Centex Green Residential Division Ezra Thomas Josh Smith

Centex Green Residential Division Ezra Thomas Josh Smith Nathan Lillemon

Mission Statement Our mission is to promote environmentally friendly home building methods and practices, and to enhance our communities through leadership in sustainable development.

Centex History n n n Building Homes since 1950. Over 8000 Employees. Over 12 billion dollars in home related sales annually. Responsible for first master planned housing community in the United States Highest ranked home builder on the fortune 500 list.

Centex Services § Centex has excelled for decades in Planned Home communities throughout the country, especially in the Western United States. § CTX Mortgage Service § Centex Pest Defense § Centex Insurance Service

Centex Services § Centex currently serves

Past Centex Developments §Silverado @ Laredo Ranch §Eastern Phoenix Development §Priced at 169 K-249 K §Parks and Sports Fields for Children. §Similar Location to Debut Green Community. §Similar Target Market as Centex Green Home Division

Past Centex Developments Cont… n n n Ocean Highlands Development Nearts, OR Geographical Specialized Development. Custom Higher End Community. Located in future expansion of Centex Green Home Division.

Green Experience n In 2002 the first "zero energy house" built in Northern California was done by Centex. n The 3, 070 -square-foot house has every environmentally friendly feature that Centex could incorporate. Recycled wood products are being used in framing; windows, appliances and the water heater are all energy efficient; the roof has been coated with a substance to reflect the sun's rays; fluorescent lights and fans will be installed; and cellulose insulation has been blown into the walls. n Shows consumers that extremely efficient homes are possible, as well as functional looking.

Green Experience §Upgrades That Centex Currently Offers Customer §Energy Star Appliances §Efficient Window Upgrade §High SEER HVAC Systems §Better Insulation §Tighter Ducts

Values n Responsibility to the environment n n n Customer Service Design n n Design Homes to Achieve a High Level of Efficiency LEED Silver Certification Smallest Footprint to Environment Consume Less Energy Why We Have Been So Successful in Past Quality Control n n Quality Control During Construction Process Documentation of All LEED Certification

Vision and Objectives n n Building Un-Precedented Green Communities n Third Party Ratings (LEED) n Build a High Quality Product Effective Marketing n Promote the Green Building Idea to the Public n Educate the Public on the Benefits of Green Building along with the utility savings n Expand Green Communities Into New Markets n Costumer Satisfaction n First Responsibility is to the Customers.

Competition KB Homes § Large National Competitors with Centex. § Large amounts of Capital to Start Green Division. § Over 30 Established Communities in Phoenix Area. § Market towards Younger Families.

Competition Cont… Pulte Homes § Pulte is a Very Strong Competitor With Centex in Virtually Every Market. Very Similar to Centex. § Pulte Won the Award For Best Home Builder in 2007. § Strong Reputation for Customer Service and Quality Homes. § Over 30 Communities in Phoenix Area.

Competition Cont… John Wesley Miller Companies & Etc § § Smaller Scale Green Home Builder in Southern Arizona. Does not have the Resources to Compete on Large Scale, but Many Smaller Custom Home Builders can Take a Good Portion of Market. Very Established in Local Area. Seems to Have Marketed to Local Green Buyers.

Goals n Centex Green Division Has Three Fundamental Goals. n n n Relaying Green Ideas to Public. Building High Quality Completely Sustainable Developments. Establishing Centex as a Cornerstone in Large Scale Green Building.

Goals Cont… n Relaying Green Ideas to Public. n Aggressive Marketing Campaign n n Advertising Through Newspaper, Radio, Billboards, and Trade Shows. Advertise More for the Green Process, than Centex. Create a need where there may have not been one. Stress the LEED accreditation that our homes carry. Stress Centex’s Strengths i. e. Financial, Insurance, and Quality Reputation.

Goals Cont… n Build High Quality Green Developments n n Differentiate Centex in the Market by Building Completely LEED Certified Neighborhoods. Build Long Lasting Relationships With Reputable Subcontractors. Ensure Quality Construction Practices, Through Trained Supervision Personnel. Ensure Home Buyers are Satisfied With Their Home.

Goals Cont… n Establish Centex as Foremost Green Builder n n After Debut Community, Expand Into Other Markets Receptive to Green Building in the West. By Going Green Early, We Can Establish Centex as the Most Recognizable Large Home Builder in Green Construction. We Must be Always Willing to Change With Technology. Must Stress Costumer Service to increase Word of Mouth Advertising, and Repeat Sales.

Target Market §Debut Community In Phoenix, AZ. §With Success In Phoenix, We Plan on Expanding throughout Arizona, and the Southwest i. e. NM, CA, NV, and Later the Mountain States and Northwest. §Targeting First time Home Buyers with Young Families.

Legal Issues n n n Not building on controversial land Providing Platinum and Gold LEED ratings Hire Reputable 3 rd Party Testing Agencies

Insurance n n n Self Insured Adding to current insurance policy Liability insurance w/ worker’s comp. Automobile liability Legal aid a necessity

Operating Capital n Addition of Employees for Green Division n n n n 1 Senior Project Manager 3 Project Managers 3 Assistant Project Managers 2 Estimators 3 Superintendents 3 Assistant Superintendents 3 Administrative Assistants 2 Traveling Tradeshow Hosts 1 Green Process Consultant

Operating Capital n Addition of Employees for Green Division n n LEED Certified Designers: n 1 Design Project Manager n 1 Civil Engineer/Site Planner n 1 Senior Architect n 2 Architects n 1 Mechanical Engineer n 1 Electrical Engineer n 1 Design Administrative Assistants INCREASED DEVELOPMENT SALARY = $4. 4 MILLION (Dollar Amount Based on 2 Years per Development = 2. 2 Million/Year)

Overhead Items Overhead Item Rent Worker’s Comp. Advertising Insurance Fuel Office/Cell Phones Electric Internet Legal Stationary Cards/Brochures Annual Cost $0 $252, 000 $250, 000 $93, 650 $40, 000 $18, 900 $4, 200 $2, 000 $500 $400 $300

Overhead Items Startup Costs/Expansion Capital 3 work trucks from fleet account Overhead Item Office Trailer Job Office Equipment, Supplies, Electronics Connex Storage Trailers Amount $36, 000 Cost per Job $1, 500 $2, 500 $500 Total Overhead for One (1) Year = $702, 450

5 Year Outlook n 1 st Year n n Marketing/Advertising Start Development – 50% pre-sold units or finished Build sales office & amenities center 2 nd Year n n Finish 1 st Community in Phoenix Continue Marketing/Advertising Expansion & addition of employees Start 2 new communities n Phoenix & CA

5 Year Outlook n 3 rd Year n n 4 th Year n n Finish 2 previous communities Branch out into other states in major markets n NV, OR, WA, CO, NM, & TX Sufficient profits to support green division independently of parent company Stabilize existing communities by adding more green homes 5 th Year n n Market research & exploration into eastern U. S. Acknowledged as green home leader of west-southwestern U. S.