,686 eeayen 49,842 Sure a ae mat pos A May 2022 Annualized new Median home closings price hanaant existing home ryYy yy $381,044 hannnn new home $397,635 44,931 Est. months of housing “re Dallas-Fort Worth
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Slide 43: Lot Summary - Dallas-Fort Worth Division
Dallas-Fort Worth Division Lot Summary- Dallas-Fort Worth Division » Owned or controlled 3,582 lots in core submarkets > Over 30% of lots were contracted in 2020 or prior > Targeting 28 new community openings from 2022 through 2024 > New communities largely focused on the Entry-Level and First Move-
Slide 44: Case Study: Premium Design at the Entry-Level
> Case Study Premium Design at the Entry-Level
Slide 45: The Opportunity: Harvest by Hillwood
Dallas Fort-Worth Division Case Study The Opportunity Harvest by Hillwood > Dallas Builders Association award-winning lifestyle community - Master-planned community of the Year ‘17, ‘19, ‘22 - People’s Choice Community of the Year ‘22 » Highly rated, onsite schools » Easy commute to major employment
Slide 46: The Challenge: The Retreat
Dallas Fort-Worth Division The Challenge ewency The Retreat z » Develop product and density to: - Achieve low to mid $300K base price - Approx. 500 Units (~8 units/acre)
Slide 47: The Challenge
The Challenge The Retreat » Develop product and density to: - Achieve low to mid $300K base price - Approx. 500 Units (~8 units/acre) - Bring in new, innovative home designs to differentiate from “Texas traditional” competitors - Focus on outdoor livability
Slide 48: Homebuyer Segmentations
Homebuyer Segmentations > 35’ SF Front Entry > 2-pack + Anticipated consumer groups: + Anticipated consumer groups: Singles Singles & Couples; Growing Families; & Couples; School Aged Families; and and School Aged Families Growing Families + Open concept design with focus on _+ Density detached with
Slide 49: Tri Pointe Dallas Fort-Worth Position
Tri Pointe Dallas Fort-Worth Position > 213 Lots (% of the lots in The Retreat) on a quarterly lot takedown > Square Footage Bands - Duplex: 1,658 to 2,098 - 2-Pack: 1,866 to 2,330 - 35’ FE: 2,125 to 2,762 > Projected Average Sales Price Range: $400K-$525K > Projected Gross Margin (consolidated): 19
Slide 50: Historical and Forward-Looking Selected Financial Data
Dallas Fort-Worth Division Historical and Forward-Looking Selected Financial Data Dallas Fort-Worth Division Deliveries and Home Sales Revenue Active Selling Communities and Average Sales Price (As of and for the years ended December 31,202), 2022, 2023 and 2024) (As of and forthe years ended Decemb
Slide 51: Bryan Havel, Division President
Bryan Havel Division President
Slide 52: Austin Market Overview
Austin Division Austin Market Overview Annualized existing Annualized new Median Median home closings home closings price household income TTT aaannt hres $$$$$$$$$ TVTTTTP aaanet Z $$$$$$$55 eVPTITE aannan ens $$$$$SSS$ 41,508 20,828 , $90,900 Single-family permits Est. months Est. vacant (12 month
Slide 53: New Home Starts - Austin MSA
2Q21-1Q22 New Home Starts-Austin MSA 4 Austin Division
Slide 54: Lot Summary - Austin Division
Lot Summary-Austin Division » Owned or controlled 2,678 lots in core submarkets > Over 50% of lots were contracted in 2020 or prior > Targeting 14 new community openings from 2022 through 2024 > New communities largely focused on the Entry-Level and First Move-Up homebuyer segments > Average sales p
Slide 55: Case Study: Premium Design Drives Results
> Case Study Premium Design Drives Results
Slide 56: Bryson Community Summary
‘Austin Division Case Study Bryson Community Summary > Planned community with ~1,100 lots by Johnson Development » Located in Leander, TX about 30 minutes north from downtown Austin (#4 sub-market in the MSA) » Highly amenitized community with future onsite elementary school tripointe
Slide 57: Bryson Community Map
Bryson Community Map ‘Austin Division Case Study » Tri Pointe section for 60 lots in own section across from amenity center and future school site > Unique “wide-shallow” lots that measure 60ft wide by 90ft deep (roughly 35ft shorter than typical lot)
Slide 58: Product Strategy
‘Austin Division Case Study Product Strategy Could we obtain premium pricing over competing builders and overcome the shallow lot size by offering a premium product? » 50ft wide by 55-58ft deep homes to fit on the wide and shallow lots » Resulted in small 12-15ft backyards » The challenge: different
Slide 59: Elevation Design
‘Austin Division Case Study Elevation Design tri Pointe’ ES Competitor 60x 90 lot DP 45/50 x 125 lot (50ft wide plans) 35 & 40f wide plans) Upgraded stone/ stucco elevations D> Brick/stucco elevations 1Oft high ceilings > 9ft high ceilings Larger and more expansive > Smaller and fewer windows window
Slide 60: Kitchen and Patio
Austin Division Case Study Kitchen and Patio tri pointe’ Competitor = 42” 36” kitchen kitchen cabinets cabinets 8x9 9x7 covered ns covered as patio
Slide 61: Primary Suite Design
Austin Division ‘Case Study Primary Suite Design tri pointe’ Competitor > Primary Tele ‘all tombe a
Slide 62: Results
‘Austin Division Case Study Results New product was a grand slam with our homebuyers, who instantly felt the openness and premium quality of our offering. Biggest Differentiators: The Numbers: » Upgraded elevations > ~$30k+ above competitor on base pricing > 10ft ceilings and 8ft doors . . . > ~$10k
Slide 63: Historical and Forward-Looking Selected Financial Data
Austin Division Historical and Forward-Looking Selected Financial Data Austin Division Deliveries and Home Sales Revenue Active Selling Communities and Average Sales Price (As ofand for the years ended December 31,2021, 2022, 2023 and 2024) (and h yn ned Deeb 3202072, 202 oe 024 m0 0 #50900 —_______
Slide 64: Joe Mandola, Division President Houston
> Joe Mandola Division President Houston
Slide 65: Houston Market Overview
Houston Division Houston Market Overview Annualized existing Annualized new Median Median home closings home closings price household income TTT aaannt pate $$$$$$$$$ TVTTTTP aaanet o $$$$$$$55 eVPTITE aannan ae, $$$$$SSS$ 113,192 42,996 , $78,100 Est. vacant Single-family permits Est. months (12 mo
Slide 66: New Home Starts - Houston MSA
2Q21-1Q22 New Home Starts-Houston MSA Houston Division
Slide 67: Lot Summary - Houston Division
Houston Division Lot Summary-Houston Division » Owned or controlled 5,207 lots in core submarkets. > Over 70% of lots were contracted in 2020 or prior > Targeting 28 new community openings from 2022 through 2024 > New communities largely focused on the Entry-Level and Move-Up homebuyer segments > Av
Slide 68: Case Study: Joint Ventures
> Case Study Joint Ventures
Slide 69: Joint Ventures
Houston Division Case Study Joint Ventures We have partnered with other builders in Houston to collectively control over 6,500 lots in core locations. The advantages of builder-to-builder JV: » De-risk large land purchases with a 50/50 partner » Allows us to pursue project debt on the JV to lower up
Slide 70: Joint Venture Summary
Houston Division Case Study Joint Venture Summary Community Name Contract Date #Acres Lots Lot Wiehe 1 ‘Woodson's Reserve Moy18 s40 | 1800 | 45,50, 60,70,80 | 29% 2 ‘Mason Woods Augl9 300 | 1400 40, 45,50 24% a Lakes at Cresleide Sep-19 168 357 45,50, 60 20% 4 Pecan Ridge Occ 26 | 796 45,50, 60 29%
Slide 71: Lakes at Creekside
> Lakes at Creekside
Slide 72: Lakes at Creekside - Location Map
Houston Division Case Study Lakes at Creekside - Location Map St o 4 = ‘Houston
Slide 73: Lakes at Creekside Project Overview
Lakes at Creekside Project Overview: » Sourced by Tri Pointe Homes » 116 Acres (357 lots) in Tomball, TX > Initial contract date: + September 25, 2019 (265 Lots) - Added Cohen Tract: + December 30, 2020 (92 Lots) » Lot widths: 45'/50°/60" Houston Division Case Study
Slide 74: Lakes at Creekside
Houston Division Case Study Lakes at Creekside Project Overview: » Adjacent to The Woodlands area jobs center with first-class amenities » Introduction of smaller lots and lower price points » Strong school district and schools Performance to date: » Average Sales Price - $520K » Absorption - 7.7 pe
Slide 75: Historical and Forward-Looking Selected Financial Data
Houston Division Historical and Forward-Looking Selected Financial Data Houston Division Deliveries and Home Sales Revenue Active Selling Communities and Average Sales Price (As of and for the years ended December 31, 2021, 2022, 2023 and 2024) (As of and for the years ae Decambes aa 2022, 2023 and
Slide 76: Gray Shell, Division President Carolinas
> Gray Shell Division President Carolinas
Slide 77: Charlotte Market Overview
Charlotte Market Overview Annualized existing home closings srreeee srreeee sererey 45,636 eee 21,544 Sure a ae mat pos A May 2022 Annualized new Median home closings price, hanaant existing home aannee $348,200 thnane sew Ror $430,900 11,564 Est. months of housing “re Median household income SSSSSS
Slide 78: New Home Starts - Charlotte MSA
-Charlotte MSA — % 2Q21-1Q22 New Home Starts
Slide 79: Raleigh-Durham Market Overview
Raleigh-Durham Market Overview Annualized existing home closings srreeee srreeee sererey 38,106 esayen 17,843 Sure a ae mat pos A May 2022 Annualized new Median home closings price ypyyyyyY ¥ existing home aannan $374,000 hahthath new home $445,300 14,640 Est. months of housing “re Median household
Slide 80: New Home Starts - Raleigh MSA
2Q21-1Q22 New Home Starts-Raleigh MSA ef ef hn
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