Rocket Companies, Inc. · NYSE:RKT
Rocket Companies — Investor Presentation (May 2022)
47 slides from Rocket Companies's investor presentation, May 2022
Slide 1: Rocket Companies Investor Presentation May 2022
Rocket Companies Investor Presentation May 2022 ROCKET Companies
Slide 2: Disclaimer
~~ ROCKET Disclaimer This presentation contains and related discussions may contain “forward-looking statements” within the meaning of U.S. federal securities laws. Forward-looking statements include information concerning possible or assumed future results of operations, Rocket Companies, Inc.'s (t
Slide 3: Starting With A Simple Idea...
Starting With A Simple Idea... In the early days of the internet era, our Founder company’s entire resourees to moving onne. “W E M U ST take this great technology to the internet” - DAN GILBERT, 1998
Slide 4: Building a Technology Giant
— ROCKET . . @ Companies Building a & Technology — Giant q #1 ROCKET «|| 36 Home You're pre-approved Year ender in fora loan up to Operating America H °456,000 7] 90%+ Net Net Client Promoter Max. loan amount $456,000 RetentioniRatal Score? Transaction 204M Volume Since fae . nique Inception Visitor
Slide 5: A Platform Creating Certainty in Life's Complex Moments
A Platform Creating Certainty in Life’s Complex Moments Personal Finance ROCKET Companies Home Auto Financing 6 Purchase Home Search “SPN ee Oe een, And Sales Ye ar A Solar y FOUNDATION: OUR CULTURE : %~ PILLARSOFTHE =. .. PLATFORM “@ Partners Technology Rocket Drives “ Cloud Force Efficiency Data S
Slide 6: Investment Highlights
= ROCKET Investment Highlights Companies The Rocket platform was built to transform complex transactions, driving long-term profitable growth at scale. Massive, Fragmented Markets 1 | 2 Superior Consumer Experience 3 Trusted, Digital-First Brand / 4 Platform Advantage Proven Leadership and Culture
Slide 7: Massive, Fragmented Markets
ROCKET ‘Companies
Slide 8: Massive Market Opportunity
Massive Market Opportunity Rocket competes in some of the largest, most complex segments of the economy: Mortgage Real Estate Auto Financial Services Solar 30% of U.S. GDP $6TN TAM ROCKET ‘Companies
Slide 9: Buying a home is the most stressful event
ROCKET Companies Many Americans, about 40%, say buying a new home is the most stressful event in modern life. - HOUSINGWIRE
Slide 10: Home Ownership Priorities are Accelerating
Home Ownership Priorities are Accelerating A demographic wave of almost 70M Americans aged 20-34 is entering home ownership for the first time, demanding digital transformation of the real estate experience. ROCKET Companies 759 Of clients using online platform are first-time homeowners or Millennia
Slide 11: Rocket is Positioned to Lead Our Industries
Rocket is Positioned to Lead Our Industries Our markets remain highly fragmented compared to other large industries that moved online earlier - like e-commerce, travel, or tax prep. Rocket is positioned to lead the digital transformation of our industries. 50% 40% 30% 20% 10% 0% ROCKET Companies MAR
Slide 12: Superior Consumer Experience
Slide 13: Superior Consumer Experience
Superior Consumer Experience ROCKET ‘Companies In complex transactions where the legacy experience can be confusing and discouraging, Rocket provides simple, fast, and trusted digital solutions. ROCKET Mortgage (698) 452-8179 TalkToUs TRADITIONAL INDUSTRY ROCKET Your Mortgage EXPERIENCE EXPERIENCE T
Slide 14: Simplifying Complex Transactions
ROCKET ‘Companies Simplifying Complex Transactions ROCKET Rocket's proprietary technology Rn raee Mortgage delivers a seamless digital You're pre-approved experience for our clients. fora loan up to °456,000 Goi That covers the basics. Now, let's talk numbers. Home price $330,000 Download your lette
Slide 15: Rocket's End-to-End Home Buying Experience
ROCKET Companies Rocket's End-to-End Home Buying Experience Cross-Sell Opportunities Home Search Home Buying & Selling Home Financing Home Closing Mortgage Servicing ROCKET ROCKET ROCKET AMmMROCK ROCKET Homes Homes Mortgage Mortgage alm @—-@O@—- @- @- @ Illustrative transaction: $13,500 + $3,000 GP
Slide 16: Expanding Across Product Categories
ROCKET Expanding Across Product Categories Leveraging advantages in client acquisition, data, and technology, the Rocket platform is expanding across complex transactions including home search and sales, automotive retail, personal finance, and residential solar ROCKETAUto 20 Mazda Cx-9 Why Rocket L
Slide 17: Powered by Proprietary Technology Stack
Powered by Proprietary Technology Stack Proprietary technology developed by 3,000+ technology and product strategy team members drives our entire operating process. DIGITAL POINT-OF-SALE PARTNER API PLATFORM Digital Software- Client Client Driven Servicing & Acquisition Workflows Retention Proprieta
Slide 18: Backed by the Rocket Cloud Force
ROCKET ‘Companies Backed by the Rocket Cloud Force Our highly-trained Rocket Cloud Force is focused on delivering award-winning client experiences and optimizing profitability. Sales Professionals Client interactions per month
Slide 19: Rocket Pro API: Extending to our Partners
~ Kea Extending to our Partners We enable clients to engage with the Rocket platform in the way that works best for them, including with our Rocket Professional partners CONSUNERID AT j j j iai j ij EN Consumer Contact or integrated directly in partner digital experiences via our APIs. pL) Record a
Slide 20: Rocket + Salesforce Partnership: Mortgage as a Service
Rocket + Salesforce Partnership Mortgage as a Service (MaaS) ROCKET + salesforce Mortgage We are extending our best-in-class mortgage technology platform outward to financial institutions. Banks and credit unions can focus on nurturing client relationships and offer mortgage more profitably. ROCKET
Slide 21: Rocket's Acquisition of Truebill
PR. aC Rocket's Acquisition of Truebill’ Rone ROCKET + &Truebill Companies Helping Consumers Manage Their Entire Financial Lives < . $50B #1 x ee Consumer Tech : =| dda Transaction Company? J Volume sae Analyzed/Month? 1.7M $100M+ Premium Annualized Paying Recurring Members? Revenue? Cancel subscrip
Slide 22: Trusted Digital-First Brand
Slide 23: Trusted, Digital First Brand
ROCKET Companies Trusted, Digital First Brand ROCKET | ROCKET 23
Slide 24: With National Brand Recognition
With National Brand Recognition Rocket's trusted, nationally recognized, digital-first brand, backed by billions of dollars of investment over many years, is a competitive advantage that is difficult to replicate. GE 28 » ‘tguge
Slide 25: Primary Mortgage Origination / Servicing
PRIMARY PRIMARY MORTGAGE MORTGAGE ORIGINATION SERVICING
Slide 26: Platform Advantage
4 Platform .. i! Advantage ° ONE 26
Slide 27: The Rocket Flywheel
ROCKET The Rocket Flywheel Companies The core of our economic flywheel is that we are constantly leveraging our profitability See Sie advantages to reinvest in the business, further strengthening our competitive position. pr P Proven Efficiency Share Gains Leveraging Data Lake Scaling New Businesses
Slide 28: Multiple Drivers of Growth
Multiple Drivers of Growth DIRECT-TO-CONSUMER * Investing in brand and client acquisition * Growing digital adoption RETAINING CLIENTS FOR FUTURE TRANSACTIONS + 90%+ Net Client Retention! + Lifetime repeat transaction and cross-sell opportunity ROCKET Companies PARTNER NETWORK + Extending brand and
Slide 29: Long-Term Mortgage Market Share Gains
ROCKET Companies Long-Term Mortgage Market H 8.8% Share Gains 7.8% 6.4% 5.1% 4 ao, 5.0% 5.0% 5 0% 4.4% 3.4%, 2.0% 1.3% Use $69 $77 $78 $57 $25 $28 $29 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 ll Rocket Originations ($ in B) —®=Rocket Market Share 29
Slide 30: Unmatched Scalability
Unmatched Scalability Rocket's technology-driven platform enables true scalability in large, complex markets that historically required manual operations, limiting the scalability of legacy players $206 bn Rocket Mortgage ROCKET Mortgage Note: Excludes correspondent volume Source: IMF, company filin
Slide 31: Proven Efficiency
Proven Efficiency ROCKET ‘Companies Highly efficient operating model with the ability to drive substantial scale from a single platform > 3x with limited incremental cost. Industry Average Transaction Volume per Production Team Member # of Loans per Production Team Member per 67 Month THO 2019 2021
Slide 32: Strong Client Base Unlocks Platform Potential
Strong Client Base Unlocks Platform Potential 90%+ Retention drives substantial lifetime value advantages, with repeat transaction opportunities across home, auto, personal finance, and other categories over the client's life. Net Client Retention Rate™ 90%+ 2017- Q1'22 (1) See #3 in endnotes for ou
Slide 33: Scaling New Businesses
Scaling New Businesses A key advantage of the Rocket Companies platform is our ability to test, launch and rapidly scale new business models. Average Unique Monthly Visits rm (1) See #4 in endnotes for details on our Gross Merchandise Value metric 2021 ROCKET Companies Rocket Auto Gross Merchandise
Slide 34: Proven Leadership and Culture
os Ae - 5) proven (Ui " Leadership and Culture e WORK HARD, PLAY HARD, | 4
Slide 35: Proven track record over decades
ROCKET ‘Companies Proven track record over 3 decades Current leadership team has been with organization more than 2 decades on average Robust pipeline of talent to continue to grow business 35
Slide 36: Rocket Companies Leadership
ROCKET Rocket Companies Leadership JAY FARNER BOB WALTERS Vice Chairman & Chief Executive Officer President & Chief Operating Officer Rocket Companies Rocket Companies 27 Years 26 Years JULIE BOOTH Chief Financial Officer & Treasurer Rocket Companies 19 Years © © ~~ TIM BIRKMEIER ANGELO VITALE BILL
Slide 37: Culture is Our Foundation
Culture is Our Foundation ROCKET Companies Dan Gilbert, our founder and Chairman, purposefully created a strong cultural foundation of core principles, or “ISMs”, as a cultural operating system to guide decision-making by Innovation is rewarded. all our team members. Execution is worshipped. Obsesse
Slide 38: Love Our Team Members
Love Our Team Members ROCKET Companies Our team members put the ISMs into action every day. The result is an empowered and passionate team aligned in a common mission. ESSENCE Forbes x00 Forbes FORTUNE e e e 2 e 4 e #1 Best The Best Best Best Companies #3 America’s Best 100 Best Workplace for Employ
Slide 39: Community commitment
ROCKET ‘Companies $500M — Next 10 years commitment to community programs ForMore Than om $200M+’ e if Contributed to community Profit 7) programs 800K+ * Volunteer hours nationwide 50%" Volunteer hours in Detroit (1) Reflects announcements by the Gilbert Family Foundation and our partner company, th
Slide 40: Appendix
Slide 41: Financial Highlights
Financial Highlights (Units in ‘000s and $ in M) Closed Loan Volume YoY Growth % QoQ Growth % Net Rate Lock Volume YoY Growth % QoQ Growth % Gain on Sale Margin Amrock Closings (units) YoY Growth % Rocket Auto car sales (units) Adjusted Revenue YoY Growth % QoQ Growth % Adjusted EBITDA % Margin Adju
Slide 42: Our Companies
Our Companies HOME SEARCH & SALES ROCKET Seamless, fully-integrated home Homes buying and selling experience via real estate agent network and home search site. AN Empowering sellers and FOR SALE BV OWNER buyers with the resources they need to sell or buy properties directly. AUTO PURCHASE Platform
Slide 43: Endnotes: Adjusted EBITDA Reconciliation
Endnotes Reconciliation of Adjusted EBITDA to Net Income ($ amounts in millions) Netincome Interest and amortization expense on non-funding debt Income tax provision Depreciation and amortization Share-based compensation expense Change in fair value of MSRs due to valuation assumptions (net of hedge
Slide 44: Endnotes: Adjusted Revenue Reconciliation
ROCKET Companies Endnotes 1. Three Months Ended March 31, Year Ended December 31, GAAP to non-GAAP Reconciliations Adjusted 2022 2021 2020 2021 2020 Revenue Reconciliation ($ amounts in millions) (Unaudited) (Unaudited) Total Revenue, net $2,671 $4,539 $1,344 $12,914 $15,650 Change in fair value of
Slide 45: Endnotes: Adjusted Net Income Reconciliation
Endnotes Three Months Ended March 31, Year Ended December 31, A 2022 2021 2020 2021 2020 Adjusted Net Income Reconciliation ($ amounts (Unaudited) (Unaudited) in millions) Net income attributable to Rocket Companies $54 $124 Ge $308 $198 Net income impact from pro forma conversion of Class D om 2,65
Slide 46: Endnotes
ROCKET Endnotes 2. “Adjusted EBITDA Margin” calculated as Adjusted EBITDA divided by Adjusted Revenue. 3. We define “net client retention rate" as the number of clients that were active at the beginning of a period and which remain active at the end of the period, divided by the number of clients th
Slide 47: ROCKET
ROCKET Companies