Q2 2023 Investor Presentation
Forward-Looking Statements
Items in this presentation, and statements by
uncertainties2 applicable to our business
© 2023
Built to Order Model Is a Key Differentiator
Advantages of Built to Order ("BTO")
Mitigates Risk
Aligns business to demand, as we build to our sales pace, not to a targeted delivery goal, which minimizes speculative inventory and margin variability associated with carrying a large number of finished, but unsold, homes in inventory
Operationally Efficient
Working from a large backlog of sold homes, we can manage starts to achieve even-flow production at the community level, generating efficiencies in overhead and cost to build
Higher Visibility
Even-flow production reinforces our preferred position with subcontractors and provides greater predictability on deliveries
Margin Enhancer
Opportunities for incremental revenue as well as margin enhancement through lot premiums, structural options and design studio upgrades
Drives Absorption
Selling and building the home the customer values helps drive absorption and customer satisfaction
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Monthly Absorption Rate per Community
6.3 |
|||
4.3 |
4.6 |
4.1 |
4.1 |
4.0 |
|||
3.0 |
3.0 |
2019 |
2020 |
2021 |
2022 |
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KBH |
Peer Group Average* |
||||
* Includes DHI, LEN, MDC, MTH, NVR, PHM, TMHC, TOL, TPH. Source:
© 2023
Built to Order Model Attracts Largest Demand Segments of Market
A Leader in the 1st Time Buyer Segment While Drawing a Mix of Buyers to Our Communities
Q2 2023 Buyer Profile
(Based on Homes Delivered)
15%
12%
48%
25%
1st Time |
2nd Move-Up |
|
1st Move-Up |
Active Adult |
|
BTO enhances |
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Position our product |
value through |
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Invest in land |
choice of lot, |
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to target the |
square footage, |
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positions within |
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median household |
floor plan and |
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prime growth |
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income in each |
elevation, and then |
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submarkets |
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submarket |
the ability to |
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personalize in our |
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|
While we primarily target the 1st time and affordable 1st move-up buyers, our model also appeals to 2nd move-up buyers and empty nesters who can make a different set of choices in the same community
4
© 2023
Dedicated to Providing World Class Customer Service
KB Home's personalized, customer-centricBuilt-to-Order business model enables us to develop long-term relationships with our customers- Our community teams partner with customers through each major step of their purchase of a KB home: sale - mortgage - studio - construction - closing
- post closing - Customers recognize the value of our partnership. Recent customer surveys conducted by an independent, third-party source such as TrustBuilder® has given
KB Home exceptional customer satisfaction ratings.
5TrustBuilder® data is based on an average of all ratings received from
© 2023
Attachments
Disclaimer
“Automated Consent Management Systems And Methods For Using Same” in Patent Application Approval Process (USPTO 20230169519): Rhinogram Inc.
Dislocated workers can get $500 per family member to help with insurance [The Mountaineer, Waynesville, N.C.]
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