Meritage Homes : 4th Quarter 2021 Conference Call - Slides

FOURTH QUARTER 2021 ANALYST CONFERENCE CALL

JANUARY 27, 2022

FORWARD - LOOKING STATEMENTS

The information included in this presentation and the accompanying comments from management 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 2021 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 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; inflation in the cost of materials used to develop communities and construct homes; trends in construction costs, supply chain and labor constraints and cycle times; our ability to obtain performance and surety bonds in connection with our development work; 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 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 to comply with laws and regulations; our compliance with government regulations; 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, 2020 and subsequent quarterly reports on Forms 10-Q under the caption "Risk Factors," which can be found on our website at https://investors.meritagehomes.com.

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MANAGEMENT REPRESENTATIVES

Steven J. Hilton - Executive Chairman

Phillippe Lord - Chief Executive Officer

Hilla Sferruzza - EVP & Chief Financial Officer

Emily Tadano - VP Investor Relations

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4Q21 MILESTONES

Delivered a new
mortgage-free home to a	Issued our inaugural ESG
deserving veteran and his	report
family in Florida

Start with Heart, donated	Joined more than 2,100
other companies by
to various nonprofit
signing the CEO Action
organizations during the
for Diversity & Inclusion
holiday season
pledge

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SOLID PERFORMANCE IN BOTH ENTRY-LEVEL & FIRST MOVE UP

Average community count by

product type

	247	200	248
	32		13		6
				46
		53					Other
	104
								1MU
					196				Entry Level
			134
					79%
	111		67%
	45%

Orders by product type

2,093		3,174	3,367
169		135		44
	762	576
778

2,747

2,277

1,14682%

72%

55%

Absorptions per month

& Y/Y%

35%

				9%
	87%	5.8	-15%
				5.5
	5.3	-14%
							5.0
									4.5
	87%

4Q19

4Q20

4Q21

4Q19

4Q20

4Q21

4Q20

1Q21

2Q21

3Q21

4Q21

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