Beazer Homes Usa, Inc. · NYSE:BZH
Beazer Homes Usa — Wachovia Securities 2006 Homebuilders Conference
31 slides from Beazer Homes Usa's conference presentation, Mar 1, 2006
Slide 1: Wachovia Securities 2006 Homebuilders Conference
SA Wachovia Securities 2006 Homebuilders Conference March 1, 2006
Slide 2: Forward Looking Statements
A Beazer Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially. Such risk
Slide 3: Company Overview
Beazer A Beazer Homes Company Overview
Slide 4: Beazer Overview
ABbeaze r Overview ° Sixth largest US homebuilder * Market cap of ~$ 2.7 billion FY 2005: p ~ Revenues: $5.0 billion South Fast — Home Closings: 18,146 ¢ Broad geographic and product diversification Specific operational initiatives targeted at company-specific opportunities.
Slide 5: Beazer History
ApBeazer History * 1994 IPO of Beazer Homes with annual revenues of $537 million in 9 states in the Southeast and Southwest, focused on first-time and first move-up buyers * Over the next decade, Beazer Homes assembled a broad geographic footprint through acquisition in many of the country’s largest
Slide 6: Beazer Overview: Where do we build?
A Beazer Overview Where do we build? FY 2005 Closings By State Ky OH GA NJPA 1% 4% 4% FL 14%
Slide 7: Beazer Overview: What Do We Build?
Ase Beazer Overview What Do We Build? FY 2005 Closings by Product-Type 40% 36% 25% , 18% 20% ne 15% 15% sae 10% 2 0% + <1500 sq. ft. 1500-1999 2000 -- ae 2500-2999 >3000 sq. ft. sq. ft. sq. ft. 18% 56% 7
Slide 8: Industry Backdrop
ApBeazer Overview Industry Backdrop * Constrained Supply — Land constraints and entitlement restrictions — Larger deals require greater financial wherewithal — Reduced speculative building ~ Housing start levels have not kept pace with population growth * Increasing Demand — Demographic trends i hom
Slide 9: Recent Market Check
_ABeazer Overview Ses Recent Market Check ¢ As noted in the media, and in our Q1 conference call, several markets have experienced slower sales pace and price appreciation than experienced in recent years © Several major public homebuilding markets, notably Northern Virginia and Sacramento, have see
Slide 10: Profitable Growth Strategy Foundation Components
A Beazer Profitable Growth Strategy 3 Foundation Components
Slide 11: Profitable Growth Strategy: Selective Market Penetration
AB eazer Profitable Growth Strategy Homes Selective Market Penetration Capitalize on Broad Geographic Profile Assembled Over Last Decade *Selectively leverage infrastructure and land positions already in place *Grow in existing markets by increasing depth and breadth through focused product and pric
Slide 12: Selective Market Penetration: Market Research and Customer Segmentation
_ABeazer Profitable Growth Strategy ee Selective Market Penetration Market Research and Customer Segmentation ¢ Couple in-house knowledge with sophisticated market research tools to define ‘Beazer Customer Segments’ across the organization ¢ Use Beazer Customer Segments as the foundation for land ac
Slide 13: Leverage National Brand
Profitable Growth Strategy Leverage National Brand * National branding strategy * Differentiate by providing an enjoyable customer experience plus value ¢ Customer is the constant focus eS Voor
Slide 14: Profitability Initiatives
AB edzer Profitable Growth Strategy Profitability Initiatives Homes + Simplify and standardize best practices ‘& produict designs to improve profitability and quality * Create economies of scale through regional and national initiatives * Achieve “back-end” cost reductions with quality and customer
Slide 15: Extension of Profitable Growth Strategy
_ABeazer Extension of Profitable Growth Strategy ¢ Achieve sustainable long term profitable growth through rebalancing and reallocating capital into most promising market opportunities ¢ Includes expansion of share repurchase program to 10 million shares over approximately 3 Seauritl $67.0 million r
Slide 16: Financial Summary
A Beazer A Beazer Homes Financial Summary 16
Slide 17: Financial Summary: Revenue Growth
_ABeazer Financial Summary Revenue Growth FY Ended September 30 $6,000 Revenues ($ Millions) Home Closings $5,000 $4,000 Be $3,000 9,059 $2,000 os = $0 0 2001 2002 2003 2004 2005
Slide 18: Financial Summary: Margin Growth
ZA Bea Zer Financial Summary et De Margin Growth FY Ended September 30 oe eal 14.0% 25.0% 1 Operating Income Margin 23.5% 12.0% | —@-Gross Margin 20.0% 15.0% % 6.0% 10.0% 4.0% 5.0% 2.0% 0.0% 0.0% 2001 2002 2003 2004 2005 18
Slide 19: Financial Summary: EBITDA Growth
VZ4 Financial Summa Za Beazer ry St EBITDA Growth FY Ended September 30 $733.1 resell 19 $168.5 $354.2 $254.5 200 $165.2 . E ) 2003 2004 2005
Slide 20: Financial Summary: Investment in Land
_ABeazer Financial Summary aaa Investment in Land 76,778 lots ~ 79,716 lots ~ 90,571 lots ~ 106,394 lots ~ é 46 Years 5.2 Years 55 Years 5.9 Years 6 Bs = a4 a 23 3 m2 14 0 2002 2003 2004 2005 @ Owned B Optioned As of September 30 20 Years Supply Based on LTM Closings (2002 Pro forma to reflect LTM i
Slide 21: Financial Summary: Debt/Capital Ratios
_ABeazer Financial Summary Debt/Capital Ratios 53.1% ss 48.4% 48.3% ease | - | | Sep-01 Sep02 Sep-03 Sep-oi Sep-05 TS Total Debt to Capital —+— Net Debt to Capital 3 % of Total Capital 2 3 3 3 2a
Slide 22: Financial Summary Q1 2006: Home Closings Revenues
A Beazer Homes Financial Summary Q1 2006 Home Closings Reveniies ($ Millions) $1,500 gem ate $1,105.6 — a1.30 $1,000 | $9118 $500 ’ $0 ‘ : sai sia 2004 2005 22
Slide 23: Financial Summary Q1 2006: Net Income and Diluted EPS
_ABeazer Financial Summary : Q1 2006 Net Income Diluted Earnings ($ Millions) Per Share $100 $2.5 $89.9 29.0% 274% $2.00 $75 |_ 369.7 = $1.57 $15 $50 $1.0 $25 $0.5 $0 $0.0 = =e 2004 2005 23
Slide 24: Financial Summary Q1 2006: Backlog
< Beazer Financial Summary Q1 2006 Unit Backlog Sales Dollar Backlog ($ Millions) 10,000 3,200 9276 = 10.1% $2,781 18.3% 8427 a0 2,400 8,000 1,600 6,000 800 4,000 + 0 2004 2005 2004 2005 As of December 31 24
Slide 25: Balance Sheet & Credit Statistics
_ABeazer Financial Summary Bonen Balance Sheet & Credit Statistics As of G In Millions) Dec-05 Dec-04 Cash $12.1 $911 Inventory $3,263.7 $2,585.5 Total Assets $3,852.7 $3,175.2 Total Debt $1,379.5 $1,143.5 Total Equity $1,538.0 $1,305.1 Total Debt/Cap 47.3% 46.7% Net Debt/Cap 47.1% 44.6% Twelve Mont
Slide 26: Outlook: FY 2006 EPS Target
ABbeaze r Outlook FY 2006 EPS Target to Meet or Exceed $10.50 $12 ~$10.50 0 ss $8.72 $8 $6 = $4.26 $4 $3.58 = ; 7 $0 2005* 2006** *FY 2005 excludes $130.2 million goodwill i patcoetisee cll cr an ee 26 reconciliation to GAAP). **FY 2006 outlook issued on January 19, 2006.
Slide 27: Outlook
_ABeazer Outlook * Current outlook presently supported by backlog and Beazer-specific opportunities for margin enhancement and organic growth in existing markets assuming a healthy, normalized spring selling season * Long-term outlook supported by industry fundamentals including supply/demand dynami
Slide 28: Wachovia Securities Homebuilders Conference
Be ager Wachovia Securities Homebuilders Conference March 1, 2006 28
Slide 29: Appendix: Reconciliation of Non GAAP measures
ABeazer A Beazer Homes Appendix 1 Reconciliation of Non GAAP measures 29
Slide 30: Appendix: Adjusted Operating Income and Net Income
Beazer Appendix 1 ‘Twele Menthe Ended September 3), Getoomand, except per are dat) Reported operating come 8 486918 Tolalsevemies 8 4995353 Reported operating income margin 9.790. Adjusted operating income margin Reported operat ecomte 8 ss6p18 Good inpaimert loss 130235. Opening ncome, exciting gra
Slide 31: Appendix: EBITDA Reconciliation
Beazer Income before income taxes Plus Interest Expense Plus Depreciation and Amortization EBITDA CCoodtill Impairment Adjusted EBITDA Appendix 1 LTM Ended ‘Yew Ended Decemer 31, September 30, zoos 2004 zoos 200520032002 200 $530,201 $422,561 $499,334 $386,575 $285,529 $202,059 $122,748 34,604 68,47
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