Investor PresentationMay 2012May 2012

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 managementstatements 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 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 impact of any changes to our strategy in responding to continuing adverse conditions in the industry including any changes regarding our landchanges to our strategy in responding to continuing adverse conditions in the industry, including any changes regarding our landpositions; the availability and cost of insurance covering risks associated with PulteGroup's businesses; shortages and the costof 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 the mortgage lending industry, including revisions to underwriting standards and repurchase requirements associated with the sale of mortgage loans; the interpretation of or changes to tax, labor and environmental laws; economic changes nationally or in PulteGroup’s local markets,i l di i fl ti d fl ti h i fid d f d th t t f th k t f h i lincluding 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’sAnnual Report on Form 10-K for the fiscal year ended December 31, 2011, and other public filings with the Securities and Exchange Commission (the “SEC”) for a further discussion of these and other risks and uncertainties applicable to our businesses. PulteGroup undertakes no duty to update any forward-looking statement, whether as a result of new information, f t t h i P lt G ’ t tifuture events or changes in PulteGroup’s expectations.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.

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Presentation Agenda

Overview of PulteGroup and Q1 Financial Results

Opportunities to Drive Business PerformanceMargin ExpansionMargin Expansion

Overhead Leverage

L d S i d T iLand Strategies and Tactics

Review of Industry Conditions

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Overview of PulteGroup and Recent Financial Results

3

Overview

Company has delivered nearly 600,000 homes since its founding600,000 homes since its founding in Michigan in 1950One of America’s largest homebuilders with operations inhomebuilders with operations in approximately 60 markets across 29 statesUnique multi-brand strategy toUnique multi brand strategy to serve all major customer groupsUnmatched presence in active adult market through Del Webb brandmarket through Del Webb brand

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Pacific Northwest

Minnesota

Michigan

New England

Northern CaliforniaIllinois

Indianapolis

Cleveland

Mid Atlantic

Northeast Corridor

Ch l tt

St. Louis

Colorado

Southern Nevada

Southern CalArizona New Mexico

Dallas Georgia

Coastal Carolinas

TennesseeRaleigh

Charlotte

San AntonioHouston

South Florida

North Florida

Central Texas

Southwest Area

G lf C t A

DivisionsNew Mexico

DivisionsMichigan

Central Area

Gulf Coast Area

DivisionsNorth Florida

(Tampa, Orlando, Ocala, Jacksonville)

South Florida(Sarasota, Ft Myers, Naples,

East AreaDivisions

New EnglandNortheast Corridor

(Del Valley & Metro NY/ NJ)Mid Atlantic

New Mexico(Albuquerque, Santa Fe)

Arizona(Phoenix, Tucson)

Southern California/ Southern Nevada

(LA/Ventura, Orange

Indianapolis / ClevelandIllinois / St Louis

MinnesotaColorado

Pacific Northwest (Seattle/Portland)

SE Coast)Dallas

HoustonCentral TexasSan Antonio

Mid Atlantic Raleigh

CharlotteCoastal Carolinas

GeorgiaTennessee

( gCounty, San Diego, North Inland Empire, Riverside,

Coachella Valley, Las Vegas, Mesquite)

Northern California(Bay Area, Sacramento,

Reno, Central Valley)

Broadest Exposure Across Customer Segments

Percent of 2011 Closings36% 36% 28%

Multiple brands allow greater focus on buyer wants and needs in each segment Pulte Homes (move-up buyer) grew to 39% of closings in Q1 2012

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Positive Market Opportunity for Active Adult

Demographics continue to drive demand

U.S. Population Over 55(in millions)

Buyer segment remains one of the largest and most affluent

45% of Del Webb buyers pay

AGE

45% of Del Webb buyers pay cash for their home

Active adults typically need to yp ysell an existing home

Some will wait for rebound, others moving to next life stageothers moving to next life stage

Significant equity remains in many homesy

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Unmatched in Serving Active Adult Buyers

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Marker indicates number of active Del Webb communities in the state

Review of Q1 2012 Financial Results

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Q1 2012 HighlightsQ1 2012 net loss of $12 million, or $0.03 per share, compared with prior year loss of $40 million, or $0.10 per share

Gains in adjusted gross margin and overhead leverage drove the j g g gsignificant improvement in relative profitability

Company remains on track for full-year profitabilityAdj t d i f 18 7% i d 180 b i i tAdjusted gross margin of 18.7% increased 180 basis points from prior year and 10 basis points from Q4 2011SG&A costs reduced by $19 million and cut to 15.2% of home ysale revenues, down 300 basis points from Q1 201115% Increase in signups to 4,991 homes generated from 6% fewer communitiesfewer communities

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Q1 2012 Consolidated ResultsQ1 net new orders increased 15% to 4,991 homes Contract backlog at quarter

Home sale revenues up 4% from prior year to $814 million

5% increase in average selling g qend was 5,798 homes valued at $1.6 billionPrior year backlog was 5 188

g gprice partially offset by a 1% decrease in unit closings

Adjusted gross margin of Prior year backlog was 5,188 homes valued at $1.4 billion

Completed Q1 land sales totaling approximately $38

j g g18.7% increased 180 basis points

Primarily reflects ongoing mix shift totaling approximately $38 million in revenues

Land-sale gains of $6 million, partially offset by $1 million in

Primarily reflects ongoing mix shift to more move-up homes and closings from newer communities

SG&A costs of $123 million partially offset by $1 million in land-related charges

Put approximately 1,600 lots under control in Q1

SG&A costs of $123 million down from $142 million in prior year

under control in Q1

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Q1 2012 Adjusted Margin Analysis

Adjusted Gross Margin

1Q ’12 4Q ’11 3Q ’11 2Q ’11 1Q ’11

Reported Home Sale GrossReported Home Sale Gross Margin %

12.5% 12.4% 13.9% 12.2% 12.5%

Home Sale Gross Margin % B f I i t & I t t 18 7% 18 6% 18 4% 17 1% 16 9%Before Impairments & Interest Expense

18.7% 18.6% 18.4% 17.1% 16.9%

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Q1 2012 Balance Sheet Analysis

March 31, December 31,($ millions)

,2012

,2011

Cash and Equivalents (including restricted cash) $1,302 $1,185( g )

House and Land Inventory $4,584 $4,636

Senior Notes $3,091 $3,088

Shareholders’ Equity $1,929 $1,939

Debt – to – Cap 62% 61%

Net Debt – to – Cap 48% 50%

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Driving Business Performance

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Opportunities to Further Improve Gross Margins

Better mix of move-up and active adult closingsI d l i f19 5%

20.0%

Adjusted Homebuilding Gross Margin *

Increased closings from newer land assets which can carry higher margins18.0%

18.5%19.0%19.5%

Initiatives underway to further expand gross margins:

Ongoing reduction of house costs16 0%16.5%17.0%17.5%

Ongoing reduction of house costsChange pricing model to base house with options/upgradesE h i l ith d

14.5%15.0%15.5%16.0%

Emphasize presales with managed spec production

14.0%1Q '10

2Q '10

3Q '10

4Q '10

1Q '11

2Q '11

3Q '11

4Q '11

1Q '12

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

Initiatives to Enhance Bottom-line Results

Continue to lower overhead costs to align with market $145

YOY Change in Q1 SG&A Costs ($ millions)

gconditions

Q1 2012 SG&A reduced by $135

$140

$145

13% from prior yearSG&A as percent of home sale revenues reduced by 300 bps$125

$130

$

revenues reduced by 300 bps to 15.2%

$115

$120

$110

Q1 '11 Q1 '12

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Land Strategy Aligned with ROIC Goals

160,000Optioned Owned

Company remains opportunistic and disciplined in pursuit of land

Lots Under Control

100,000

120,000

140,000p p

dealsCompleted Q1 2012 land sales totaling $38 million in revenues

60,000

80,000

00,000totaling $38 million in revenues Put approximately 1,600 lots under control in Q1

20,000

40,000Reoriented capital allocation and land investment practices to drive better long term returns 0

2009 2010 2011 Q1  '12

better long-term returns

Continue to focus on better absorption pace rather thanabsorption pace rather than community count growth 17

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Debt Maturity Schedule

Continue to Improve Balance Sheet

Ended Q1 2012 with $1.3 billion of cash

Debt Maturity Schedule ($ millions)

$1,200

Q1 2012 cash balance increased $117 million from year end 2011

$800

$1,000

year end 2011 Continue to de-lever the balance sheet and resize to $400

$600

better match current operations

$0

$200

$0

2012

2013

2014

2015

2016

2017

2032+

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Mortgage Repurchase Information

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• Over 60% of gross loan repurchase requests are successfully refuted by our mortgage

Gross Loan Repurchase Requests Per Month

Monthly Loan Repurchase Requests for Pulte and CTX Mortgage Combined

g p q y y g goperations. Requests undergo extensive analysis to verify exposure, attempt to correct underlying issue and, when needed, confirm liability

y p q g g

Company reserves associated with potential future loan repurchase obligations incorporates expectation that such requests will likely continue through 2013

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requests will likely continue through 2013.

Review of Industry Conditions

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Industry Conditions

Six years of housing decline 2005 cyclical peak of 1 3 million single-family new home sales2005 cyclical peak of 1.3 million single-family new home sales

2011 single-family sales down to 302,000; a drop of almost 80%

Industry has struggled under the weight of:Weak macroeconomic environment

Buyer constraints and uncertainty

Diffi lt t l di ditiDifficult mortgage lending conditions

Change in perceptions about real estate as an investment

Uncertainty remains, but there are reasons for optimismUncertainty remains, but there are reasons for optimism

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Housing May Have Reached Bottom But Recovery Will Be Slow

New home starts and sales stable for 24-36 monthsExpectations for a slow recovery

1,500

2,000Annual Single Family Housing Starts (000)

Expectations for a slow recoveryEntry Level: Limited savings, debt-to-income challenges, mortgage challenges 0

500

1,000

g

Move Up: Stuck in existing homes because of limited demand and underwater loans

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

1,400Annual New Single Family Home Sales (000)

Active Adult: May need to delay retirement

Excess Supply: 2.4 million excess 600800

1,0001,200

Excess Supply: 2.4 million excess vacant homes; additional product likely waiting to hit the market

Government Debt: Recessions caused 0

200400

200

200

200

200

200

200

200

200

200

200

201

201

by excess leverage take a long time to heal

00 01 02 03 04 05 06 07 08 09 0 1

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Economy Showing Signs of Improvement

GDP growth has been choppy but positiveJobs numbers have been trending higherConsumer confidence has recovered from recent lows

University of Michigan April 2012 survey up 7 points from last year and stable with prior month

Stock market has continued to rally in the face ofStock market has continued to rally in the face of European debt and Asian economic uncertainties

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Demographic Drivers are in Positive

25,000

Population By Age (000)

Echo Boom Baby Bust Baby Boom Pre-Baby Boom

15 000

20,000

Foreign Born

Echo Boom Baby Bust Baby Boom Pre Baby Boom

10,000

15,000Native Born

0

5,000

Under 5-9 10-14 15-19 20-24 25-29 30-34 35-39 40-44 45-49 50-54 55-59 60-64 65-69 70-74 75-79 80-84 85 and 5 Over

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Male and Female Adults

Pent-up Demand is Building

15%6,000

Total living at home

Male and Female Adults Aged 25-34 Living at Home

25Doubled-up Households

13%

14%

5,000

5,500

15

20

ns

12%4,50010

15

Mill

ion

11%4,0005

10%3,50019

8319

8519

8719

8919

9119

9319

9519

9719

9920

0120

0320

0520

0720

0920

1101

2007 2011

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Conclusion

PulteGroup: Well Positioned for Today and TomorrowMargin Expansion – continuing to build on our successes in capturing greater construction efficiencies and overhead leveragegreater construction efficiencies and overhead leverage

Land Strategy – working to maximize return opportunities within existing land portfolio while integrating selective new land positions

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 foperations and future growth opportunities

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

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Supplemental Non-GAAP Data

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Reconciliation of Non-GAAP DataThis presentation contains information about home sale gross margin reflecting certain adjustments. This measure is considered a non-GAAP financial measure under the SEC’s rules and should be considered in addition to, rather than as a substitute for, thecomparable GAAP financial measure as a measure of our operating performance. Management and our local divisions use this measure in evaluating the operating performance of each community and in making strategic decisions regarding sales pricing, construction and development pace, product mix, and other daily operating decisions. We believe it is a relevant and useful p p , p , y p gmeasure 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 such other companies.

The following table sets forth a reconciliation of this non-GAAP financial measure to the GAAP financial measure that management believes to be most directly comparable.

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Supplemental Non-GAAP Data – Adjusted Margin AnalysisThree Months Ended

March 31, 2012

December 31, 2011

September 30, 2011

June 30, 2011

March 31, 2011

($ thousands)

Home sale revenues $ 813 786 $ 1 167 141 $ 1 101 368 $ 899 763 $ 782 471Home sale revenues $ 813,786 $ 1,167,141 $ 1,101,368 $ 899,763 $ 782,471

Home sale cost of revenues (712,166) (1,021,873) (947,817) (789,678) (685,030)

Home sale gross margin 101,620 145,268 153,551 110,085 97,441

Add:

Impairments (a) 3,700 7,885 526 2,046 41

Capitalized interest amortization (a) 47,186 63,979 48,693 41,894 34,816

Adjusted home sale gross margin $ 152,506 $ 217,132 $ 202,770 $ 154,025 $ 132,298

Home sale gross margin as a percentage of home salerevenues 12.5% 12.4% 13.9% 12.2% 12.5%

Adjusted home sale gross margin as a percentage ofAdjusted home sale gross margin as a percentage ofhome sale revenues 18.7% 18.6% 18.4% 17.1% 16.9%

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

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