William Lyon Homes (WLH) 8-K Submission of Matters to a Vote of Security Holders

Investor Presentation

June 2015

Exhibit

99.1

1

Management Presenter

Matthew R. Zaist

Chief Operating Officer &

President

Disclosure Statement

2

Certain statements contained in this presentation that are not historical information contain forward-looking statements, including, but

not limited to, statements related to: market and industry trends, the anticipated financial and operating results from execution of the

Company’s growth strategy and focus on markets in the Western United States, the continued housing market recovery, expected

community count growth, anticipated operating results for the second quarter of 2015 and the spring selling season, anticipated timing

of project openings and sales price ranges, sufficiency of lot supply, geographic mix of deliveries, and leverage ratio targets.

The

forward-looking

statements

involve

risks

and

uncertainties

and

actual

results

may

differ

materially

from

those

projected

or

implied.

The

Company

makes

no

commitment,

and

disclaims

any

duty,

to

update

or

revise

any

forward-looking

statements

to

reflect

future

events

or

changes

in

these

expectations.

Further,

certain

forward-looking

statements

are

based

on

assumptions

of

future

events

which

may

not

prove

to

be

accurate.

Factors

that

may

impact

such

forward-looking

statements

include,

among

others:

our

ability

to

realize

the

anticipated

benefits

from

the

acquisition

of

Polygon

Northwest;

our

ability

to

integrate

successfully

the

Polygon

Northwest

operation

with

our

existing

operations;

worsening

in

general

economic

conditions

either

nationally

or

in

regions

in

which

we

operate;

worsening

in

markets

for

residential

housing;

decline

in

real

estate

values

resulting

in

impairment

of

our

real

estate

assets;

volatility

in

the

banking

industry

and

credit

markets;

uncertainties

in

the

capital

and

securities

markets;

terrorism

or

other

hostilities

involving

the

United

States;

building

moratorium

or

“slow-growth”

or

“no-growth”

initiatives

that

could

be

implemented

in

jurisdictions

in

which

we

operate;

whether

an

ownership

change

occurred

that

could,

under

certain

circumstances,

have

resulted

in

the

limitation

of

our

ability

to

offset

prior

years’

taxable

income

with

net

operating

losses;

changes

in

mortgage

and

other

interest

rates;

conditions

in

the

capital,

credit

and

financial

markets,

including

mortgage

lending

standards

and

the

availability

of

mortgage

financing;

changes

in

generally

accepted

accounting

principles

or

interpretations

of

those

principles;

changes

in

prices

of

homebuilding

materials;

the

availability

of

labor

and

homebuilding

materials;

adverse

weather

conditions;

competition

for

home

sales

from

other

sellers

of

new

and

resale

homes;

cancellations

and

our

ability

to

realize

our

backlog;

the

occurrence

of

events

such

as

landslides,

soil

subsidence

and

earthquakes

that

are

uninsurable,

not

economically

insurable

or

not

subject

to

effective

indemnification

agreements;

changes

in

governmental

laws

and

regulations;

our

financial

leverage

and

level

of

indebtedness

and

any

inability

to

comply

with

financial

and

other

covenants

under

our

debt

instruments;

whether

we

are

able

to

refinance

the

outstanding

balances

of

our

debt

obligations

at

their

maturity;

anticipated

tax

refunds;

limitations

on

our

ability

to

utilize

our

tax

attributes;

limitations

on

our

ability

to

reverse

any

remaining

portion

of

our

valuation

allowance

with

respect

to

our

deferred

tax

assets;

the

timing

of

receipt

of

regulatory

approvals

and

the

opening

of

projects;

the

impact

of

construction

defect,

product

liability

and

home

warranty

claims,

including

the

adequacy

of

self-insurance

accruals,

and

the

applicability

and

sufficiency

of

our

insurance

coverage;

the

availability

and

cost

of

land

for

future

development;

and

additional

factors

discussed

under

the

sections

captioned

“Risk

Factors”

included

in

our

annual

and

quarterly

reports

filed

with

the

Securities

and

Exchange

Commission.

The

foregoing

list

is

not

exhaustive.

New

risk

factors

may

emerge

from

time

to

time

and

it

is

not

possible

for

management

to

predict

all

such

risk

factors

or

to

assess

the

impact

of

such

risk

factors

on

our

business.

California

54%

Nevada

14%

Washington

10%

Oregon

10%

Arizona

6%

Colorado

6%

California

43%

Oregon

15%

Washington

13%

Nevada

12%

Arizona

10%

Colorado

7%

William Lyon Homes “At-a-Glance”

One of the largest Western U.S. regional

homebuilders with operations in California,

Arizona, Nevada, Colorado, Washington and

Oregon

59 year operating history with 93,000+

homes sold

Provide a wide range of high-quality homes

and product to entry-level, first and second-

time move-up buyers, as well as luxury

product.

Leading market share positions in attractive

housing markets

Consistent growth and operating leverage

17,473 lots owned or controlled as of March

31, 2015

68 active selling communities as of May 3,

2015

3

Revenue

Closings

$944 million

$944 million

Seattle

Washington

East Bay

California

Nevada

Phoenix

Las Vegas

San Diego

Arizona

Los Angeles

South Bay

Orange County

Colorado

Fort

Collins

Denver

Oregon

1

TTM 3/31/15 and data includes $190.1 million in revenue and 518 closings from the Washington and Oregon

divisions subsequent to the closing of the Polygon Acquisition, which occurred on August 12, 2014.

High growth Western U.S. market focus

TTM Revenue and Closings by Division¹

1,865 homes

1,865 homes

Top 10 player in most of our markets, with improving market share

Top 10 in 2014 in Los Angeles, Orange County, San Diego, Contra

Costa and Santa Clara Counties, Seattle, Portland, and Las Vegas

Expansion into the Pacific Northwest further strengthens our market

positioning by adding two top 20 markets with very attractive

fundamentals

Well-positioned in our markets which have sought-after lifestyle

characteristics

Proximity to job centers and strong school systems

Improving employment and wage growth

Rising home prices and declining home inventories

Attractive climates with significant cultural and recreational

attributes

Leading Positions in High Growth Markets

Source:John Burns Real Estate Consulting

4

Source:Hanley Wood

Burns

Home

Value

Index

YoY

Price

Appreciation

Our Markets

2014 Hanley Wood market share rankings

As of December 2014

Projected Employment Growth-to-Permits Ratio

2015 and 2016 Combined  Annual Average

Source:John Burns Real Estate Consulting

(1) U.S. projection is preliminary estimate

Southern California

#8

Pacific Northwest (Polygon)

Los Angeles

#3

Seattle

#2

Orange County

#5

Portland

#2

San Diego

#6

Nothern California

#7

Nevada

Contra Costa County

#2

Las Vegas

#10

Santa Clara County

#4

32

56

68

75

12/31/2013

12/31/2014

5/3/2015

Estimated

mid-year 2015

California

35%

Oregon

20%

Washington

20%

Colorado

10%

Nevada

9%

Arizona

6%

Continued Growth and Diversification Through

Monetization of High Quality Land Positions

5

Total lots owned and controlled vs. years of land supply

1

Q1 2015 unit deliveries

Active selling communities

(As of)

Estimate approximately 75 active selling communities by mid-

year 2015, an increase of approximately 34% vs. Q4 2014

Continued diversification across markets

Continued growth in active selling communities

We own or control approximately 17,500 lots in some of the most dynamic and land constrained

markets in the Western U.S.

10,464

11,842

13,747

17,542

17,473

0

5

10

15

20

0

5,000

10,000

15,000

20,000

2011

2012

2013

2014

Q1 2015

12.5 years

10.1 years

7.8 years

Years of

supply

Total lots

17.0 years

7.3 years

12.5 years

10.1 years

7.8 years

Years of

supply

Total lots

17.0 years

7.3 years

California

30%

Washington

20%

Oregon

20%

Nevada

10%

Arizona

10%

Colorado

10%

Projected unit deliveries

(FY 2015 est.)

1

Years of land supply is based on active lots and actual TTM deliveries and does not include deliveries

from Polygon Northwest that occurred prior to August 12, 2014, the date of acquisition.

Key Investment Highlights

6

High quality land

positions to drive

continued growth and

diversification

Disciplined operating

strategy

Experienced

management team

High quality, diverse

product offerings

Leading local presence

in high growth

Western U.S. markets

Strong balance sheet

to support growth

High customer

satisfaction and

significant brand

loyalty

Positive operating

momentum

2014: A Year of

Continued Growth

Key Financial Metrics –

Our Strategies are Working

8

Home sales revenue of $857 million,

+64% y-o-y

Consolidated operating revenue of $897 million,

+57% y-o-y

Homebuilding gross margin of $179.5 million,

+55% y-o-y

Adjusted homebuilding gross margin of 25.2%

SG&A percentage of 11.7%,

-

110 basis points y-o-y

Adjusted EBITDA of $122.7 million,

+28%

Strong Operational Performance in 2014

9

1,753

new homes delivered,

up 29% y-o-y and the highest

total in 7 years

$489K

ASP of new homes

delivered, up 28% y-o-y

1,677

net new home orders,

up 27% y-o-y

56

new home communities at

year end, up 75% from YE ‘13

Strategic Expansion –

Polygon Northwest Acquisition

10

Strategic Rationale

Seattle Market Overview

Two of the most attractive and land-constrained markets in the country

Approximately 4,500 lots owned or controlled as of March 31, 2015

Complementary brands, high customer satisfaction and similar buyer demographics

Culture of disciplined land acquisition and lean operating team

Senior management team with extensive industry experience, strong market knowledge and deep

relationships

Portland Market Overview

Among the 50 most populous U.S. cities, Seattle has

experienced the 8th fastest population growth since 2010

One of the only five states with no state income tax

Favorable demographic and employment trends

Highly educated workforce with continued growth in tech jobs

expected to drive housing demand

Boeing, Microsoft, University of Washington and Amazon are

among notable employers

Low supply of available home inventory estimated at 1.5 months

supply

In

2014,

Oregon

was

#1

destination

for

interstate

migration

(1)

Key draws include Oregon’s robust infrastructure, abundant

outdoor spaces and attractive employment opportunities

Strong employment growth driven by high paying, well-known

companies attracting a well-educated work force

Intel, Providence Health, Oregon Health and Science University

and Kaiser Foundation are among notable employers

Intel recently announced plans to add 2.5mm sq. ft. of office/

factory

space

for

expansion

of

Ronler

Acres

campus

in

Hillsboro

Low supply of available home inventory estimated at 1.5 months

supply

1 

According to 37th Annual Migration Study conducted by United Van Lines

11

Seattle –

Active and Future Communities

The Washington Division presently comprises over 2,000 owned and controlled lots.

Polygon

HQ

Active Projects

Future Projects

Key Employers

Downtown

Boeing

7

2

Starbucks

Amazon

4

8

Boeing

10

5

Costco

1

11

6

Pierce

County

Snohomish

County

King

County

3

9

Microsoft

Owned - Active and Future Projects    

(as of March 31, 2015)

Year of

First

Delivery

Lots

Owned

Lots in

Backlog

Sales Price Range

(1)

  1) Issaquah

2015

365

           -  

$ 439 - $ 1,031

  2) Cascara

2014

44

15

$ 297 - $ 414

  3) The Brownstones at Issaquah

xxxHighlands

2014

   135

          31

$ 446 - $ 696

  4) The Towns at Mill Creek

xxxMeadows

2014

79

24

$ 249 - $ 376

  5) Bryant Heights

2015

89

           -  

  $ 536 - $ 1,300

  6) Ridgeview Townhomes

2017

41

           -  

$ 325 - $ 400

  7) Riverfront

2016

190

           -  

$ 230 - $ 450

  8) The Reserve at North Creek

2014

74

26

$ 465 - $ 595

  9) Silverlake Center

2015

100

           -  

$ 260 - $ 310

10) The Reserve at Maple Valley

2014

4

4

$ 390 - $ 446

11) Spanaway 230

2015

230

           -  

$ 200 - $ 315

Total . . . . . . . . . . . . . . . . . . . . . . .

1,351

100

Future Controlled

1

Dollars in thousands

12

Portland –

Active and Future Communities

The Portland Division presently comprises approximately 2,400 owned and controlled lots.

Clackamas

County

Multnomah

County

Washington

County

Polygon

HQ

Active Projects

Future Projects

Key Employers

Downtown

Nike

Xerox

FLIR

Mentor Graphics

Oregon Health &

Science Foundation

1

Intel

Intel

Hawthorne

Kaiser

Future Controlled

Owned - Active and Future Projects    

(as of March 31, 2015)

Year of

First

Delivery

Lots

Owned

Lots in

Backlog

Sales Price Range

(1)

1) Villebois

2014

        24

       13

$ 235 - $ 470

     Villebois Zion III

2014

      112

       18

$ 215 - $ 260

     Calais at Villebois

2015

        84

         7

$ 290 - $ 490

2) Grande Pointe at Villebois

2016

      100

        -  

$ 390 - $ 490

     Villebois V

2016

        93

        -  

$ 275 - $ 345

3) Sparrow Creek

2016

      205

        -  

$ 220 - $ 345

4) Baseline Woods

2014

      156

       22

$ 260 - $ 360

5) Murray & Weir

2014

        51

       12

$ 345 - $ 405

6) Twin Creeks at Copper

xxMountain

2014

        77

         9

$ 410 - $ 500

7) Bethany Creek Falls

2015

        71

       11

$ 260 - $ 510

8) Orenco Woods SFD

2015

        71

        -  

$ 290 - $ 370

9) Polygon at Sunset Ridge

2015

      104

        -  

$ 275 - $ 440

Total . . . . . . . . . . . . . . . . . . . . . . .

1,148

92

1

3

2

4

5

6

7

8

9

1

Dollars in thousands

Ongoing Momentum

in 2015

3/31/2015

3/31/2014

Change

Select operating statistics

New home orders

588

400

47%

Homes closed

388

276

41%

ASP (homes closed, $000s)

$489.0

$508.3

(4%)

Home sales revenue

$189.7

$140.3

35%

Homebuilding gross profit

$35.6

$34.1

5%

Operating income

$10.4

$15.8

(34%)

Net income to common stockholders

$6.7

$8.7

(23%)

Diluted EPS ($)

$0.18

$0.27

(33%)

Adjusted EBITDA

$23.0

$20.5

12%

Select margins

Adjusted gross margin

24.6%

27.8%

(320)

Gross margin 

(1)

18.8%

24.3%

(550)

SG&A margin

13.8%

13.3%

50

Three months ended

Summary financial information ($mm)

Summary of Q1 2015 Results

14

William Lyon Homes’ business has continued to improve across a number of financial and operating metrics

Homes Closed and Net New Homes Orders for Q1 are up 41% and 47% y-o-y, respectively

Home Sales Revenue of $189.7 million for Q1 is up 35% y-o-y

Adjusted EBITDA of $23.0 million for Q1 is up 12% y-o-y

bps

1

GAAP Gross margin for Q1’2015 was impacted by approximately 230 basis points due to purchase

accounting adjustments from the Polygon Acquisition. 

15

Monthly Sales Volume

Total Net Orders by Month (Units) –

Actual vs. Prior Year

% y-o-y change: 

+86%                                             +52%                                          +25%  

+148%          

2014       2015

90

124

186

114

167

189

232

283

January

February

March

April

Avg. Sales Locations (2015): 

55                                                           52                         

53                                                        62

Monthly Absorption Rate (2015):

3.0                                                          3.7                         

4.4                                                       4.7

Strong New Order Growth –

Trailing Twelve Months in Dollars

Over the last two years, the Company has more than doubled its trailing twelve month dollar value of new home orders

Approximately $268.2 million of net new home orders during Q1 2015

16

$355.3

$426.8

$492.8

$598.9

$666.3

$707.5

$764.4

$810.7

$879.7

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

TTM Dollar Value of Orders

($ Millions)

TTM Ending:

Up 32%

Y-o-Y

Strong New Order Growth –

Trailing Twelve Months in Units

Net home orders in units increased by 37% over the last year and 59% over the last two years

17

1,171

1,229

1,262

1,325

1,364

1,392

1,502

1,677

1,865

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

TTM Orders

(Units)

TTM Ending:

Up 37%

Y-o-Y

$398.3

$435.3

$415.5

$473.3

$572.5

$641.6

$690.0

$746.1

$896.7

$943.9

17.3%

16.3%

14.9%

14.0%

12.8%

12.4%

12.2%

12.4%

11.7%

11.9%

13.5%

12.0%

10.1%

9.4%

7.8%

7.6%

7.3%

7.1%

6.4%

6.2%

13.8²

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

0

100

200

300

400

500

600

700

800

900

1,000

Q4'12

Q1'13

Q2'13

Q3'13

Q4'13

Q1'14

Q2'14

Q3'14

Q4'14

Q1'15

Consistent Growth and Operating Leverage

Over the last three years, the Company has generated strong annual revenue growth and consistently lower SG&A

as a percentage of homebuilding revenue.

18

TTM Total Revenue

($ Millions)

TTM Ending:

TTM SG&A as a % of

Homebuilding Revenue

1

2014 SG&A excludes Polygon transaction fees of $5.9M.

2

Q1 2015 SG&A.

SG&A

1

G&A

$360

$481

$506

$1,161

Entry

1st time

move-up

2nd time

move-up

Luxury

19

We employ a diversified product strategy, even within the

same project footprint, allowing us to serve a wide range

of buyers and to adapt quickly to strengthening or

weakening market conditions

Typically target entry-level, first and second time move-

up buyers, and luxury buyers in select markets

Breadth of product and price point allows flexibility to

pursue a broader array of land acquisition opportunities

ASP of homes in backlog was $494K as of 1Q15,

demonstrating the higher percentage of move-up buyers

in our sales mix

ASP by Buyer Type

($ in ‘000s)

Units by Buyer Type

Entry

26%

1st time

move-up

36%

2nd time

move-up

33%

High Quality, Diverse Product Offerings

Buyer / Product Segmentation for Q1 2015

Q1 2015 Home Closings and Backlog

Home Closings

Backlog

ASP: $489K

ASP: $494K

$300k

19%

$301k

$450k

31%

$451k

$600k

32%

> $600k

18%

$300k

16%

$301k

$450k

30%

$451k

$600k

38%

> $600k

16%

Illustrative Product Offering

Luxury

5%

Experienced and Long-Tenured Management Team

General William Lyon

Executive Chairman and

Chairman of the Board

General William Lyon

Executive Chairman and

Chairman of the Board

William H. Lyon

CEO and Director

William H. Lyon

CEO and Director

Matthew Zaist

President and COO

Matthew Zaist

President and COO

Colin Severn, CPA

Senior Vice President, CFO

Colin Severn, CPA

Senior Vice President, CFO

59

31

Chairman of the Board since 1987; started in the homebuilding industry with his father in 1954

Elected to the California Building Industry Foundation Hall of Fame in 1985

17

17

Manages all strategic and operational aspects of William Lyon Homes

Previously served as EVP, Chief Administrative Officer, President and Chief Operating Officer

15

15

Oversees homebuilding operations and land acquisition

Previously served as EVP, Corporate Vice President of Business Development & Operations

Also served as the Company’s Director of Land Acquisitions for Southern California region

Prior to joining the Company, was a principal at American Management Systems

18

11

Manages all finance, accounting, reporting, treasury and investor relation responsibilities

Previously served as the Company’s Financial Controller

Previously held positions with Ernst & Young, Irvine Company and Standard Pacific Homes

Brian Doyle

SVP and President of

California Region

Brian Doyle

SVP and President of

California Region

26

16

Became President of San Diego Division in 2008, President of Southern California in 2009 and President of

the California Region in 2010

Became Vice President and San Diego Division Manager in 2006 after joining WLH in 1997

Mary Connelly

SVP and President of

Nevada Division

Mary Connelly

SVP and President of

Nevada Division

36

19

Has served in this capacity since rejoining the Company in May 1995 and founding the Nevada division

Served as Vice President of San Diego Division from 1985 to 1987

Eric Eckberg

SVP and President of

Colorado Division

Eric Eckberg

SVP and President of

Colorado Division

31

8

Has served in this capacity since the acquisition of Village Homes in December 2012, where he served as

President of Village Homes

Has more than of 25 years of senior level experience in community development in Colorado

20

(in years)

22

19

Derek Straight

SVP and President of

Washington Division

Derek Straight

SVP and President of

Washington Division

10

10

Joined William Lyon Homes in August 2014 through the acquisition of Polygon Northwest Homes

Has previously held positions as VP of Acquisition and Development and Development Manager for the

Washington market at Polygon Northwest

Fred Gast

SVP and President of

Oregon Division

Fred Gast

SVP and President of

Oregon Division

Joined William Lyon Homes in August 2014 through the acquisition of Polygon Northwest Homes

Has previously held positions as President and Senior VP of the Portland market, and Acquisition and

Development Manager at Polygon Northwest

Julie Collins

SVP and President of

Arizona Division

Julie Collins

SVP and President of

Arizona Division

30

14

Has served in this capacity since June of 2014

Previously served as SVP of Operations for the Company’s Arizona division

Previously was CFO of Continental Homes in Phoenix, Arizona

21

Drive revenue growth and profitability through community count growth and monetization of existing land supply

The vast majority of our projected home closings over the next three years are covered by current land inventory

Community count expected to grow from 56 at December 31, 2014 to 75 at mid-year 2015, representing an increase of 34%

Remain disciplined in land acquisitions to support future growth

Leverage long-standing local relationships with land sellers, master planned community developers and other builders

Employ land strategy that is dynamic, nimble and responsive to prevailing and projected future market conditions

Enhance our leading positions in current high growth Western U.S. markets

Leverage our long-term and strong reputation for superior quality and customer service

Maintain strict operating discipline focused on earnings and cash flow

Decentralized management approach allows for detailed knowledge of local market conditions

Optimize balance between opportunistic price increases and cost controls

Prudent focus on investor returns and balance sheet optimization

Substantial cash flow and earnings growth to reduce net leverage

Target 50% leverage on a debt / book capitalization basis by year-end 2016

Continued Execution of Our Tested Strategy

22

Thank you!

Appendix

Year over Year Comparisons

24

% y-o-y change: 

+8%                    +35%                   +60%                +47%                       

% y-o-y change: 

+47%                  +84%                 +30%                 +27%

% y-o-y change: 

+6%                     +56%                  +30%                  +38%                      

Net New Home Orders

Homes Closed

Backlog at Quarter-End ($ Millions)

Backlog at Quarter-End (Units)

% y-o-y change: 

(3%)                     +19%                  +83%                  +41%

2013       2014      2015

360

312

292

400

388

422

467

588

Q2

Q3

Q4

Q1

345

356

391

276

336

424

717

388

Q2

Q3

Q4

Q1

$207

$208

$200

$265

$303

$383

$260

$335

Q2

Q3

Q4

Q1

511

467

368

492

544

728

478

678

Q2

Q3

Q4

Q1

Bps y-o-y change: 

(140bps)          (560bps)             (790bps)             (320bps)

Year over Year Comparisons (continued)

25

% y-o-y change: 

+39%                  +39%                  +93%                +35%

Homebuilding Revenue

Adjusted Gross Margin

Q2

Q3

Q4

Q1

$141

$196

$183

$353

$140

$190

Q2

Q3

Q4

Q1

30%

25%

31%

24%

28%

25%

29%

27%

$121

$168

2013       2014      2015

Adjusted EBITDA

26

Adjusted Homebuilding Gross Margin

27

(1) Cost of sales excluding interest and purchase accounting adjustments