The Raven, AZ

4th Quarter 2017 Webcast M.D.C. Holdings, Inc.

February 1, 2018

Forward Looking Statements

2

Certain statements in this release, including statements regarding our business, financial

condition, results of operation, cash flows, strategies and prospects, constitute "forward-

looking statements" within the meaning of the Private Securities Litigation Reform Act of

1995. Such forward-looking statements involve known and unknown risks, uncertainties and

other factors that may cause the actual results, performance or achievements of MDC to be

materially different from any future results, performance or achievements expressed or implied

by the forward-looking statements. Such factors include, among other things, (1) general

economic conditions, including changes in consumer confidence, inflation or deflation and

employment levels; (2) changes in business conditions experienced by MDC, including

cancellation rates, net home orders, home gross margins, land and home values and

subdivision counts; (3) changes in interest rates, mortgage lending programs and the

availability of credit; (4) changes in the market value of MDC’s investments in marketable

securities; (5) uncertainty in the mortgage lending industry, including repurchase requirements

associated with HomeAmerican Mortgage Corporation’s sale of mortgage loans (6) the

relative stability of debt and equity markets; (7) competition; (8) the availability and cost of

land and other raw materials used by MDC in its homebuilding operations; (9) the availability

and cost of performance bonds and insurance covering risks associated with our business; (10)

shortages and the cost of labor; (11) weather related slowdowns and natural disasters; (12)

slow growth initiatives; (13) building moratoria; (14) governmental regulation, including the

interpretation of tax, labor and environmental laws; (15) terrorist acts and other acts of war;

(16) changes in energy prices; and (17) other factors over which MDC has little or no control.

Additional information about the risks and uncertainties applicable to MDC's business is

contained in MDC's Form 10-K for the year ended December 31, 2017, which is scheduled to

be filed with the Securities and Exchange Commission today. All forward-looking statements

made in this press release are made as of the date hereof, and the risk that actual results will

differ materially from expectations expressed in this press release will increase with the

passage of time. MDC undertakes no duty to update publicly any forward-looking statements,

whether as a result of new information, future events or otherwise. However, any further

disclosures made on related subjects in our subsequent filings, releases or webcasts should be

consulted.

It should also be noted that SEC Regulation G requires that certain information accompany

the use of non-GAAP financial measures. Any information required by Regulation G will be

posted on our web site, www.mdcholdings.com.

The Lawson, NV

The Sage, NV

Overview

3

Q4 2017 vs. Q4 2016

• Net income of $24.6 million, or $0.43 per diluted share

vs. $40.4 million, or $0.72 per diluted share*

- Net charge of $9.3 million related to various tax items,

including the remeasurement of deferred tax assets

(following the enactment of the Tax Cuts and Jobs Act in

December 2017)

• Pretax income of $51.8 million vs. $59.0 million

- Q4 2017 includes $5.4 million of infrequent charges to G&A

related to accrual adjustments or tax planning strategies

• Home sale revenues of $702.6 million vs. $716.6 million

• Gross margin from home sales percentage up 120 basis

points to 17.3%

• Dollar value of net new orders up 23% to $574.3 million

- Monthly sales absorption pace up 31% to 2.7

• Ending backlog of $1.60 billion, up 16%

• 2,566 lots approved for purchase, up 64%

• 8% stock dividend in December 2017

• Quarterly cash dividend of $0.30 ($1.20 annualized)

declared in January 2018, up 20% from dividend

declared in October 2017

The Yorktown, CO

*All per share amounts have been adjusted as necessary for the 8% stock dividend declared and paid in the 2017 fourth quarter.

FY 2017 vs. FY 2016

• Net income of $141.8 million, or $2.48 per diluted share

vs. $103.2 million, or $1.85 per diluted share*

• Home sale revenues of $2.50 billion vs. $2.26 billion

• Dollar value of net new orders up 6% year-over-year to

$2.70 billion

• 10,382 lots approved for purchase, up 100%

• Backlog of $1.60 billion, up 16% year-over-year

• Pretax return on equity up 510 bps to 16.9%

• Liquidity increased 40% to $1.25 billion

- $150 million add-on issuance of senior notes due 2043 ($500

million total now issued)

- Homebuilding line of credit increased from $550 million to

$700 million in September (maturity extended to December

2022)

Homes Closed and Average Selling Price

4

46%

Beginning Backlog

Backlog Conversion Rate

(Closings as a % of Beginning Backlog)

76% % of Beginning Backlog Under Construction

3,448

45%

75%

3,463

$451.6 $452.5

$375

$400

$425

$450

$475

Q4 '16 Q4 '17

Homes Closed Average Selling Price

1,582 1,556

1,000

1,200

1,400

1,600

1,800

Q4 '16 Q4 '17

-2% 0%

($ in thousands)

Gross Margin

5

$72.7

$77.9

$60

$70

$80

Q4 '16 Q4 '17

Gross Margin $ from Home

Sales Per Home Closed Gross Margin % from

Home Sales

16.1%

17.3%

10.0%

12.5%

15.0%

17.5%

20.0%

Q4 '16 Q4 '17

+$5.2

+120 bps

(in thousands)

Homebuilding SG&A Expenses (incl. Corporate)

6

27.4 32.4 32.3 33.2

39.8

17.0 15.1 17.0 16.4

17.8

23.4 18.8 21.4 19.5

23.7

$0

$25

$50

$75

$100

Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17

$ i

n M

illi

ons

General and Administrative Marketing Commissions

$67.9

$81.4

$66.3 $70.7 $69.1

1,582 Home Closings

9.5% SG&A % of Home Sale Revenues

1,556

11.6%

$715.8 Home Sale Revenues (in millions) $702.6

The Citrine, CO

1,317

11.8%

$585.0

1,412

10.9%

$647.6

1,256

11.8%

$563.5

Net New Home Orders

7

$465.9

$574.3

0

100

200

300

400

500

600

700

Q4 '16 Q4 '17

Dollar Value of Net New

Home Orders

2.09

2.73

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Q4 '16 Q4 '17

Monthly Absorption Rate

Average Active Communities

Monthly Orders Per Active Community

163 152

Average Subdivisions

164 151

Ending Subdivisions

27% 22%

Cancellations -- % of Gross Sales

11% 10%

Cancellations -- % of Beginning Backlog

+23% +31%

(in millions)

Active Subdivisions

8

Average Active Communities

Monthly Orders Per Active Community

164 160

153 154 151

100

120

140

160

180

12/31/16 3/31/17 6/30/17 9/30/17 12/31/17

Active Subdivisions

21 20

24

13

24

33 34 31

21 22

0

10

20

30

40

12/31/16 3/31/17 6/30/17 9/30/17 12/31/17

Soon to Be Active / Inactive

Soon to Be Active Soon to Be Inactive

-7

“Soon to be active” = construction activities have commenced, but 5 homes not yet sold.

“Soon to be inactive” = between 5 and 10 homes left to sell.

-8 -14 -12 +2

*Based on last twelve months closings.

Lots Acquired and Land Spend

9

$94 $77

$126

$150 $143

$65

$53

$69

$67 $76

$0

$50

$100

$150

$200

$250

Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17

Land Acquisition Land Development

Land Spend

$217

1,133

1,313

1,582

2,004 1,898

0

500

1,000

1,500

2,000

2,500

Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17

Lots Acquired

$159

$130

$195

$219

$ in millions

*Based on last twelve months closings.

Lots Approved and Lot Supply

10

3.5 2.9

Years Supply of Lots Controlled* (including WIP)

1,560

1,985

3,342

2,489 2,566

0

900

1,800

2,700

3,600

Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17

Lots Approved for Acquisition

11,805 11,843 12,004 12,653 12,998

2,865 3,032

5,090

6,306 6,314

5,000

10,000

15,000

20,000

Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17

Owned Optioned

Total Number of Lots Controlled

3.4 3.1 2.8

14,670 14,875

17,094

18,959 19,312

Pretax Return on Equity

11

11.8%

13.4% 14.1%

17.7%

16.9%

5%

10%

15%

20%

Q4 '16 Q1 '17 Q2 '17 Q3 '17 Q4 '17Average Active Communities

Monthly Orders Per Active Community

+510 bps

Pretax Return on Equity (Last Twelve Months)

Auburn Streetscape, CA

Questions?

Reconciliation of Non-GAAP Financial Measures

13

“Net debt” and “net capital” are non-GAAP financial measures, and should not be considered in isolation or as an alternative to

performance measures prescribed by GAAP. The table below reconciles “net debt” and “net capital” to debt and capital as calculated

based on GAAP. We believe the ratio of net debt to net capital, also knows as “net debt-to-capital” is meaningful to investors as

management uses the ratio in understanding the leverage employed in our operations and as an indicator of our ability to obtain

external financing. Furthermore, we utilize this information for comparative purposes within our industry.

Homebuilding senior notes, net $ 986,597 $ 841,646

Revolving credit facility 15,000 15,000

Less:

Homebuilding cash and cash equivalents (472,957) (259,087)

Homebuilding marketable securities (49,634) (59,770)

Financial services cash and cash equivalents (32,471) (23,822)

Financial services marketable securities (42,004) (36,436)

Net debt 404,531 477,531

Stockholders' equity 1,407,287 1,320,070

Total capital $ 1,811,818 1,797,601

Ratio of net debt to capital 22.3% 26.6%

December 31, December 31,

2017 2016

(Dollars in thousands)

Reconciliation of Non-GAAP Financial Measures

14

“Gross Margin from Home Sales Excluding Inventory Impairments and Warranty Adjustments” and “Gross Margin from Home Sales

Excluding Inventory Impairments, Warranty Adjustments, and Interest in Cost of Sales” are non-GAAP financial measures, and should

not be considered in isolation or as an alternative to performance measures prescribed by GAAP. The table below reconciles each of

these non-GAAP financial measures to gross margin as calculated based on GAAP. We believe this information is relevant and

meaningful as it provides our investors and analysts with the impact that interest, warranty and impairments have on our Gross Margin

from Home Sales and permits investors to make better comparisons with our competitors, who also break out and adjustment gross

margins in a similar fashion.

Gross Gross Gross Gross Gross

Margin % Margin % Margin % Margin % Margin %

Gross Margin $ 121,203 17.2% $ 95,341 16.3% $ 108,692 16.7% $ 89,723 15.9% $ 115,026 16.1%

Less: Land Sales Revenue (1,609) (1,340) (1,351) (247) (770)

Add: Land Cost of Sales 1,768 1,259 1,202 211 669

Gross Margin from Home Sales 121,362 17.3% 95,260 16.3% 108,543 16.8% 89,687 15.9% 114,925 16.1%

Add: Inventory Impairments 620 4,540 - 4,850 3,873

Add: Warranty Adjustments 1,716 (425) - 50 2,400

Gross Margin from Home Sales

Excluding Inventory Impairments

and Warranty Adjustments 123,698 17.6% 99,375 17.0% 108,543 16.8% 94,587 16.8% 121,198 16.9%

Add: Interest in Home Cost of Sales 17,938 15,001 17,123 15,174 19,455

Gross Margin from Home Sales

Excluding Inventory Impairments,

Warranty Adjustments, and

Interest in Cost of Sales $ 141,636 20.2% $ 114,462 19.6% $ 125,722 19.4% $ 109,784 19.5% $ 140,698 19.7%

2017

(Dollars in thousands)

Three Months Ended

December 31, September 30, June 30, March 31, December 31,

2017 2017 2017 2016