Investor Presentaiton
3 |
kb 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
Monthly Absorption Rate per Community
6.3
4.6
4.3
4.0
3.0
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
2019
2020
2021
KBH
■Peer Group Average*
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
*
Includes DHI, LEN, MDC, MTH, NVR, PHM, TMHC, TOL, TPH. Source: Wolfe Research.
4.1
© 2022 KB HomeView entire presentation