REPORT - s25.q4cdn.com

ANNUAL

REPORT

2020

PERFORMANCE SNAPSHOT

TOTAL REVENUE

($MM)

+218%

$3,161

$2,536 $2,147 $1,424 $994

2016 2017 2018 2019 2020

HOME DELIVERIES

+235%

9,453 8,000 3,640 6,099 2,825

2016 2017 2018 2019 2020

NET INCOME

($MM)

+312%

$206

$113 $96 $50 $50

2016 2017 2018 2019 2020

NET NEW CONTRACTS

+278%

10,822

2,860

3,814

5,657

7,861

2016 2017 2018 2019 2020

"The strong foundation we've built solidly positions Century to achieve its next chapter of success. We're better positioned than ever before to capitalize on our continued momentum to drive accelerated growth, deliver improved operational performance and generate expanded profitability and returns."

DEAR

Fellow Stockholders

Despite its turbulence, 2020 proved to be a pivotal year in which we achieved record results, exceptional financial performance and our 18th consecutive year of profitability, all while navigating our business through a global pandemic. We have consistently been one of the fastest-growing builders which has resulted in us becoming the ninth-largest homebuilder in the country, with a national platform delivering homes across 17 states. Additionally, we've achieved consistent, double-digit home sales revenue and delivery growth, reflecting the power of our business model and proven ability to meet demand for affordable new homes across the country's most active housing markets.

This same time last year, we were bracing for the worst, anticipating state and federal lockdowns related to the impending COVID-19 health crisis to result in widespread economic slowdowns. As such, we took proactive action to strengthen our business and fortify our balance sheet, primarily by limiting spec construction and pausing land acquisition and development to cut costs and preserve cash. Our team members pivoted rapidly to online and virtual sales practices, displaying impressive ingenuity and ensuring safe and supportive conditions for our customers.

We adapted swiftly to the restrictions and challenges affecting our home selling and building processes, which, coupled with homebuilding's designation as "essential" across a majority of our markets during shutdowns, positioned us to advantageously respond to the pick-up in demand we began experiencing in May and June.

New home demand would prove to be resilient, with net sales hitting double-digit acceleration through the spring selling season. Remarkably, the industry tailwinds already at play at the start of the year would be enhanced by the pandemic, propelling increased buyer activity that would continue through the duration of the year. These improved fundamentals, combined with our portfolio of diverse offerings, dynamic competitive positioning and robust geographic footprint, enabled us to generate significant year-over-year improvement in virtually all metrics--including revenue, deliveries, sales, net income and stockholders' equity.

28

Markets

17

States

49,965 Lots

Century Communities Century Complete

2020

Highlights

We achieved multiple milestones in 2020, including record net new contracts and deliveries culminating in $3.2 billion in total revenues and $206.2 million in net income, with both of these achievements being the highest ever in our history. Demand was broadbased across our diversified, high-growth markets, with full-year net new contracts across our divisions increasing between 27% and 51%. Cumulatively, home deliveries increased 18% to 9,453 homes and net new home contracts increased 38% to 10,822 homes, the most in Company history. We also made significant progress in growing our backlog, ending the year with 3,439 sold homes with a value of nearly $1.3 billion.

In addition to realizing double-digit top-line growth, we generated impressive profitability expansion. Pre-tax income was a record $270 million and our pre-tax margin expanded to 8.5%, a 332-basis-point improvement over the prior year. EBITDA1 increased 71% to a Company record $354.2 million, reflecting increased cash flows, as we improved our nethomebuilding-debt to net-capital ratio1 to 27%, down 1,800 basis points from 45% at the end of last year. We expanded our total land position to nearly 50,000

lots while simultaneously growing our percentage of controlled lots to 58% from 52%, demonstrating our ongoing commitment to a land-light acquisition and development strategy. We ended the year with stockholders' equity of approximately $1.3 billion, a $200 million increase from the prior-year period.

We've made significant progress in enhancing our market share positions, enabling us to achieve increased scale and operational efficiencies across our organization. We're better positioned than ever before to capitalize on our continued momentum to drive accelerated growth, deliver improved operational performance and generate expanded profitability and returns. We've invested deeply into our platform and remain confident in our long-term prospects. While proud of all we have accomplished, we are even more excited for the long runway of opportunities ahead of us.

1 Included in this letter are non-GAAP financial measures. Please see page 73 of this report (reference to Non-GAAP Financial Measures in MD&A section) for a reconciliation of these measures to GAAP and a discussion of why we are presenting this information.

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