homes inspired by you® ANNUAL REPORT 2015 “Homebuyers are our inspiration, and we recognize that what sets us apart from our competition is our limitless dedication not just to selling homes, but to truly building relationships with our homebuyers.” AVERAGE ACTIVE SELLING COMMUNITIES HOME CLOSINGS TOTAL ANNUAL REVENUE REVENUE 206 $2.977 $2.890 BILLION BILLION 26% $2.708 259 INCREASE $2.620 BILLION BILLION NET NEW ORDERS 5,728 17% 6,681 INCREASE CLOSINGS $ $ $ $ 5,642 2014 2015 6,311 = 1,000 HOMES 12% INCREASE Dear Fellow SHAREHOLDER In the pages to follow, we are pleased to share with you our 2015 annual report, recapping a year in which Taylor Morrison continued on a path of tremendous strategic growth and organizational transformation. We began the year by completing the sale of our Canadian Each of these accomplishments and milestones homebuilding operations, which provided the financial is a result of our thoughtful and strategic approach foundation to pursue a number of strategic options to to running our business and has positioned Taylor better position our business by moving forward with Morrison on a trajectory for continued growth as a focus solely on the U.S. market. This strategy drove we progress through 2016. our acquisitions of JEH Homes in Atlanta and the Charlotte, Raleigh and Chicago divisions of Orleans Homes. In both Additionally, in 2015, we launched Inspired Title, our cases, these acquisitions helped us not only to diversify title services company, in Florida and Texas—allowing our geographic reach, but also to grow the breadth of our for an expanded suite of services for our customers. product offering. These new businesses have positioned We also announced the expansion of the Taylor Taylor Morrison for continued growth and success in key Morrison brand into the thriving Dallas market. And, markets. In addition to these acquisitions, we focused on in perhaps our most important metric—satisfied strengthening our balance sheet in 2015 by paying down customers—I am proud to share that Taylor Morrison a portion of our 2020 notes and refinancing the balance was named America’s Most Trusted™ Home Builder on more attractive terms. for 2016 by Lifestory Research, who asked nearly 40,000 consumers actively shopping for a new home But these are just a few examples of what we who they trust most—and we came out on top. accomplished in 2015. Other key operational milestones for the year included: These successes do not just happen. They are the result of hard work, the finest quality of craftsmanship • Increased average community count in our homes and a strategic vision for success and growth that has guided our business for years; they from 206 to 259, up 26 percent are what happens when all of our team members are • Increased net sales orders from moving forward as one under our four pillar strategy 5,728 to 6,681, up 17 percent focused on core locations, customer-centricity, cost • Increased home closings from efficiency and a balanced pricing strategy. 5,642 to 6,311, up 12 percent Homebuyers are our inspiration, and we recognize that • Increased total annual revenue what sets us apart from our competition is our limitless from $2.708 billion to $2.977 billion, dedication not just to selling homes, but to truly building up 10 percent relationships with our homebuyers. We seek to earn their trust at every touchpoint, and deliver not only a • Increased home closings revenue high quality home, but a unique and memorable home from $2.620 billion to $2.890 billion, buying experience. We sell more than houses. We sell up 10 percent community. We sell lifestyle. • Ended the year with a net debt-to-capital ratio of 41 percent FOUR PILLAR STRATEGY LOOKING AHEAD Taylor Morrison’s Four Pillar strategy has guided our TO 2016 AND BEYOND growth and profitability, leading to success across our We are extremely proud of our results in 2015, and as we look entire business: ahead to 2016, we recognize that the building blocks are in place Core Locations to continue the progress we achieved last year. We are aware that there could be challenges ahead in our industry in the Strategic management of our land portfolio, which enables coming year, particularly with regard to the availability of labor us to manage through an entire industry cycle, has allowed and certain macro-economic factors, but we remain optimistic in us to own and control some of the most desirable real estate our outlook for a strong year ahead. And we have already started in our markets. Our diligent and selective approach to new down the path to success in 2016 by completing the acquisition land acquisitions has allowed us to create a long-term land of Acadia Homes, which further strengthens our position in the bank focused on areas with job growth, services, schools, Atlanta market. and other important points of infrastructure strength. We are confident that our renewed strategic emphasis on Customer-Centricity our people, our customers, our processes and our portfolio will continue to position Taylor Morrison as a leader in our Our deep understanding of the needs, preferences and industry; a smart and deliberate approach to management desires of homebuyers allows us to provide home designs in each of these areas will allow us to achieve our goals of and communities in which our customers aspire to live. driving long-term shareholder value while building beautiful Whether its first-time, move-up, luxury or 55 plus buyers, homes for our customers. we are proud to offer homes, amenities and neighborhoods that offer the lifestyle our customers desire. In short, if we allow our people, who we believe to be the best in the business, to concentrate on making each and Efficient Cost Structure every customer experience a positive one, then we should expect our financial results to be amongst the best in class. Focusing on opportunities to improve efficiency and closely monitoring our costs allow us to continue to I thank you for your time and interest in Taylor Morrison Home provide top notch quality homes and buying experiences Corporation. Never has the future been brighter for our company, for our customers while maintaining our focus on fiscal and I could not be more proud to be a part of our team. responsibility. Our cost profile as a company has been one of the lowest in the industry for years. Sincerely, Balanced Pricing Strategy Our emphasis on operational excellence and efficiency allows us to maintain a balanced and competitive approach to pricing our homes. With a wide range of home styles and price points, we are positioned to optimize our profitability even as we continue Sheryl D. Palmer to evaluate our products, pricing and sales strategies. President and Chief Executive Officer HIGHLANDS AT SAWNEE MOUNTAIN | ATLANTA, GA STONEMILL FALLS | RALEIGH, NC OUR COMMITMENT TO SOLAR PROGRAMS SOCIAL RESPONSIBILITY Taylor Morrison is committed to incorporating renewable energy sources for our homes and communities. We work We recognize that a true home does not stop at the walls with local power providers and municipalities to offer solar or the property line. After all, a home is more than just a programs for residents and our communities. house. So when we talk about building a quality home for our OPEN SPACES customers, we also focus on building quality neighborhoods and communities. At Taylor Morrison that is our commitment Many of our developments incorporate open spaces to our customers. and conservation land, which not only contribute to the unique fabric of these developments, but preserve the Our company philosophy of giving back to the communities environmental integrity of the communities where they are in which we build homes provides us with opportunities located. In 2015, our Sea Summit at Marblehead community to engage in philanthropic efforts, making meaningful in California opened and, as part of that development, contributions to organizations that improve the quality of approximately 100 acres of protected mesa and canyon life in the cities and towns in which our developments are habitat will be donated to the public and managed by the located. One of the programs we are most passionate Center for Natural Lands Management. Additionally, we about is YouthBuild, a non-profit that provides young adults created four miles of public walking trails overlooking the in need with construction skills and education, giving them the opportunity to enter the workforce with a skilled trade Pacific Ocean that surround the community and the preserve. in the homebuilding industry, which further illustrates WATER EFFICIENT LANDSCAPE DESIGN our commitment to giving back and contributing to the communities where we do business. Environmentally conscious landscaping for homes can differ based on climate. What may be right in Atlanta or Charlotte Sustainability may not be right in Arizona, Texas or Southern California. In Our philosophy of being responsible to our communities order to help preserve water in and around our communities, includes being responsible to our environment, ensuring we strive to incorporate climate-friendly indigenous plants the longevity of our customers’ communities for into our landscape designs and use runoff water whenever generations to come. We are stewards of environmental possible. sustainability, building and designing features into our HIGH EFFICIENCY BUILDING SYSTEMS homes and communities that impact the long-term vitality of our neighborhoods as well as our planet. Some of our We incorporate energy efficient HVAC, plumbing, electrical sustainable initiatives that are part of our homes and and lighting systems in our homes, including new technology communities include: such as tankless water heaters, “smart” thermostats, weather-based irrigation controllers and much more. STEEPLE CHASE | ORLANDO, FL COUNTRYSIDE MEADOWS | CHICAGO, IL REFLECTIVE ROOFING Health & Safety Reflective roofing tiles reflect radiant heat energy instead At Taylor Morrison, we place a premium on health and safety of absorbing it, making it easier and substantially less in our workplace, particularly the home construction sites expensive for homeowners to keep their homes cool, while where we build each and every day.