2018 Guide to Effective Proxies

2.17.3 Business strategy | 293 6 TH EDITION | GUIDE TO EFFECTIVE PROXIES Compensation Discussion and Analysis First American Financial Corporation 2018 Proxy Statement | 19 Note : The charts above reflect Company results under generally accepted accounting principles (“GAAP”). The Committee makes certain non-GAAP adjustments in connection with its compensation programs, which are further described below. Execution on Company Strategy During the year the Company successfully executed against its long-term strategic goals. Though market share in its United States title insurance business decreased slightly, the Company completed a number of strategic acquisitions designed to grow and strengthen the Company’s core title and settlement business over the long-term. The Company also invested heavily in technology aimed at increasing the efficiency of its operations, reducing risk and enhancing the customer experience. As a complement to its technology investments, the Company also invested heavily in its real property databases, already the most comprehensive of their kind in the United States. OUR VISION To be the premier title insurance and settlement services company Total Revenues (in billions) Net Income (in millions) $5.6 $5.8 $343.5 $421.9 2016 2016 11.9% 13.0% 11.7% Pre-Tax Margin (Title Segment) 12.1% Return on Equity 2017 2016 2017 2016 2017 2016 2017 2017 FIRST AMERICAN FINANCIAL CORPORATION