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Credit Suisse2006 Homebuilding

Symposium

Balance Sheet First

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Disclaimer Statement

This presentation includes "forward-looking statements," as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include information and estimates for our 2006 fiscal year, representing our expectations regarding our business, operations and goals as of the date of our second quarter 2006 earnings release and conference call. We are not updating any forward-looking information or estimates at this time. Because forward-looking statements relate to matters that have not yet occurred, these statements are inherently subject to risks and uncertainties. Many factors could cause our actual activities or results to differ materially from the activities and results anticipated in forward-looking statements. These factors include those described under the caption "Risk Factors” in our Annual Report on Form 10-K for our most recently completed fiscal year and in our other filings with the Securities and Exchange Commission. We do not undertake any obligation or duty to update forward-looking statements and we will update estimates and other forward-looking information only by means of widely disseminated public disclosure.

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62%

63%

64%

65%

66%

67%

68%

69%

70%

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

Decade Of Banner Growth…What’s Next?Decade Of Banner Growth…What’s Next?Industry Fundamentals Have Set Record Industry Fundamentals Have Set Record LevelsLevels

500

600

700

800

900

1,000

1,100

1,200

1,300

1,400

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

New Home SalesHomeownership Rates

Source: US Census Bureau Source: US Census Bureau

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245

255

265

275

285

295

305

315

1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

(in millions)

Source: US Census Bureau

Population is projected to grow steadily for the next 10 years

Projected

Decade Of Banner Growth…What’s Next? Decade Of Banner Growth…What’s Next? Population Growth is Expected to Continue to Fuel Population Growth is Expected to Continue to Fuel DemandDemand

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Decade Of Banner Growth…What’s Next?Decade Of Banner Growth…What’s Next? Current Market Conditions Have SoftenedCurrent Market Conditions Have Softened

Rising rates

Affordability down

Margins compressed

Speculators are exiting the market

NAHB Housing Market Index

Source: National Association of Home Builders – seasonally adjusted

3

4

5

6

7

8

9

1988 1990 1992 1994 1996 1998 2000 2002 2004 2006

Months’ supply of new homes

15

25

35

45

55

65

75

85

Jan-88 Jan-91 Jan-94 Jan-97 Jan-00 Jan-03 Jan-06

Source: National Association of Home Builders

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Decade Of Banner Growth…What’s Next? Decade Of Banner Growth…What’s Next? Long-Term Homebuilding Fundamentals Remain Long-Term Homebuilding Fundamentals Remain StrongStrong

Immigration projected at 1.2 million annually

Percentage of minority households is increasing

Growing household wealth leads to greater entry and step-up homeownership

Aging of the population creates more demand for second homes

Land supply is constrainedSource: Joint Center for Housing Studies of Harvard University 2006

Household Growth in the Next Decade Should Be Even Greater

Than in the Past

Projected

(millions)

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Operating Process Realignment Positions Us For Success

Nevada

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Operating Process Operating Process Foundation For SuccessFoundation For Success

A disciplined planning process promotes execution and future planning.

Operating process realignment better connects Corporate, Management Teams and Front Line.

A controlled production environment, process improvement and consistent execution promote consistency and accountability.

Size, scale and geographic diversity provide purchasing leverage opportunities.

Our goal is to maintain positive cash flow by separately focusing on the Homebuilding and Land processes.

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Operating Process - Land & HomebuildingOperating Process - Land & Homebuilding

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Operating Process -Operating Process -Homebuilding Research and Development Homebuilding Research and Development

Divisions focused on specializing (price range and product) versus offering everything to everyone

Identifying best sellers with the highest margins - and reducing overall product lines and plans

Researching the market and offering the most compelling value proposition

Everything’s Included - simplicity

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Operating Process –Operating Process –Sales And Construction Timeline AlignmentSales And Construction Timeline Alignment

Inventory Neutral

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A Company focused on bottom line growth - not top line growth - recognizing that a 1% increase in efficiency translates to a $150 million increase to the bottom line.

Even Flow Production

Cycle Time Improvement

Purchasing Leverage Opportunities

SG&A Reduction

Warranty Costs Reduction

Asset Management

Operating Process –Operating Process –The Company We Are CreatingThe Company We Are Creating

Strong Cash Flow Generation and Eliminate Volatility of Cash Flow

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What Is Lennar’s Roadmap For Success? - Take It Up A Notch

Texas

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Take It Up A Notch –Take It Up A Notch –4 Step Strategy To Respond To Current Market 4 Step Strategy To Respond To Current Market ConditionsConditions

Recognizing that the markets are slowing, we are staying on course with our strategy and focus on 4 key areas to off-set diminishing margins

1. Salesmanship

2. Building Partner Cost Reduction

3. Overhead Cost Reduction

4. Asset Management

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Take It Up A Notch – Take It Up A Notch – We Are Focused On A 4 Step StrategyWe Are Focused On A 4 Step Strategy

Step 1: Salesmanship

Liberate the Director of Sales

Meet with each NHC each week and educate them on 10-5-2-1

Train and coach NHCs in the field and at the Phone Bank on how to achieve each element of 10-5-2-1

Hold NHCs accountable by honestly ranking them each

week on 10-5-2-1, sharing their ranking with them and providing candid feedback

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Take It Up A Notch –Take It Up A Notch –We Are Focused On A 4 Step StrategyWe Are Focused On A 4 Step Strategy

Step 2: Building Partner Cost Reduction

Building partners raised their prices along with us as the market strengthened

It is time for them to reduce prices as our markets weaken

Our consistent starts guarantee long-term uninterrupted work

The amount of reduction we are asking for is in line with incentives we are giving

A letter has been delivered to our Building Partners asking for significant price reductions on existing and future work

This reduction percentage will partially offset sales incentives

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Take It Up A Notch –Take It Up A Notch –We Are Focused On A 4 Step StrategyWe Are Focused On A 4 Step Strategy

Step 3: Overhead Cost Reduction

Our focus is not to reduce people - but to reduce inefficiencies

We have already identified Corporate Overhead Savings

We are focused on identifying savings in field related

expenses

Take it up a notch by eliminating noise and ensuring all associates are impact players

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Step 4: Asset Management

Asset management team headed by Emile Haddad – Chief Investment Officer

The team is responsible for:

Re-evaluating all previously approved, but not yet purchased land acquisitions

Renegotiating all land acquisitions to meet current market conditions, otherwise walk away

Paring down long-term land positions

Take It Up A Notch –Take It Up A Notch –We Are Focused On A 4 Step StrategyWe Are Focused On A 4 Step Strategy

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What Is Lennar’s Roadmap for Success? - Balance Sheet First

California

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Debt / Total Capital

Balance Sheet First –Balance Sheet First –We Continue To Improve Our Credit We Continue To Improve Our Credit MetricsMetrics

10%

20%

30%

40%

50%

60%

70%

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

Q2

05

Q2

06*

*Spin-off of LNR

Goal 35% - 45%

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HB Debt / EBIT

Balance Sheet First –Balance Sheet First –We Continue To Improve Our Credit We Continue To Improve Our Credit MetricsMetrics

0.0x

0.5x

1.0x

1.5x

2.0x

2.5x

3.0x

3.5x

4.0x

4.5x

5.0x

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

Q2

05

Q2

06

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EBIT / Interest Incurred

Balance Sheet First –Balance Sheet First –We Continue To Improve Our Credit We Continue To Improve Our Credit MetricsMetrics

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

12.0x

14.0x

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

Q2

05

Q2

06

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Balance Sheet First –Balance Sheet First –Diversified Debt StructureDiversified Debt Structure

$200

$300$250

$350

$250

$500

$250$185

$282

$300

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

($ in millions)

Issued $500 million of fixed rate notes

Redeemed the zero converts due 2021

Weighted average maturity of 4.3 years

Weighted average cash interest rate of 5.6%

As of May 31, 2006

RepaymentSchedule($ in millions)

6.50% Senior NotesL + 50

FRN

7.63 %Senior Notes

L + 75 FRN

5.95%Senior Notes

5.50%Senior Notes

5.60%Senior Notes

Revolver

5.13% Senior Notes

5.95% Senior Notes

Senior notes – fixed rate

Floating rate notes & Revolver

Other notes payable

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Growth Strategy: Will The Cycle Be Our Ally?Growth Strategy: Will The Cycle Be Our Ally? – – Strategic Use Of Joint VenturesStrategic Use Of Joint Ventures

Maintain Lennar’s conservative operating and financial policies

Strategically acquire land while mitigating land risks

Effectively match financing to asset life

Diversify investment opportunities

Access to JV partners with unique expertise

Governed as separate entities with clear exit mechanisms

Lennar shares upside potential in order to minimize downside risks

Over our 52- year history, Lennar has used JVs for beneficial business purposes

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Growth Strategy: Will The Cycle Be Our Ally? –Growth Strategy: Will The Cycle Be Our Ally? –Asset Management Through Strategic Joint Asset Management Through Strategic Joint VenturesVentures

Strategic partners with specific expertise JV with partner who brings specific expertise

(e.g. commercial or infill experience) Generally represents approximately 40% of JVs

JV with other builders Joint bid on land parcels is a smarter way to

purchase Homesites allocated to each homebuilder Generally represents approximately 20% of JVs

JV with financial partners Partner brings capital Lennar manages JV Generally represents approximately 20% of JVs

JV with land owner/developers Access to homesites owned or controlled by

partner Generally represents approximately 20% of JVs

Newhall(Los Angeles)

Roseland(New York– Boston)

Windemere (San Ramon)

El Toro(Irvine)

Natomas(Sacramento)

Examples

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Each growth opportunity has upside and downside

Lennar has a balanced and disciplined approach to growth

Strong balance sheet and flexibility allow Lennar to take advantage of the best growth opportunities

Growth in EPS

Acquire New Communities One

by One

Acquire New Communities via

Acquisition

Organic Growth

Increase Market Share in Existing

Markets

Growth Through Acquisitions

Enter New Markets

viaAcquisitions

Growth Strategy: Will The Cycle Be Our Ally? –Growth Strategy: Will The Cycle Be Our Ally? –With A Balance Sheet First Strategy, With A Balance Sheet First Strategy, We Have Multiple Ways To InvestWe Have Multiple Ways To Invest

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Growth Strategy: Will The Cycle Be Our Ally? – Growth Strategy: Will The Cycle Be Our Ally? – Organic Growth Augmented By Strategic Stepping Organic Growth Augmented By Strategic Stepping StonesStones

Net EarningsAnnual National Housing Starts

Each new strategic step leads to an improved growth platform

Starts(millions)

Acquired Private Builders

AcquiredCalifornia OperationsAcquired

AmerifirstPortfolio

Repurchased 9.8million shares:

AcquiredU.S. Home

AcquiredTexas

Operations

Acquired Newhall

Roseland Infill JVs

AcquiredGreystone;

Spun-Off LNR

Military Baseredevelopment

Net Earnings($ millions)

0.7

0.9

1.1

1.3

1.5

1.7

1.9

2.1

1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

0

200

400

600

800

1,000

1,200

1,400