Meritage Homes : 2nd Quarter 2022 Conference Call - Slides

SECOND QUARTER 2022 ANALYST CONFERENCE CALL

JULY 28, 2022

SAFE HARBOR

The information included in this presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include expectations about the housing market in general; projected 3Q 2022 home closings, home closing revenue, home closing gross margins, effective tax rate and diluted earnings per share; future community counts; trends in construction costs; and expectations about our spec inventory levels and future results.

Such statements are based on the current beliefs and expectations of Company management and current market conditions, which are subject to significant uncertainties and fluctuations. Actual results may differ from those set forth in the forward-looking statements. The Company makes no commitment, and disclaims any duty, except as required by law, to update or revise any forward-looking statements to reflect future events or changes in these expectations. Meritage's business is subject to a number of risks and uncertainties. As a result of those risks and uncertainties, the Company's stock and note prices may fluctuate dramatically.

These risks and uncertainties include, but are not limited to, the following: changes in interest rates and the availability and pricing of residential mortgages; the potential benefits of rate locks; inflation in the cost of materials used to develop communities and construct homes; trends in construction costs, supply chain and labor constraints; our ability to acquire and develop lots may be negatively impacted if we are unable to obtain performance and surety bonds; the ability of our potential buyers to sell their existing homes; legislation related to tariffs; the adverse effect of slow absorption rates; impairments of our real estate inventory; cancellation rates; competition; home warranty and construction defect claims; failures in health and safety performance; fluctuations in quarterly operating results; our level of indebtedness; our ability to obtain financing if our credit ratings are downgraded; our potential exposure to and impacts from natural disasters or severe weather conditions; the availability and cost of finished lots and undeveloped land; the success of our strategy to offer and market entry-level and first move-up homes; a change to the feasibility of projects under option or contract that could result in the write-down or write-off of earnest money or option deposits; our limited geographic diversification; the replication of our energy- efficient technologies by our competitors; shortages in the availability and cost of subcontract labor; our exposure to information technology failures and security breaches and the impact thereof; the loss of key personnel; changes in tax laws that adversely impact us or our homebuyers; our inability to prevail on contested tax positions; failure of our employees and representatives to comply with laws and regulations; our compliance with government regulations related to our financial services operations; negative publicity that affects our reputation; potential disruptions to our business by an epidemic or pandemic (such as COVID-19), and measures that federal, state and local governments and/or health authorities implement to address it; and other factors identified in documents filed by the Company with the Securities and Exchange Commission, including those set forth in our Form 10-K for the year ended December 31, 2021 and our Form 10-Q for the quarter ended March 31, 2022 under the caption "Risk Factors," which can be found on our website at www.investors.meritagehomes.com.

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SPEAKERS

Steven J. Hilton - Executive Chairman

Phillippe Lord - Chief Executive Officer

Hilla Sferruzza - EVP & Chief Financial Officer

Emily Tadano - VP of Investor Relations and ESG

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RECENT ACHIEVEMENTS

	First-time recipient of the
Achieved our long-term 300	Avid Cup - Production, a
prestigious honor given to only
community count goal
one builder in North America
	each year

Renewed partnership with	Held annual Purchasing	Recipient of EPA Awards
Summit to strengthen
• ENERGY STAR® Partner of
Operation Homefront to build	relationships and mutual
the Year
three new mortgage-free	commitments to work through
• ENERGY STAR® Market
Meritage homes	supply challenges with our key
Leader
	trades

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EXPANDED ORDERS UNITS THROUGH COMMUNITY COUNT GROWTH

Average community count by

product type

239		215	286	5
24		8
	49
	46
87							Other
							1MU

Orders by product type

3,597	3,542		3,767	23
148	89
		497
595
938

Absorptions per month

& Y/Y%

9%
5.5	-15%			-16%
			-14%
	5.0
	4.9	-20%
			4.5
					4.4

161	232		Entry Level
128	81%
75%
54%

2,858

2,511

81%

70%

3247

86%

2Q20

2Q21

2Q22

2Q20

2Q21

2Q22

2Q21

3Q21

4Q21

1Q22

2Q22

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