PulteGroup, Inc.Investor PresentationJune 2011

Forward-Looking StatementThis presentation includes “forward-looking statements ” These statements are subject to a number of risks uncertainties andThis presentation includes forward looking statements. These statements are subject to a number of risks, uncertainties and other factors that could cause our actual results, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or implied by, these statements. You can identify these statements by the fact that they do not relate to matters of a strictly factual or historical nature and generally discuss or relate to forecasts, estimates or other expectations regarding future events. Generally, the words “believe,” “expect,” “intend,” “estimate,” “anticipate,” “project,” “may,” “can,” “could,” “might,” “will” and similar expressions identify forward-looking statements, including statements related to expected operating and performing results, planned transactions, planned objectives of management, future developments or conditions in the industries in which we participate and other trends, developments and uncertainties that may affect our business in the future. Such risks, uncertainties and other factors include, among other things: interest rate changes and the availability of mortgage financing; continued volatility in, and potential further deterioration of, the debt and equity markets; competition within the industries in which PulteGroup operates; the availability and cost of land and other raw materials used by PulteGroup in its homebuilding operations; the availability and cost of insurance covering risks associated with PulteGroup's businesses; shortages and the cost of labor; weather related slowdowns; slow growth initiatives and/or local building moratoria; governmental regulation directed at or affecting the housing market, the homebuilding industry or construction activities; uncertainty in themortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale ofmortgage loans; the interpretation of or changes to tax labor and environmental laws; economic changes nationally or inmortgage loans; the interpretation of or changes to tax, labor and environmental laws; economic changes nationally or in PulteGroup’s local markets, including inflation, deflation, changes in consumer confidence and preferences and the state of the market for homes in general; legal or regulatory proceedings or claims; required accounting changes; terrorist acts and other acts of war; and other factors of national, regional and global scale, including those of a political, economic, business and competitive nature. See PulteGroup’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010, and other public filings with the Securities and Exchange Commission (the “SEC”) for a further discussion of these and other risks and uncertainties g ( )applicable to our businesses.Certain statements in this presentation contain references to non-GAAP financial measures. A reconciliation of the non-GAAP financial measures to the comparable GAAP numbers is included in this presentation.

1

Presentation AgendaPresentation Agenda

Overview of PulteGroup

Industry Conditions

Opportunities to Drive Business Performance Opportunities to Drive Business Performance Margin Expansion

Overhead Leverage

Land Strategies and Tactics

2

Overview of PulteGroup

3

Company OverviewCompany Overview America’s largest homebuilding company with

operations across 28 states and 60 marketsp Organized in three areas: East, Gulf Coast

and West Company serves all major customer

segments: first time, move up and active adult Market leader in serving active adult segment

(age 55 and older) through Del Webb brand Baby Boomers continue to represent the

largest and wealthiest demographic in the countryM th 50 D l W bb iti More than 50 Del Webb communities currently open across 21 states

4

Diversified Operating Footprint

WESTA i EASTArizonaCaliforniaColoradoIllinoisIndianaMissouri

EASTConnecticutDelawareGeorgiaMarylandMassachusettsMissouri

MichiganMinnesotaNevadaNew MexicoOhio

MassachusettsNew JerseyNew YorkNorth CarolinaPennsylvaniaRhode Island

OregonWashington

South CarolinaTennesseeVirginiaGULF COAST

FloridaTexas

5

Broadest Exposure Across Customer Segments

Positioning: Crafting smart, 

Target: Entry‐Level Buyers

Positioning: Bringing pride of Positioning: Inspiring life’s

Target: Move‐Up Buyers Target: Active Adults

life‐enhancing environments that enrich everyday life

Positioning: Bringing pride of homeownership within reach

Positioning: Inspiring life s most exciting possibilities

Multiple brands allow greater focus on buyer wants and needs in each segment

Percent of 2010 Closings45% 30% 25%

Multiple brands allow greater focus on buyer wants-and-needs in each segment Balanced market position supports growth over demand cycle Faster-turning 1st time buyer communities complement longer active adult positions

Positive Market Opportunity for Active Adult

Demographics continue to drive

U.S. Population Over Age 55(in millions)

80g pdemand Buyer segment remains largest

and most affluent60

70-74

AGE

and most affluent

Buyers are balancing discretionary purchase with lifestyle desires 40

65-69

Similar to other move-up segments, buyers need to sell an existing home

20

60-64

55-59an existing home Some will wait for rebound, others

anxious for next stage of life 0

2010 2015 2020

7

Unmatched in Serving Active Adult Buyers

8

Markers indicate number of active Del Webb communities in the state

Industry Conditions

9

Industry Conditions

450

New home sales hovering at historically low levels in the range of 300K annually

New Home Sales (thousands of homes)

300

350

400

450New Home Sales For Sale

range of 300K annually Month-to-month trends

remain “choppy”M bl i t f

150

200

250

300 Manageable inventory of new homes on the market

Job growth and consumer

0

50

100

150g

confidence critical to future demand Bigger industry issue is lack0

Apr 10

May 10

Jun 10

Jul 10

Aug 10

Sep 10

Oct 10

Nov 10

Dec 10

Jan 11

Feb 11

Mar 11

Apr 11

Bigger industry issue is lack of demand, not amount of supply

10

Source: U.S. Census Bureau

Excess Supply Being Reduced Through 4 Years of Significant Under Building

Housing starts (millions)

1. 3 M extra1.2 M extra

2.4 M extra

2 0

2.51. 3 M extra

1.2 M extra

2.4 M extra

1.0 M less 1 4 M l1.0

1.5

2.0

Median = 1.5M1

1960 198019751965 201020051970 2000199519901985

1.0 M less 1.4 M less

2.5 M less so far

0.0

0.5

2005200019901960 201019951965 1970 1975 19851980

2.5 M less so far

2 03.04.0

Cumulative excess/deficit (millions)

‐1.00.01.02.0

19801975197019651960 1995 2005 20101985 1990 2000

Source: U.S. Census Bureau; NAHB

11

Demographics Support Long-term Demand

500

U.S. Population Projections(millions)

Source: U S Census Bureau

U.S. population forecast to grow by ~3 million

400

Source: U.S. Census Bureau to grow by ~3 million annually

Household formations

200

300 estimated at 1.2 million per year 2005 – 2010 household

100

2005 – 2010 household growth was below 1.0 million per year

0

2010 2020 2030 2040

12

Driving Business Performance

13

Continuing to Make Steady Progress on Margins

Adjusted gross margins up 830 basis points since Q1 2009

19%

Adjusted Gross Margin *

Ongoing operational initiatives expected to drive further margin expansion 15%

17%

2010 Margins by brand: ~16% for Centex, ~17% for Pulte Homes and ~18% for Del Webb 11%

13%

Mix can impact reported gross margin in a given quarter

Long-term land strategy and decision 9%

11%

g gyto retain strategic land positions should benefit margins over time

7%1Q '09

2Q '09

3Q '09

4Q '09

1Q '10

2Q '10

3Q '10

4Q '10

1Q '11

14

* Home sale gross margin before impairments,interest expense and CTX WIP impact

Opportunities for Ongoing Margin Expansion

2011 closings from recently acquired land expected to

Pushing design, engineering and purchasing activities out to q p

climb to 15% or higher of total closings; up from less than 5% in 2010

p gour field operations to drive local costs lower Working to ensure properin 2010

Acquired distressed land assets can generate gross margins th t 300 b i i t

Working to ensure proper balance of dirt vs. spec sales Potential cost savings will be

that average 300 basis points higher than legacy positions

Favorable product mix

offset by higher capitalized interest expense in 2011

benefitting from move-up and active adult closings

15

Initiatives to Enhance Bottom-line Results

Focus on lowering overhead costs Continuing to right-size overhead cost structure toContinuing to right size overhead cost structure to

better align with current market conditions Post-merger organizational structure reduced from six

A d t thAreas down to three Underlying divisions consolidated to further leverage

overhead costs Additional steps taken in 2010 expected to lower full-

year 2011 SG&A by $100 million when compared with prior yearwith prior year

16

Long Term Land Strategy

200,000

Owned Optioned

Strategic decision to retain critical land assets through the downturn

Lots Under Control

150,000 Limited land entitlement/development work

since downturn began; well positioned finished lots are growing scarce

50 000

100,000 Continuing to remain disciplined in pursuit of distressed land deals, but opportunities are harder to find

0

50,000opportunities are harder to find Best deals have been picked over Other builders willing to pay up for needed

lot inventory2008 2009 2010 Q1 '11

y Plans to open 130 communities in

2011 Emphasis on increasing absorption pace

2009 reflects impact of Centex merger

Emphasis on increasing absorption pace within existing communities

17

17

Land Assets Located in the Stronger Markets90,000

60,000

75,000

ed Lots

RaleighHouston

Mid‐AtlanticSan Antonio

45,000

of Con

trolle

NE Corridor Tennessee

Central TexasMichigan

South FloridaSouthern California

30,000

Num

ber o Coastal Carolinas

GeorgiaLas VegasArizona

ColoradoNorth FloridaCharlotte

IndianapolisNew England

0

15,000 Dallas Pacific NW,  Bay Area, New Mexico, Cleveland,  Illinois,Minneapolis, Sac/Reno

New EnglandSt. Louis

Relative Demand *Softer Stronger

18* Based on management estimates through Q1 2011

Capital AllocationCapital Allocation

Ended Q1 2011 with $1.4 billion of cash including restricted cash

$1,200

Debt Maturity ($ millions)

cash, including restricted cash Maturity schedule is manageable Continue to selectively develop and $800

$1,000

acquire land assets Limited opportunity to consider

share buybacks until after 3-year $400

$600

share buybacks until after 3 year anniversary of merger (Aug 2012)

$200

$400

$0

19

PulteGroup: Well Positioned for Today and Tomorrow

Margin Expansion – continuing to build on our successes in capturing greater construction efficiencies and overhead leverage

Land Strategy – retention of strategic land positions should benefit the company as demand conditions improve; even more important given country’s lack of land development

Unique Market Position – defined multi-brand strategy with leadership position in serving Baby Boomers

Balance Sheet – over $1.0 billion in cash and flexibility to support current operations and future growth opportunities

Leadership – experienced leadership team focused on driving improvements in core homebuilding operations.

20

Supplemental Non-GAAP Data

21

Reconciliation of Non-GAAP DataThis presentation contains information about home sale gross margin before impairments, interest expense, and merger-related costs. These measures are considered non-GAAP financial measures under the SEC’s rules and should be considered in addition to, rather than as a substitute for, home sale gross margin (which we define as home sale revenues less home sale cost of revenues) as a measure of our operating performance. Management and our local divisions use this measure in evaluating theoperating performance of each community and in making strategic decisions regarding sales pricing, construction and p g p y g g g g p g,development pace, product mix, and other daily operating decisions. We believe it is a relevant and useful measure to investors for evaluating our performance through gross profit generated on homes delivered during a given period and for comparing our operating performance to other companies in the homebuilding industry. Although other companies in the homebuilding industry report similar information, the methods used may differ. We urge investors to understand the methods used by other companies in the homebuilding industry to calculate gross margins and any adjustments thereto before comparing our measure to that of

h th isuch other companies.

The following table sets forth reconciliations of this non-GAAP financial measure to home sale gross margin, which management believes to be the GAAP financial measure most directly comparable to this non-GAAP financial measure.

22

Supplemental Non-GAAP Data – Adjusted Margin Analysis

Three Months Ended

3/31/11 12/31/10 9/30/10 6/30/10 3/31/10 12/31/09 9/30/09 6/30/09 3/31/09

($ thousands)

Home sale revenues $ 782,471 $ 1,155,169 $ 1 ,024,847 $ 1,262,990 $ 976,806 $ 1,597,066 $ 1,053,787 $ 653,711 $ 564,733

Home sale cost of revenues (685,030) (1,099,046) (952,788) (1,104,456) (850,095) (1,571,389) (1,080,256) (724,891) (897,938)

Home sale gross margin 97,441 56,123 72,059 158,534 126,711 25,677 (26,469) (71,180) (333,205)

Add:

Impairments (a) 41 67,880 49,838 20,354 3,518 139,676 117,488 99,024 326,826

Capitalized interest amortization (a) 34,816 67,489 48,501 37,928 27,000 40,859 36,173 33,318 55,005

Merger-related costs (b) 280 282 893 514 2,444 20,684 10,463 - -

Home sale gross margin before impairments, interest expense, andmerger-related costs $ 132,578 $ 191,774 $ 171,291 $ 217,330 $ 159,673 $ 226,896 $ 137,655 $ 61,162 $ 48,626

Home sale gross margin as a percentage of home sale revenueshome sale revenues

12.5% 4.9% 7.0% 12.6% 13.0% 1.6% -2.5% -10.9% -59.0%

Home sale gross margin before impairments, interest expense, and merger-related costs as a percentage of home sale revenues 16.9% 16.6% 16.7% 17.2% 16.3% 14.2% 13.1% 9.4% 8.6%

(a) Write-offs of capitalized interest related to impairments is reflected in capitalized interest amortization.

(b) Home sale gross margin was adversely impacted by the amortization of a fair value adjustment to homes under construction inventory acquired with the Centex merger. This fair value adjustment is being amortized as an increase to cost of sales over the related home closings.

23

Questions