Meritage Homes : 4th Quarter 2020 Conference Call - Slides

Fourth Quarter 2020

Analyst Conference Call

January 28, 2021

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 statements regarding the health of the housing market and the potential adverse impact of the COVID-19 pandemic, and projected full year 2021 and 1Q 2021 home closings, home closing revenue, gross margins, effective tax rate, diluted earnings per share and community counts.

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, to update or revise any forward-looking statements to reflect future events or changes in these expectations, except as required by law. 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.

Important factors that could cause actual results to differ materially from those in forward-looking statements, and that could negatively affect our business include, but are not limited to, the following: disruptions to our business by COVID-19, fear of a similar event, and measures implemented by federal, state and local governments or health authorities to address it; the availability and cost of finished lots and undeveloped land; shortages in the availability and cost of labor; the ability of our potential buyers to sell their existing homes; changes in interest rates and the availability and pricing of residential mortgages; our exposure to information technology failures and security breaches; legislation related to tariffs; inflation in the cost of materials used to develop communities and construct homes; the adverse effect of slow absorption rates; impairments of our real estate inventory; cancellation rates; competition; changes in tax laws that adversely impact us or our homebuyers; 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 potential exposure to and impacts from natural disasters or severe weather conditions; home warranty and construction defect claims; failures in health and safety performance; our ability to obtain performance and surety bonds in connection with our development work; the loss of key personnel; failure to comply with laws and regulations; our limited geographic diversification; fluctuations in quarterly operating results; our level of indebtedness; our ability to obtain financing if our credit ratings are downgraded; our compliance with government regulations, the effect of legislative and other governmental actions, orders, policies or initiatives that impact housing, labor availability, construction, mortgage availability, our access to capital, the cost of capital or the economy in general, or other initiatives that seek to restrain growth of new housing construction or similar measures; legislation relating to energy and climate change; the replication of our energy-efficient technologies by our competitors; negative publicity that affects our reputation 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, 2019 and our Form 10-Q for the quarter ended September 30, 2020 under the caption "Risk Factors," which can be found on our website at www.investors.meritagehomes.com.

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Management Representatives

Steven J. Hilton - Executive Chairman

Phillippe Lord - CEO

Hilla Sferruzza - EVP & Chief Financial Officer

Emily Tadano - VP Investor Relations

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2020 Milestones At Meritage Homes

100%		8th straight year
	of recognition, received various Avid
contactless selling to		Diamond, Gold & Benchmark
customers		Awards across nine divisions

first homebuilder to introduce

MERV-13

advanced air filtration system

nationwide to control & improve

indoor air exchange

all-time highest annual volume of sales orders & home closings; in turn, our best average absorption pace since 2005 of

5.2 per month

contributed

$200,000

to INROADS & the United Negro College Fund

• began our multiyear partnership with these organizations

closed our

135,000th

home

greatest annual

home closing revenue & home

closing gross profit in our

company's history

donated over

$500,000

to help those affected by

COVID-19, fighting hunger, &

combating homelessness

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